Case Study:
Background: Liqun is a comprehensive large-scale commercial group in China, operating across regions and multiple formats, and has been a leader in the retail and commercial logistics fields for many years. Currently, the group owns more than 100 shopping malls with a business area of over 10,000 square meters each, 10 star-rated hotels, and 6 large-scale logistics centers, forming a diversified development pattern. As a listed company, the group has consistently ranked among the top 30 in China's top 100 chain enterprises for many years. However, the retail industry is currently undergoing rapid changes. Consumer demands are becoming more diverse, product varieties are increasing, and time differences are significant. The sales situation of supermarkets is difficult to predict, requiring flexible allocation capabilities. Lianhua supermarkets are facing several major challenges:
High-frequency, small-batch order processing: With the popularity of online shopping, consumer purchasing habits are becoming increasingly fragmented, and orders are characterized by high frequency, multiple varieties, and small batches. The manual picking method struggles to effectively meet these complex and changing demands, affecting order processing speed and accuracy.
Increased pressure on inventory turnover: Daily commodity categories are diverse, and the pace of updates and replacements is fast. Manual inventory management faces difficulties in searching and counting errors, leading to low inventory turnover efficiency and increased risk of unsalable inventory.
Cost control challenges: Facing the trend of rising labor costs year by year, especially the need for a large number of temporary workers during peak periods to meet order demands, the labor cost in the logistics process has become a major burden.
Customer service expectations: Modern consumers have increasingly higher expectations for delivery timeliness, product quality, and intact packaging. Traditional logistics operations cannot fully meet these refined service requirements.
Solution:
After thorough site surveys and needs analysis, we recommended the adoption of tilt tray sorting machines as the solution for Liqun.
Project Scale: 736 trolleys, 600 destinations, 12 input stations.
Implementation Time: From March 5, 2019, for planning and design to project completion on May 7, 2019, it took 62 days.
Effect Display: After the introduction of turnover sorting machines, picking speed significantly increased: The efficient operation of turnover sorting machines increased picking speed by 60%, greatly reducing order processing time and improving overall logistics efficiency. Picking error rates significantly decreased: Advanced image recognition technology improved picking accuracy to 99.9%, greatly reducing picking errors and ensuring accurate delivery of every item to customers, thus enhancing customer satisfaction. Cost optimization and service upgrade: The introduction of turnover sorting machines reduced labor input by 40%, lowering labor costs and optimizing overall operational efficiency.
Manual picking of daily necessities usually involves a large number of product types and quantities, resulting in a cumbersome and time-consuming picking process. Manual picking struggles to cope with peak periods or large order volumes, affecting overall logistics efficiency.
Due to the wide variety of daily necessities, manual picking processes are prone to classification errors, missed picks, or mispicks. This not only affects customer satisfaction but may also result in additional costs such as returns or exchanges.
Due to the wide variety of daily necessities, different pickers may pick according to their own understanding and experience, resulting in inconsistent picking criteria, affecting subsequent delivery and inventory management efficiency.
In the manual picking process, improper operation or negligence may lead to product damage or loss, increasing the company's cost losses.
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Automatic sorting equipment can continuously and in large quantities perform picking operations without being limited by time and manpower, greatly improving picking efficiency.
Automatic sorting equipment can reduce reliance on manual labor, lowering labor costs and reducing the labor intensity of employees.
Automatic sorting equipment can accurately identify product information through advanced recognition technology, reducing picking errors.
Automatic sorting equipment can reduce product impact and collision during the picking process, thereby reducing product loss rates.
