The warehouse used paper-based cart picking methods with manual sorting. Low levels of automation made it impossible to keep up with growing volume. The large warehouse area meant unproductive travel time for workers was long and tedious.
High Error Rate
With many SKUs and a large network of stores, the paper-based method led to frequent errors. A lack of digitalization made error discovery slow resulting in significant financial losses.
High Labor Costs
Seasonal peaks meant that many temporary workers were hired annually, resulting in high recruitment costs. Training time was high due to complicated processes for picking, checking, and sorting.
Low Degree of Automation
An intensifying competitive landscape, low levels of efficiency, and a high error rate made the need for digitalization more serious.