Logistics service provider sector: Warehouse under control, processes in flow.

The champions of the supply chain and how smart tools make them even better.

Logistics service providers are the silent clock behind a delivery, a parcel and full clothing stores. Nothing works without them. While everything outside is becoming faster, more networked and more demanding, the challenges inside the warehouses are increasing.

Manage transportation? Sure. Optimize warehouse processes? Logo. Organizing returns, handling customs and meeting the needs of different clients? Daily business.

So what does it take to stay in the game? More than a forklift truck. It's about smart tools, flexible strategies and the courage to rethink processes.

Our customers such as Meyer & Meyer, Streck, Nördlinger Verlagsauslieferung, Logistics & mohr and FIEGE do just that.

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What do logistics service providers do today?

Much more than just sending trucks from A to B. Today, modern logistics service providers handle the entire flow of information and goods for their clients. From the first order to the last return:

• Transportation (of course, but not only)
• Storage and order picking (the precise assembly of goods)
• Shipping and returns management (high-end challenge, especially in e-commerce)
• Goods handling (so that everything can change hands at lightning speed)
• Customs clearance (the supreme discipline for international shipments)

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‍Thechallenges are pretty tough:‍

1. Correct invoicing of logistics services.
   When every move counts, every move must be invoiced. Whether pallet, parcel or packing list - transparency is a must.
2. Efficient processing of many clients with a wide range of requirements.
   Every client is different. Special goods, special processes, special requirements. If you lose the overview here, you lose customers.
3. Mastering complex picking processes.
   From fashion to pharmaceuticals. Every product needs its own picking strategy. And it has to work - even if there's a fire in the warehouse.
4. Integrate new clients quickly.
   Speed counts in logistics. Onboarding processes that take weeks are no longer up to date.
5. Compensating for staff shortages.
   Skilled workers are rare. Efficiency and automation are no longer an optional extra, but a survival strategy.

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Smartsolutions that (really) help.

1. correct invoicing of logistics services.
Who pays for what? This question is essential. A logistics service provider needs to know exactly when, where and for how long a pallet was stored for client A or how many parts were picked for client B. Every work step and every movement must be precisely documented so that clients only pay for the services they have used.

Our answer: An integrated activity concept documents each individual movement and assigns it to a service number. This allows services to be billed transparently and individually. The entire documentation, including activity records, can be handed over to the client. For example: 10,000 items packed in envelopes and labeled, cost per item 2 cents.

Evaluations of stock levels, stock movements and incoming and outgoing goods are also possible. In the end, the client sees in black and white what he is paying for. Transparent, comprehensible and fair.

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2. efficient processing of many clients with very different requirements.
Every client is different. Different storage strategies, security requirements, shipping options, label specifications. Plus: data must remain strictly separated. And yet the process in the warehouse must remain smooth and efficient.

Our 1st answer: Multi-client management with inventory management by client, plant, part number, container and batch. The specific requirements for storage and logistics processes are assigned to the respective client. Strong security mechanisms and access controls also ensure strict data separation.

Our 2nd answer: Dashboard with client overview. This special dashboard helps to keep track of up to 40 clients including all orders. The control center sees immediately: Where is which order? What is open? Where is there a problem? With the help of this overview, employees can be better allocated or rescheduled at short notice.

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3. mastering complex picking processes.
The choice of the optimal picking strategy depends on the order volume, product type, resources, legal requirements and client wishes. Each client has its own processes. Logistics service providers have to map all of this quickly and without causing chaos in the warehouse.

Our answer: tailor-made picking strategies for every client.

1. Single order picking / one-step picking (single order picking): Each customer order is picked separately and in a single operation.
2. Series picking / two-stage picking (batch picking): Several customer orders are combined into one order batch and picked at the same time. The process has two phases:
   Phase 1 (pre-picking): All required items are collected in a large quantity, regardless of the specific orders.
   Phase 2 (detailed picking): The items are then allocated to the individual customer orders.
3. Zone picking (zone picking): The warehouse is divided into zones, each zone has specific articles.
4. Multi-order picking: Similar to serial picking. The employee picks items for several orders in one go and sorts the items directly into containers for the respective orders on a picking trolley.

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4. integrate new clients quickly.
For a logistics service provider, it is crucial to integrate new clients quickly and easily into the warehouse management software. The same goes for implementing change requests. Nobody wants to wait any longer. Especially not when a customer wants to outsource logistics.

Our answer: Multi-client management for new installations. This allows you to set up fixed clients, take individual customer requests into account and map legal and logistical requirements. Functions such as transferring existing processes, creating new areas and setting up new storage locations are also available.

Practical example FIEGE: Thanks to the multi-client capability, Fiege can use the same article number for different customers and store different process sequences.

Success Story: Future-oriented automation project: FIEGE relies on AutoStore and SuPCIS-L8.
Blog post: Top performance despite a shortage of skilled workers: How FIEGE overcomes logistics challenges with AutoStore and SuPCIS-L8.

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5. compensating for staff shortages.
The ongoing staff shortage and sickness-related absences are a major challenge. This problem is affecting the entire industry, as it is becoming increasingly difficult to find staff for logistics. Logistics service providers are doubly penalized if goods are delivered late or incorrectly. This annoys not only the clients, but also the end customers. The few employees are often overworked and this leads to failures and errors.

Our 1st answer: Automation with AutoStore
Are you considering an expansion or a new build? Then the flexible goods-to-person system AutoStore could be a solution. It allows you to manage stock in a highly automated way in a minimum of space. It is fast, efficient, scalable and perfect for absorbing staff shortages.

Our 2nd answer: Minimize walking distances
The "Warehouse Healing" strategy shortens picking distances and increases productivity. Pick faster. Less stress. More output.

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Another useful feature: external access or interface connection for clients.
If clients need daily information on their stock levels, they can do so without going through the logistics service provider. Our warehouse management system offers external access options or interface connections.

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In a world that is becoming ever faster and more networked, it is not just logistics service providers that are facing massive challenges, but almost every company:

• Data overload and information management: The speed at which data about orders, stock levels and delivery times pours in is brutal. If you don't keep an overview, you will end up in chaos faster than in the fast lane.
• Customer demands: Same-day delivery, 24/7 tracking, individual services - today's customers want nothing less than perfection. If you don't offer it, you lose.
  Complex supply chains: International transportation, different customs requirements, volatile markets - complexity has exploded. And with it the susceptibility to errors.
• Sustainability pressure: CO₂ reduction, green supply chains, climate-friendly transportation - everything has to become more sustainable. Fast.

Let's be honest: in this high-speed world, you need more than good nerves - you need smart tools, intelligent software, clever strategies and automation.

As a logistics service provider, you can master any challenge. Your warehouse, your playing field: ready for the next optimization? Get in touch.

Another blog article: How to manage your clients profitably as a logistics service provider.