Effective Order Fulfillment Strategies

Big thanks to Matthias Winkenbach and Eva Ponce from MIT Center for Transportation & Logistics, and Christopher Huber from Interlake Mecalux, Inc. for an eye-opening session on the role of AI in eCommerce. One of the biggest shifts is how we think about warehouses. They are no longer just storage and distribution hubs. They are becoming omnichannel fulfillment centers. With customers demanding next-day or two-day delivery, centralized fulfillment isn’t enough anymore. The solution is micro-fulfillment centers near cities, providing both speed and flexibility, and AI is playing a critical role in enabling this shift. Another key challenge is returns. Reverse supply chains are extremely costly for retailers, yet often free for customers. Smarter fulfillment and inventory placement strategies are needed to offset these costs while still keeping the customer experience front and center. AI is starting to transform how supply chains make decisions. The transition is moving away from static forecasting toward real-time, dynamic decision-making: ▶ More accurate demand forecasts, shifting from months and week to days and hours ▶ Smarter inventory ordering policies that adapt dynamically ▶ Real-time fulfillment choices that optimize cost and service The benefits are significant: ▶ Lower operating costs ▶ Better inventory utilization ▶ Improved resilience through flexibility and dynamic routing ▶ Higher levels of customer satisfaction Of course, there are still big challenges to solve. Data quality is often poor and inconsistent across systems. Scaling from prototypes to live deployments is difficult. Complex models that aren’t explainable are hard for teams to trust. And moving from heuristics to data-driven methods requires strong change management to build user confidence and skills. On the robotics side, controlling a fleet of AMRs is exponentially more complex than managing a single robot. AI is helping through: ▶ Intelligent dispatching, assigning tasks based not only on proximity but also battery levels, workload, and priorities ▶ Collective memory, where robots learn from obstacles (like a blocked aisle) and dynamically redirect each other in real time ▶ Seamless integration with other machines and humans, aiming to reduce training requirements while boosting safety and productivity The big picture: the future of supply chain will be data-driven, automated, and adaptive. Success will come from blending advanced technology with human trust, transparency, and the right skills. If you want to dive deeper into these concepts, MIT CTL has two excellent courses coming up: Supply Chain Analytics (SC0x) and Supply Chain Fundamentals (SC1x). For a limited time, you can get 30% off course verification with the code SKILLSEDX25 through September 10. ~Mr. Supply Chain® #AlwaysBeLearning #SupplyChain #MITCTL #AI

Amazon just announced a successful trial of its Vulcan robot in a German distribution center. This is news from the perspective that the robot arm handles dexterity very well. Unlike human hands a machine cannot feel an item. It's easy to crush something or to drop it. How did Amazon figure it out? Let's take a look. Vulcan is designed to stow and pick items in Amazon's mobile robotic inventory system. The retailer started a few years ago with its Sparrow system which has since evolved to handle over half a million different items. The retailer stows 14 billion items in its warehouses each year and aims to handle 80% of it through robots at 300 items per hour and 20 hours per day. Problems such as maximizing bin density remain, but the company is progressing. Its robots already work faster than humans. On the picking side, as mentioned, the issue has always been how to grab something gently. Vulcan's dexterity is based on a combination of force-feedback sensors, physical AI, and specialized end-of-arm tooling that, taken together, provide a sense of touch. Essentially, it handles a wide range of items with human-like finesse. The sensors measure force and adjust pressure accordingly. The end-of-arm tool uses a ruler to sort things. Vulcan also leverages a camera and suction cup. The camera identifies a target item and the best spot to grip, then monitors the process to ensure only the correct item is picked. Lastly, the system continuously learns so that each mistake improves the system through lessons that are propagated to all machines for future picks. Other companies including Tesla (Optimus), Google (ALOHA) and Boston Dynamics (Atlas) are also making quick progress in this area. Dexterity is a necessary capability enabling most use cases for robots. Once we reach it, things may well change quickly in factories, warehouses and eventually homes. #supplychain #truckl #innovation

You’re running a thriving retail business, your sales are soaring, and customer demand is through the roof. But behind the scenes, there’s a ticking time bomb—your inventory management. Stockouts, overstock, and delayed orders are quietly eroding your profits and customer satisfaction. Here’s the hard truth: In today’s fast-paced retail environment, outdated inventory management is a silent killer. It’s not just about knowing what’s in your warehouse; it’s about having real-time insights that empower you to make smarter decisions on the fly. Why does real-time inventory matter? Prevent Stockouts and Overstocks Real-time data gives you a clear view of your inventory levels at any given moment. No more guessing games or reactive reordering. You can see exactly what’s selling fast and what’s gathering dust, allowing you to adjust your orders accordingly and keep your shelves perfectly stocked. Boost Customer Satisfaction Imagine a customer walks into your store or clicks on your website to buy a product, only to find it’s out of stock. Frustrating, right? Real-time inventory insights ensure that your customers never face this issue. By knowing what’s available, you can promise—and deliver—on your customer experience every time. Optimize Your Supply Chain With real-time insights, you can spot inefficiencies and bottlenecks in your supply chain as they happen. This means you can quickly adapt, reroute shipments, or reorder products to keep everything running smoothly. It’s like having a 24/7 pulse on your entire operation. Increase Profit Margins Real-time inventory management isn’t just about avoiding losses; it’s about maximizing profits. By reducing excess inventory, cutting down on storage costs, and improving turnover rates, you’ll see a direct impact on your bottom line. Adapt to Market Changes Instantly The retail world moves fast. Trends change overnight, and customer preferences are fickle. Real-time insights let you react immediately—adjusting your inventory to meet new demands without missing a beat. It’s the difference between leading the market and playing catch-up. Retailers who embrace real-time inventory insights are not just staying afloat—they’re thriving. In an era where data is king, having the ability to monitor, analyze, and act on inventory data in real-time is no longer a luxury—it’s a necessity. If you’re ready to elevate your retail game, it’s time to ditch the outdated systems and embrace the power of real-time insights. The future of retail isn’t about guessing what’s next; it’s about knowing it. Let’s keep building. Follow Ekyam.ai #realtimeinsights #supplychain #b2b #Inventorymanagement

Because firefighting kills supply chain ... The document shows how to address common firefighting situations: 🔥 # 1 - The line shutting down because they are running out of an ingredient ↳ Check on available inventory at other plants and open purchase orders ↳ Call supplier(s) to ask for options ↳ Check BOMs (bills of materials) for substitutes 🔥 # 2 - Every week there are stockouts of corrugated boxes ↳ Document reason (production schedule changes, quality, etc) ↳ Per Pareto, identify the 20% root causes of 80% of the stockouts ↳ Re-calculate safety stock 🔥 # 3 - The packaging is going to arrive late ↳ Find out about expediting options; timing and cost ↳ Work with scheduler and/or supplier(s) to identify options ↳ Explore other sizes/ packaging alternatives 🔥 # 4 - The company needs materials asap but the containers from China will arrive in two months ↳ Determine quantity needed asap ↳ Ship air for urgent quantity and ocean for the balance ↳ Search local alternatives for the urgent quantity 🔥 # 5 - A truck with a delivery is coming but there is no space in the warehouse ↳ Work with supplier and/ or trucking company for alternate slots ↳ Identify nearby warehouses with space availability ↳ Look into bill and hold agreements for the future 🔥 # 6 - There is a pile of aging inventory ↳ Perform segmentation to prioritize (e.g. dollar amount, expiry date) ↳ Identify potential use and timing ↳ Explore options with suppliers and marketing and sales teams 🔥 # 7 - A raw materials delivery gets rejected due to quality issues ↳ Reach out to the supplier to get a replacement batch ↳ Check on availability on the material with alternate suppliers ↳ Work with production scheduler on potential changes Any others to add?

📦 2025 Predictions: Data and AI in Supply Chain Management 🚀 Over the years, I have emphasized the importance of data visibility and management in supply chain management (SCM) to unify upstream and downstream processes. I have focused on enhancing data integration and utilization through Machine Learning (ML) and Artificial Intelligence (AI). Although my teams and I have achieved remarkable results, we have just begun to tap into the vast potential of data and AI in SCM and operations. ✨ As we enter 2025, several key advancements and trends in AI agents will redefine user experiences, significantly enhance autonomy in SCM, and unlock essential efficiencies and competitive advantages. 🔮 These predictions reflect the evolving landscape of AI and its integration into our industry: 1. Increased Autonomy: AI agents will evolve to operate autonomously in complex environments, enhancing decision-making capabilities. Real-time analysis of large datasets will empower AI agents to make informed choices throughout the supply chain, minimizing the reliance on human intervention. 2. Natural Language Processing (NLP): Advancements in NLP will empower AI agents to engage in more sophisticated, human-like conversations. This will foster seamless communication among stakeholders, facilitate information sharing, and enhance collaboration across the supply chain. 3. Personalization: AI agents will utilize advanced algorithms to deliver highly personalized recommendations and interactions, tailoring services to align with user preferences and behaviors. 4. Enhanced Collaboration: AI agents will streamline data exchange among stakeholders, from suppliers to retailers. Enhancing visibility into inventory levels, order statuses, and supply and demand forecasts will allow for informed decision-making and reduce delays. 5. Integration Across Platforms: Seamless integration of AI agents across various platforms will become standard practice, ensuring a cohesive user experience. The proliferation of AI agents will bolster supply chain resilience, enabling swift responses to disruptions. 6. Ethical AI Development: There will be a greater emphasis on ethical considerations in AI development as customers adopt guidelines to ensure fairness, transparency, and accountability in the actions of AI agents. 7. Training and Development Customers will utilize AI agents to support new training programs to provide personalized learning paths based on employees’ data proficiency levels. 🤖 The deployment of AI agents will significantly enhance the autonomy of supply chains, leading to improved efficiency, reduced costs, and increased responsiveness to market changes. #Accenture #SupplyChain #AI #2025 #2025Predictions #Innovation #AIagents #ML #genai #SCM #EthicalAI #data

Imagine Barry's frustration as 40% of his e-commerce margins vanished into shipping costs. 📦💸 His business was growing, but profitability felt like an endless battle against logistics expenses. Ever faced a similar challenge? Barry's situation was all too common in our industry. Expensive carriers for every shipment, oversized packaging driving up costs, and zero visibility into supply chain operations were creating the perfect storm. Here's how we streamlined operations at our state-of-the-art facilities and achieved a remarkable 60% cost reduction: 🚀 Optimized carrier selection: We analyzed shipping patterns and matched each order type with the most cost-effective solution, reducing average shipping costs by 35% 📦 Right-sized packaging solutions: Implemented automated packaging optimization that eliminated dimensional weight charges and cut material costs by another 15% 🏢 Strategic 3PL partnerships: Connected Barry with facilities in optimal locations, cutting warehousing costs by 25% while improving delivery times 📊 Enhanced real-time visibility: Integrated inventory management systems that prevented costly stock discrepancies and boosted customer satisfaction scores by 40% The results went far beyond cost savings. Barry's delivery times improved from 5-7 days to 2-3 days for 97% of his customers. Through white label fulfillment solutions, his brand maintained its identity while customer complaints dropped by 70%. Most importantly? Barry shifted from wrestling with daily logistics fires to focusing on business growth and scaling his operations. The key insight: Complex supply chain challenges require strategic, data-driven approaches rather than quick fixes. What logistics challenge is currently holding your business back? 🤔 #EcommerceSolutions #LogisticsExcellence

When Dr. Miguel Rodríguez García of MIT Center for Transportation & Logistics and myself wrote the "warehouse of the future" paper ( https://lnkd.in/gFFiCAQR ) just a year ago, we took into account AI impact on warehouses, but with the rapid emerging capabilities of AI and it latest wave - Agentic AI, there is so much more that we will see coming. Agentic AI will revolutionize the warehouse of the future by enabling fully autonomous, adaptive, and highly efficient operations. Intelligent systems will manage inventory, optimize storage layouts, and orchestrate fleets of autonomous robots to handle picking, packing, and shipping with minimal human intervention. These AI-driven warehouses will continuously analyze real-time data to predict demand, reduce bottlenecks, and adjust workflows dynamically, maximizing productivity and minimizing costs. Moreover, agentic AI can integrate seamlessly with supply chain networks, providing end-to-end visibility and enhancing resilience to disruptions. By automating complex decision-making and operations, agentic AI will create smarter, faster, and more sustainable warehouse ecosystems. We are finally starting to see the light at the end of supply chain efficiency's tunnel. What do you think? #supplychain #innovation #Agentic #AI #automation Photo credit: DALL-E (another AI tool)

Ever ordered multiple items from CVS/Walgreens on Uber eats, only to receive one because the others were out of stock? It’s frustrating for customers, but for Fortune 500 brands, it points to a much bigger issue—massive revenue loss. And let’s not forget—it’s also an awful experience for delivery drivers, who waste time picking up incomplete orders. Out-of-stock issues cost retailers an estimated $1 trillion globally in lost sales each year. The root cause? Disconnected inventory and transportation systems. Without real-time integration, stock levels can’t be updated fast enough to meet demand, leaving shelves—and customer carts—empty. For Fortune 500 companies, this means billions in missed revenue, dissatisfied customers, and frustrated delivery drivers. The solution? Real-time supply chain visibility, smarter consolidation, and the ability to dynamically replenish stock. By partnering with tech-enabled transportation providers and deploying smaller, agile vehicles, brands can quickly restock high-demand stores, reducing frustration for both customers and delivery drivers. Third-party cross-docking facilities can be a game-changer here. Acting as holding hubs, they consolidate inventory from multiple sources to optimize efficiency. Cross-docks reduce transportation costs by grouping shipments and enable brands to pivot quickly to dynamic replenishments for stores in urgent need. Smaller vehicles can handle real-time, just-in-time deliveries, avoiding the delays of traditional warehousing. In today’s market, speed, precision, and flexibility are essential. Forward-thinking transportation leaders are already investing in real-time visibility, cross-docking, and agile fleets. Those that act now will minimize stockouts, control costs, and improve the experience for both customers and drivers.

Looking at new 3PLs? Ask them who runs their demand planning and how! If you're evaluating a new 3PL, don’t just tour the warehouse and nod at the tech stack. You need to ask, “Who’s actually helping me stay in stock without going broke doing it?” Because that’s what separates good from great. You want to know: → Do they have someone watching your inventory levels daily? → Can they explain how they handle high turn vs slow mover SKUs? → Do they track lead times and reorder points with real data not gut feels? → What happens when a forecast is wrong? Do they fix it, or do you find out in a CS ticket? → Are they proactive, or do they wait for panic mode? A good demand planning team is your early warning system. They’ll tell you when you’re at risk of stockouts, flag weird velocity shifts, and help you plan promos without running your ops team into the ground. A bad one? They’ll wait until it’s too late and hit you with “we didn’t get the PO in time.” That means you become the demand planner. And if you wanted that job, you'd have applied for it. The best 3PL’s are thinking 3 steps ahead with you. So if you're shopping around, make sure they can actually plan, not just pick and pack.