Top 5 sortation challenges facing post and parcel operations
The digital age has transformed the postal sector, offering alternatives for personal correspondence, billing, advertising and news, while driving the growth of e-commerce. Increasing parcel volumes, aggressive delivery timelines and other pressures confront operations with unprecedented postal processing challenges.
These topics will be the focus of the educational sessions and solution demonstrations at the National Postal Forum, May 21-24 in Baltimore. For a preview of what's to come at NPF, read on for the top five challenges facing parcel and postal sortation operations today.
Challenge 1: Package variety
E-commerce is the fastest growing retail segment, with direct-to-consumer orders accounting for over half of shipping volume since 2014. In addition to flats and letters, this challenges postal sortation solutions with a variety of product sizes and shapes like soft packs, polybags and corrugate boxes. And this shift is not yet complete - while most parcel volume is currently between 44-88 pounds, the dominance may switch to small packets less than 4.4 pounds. The variety of packaging types forces postal operations to find sortation solutions with the capability to keep up. For example, sliding shoe, tilt-tray and cross-belt sorters provide fast, gentle handling of letters, soft packs, polybags, corrugated cases, cartons, totes and other odd or oversized items.
Challenge 2: Volume
In addition to a variety of package types, postal sortation systems must process growing order volumes. While traditional mail volume has remained relatively flat since 2012, USPS has seen significant increases in package deliveries, driven by e-commerce. In that sense, postal operation sortation systems have adopted many of the same characteristics of sortation solutions for e-commerce. Serving this expanded volume has also driven major logistics companies to expand their operations, opening up one or two new regional sorting hubs, on average. Sortation solutions must offer the necessary throughput speed and scalability to deliver dependable, accurate throughput during seasonal spikes or long-term growth in volume. Tilt-tray and cross-belt sorters are capable of delivering the necessary capacity and speed when handling the wide-ranging product mix of post and parcel sorting environments.
Challenge 3: Automation integration
Automation offers a solution to improve overall postal operator efficiency. Part of this benefit comes from streamlining processes and reducing manual touches, helping protect operations from labor shortages as demographic shifts make their mark on the workforce. In modern processing centers, these automated systems include more than just sortation, as a variety of transportation and diverting functions can be automated. Putting conveyor, sortation, software and other technologies together requires deep integration experience and the capability to handle emerging technologies. As more businesses adopt the Internet of Things, data gathered from automation can help fuel this data-driven quest for greater efficiency and transparency. More post and parcel logistics processes continue to be automated, with significant increases in drone use over the last two years as companies explore adopting them as an everyday delivery solution.
Challenge 4: Customer expectation
At the click of a mouse or tap of a touch screen, consumers expect quick access to a variety of products from virtually anywhere. Keeping up with aggressive delivery timelines requires order fulfillment solutions that leverage sortation for greater efficiency inside and outside the four walls, setting up downstream logistics processes for success. For example, sequentially releasing orders to match delivery routes offers greater efficiency after leaving the processing hub. Furthermore, postal operators and retailers must collaborate to enable different delivery features, such as click-and-collect, parcel lockers and delivery time visibility into logistics processes. In the race for speed and transparency, postal operators must adapt their logistics and IT processes to keep up.
Challenge 5: Space utilization
As population dynamics shift and more people move to cities, carriers must serve greater volumes in areas with limited, more expensive real estate. Instead of building out, these conditions encourage postal operations to build up and increase storage density by adopting vertical storage solutions. Implementing vertical sortation solutions saves valuable floor space and can save money - helping avoid the cost of expansion or new construction.
To learn more about innovative sortation solutions designed to overcome the challenges facing post and parcel operations, visit USS, an Intelligrated company, at NPF booth #309 or email email@example.com to schedule a meeting at the show.