Traditionally, contract logistics was primarily focused on the storage and handling of “large units,” such as full pallets and cartons. Preparing individual items for sale was the responsibility of the stores themselves, which was considered the best way to reduce costs within the supply chain. However, consumer habits have changed drastically in recent years, which has resulted in the strong growth of B2C business (e-commerce, etc.), chains of small and medium-sized convenience stores, and an increase in the range of goods in traditional stores.
For logistics, these changes meant major shifts in the way products and flows are handled. Logistics operators had to adapt to this evolution and solve the equation: shorter delivery time + smaller order + lower costs.
– A few years ago, most of our clients approached us asking about the possibility of preparing and delivering full pallets and/or cartons. We designed our warehouse processes to ensure their efficient flow. Handling traditional distribution channels is, of course, still a very important part of our operations, but currently, more than half of the new clients served globally by the ID Logistics Group are e-commerce companies or those for whom e-commerce is a significant part of their business – said Yann Belgy, CEO of ID Logistics Poland.
Additionally, industries such as cosmetics, apparel, luxury goods, or convenience store chains often expect the delivery of just a few pieces of a specific item rather than entire cartons or pallets. Such “detail picking” requires the logistics operator to have specific organization and processes aimed at optimizing storage, order fulfillment time, and handling costs. To succeed, it is not enough to just make a decision and simply offer clients these types of services. This requires specific know-how and large investments. So, how did ID Logistics, a logistics operator previously specializing in handling “large units,” manage to achieve a strong position in the detail picking sector?
– Innovation and the ability to adapt to changing client needs have been an integral part of our DNA from the very beginning. It has always been natural for us to accompany our clients, look for new solutions, and invest in sectors that expect our support. The ID Logistics Group recognized detail picking as a strategic development opportunity. In 2013, it decided to acquire CEPL, a 3PL operator specializing in this sector. At the same time, the Group was developing its IT potential and created a specialized R&D department, which allowed it to gain know-how and support client operations in each of the 14 countries where it is present, combining specialized knowledge with the ability to adapt to local specifics. Thanks to these moves, we can now offer our clients proven and effective solutions, such as automated warehouses, process mechanization, pick/put-to-light, mezzanines, dynamic shelving, sorters, belt conveyors, etc., as well as tailor-made innovative solutions adapted to their specific needs – said Marzena Wal, Commercial Director of ID Logistics.
Will ID Logistics launch a fully automated warehouse in Poland, as is the case in Western Europe?
– We do not offer our clients solutions just because they look good, but because they are effective and pragmatic. Currently, the cost level in Poland is more competitive than in Western European countries, which is why there is no economic justification for implementing fully mechanized solutions. This will gradually change along with the planned increase in the cost level in Poland and the emergence of cheaper and more flexible solutions. From another point of view, automation can also be a support for us where it is difficult to hire employees and/or when order fulfillment times are very short. These types of investments require good preparation and a longer depreciation period, which is not always possible in the case of contract logistics operations. Therefore, we are increasingly proposing partially automated solutions to our clients, which are a good combination of cost-efficiency, quality, reactivity, and flexibility. These types of solutions adapt very well to the Polish market. We want to offer our clients optimal solutions, and over the next few years, we intend to strongly develop our activities in the field of detail picking – said Yann Belgy.