20.06.24

Optimizing Private Label Orders: How Katoen Natie’s WMS Streamlines Value-Added Services

Customers require agility and efficiency across their supply chains, especially when it comes to private label fulfilment.

Introduction:

In today’s competitive market, customers require agility and efficiency across their supply chains, especially when it comes to private label fulfilment. Katoen Natie is committed to providing innovative solutions that empower our clients to meet these demands. In this article, we discuss a recent project where we utilized our in-house Warehouse Management System (WMS) expertise to enhance private label order processing.

Understanding Private Labels:

Private labels, also known as store brands or own brands, are products manufactured by one company, but sold under another company’s brand. Retailers or wholesalers typically use private labels to offer customers exclusive products that differentiate them from competitors and often provide better profit margins. Managing private label products requires precise handling to ensure correct branding and packaging, making efficient supply chain processes crucial.

Identifying the Challenges:

Traditionally, private label orders involved manual handling, re-boxing, and separate labelling. These processes create several inefficiencies, including:

  • Excessive Packaging Waste: Traditional methods often involve re-boxing every order, regardless of content, leading to unnecessary carton consumption and environmental impact.
  • Bottlenecks and Slow Processing: Manual checks on items and separate labelling processes can create bottlenecks and slow down overall processing times.
  • Inefficient Sorting: The lack of automation in identifying private label needs can result in mixed boxes requiring extra handling in the packing area, further reducing efficiency.

The WMS Solution:

Our team developed a powerful solution within our WMS that empowers the system to pinpoint specific order lines within a larger order requiring additional branding. Here’s how it transforms the process:

  • Precision Identification: The WMS automatically identifies private label items within an order.
  • Automated Sorting: This data is then translated into actionable steps for the conveyor system. Boxes containing these designated items are automatically identified and separated for dedicated Value-Added Services (VAS) processing.
  • Streamlined VAS Area: A dedicated VAS area is equipped to handle these specific requirements efficiently.
  • Intelligent Reintegration: Upon completion of VAS activities, the system seamlessly integrates with the packing process, ensuring accurate sorting and delivery.
An example of a dedicated VAS area

 

Benefits Realized:

This innovative WMS functionality offers significant advantages for our clients:

    • Reduced Carton Waste: By eliminating unnecessary re-boxing for non-private label items, we can significantly decrease overall carton consumption.
    • Enhanced Efficiency: Automated processes minimize manual intervention and expedite processing times in the VAS area.
    • Improved Accuracy: Automatic identification and sorting ensure private label items receive the correct branding and labelling.

Conclusion:

Katoen Natie’s commitment to continuous WMS development empowers us to offer clients efficient and sustainable solutions. This project not only demonstrates our ability to streamline private label processing and reduce waste, but also underscores our dedication to enhancing overall customer satisfaction. This focus on innovation allows us to be a valued partner to leading brands across diverse industries, helping them achieve operational excellence and maintain a competitive edge in the market. Just another way how our people make the difference for our customers.

Reach out to us and speak with an expert today.

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    [caption id="attachment_12737" align="alignnone" width="512"] The ARD technology offers multilingual support for multiple drivers at a time[/caption]

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