Why invest in a pouch sorter

Without effective tech in place, the challenges come thick and fast. Typically they tend to be caused by:

• Capacity limits/unused capacity – if the warehouse processes are inefficient, or the sub-systems are not entirely in sync, or the design of the warehouse is not customised for operations etc, then the warehouse won’t fulfil the achievable performance
• Overall design – processes aren’t streamlined, the layout is not optimal and the automation is ineffective. A complete evaluation is needed, and often a total overhaul
• Vulnerability to bottlenecks – if the processes are inefficient then this will disrupt and slow down order picking, packing and shipping, causing delays to fulfilment and a drain on time and labour
• Inefficient inventory tracking – outdated systems to track inventory invite human error during stock counts, causing overstocking, understocking and order fulfilment delays
• Recruitment problems – WD operators have been steadily losing skilled labour this decade, resulting in a drain of knowhow, inadequate training and overall inefficiency
• Returns – if the processes for outgoing goods aren’t adequately streamlined, it’s a fair assumption the processes to handle returns are likewise inefficient, if not more so – another major drain of resources

Pouch system in action: effects and benefits

Increasingly many WD operators are turning to pouch systems – an automated handling and sorting solution – to address the pain points listed above and optimise their handling capabilities.

In a pouch system, items are transported by bags (pouches) individually suspended from a rail network. In a nutshell, the system can store, sort and sequence.

The pouch system can be manually or automatically loaded into its individual pouch, at which point it is scanned and matched with the pouch to enable automated tracking, which ensures real-time visibility and accuracy.

The pouches are then routed to a temporary storage, a dynamic buffer, until the entire order is ready, at which point the order items will be consolidated and released for sortation and sequencing.

The speed flexibility of its order fulfilment process makes the pouch system suitable for WD operators with a need for e-commerce and omnichannel fulfilment – particularly those who primarily deal with light items (no more than 7 kilos in size), such as apparel, pharma and electronics.

The system is designed to sequence and sort orders and release these orders based on various criteria – such as order priority, shipping zone, customer preferences – thus streamlining the fulfilment process.

How the pouch system soothes WD operators’ pain points

Let’s revisit those pain points to discover why a pouch system might be a better fit for a warehouse operator struggling with inefficient processes and inventory mismanagement.

• Overall design – pouch systems can be scaled up to handle increased volumes with a relatively small footprint. They are designed to fit into unused vertical space, enabling operators to do more with their floorspace
• Vulnerability to bottlenecks – the automation of item handling speeds up and improves the accuracy of picking, sorting and packing, eliminating the need for manual interventions, reducing errors and increasing the throughput
• Inefficient inventory tracking – real-time tracking enables increased visibility of item location and stock levels, thus ensuring inventory accuracy, reducing the chances of stock discrepancies and optimising the structural use of operators
• Complementary tech – pouch systems enhance the performance of existing tech (loop sorter, pick tower, storage and retrieval systems etc). Installed into unused vertical space, pouch systems neither encroach nor incapacitate existing sortation systems
• Recruitment problems – operating with pouch systems requires fewer touches, thus reducing the need for labour
• Returns – pouch systems are highly efficient at processing returned items, which are simply scanned, placed into pouches and then dealt with – restocking or further processing – when convenient

Absolute sweet spots of pouch system

The pouch system has several sweet spots. The most notable are its:

• Use of buffering to fulfil omnichannel requirements
• Capacity to handle returns with a minimal number of touches
• Sequencing and batch picking capabilities

Easily able to deal with omnichannel requirements

A lot of warehouse operators have switched from solely handling B2B to also covering B2C requirements, even though the requirements are quite different in terms of order structure.

B2B orders are typically for large store replenishments, whereas B2C orders are from individuals ordering perhaps two to six often different items. But with the pouch system that is no problem because it can cover both.

The magic is found in the buffering ability. The buffering of orders, no matter if it is for a store or an individual customer, occurs in a dynamic buffer, of which the size is adjustable design-wise, so it will fit individual requirements.

After buffering, once the order is registered in the system as completed, the pouch system will sequence and sort for packing and shipping.

Returns with a reduced number of touches

The pouch system reduces manual interventions when dealing with returns – potentially a huge drain on warehousing resources handling retail segments such as fashion.

Given the huge number of returns, for example in the fashion logistics, the pouch system is as good as tailor-made for the segment, given its capacity to only handle items up to 7 kilos.

Conventional warehousing uses more than double the touches of a pouch system – 13 compared to seven using a pouch system (fewer with automated packing) – as it struggles with the reclassification, transportation, storage and monitoring of the returned items.

Batch picking instead of order picking

A pouch system enhances the benefits and efficiency of a pick tower and most kinds of automated storage and retrieval systems (AS/RS), such as shuttle systems.

It makes the pre-picking process faster and easier because all picking stations can unload at any loading station, leaving the system to take care of the item consolidation.

This results in higher operational flexibility and maximised efficiency, meaning the same output is achievable with fewer people or a higher output with the same team.

The pouch system has a unique ability to consolidate orders to make B2C e-commerce fulfilment and multichannel/omnichannel fulfilment more efficient. A high throughput is always difficult to achieve when you have a high number of SKUs (stock-keeping units).

The average e-commerce order is 4.95 items, as of 2024 figures, and in a traditional set-up the WMS or ERP (enterprise resource planning) collects the items order-based, which means a lot of time is wasted at the pick tower or when the operators are picking the items manually – simply because each and every order is picked individually.

But because the WMS or ERP knows how many customers ordered the same type of SKU, the system can assign the operator to collect SKU batches to optimise the picking. This could, for example, be a batch of size 40 white socks to fulfil two hours of orders. They will then be picked and loaded into the system where the SKUs will be held temporarily until they can be consolidated with the other items making up the order, then packed and shipped.

The beauty of this is that it takes place inside the same system, thus requiring fewer touches during the pre-picking process. Again, the same throughput is achievable with fewer operators, or a higher throughput with the same number.

Huge benefits of sequencing: for both B2C and B2B

One of the biggest value-adding attributes of the pouch system is the sequencing feature. Not only does it benefit the optimum packing of B2C items, but for B2B it adds value to the store replenishment process because sequencing helps optimise the unpacking locally at the store, as items are packed in perfect sequence to help efficient reshelving.

Opting for a system: capacity and cost

The benefits of the pouch system have been laid out, but what considerations should be made before buying and installing it?

How big a capacity is the WD operator looking for?

The big question in this respect is how big a capacity your operation needs, and can the system provider cater to this?

For example, the machine capacity is how much a system can handle when everything works at a super optimal level – and that will never be the case in real life.

Rather, this is a system capacity – what the system is capable of if it is managed by personnel with vast experience and expertise – and the industry standard is that the system capacity will realistically achieve 85 percent of the machine capacity.

Instead, the warehouse operator should ask about the actual capacity – an even lower rate, as this is what they will be able to achieve, providing they heed all of the provider’s advice.

How will a pouch system reduce a WD operator’s costs?

And as well as labour savings, the high degree of automation will translate into a far lower OPEX – one of several cost considerations that should be taken into account:

• Level of maintenance – Modern pouch technology offers very low maintenance requirements due to frictionless conveying technology
• Suitable for a wide range of items – handles almost all shapes and types of packing – such as fashion, pharma, electronic components and auto parts – up to 7 kg
• Short installation time – thanks to a flexible configuration and lightweight components, the pouch system can be installed quickly
• Reduced energy consumption – requires less power than conventional pneumatic-driven systems
• Automated loading and unloading – when part of the system, it increases the degree of automation and decreases the system’s footprint. Additionally, it improves the packing efficiency and potentially helps to automate the packing process

CONCLUSION

Before investing in a pouch system, a WD operator should carry out a thorough assessment of all their processes – preferably with assistance from a proven expert in the field. Only then will they begin to understand the impact a pouch system can have on improving the efficiency of their operations and inventory management. There are many things to consider – from the impact a pouch system can have on handling returns to its omnichannel fulfilment capabilities – but above everything, it’s important to enlist a trusted supplier that can set realistic expectations about what the WD operator can expect to achieve.