In the era of ecommerce, the number of small shipments has grown exponentially, leading to a new paradigm in Logistics. Traditional solutions for optimisation of freight volume are now insufficient and on-line retailers demand innovative systems that assist them to select the best available packaging for each item, and are effective for any item nature, geometry and shape. Large logistic centres, processing high volumes of these items, suffer high shipping costs, needing to optimise their truckloads at maximum in every shipment.
The optimisation of the volume of packed goods is an ever-worrying issue for manufactures and shippers, in order to reduce their transportation costs. To date, logistics centres worldwide use Dimensioning, Weighing and Scanning (DWS) equipment for measurement and sorting parcels prior to their shipment, to plan best possible load distribution. However, the change of paradigm created by the growth of ecommerce (reaching €602bn in 2017 in EU only) is demanding additional solutions for optimisation of transport costs from the reduction of freight volume.
The global objective of this Phase 1 project is to deliver a thorough Feasibility Study (deliverable) aimed to RIELEC´s high growth ambition.
Currently, Dimensioning, Weighing and Scanning (DWS) equipment is used to measure parcels (packed goods) in the final steps of the shipment preparation process at logistic centres. DWS equipment for regular shapes (cubic and rectangular parcel) for static and dynamic (parcels on conveyors) measurements are available from dozens of equipment manufacturers worldwide. In this project, we propose an additional dimensional scanner to be incorporated in the logistics centres at an initial stage of the process: prior to the selection of packaging for a given item. OPVOL scanner undertakes a precise dimensional characterisation of any irregular shape, thus enabling to measure the volume occupied not by the box (packed item) but by the item itself. A precise, rapid and reliable measurement of this magnitude is crucial for automation of the selection of best available packaging volume. Therefore, OPVOL will create a new market, as a new type of equipment to assist in the selection of optimum packaging dimensions for a certain item (while current DWS equipment is used to determined dimension of packed items and optimise sorting od parcels in shipments). OPVOL will enable to increase the number of items per shipment by enabling a better matching between item´s and packaging´s volumes, thus positively impacting on transportation costs.
These have been the specific objectives for Phase 1:
Validate the technical feasibility of the dimensional scanning technology for reliable determination of irregular volumes, using real samples and real environment, once validated in the lab.
Validate the operational feasibility of the proposed protocol for a progressive, iterative optimisation of the selection of best available packaging volume for a given irregular item.
Validate the financial feasibility of OPVOL, scrutiny our current revenue forecasts and refine our costs forecasts in view of the results of the operational and technical assessments.
Draft a work plan for Phase II.
