SMART BOX CALCULATION BRINGS SUCCESS FOR NETONNET
NetOnNet has been a part of the Swedish home electronics market for over 20 years. It is now one of the largest retailers in this sector. As the company serves customers online and in-store, any improvement in its logistics processes or efficiency affects profits. Through the implementation of Astro WMS® and the Smart Box Calculation functionality, NetOnNet continues to evolve in an ever-changing landscape.
A 2019 research by the Swedish postal service PostNord found that, on average, each package shipped contains 30% unnecessary air. If all packaging were optimized, it could lead to 300 fewer trucks on the roads.
Package optimization has a lasting impact on NetOnNet´s operation as well. The company has three streams of businesses running through its main warehouse:
- The restocking of the warehouse stores
- Fulfillment of orders that third parties supply
On a typical day, it sends a few thousand packages on the e-commerce side and around 250 pallets for the warehouse shops. However, it does much more than that at peak times, which cover October, November, and December.
The company was looking for a package optimization solution that makes it possible to:
Manage volatility in the number of packages
Plan picking runs better
Rationalize shipping costs
Improve warehouse sustainability
Boost customer experience
NetOnNet has been working with package optimization for many years. Together with Consafe Logistics, it has added the Smart Box Calculation functionality into its operation. The AI-based module of Astro WMS® selects the optimal packaging material for each individual shipment based on dimensions, cost of materials, and transportation.
The system works based on the data provided to it. NetOnNet prioritizes getting the necessary measurements from the suppliers and ensuring these are accurate as soon as possible. The solution allows for correctly predicting freight prices and ensures that everything will fit where it needs to be in a packing run. If a warehouse worker is out to pick 100 items, it makes a big difference to know with absolute certainty that they will all fit.
Since the introduction of the new solution, NetOnNet can benefit from the following:
Saving time and resources due to more efficient picking and packing processes
Meeting delivery deadlines Having stable management for normal flows as well as peak periods
Paying the right amount of fee for each item shipped
Cutting down on the carbon footprint due to fewer trucks needed for transportation and fewer picking trips executed in the warehouse
Improving the quality of customer service due to neater packages and reduced delivery costs
Want to learn how our customers have become more sustainable?
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With Consafe Logistics and Astro WMS®, we’re fully prepared for the growing trend towards sustainability and shipping less air. As a business, we always want to be kinder to the environment, and this solution helps improve our efficiency and, ultimately, our bottom line as well
Stefan SvenssonLogistics Manager, NetOnNet
NetOnNet was founded in 1999 with the idea of selling consumer electronics online at a lower price than in regular stores. In 2001 NetOnNet opened the first Warehouse Shop, selling products directly off the warehouse shelf at the same low prices as online. NetOnNet has since become a major force in the Swedish consumer electronic retailing market, being the third largest retailer in its sector.