Logistics Automation Design for Shadowfax | Process optimization & Sortation Design for On-Demand Logistics Provider
About Shadowfax
Shadowfax is a crowdsourced delivery platform founded on 2015 and is headquartered in Bangalore, India. The start-up, which also has set up its own warehouses and fulfilment hubs, currently processes more than 10 million deliveries a month. The most prominent Indian brands in food, e-commerce, grocery and healthcare rely on Shadowfax for on-demand deliveries. Shadowfax provides businesses access to cutting edge technology in logistics and a reliable delivery network. They are also venturing into B2B segment in mobile phones and FMCG segment.
Sortation Automation Deisgn for On-Demand Logistics | Business Case
This Supply Chain project was in the operations division of Shadowfax where a multi fold growth was forecasted for B2C segment in India with growing shift seen in outsourcing of logistics arm by major E- commerce players in the region. The Business case of the project driven by Hesol Consulting was to analyze the AS-IS layout and provide a conceptual SORTATION (Automation) design for the different growth scenarios. In the overall Hesol’s Supply chain services portfolio it fits into – Warehouse simulation, Warehouse operations improvement and process excellence related services.
OPPORTUNITY
Basis the discussion with the client and the initial data points the scope of work was formulated as below:
- Define the AS-IS process of the current Bangalore distribution centre that stands 3rd in the overall volume serviced by their distribution centres and provide a conceptual TO-BE layout for SORTATION.
- Identify the improvements required in the key performance matrices.
- List the infrastructure requirements that are world class for the Sortation process along with best suppliers in the industry.
SOLUTION
Tools & Techniques used
- Gemba study for Spaghetti mapping.
- Work based Shadow walk for Waste Analysis.
- Cubic Space optimization.
- CEP (Courier, Express, Process) Industry Benchmarking for best practices.
Solution
We approached the business case as follows.
- Identifying the process gaps through detailed shadow walk and spaghetti mapping.
- Benchmark study of the CEP industry for sortation process available in domestic and global market.
- Review of manual, semi-automatic and fully automatic sortation systems for relevant volumes.
- Define the specifications that would be required for Shadowfax operations at various stages.
- Warehouse process optimization for cubic space utilization and quick turnaround of manifestation process through application of lean concepts.
- Request for Quote for from relevant suppliers for first hand cost input.
Few Schematics
Considering the sensitivity of solution designs and the competitive edge through these optimization nuances, only few schematics which represent work done are shown:
RESULTS
Following are the key deliverables / results of the project:
- Designed end to end automation stack for Sorter (for each option)
- Detailed performance, throughput and ROI estimation for each sortation automation option
- Detailed conceptual layout design with pros and cons of the different sortation options.
- Detailed specifications of the sortation solutions applicable to Shadowfax business model for short term and long-term volumes.
- Solution matrix, defining the advantages and disadvantages at various stages.
- Lean practices for hub and distribution model to streamline with the sortation process.
- Sortation automation supplier information on proposed options and appropriate costing.
