Case Study: Next-Generation Automated Fulfillment - Scaling for Growth

The Bottlenecks: Fragmentation, Labor Costs, and Technology Gaps

A leading high-fashion e-commerce retailer faced rapid expansion, with outbound unit growth averaging 30% year-over-year and fulfillment demand projected to surge 391% by 2024. Its existing fulfillment network—split between an inbound pallet storage facility and a manual order fulfillment center—couldn’t keep pace with demand.

As order volumes increased, inefficiencies in material handling, storage, and order processing became more pronounced, leading to:

• Capacity Constraints: Manual processes lacked the scalability to meet future growth.
• Operational Fragmentation: Separate inbound and fulfillment centers created redundant workflows and handling inefficiencies.
• Rising Labor Costs & Workforce Challenges: Dependence on manual labor in a constrained labor market introduced cost unpredictability and recruitment difficulties.
• Technology & Process Gaps: The existing Warehouse Management System (WMS) and Warehouse Control System (WCS) couldn’t support the required scale and automation.
• Supply Chain Resilience Concerns: The retailer sought a fulfillment model that could adapt to demand fluctuations and mitigate disruptions.

To remain competitive and deliver on its promise of fast, accurate order fulfillment, the retailer partnered with Miebach to design and implement a next-generation automated fulfillment center—one that would increase capacity, improve efficiency, and reduce operational complexity.

Ensuring a Smooth Transition with Expert Project Management

Miebach led the design, engineering, and implementation of a 430,000 sq. ft. automated fulfillment center, engineered to handle up to 200,000 outbound units per day and 100,000 returns daily at peak capacity. The new facility consolidated inbound storage and fulfillment into a single, highly automated hub, eliminating inefficiencies and positioning the retailer for long-term scalability.

Key Enhancements:

Warehouse Automation & Material Flow Optimization

Miebach designed an automation ecosystem to increase speed, accuracy, and throughput, including:

• Pouch sorter system (7,500 units/hour) to enhance order consolidation and sequencing.
• Shuttle system buffer to optimize order flow and reduce fulfillment cycle times.
• Automated conveyor sortation to streamline outbound processing across multiple carrier lanes.

Technology & System Upgrades

Seamless system integration ensured that automation and manual processes worked in unison. Key upgrades included:

• New WMS & WCS implementation, improving communication between automation systems and fulfillment workflows.
• Goods-to-Person (GTP) system deployment, reducing picking times and minimizing labor requirements.

Facility Consolidation & Process Optimization

By merging inbound storage and fulfillment into a single facility, Miebach eliminated redundant handling and improved overall operational flow. Additional optimizations included:

• Optimized warehouse layout, allowing for increased SKU variety and better inventory visibility.
• Real-time stock accuracy enhancements, reducing order errors and improving fulfillment speed.

Project & Change Management

Throughout the project, Miebach provided end-to-end technical advocacy, project management, and risk mitigation, ensuring:

• Strategic vendor selection, managing RFP processes to secure best-fit automation solutions.
• Oversight during implementation, addressing challenges such as global supply chain disruptions.
• Alignment with business goals, ensuring a smooth transition to the new fulfillment model.

Breaking Through Capacity Limits: +400% Fulfillment Growth

Operational Performance Gains

+ +400% increase in fulfillment capacity, ensuring the retailer can scale as demand grows.
+ 25% improvement in productivity, reducing labor dependency and increasing throughput.
+ Higher order accuracy, minimizing mispicks and improving customer satisfaction.

Cost & Efficiency Gains

+ Reduced operating costs, leveraging automation-driven efficiencies and labor optimization.
+ Faster order processing, reducing lead times and improving delivery reliability.
+ Streamlined vendor selection and system implementation, ensuring best-in-class technology at optimal cost.

Strategic Business Advantages

+ Enhanced supply chain resilience, with built-in redundancy to handle demand fluctuations and disruptions.
+ Scalable automation framework, allowing future expansion and seamless integration of new technologies.
+ Stronger competitive positioning, with a fulfillment infrastructure designed for the future of e-commerce.

By implementing a fully automated, scalable, and consolidated fulfillment strategy, the retailer significantly improved operational efficiency, lowered costs, and strengthened its ability to meet rising customer expectations in an increasingly competitive market.