Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - OPVOL (Use of dimensional scanner for irregular shaped items in the optimisation of shipments)

Teaser

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...

Summary

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.

Work performed

Task 1 Feasibility study showed OPVOL some functionalities needed to be enhanced. Some improvements have been undertaken during this period (measurement acquisition time, data processing time) while other identified need for improvements will be subject of Phase 2 project, mostly related to enhancement of the system integrability and interoperability n robotize packing lines, and automation of the packing optimization decisions by machine learning..
Task 2 Partners in collaboration showed that it is most useful carry out pilot demos to show the large potential of OPVOL technology in each case.
Task 3 Market assessment confirmed that there is a major market out there, but that the initial tests and demonstrative actions are mandatory for success. We understand our risks more closely.
Task 4 Our cost-benefit analysis have shown that the potential benefit from using OPVOL is even higher for ecommerce companies than for traditional retail.Due to the fact that shipping cost per item are significantly higher for ecommerce, because parcels are shipped directly to the consumer, The result of the IP assessment is that we have freedom to operate and are not infringing any existing IP. Our best option given is to protect our brand with trademarks and patents.
Task 5 Financial forecasts, including production equipment needed, detailed estimation of production costs and revenue streams, human resources needed, cash flow demands, and other critical figures for sound estimations of the proposed business´ profitability. We drafted a work plan divided work packages to ensure identified needs´ proper development. All results have been summarized in a detailed business plan.

Final results

In terms of environmental sustainability, OPVOL has proven a high potential to optimised the volume occupied by a packed good thus increasing transportation effective load, with the subsequent high positive impact on reducing operational costs and environmental footprints related to goods transportation.
The final result of the Phase I project shows that we have to develop OPVOL further and to expand our target market to reach the desired socio-economic impact. The performance of DWS systems seems to be really worth since the need of an accurate and fast solution is each day more urgent.
From a social standpoint, OPVOL is demanded solution in the current logistics models, with ever increasing complexity and increasing number of products delivered directly to consumers, where companies are under high pressure to optimize packaging and face consumer’s environmental and sustainability concerns. Furthermore, an OPVOL solution in European logistics centers can rise competiveness standards as well as retail companies efficiency.

Website & more info

More info: https://rielec.com/.