How retailers can gain a competitive edge by utilising smart fulfilment
As consumer expectations continue to evolve, fulfilment has emerged as a critical competitive differentiator in the retail industry. Today, meeting consumer demand for speed, reliability, and transparency is no longer just a logistical task, it is a strategic imperative that drives customer loyalty, acquisition, and profitability.
Retailers that adapt to these demands gain a competitive edge. In a recent Inside Retail article, we explored how brands like Shien and Temu have leveraged innovation to achieve this. By embracing smarter fulfilment strategies, these retailers differentiate themselves, build stronger customer relationships, and establish a sustainable competitive advantage.
In the same article, we also discussed how smarter warehousing is transforming Australia’s fashion industry. Technologies such as real-time inventory management, automated picking systems, and flexible fulfilment models are playing a key role in enhancing operational efficiency. These innovations are essential to meeting growing customer expectations, forming the backbone of modern fulfilment strategies, and enabling faster, more accurate, and cost-efficient order processing. [Read more here.]
Fulfilment as a Strategic Differentiator
Today’s consumers are more demanding than ever, expecting quick, reliable, and convenient delivery options. As the retail environment grows more competitive, retailers need to view fulfilment as a strategic advantage. Superior fulfilment creates customer trust, builds loyalty, and enhances lifetime value, whereas subpar fulfilment can quickly damage a brand’s reputation and lead to lost customers.
By embracing best-in-class fulfilment practices, retailers can ensure that customer experiences are seamless, reliable, and efficient. These practices not only help retailers stay competitive but also ensure they are positioned for long-term success in an increasingly fast-paced, digitally-driven world.
Automation and Intelligent Efficiency: The Key to Meeting Consumer Demands
Automation and robotics are among the most transformative forces in fulfilment today. Technologies such as goods-to-person systems, sortation robots, and autonomous mobile robots (AMRs) are enhancing warehouse operations, improving throughput, and increasing accuracy. By integrating automation, retailers can scale their operations to meet increasing consumer demand, particularly during peak periods such as Black Friday, Boxing Day or the holiday season.
Strategic automation, combined with data analytics, plays a critical role in meeting high consumer expectations profitably. By automating processes, retailers can reduce human error, optimise inventory management, and speed up order fulfilment, all of which lead to improved EBIT and better customer satisfaction.
In our previous article on smarter warehousing, we highlighted how fashion retailers can leverage automation to optimise their fulfilment systems and prepare for demand spikes. For example, Ferag’s Skyfall system can automate the sequencing and sorting of high-demand items, allowing retailers to better manage peak order volumes and deliver orders faster, more accurately, and with greater efficiency.
Adaptability and Resilience: Core to the “New Standard”
In addition to speed, fulfilment today demands agility. Retailers need to be able to adapt quickly to shifts in demand, disruptions in the supply chain, or changes in consumer behaviour. This adaptability is critical for maintaining high levels of customer satisfaction, especially when unexpected events occur.
Smart warehousing plays a vital role in ensuring flexibility. With real-time stock visibility, retailers can optimise order picking, balance supply and demand, and shift fulfilment methods as needed. Whether it’s re-routing orders, accessing alternative supply channels, or adjusting delivery methods, the ability to respond quickly to market changes ensures retailers can continue to meet consumer expectations.
As the market becomes increasingly unpredictable, the ability to pivot quickly is key to staying competitive. Retailers with flexible, scalable fulfilment solutions will be better equipped to handle disruptions and continue delivering exceptional service, regardless of external challenges.
The Impact of Fulfilment Innovation on EBIT
The benefits of fulfilment innovation go beyond customer experience—they also have a direct impact on the bottom line. By adopting automation and optimising fulfilment processes, retailers can lower operating costs, reduce inefficiencies, boost profitability and positively impact EBIT.
Improved pick/pack accuracy reduces costly errors and customer service interactions, while enhanced order orchestration and inventory management can streamline operations. This ultimately leads to lower labour dependency, improved throughput, and higher margins. Retailers investing in automation are not just improving their service offering—they are also positioning themselves for long-term profitability.
Ferag’s solutions, such as the Skyfall pouch system, demonstrate how automation can streamline fulfilment operations. The system enables retailers to pre-sort high-demand items, optimise order sequencing, and enhance packing efficiency. By pre-sorting stock for the sales floor, retailers can quickly move stock to the floor, bypassing the back-of-store processes. This approach reduces stock-outs, increases sales, and boosts customer satisfaction. Additionally, by reducing bottlenecks and prioritising VIP orders, retailers can better manage peak order volumes and deliver superior service during critical times. All of which improves EBIT.
Retailers Who Embrace Innovation in Fulfilment Gain a Competitive Edge
Fulfilment is no longer a mere logistical function—it is a strategic differentiator. Retailers who embrace automation, efficiency, and adaptability in their fulfilment processes are not just meeting consumer demands—they are outpacing them. These retailers are setting new standards in service, customer experience, and operational excellence.
Ultimately, the new standard in retail fulfilment is about exceeding consumer expectations and using fulfilment as a competitive weapon to drive customer loyalty, reduce operational costs, improving profitability and positively impacting EBIT. By leveraging innovative fulfilment technologies, retailers can gain a competitive edge that leads to stronger growth, improved EBIT, and long-term success in a rapidly changing market.
For more insights on smarter warehousing and how it can boost your fulfilment strategies, explore our previous article on Inside Retail.
Ferag’s journey from print powerhouse to intralogistics innovator
Ferag’s journey from a Swiss print industry powerhouse to a global player in intralogistics solutions is a story of engineering excellence, adaptability, and customer-centric values.
Founded in Hinwil, Switzerland, in the 1950s, Ferag initially established itself in the printing sector, specialising in conveying systems and post-printing processing. Its innovative solutions quickly gained worldwide recognition, propelling the company to prominence within the publishing industry.
The technical expertise honed in designing high-speed, precise newspaper and magazine conveyors seamlessly translated to warehouse conveyors, where efficiency, accuracy, and reliability are equally critical.
Much like ensuring the timely delivery of publications to readers, Ferag’s warehouse systems are engineered to move products swiftly and accurately, meeting the demands of modern e-commerce and supply chain operations. This transition was not simply a pivot; it was a natural extension of the company’s commitment to problem-solving
and efficiency.
Today, Ferag stands at the forefront of intralogistics, offering solutions that streamline operations and elevate customer experiences across a variety of industries, including retail, fashion, and e-commerce.
Justin Boyd, Managing Director, Ferag, shares how Ferag’s evolution has always been guided by a core principle: reliability.
“A customer came to us with a machine that was no longer supported, requiring a spare part that was no longer produced,” says Justin. “Upholding our customer-centric ethics, we searched everywhere and found the crucial spare part we needed… in the Ferag museum. The part, still in perfect condition after decades, fit flawlessly, proving Ferag’s commitment to preserving the past while driving innovation for the future.”
Local presence
As Ferag expanded globally, it became clear that the company’s future would require not just technological innovation but also strong localised support networks.
“Our local presence enables us to earn trust and form long-term partnerships, something that’s harder to achieve from afar,” adds Justin. “It also lets us understand and meet local requirements and regulations.”
“Having a presence here allows us to tailor our solutions more effectively, keep spare parts and service teams nearby, and engage more directly in the local industry. This commitment to being local signals to our customers that we’re not just here for the short term, but we’re here to stay.”
Significance of APAC
The Asia-Pacific region has emerged as a hub for growth in logistics and automation, with countries like China, India, and Southeast Asia driving demand for advanced solutions. These economies are experiencing a digital transformation, with e-commerce fuelling an increased need for automated warehousing, sortation, and fulfilment systems. Dynamic market growth requires both speed and flexibility, and Ferag’s systems are built to meet these needs.
“Five years ago, real-time data integration and advanced predictive maintenance weren’t as widely prioritised as they are today,” says Justin Boyd.
“Now, businesses demand more than just automation, they need smart, adaptable systems that provide actionable insights and scale with their operations. Ferag’s solutions are built to meet these demands, combining Swiss engineering precision with innovative technologies.”
Ferag’s systems enable businesses to not only automate processes but also proactively manage challenges, such as fluctuating demand and operational bottlenecks. These capabilities are particularly valuable in APAC, where dynamic market growth requires both speed and flexibility.
Product portfolio
Central to this transformation is Ferag’s doWarehouse solution, which plays a role in integrating the functionality of a Warehouse Management System, a Warehouse Control System and a Warehouse Execution System into one seamless platform.
These features enable companies to optimise processes, reduce costs, and streamline operations in today’s fast-paced logistics environment.
With transparency down to the robotic layer, companies can optimise processes and cut costs in today’s fast-paced logistics environment.
By leveraging data science and machine learning, doWarehouse anticipates system failures, identifies bottlenecks, and optimises demand forecasting. This helps businesses improve operational efficiency and adapt quickly, especially during peak times when operations are under pressure.
doWarehouse offers more than just process automation. It provides actionable insights that drive informed decision-making and continuous improvement. Features like real-time inventory replenishment and precise order tracking enhance productivity while reducing downtime.
“doWarehouse is more than a platform; it’s a bridge between ERP systems and automation. It creates a seamless experience, giving you visibility and control across inbound and outbound processes,” explains Justin.
“Our goal is to make human-machine interaction as intuitive and effective as possible. We believe operational technology should empower users, and that’s what excites us –that’s our passion.”
Another innovation in Ferag’s intralogistics arsenal is Skyfall, a pouch-handling system that seamlessly combines sorting, buffering, and picking functions in one platform. Think of it as a dry cleaner’s conveyor belt, but engineered for industrial precision and scalability. Skyfall goes beyond traditional conveyors, acting as an all-in-one solution that eliminates the need for multiple separate systems, thereby significantly reducing costs and complexity.
What sets Skyfall apart is its energy efficiency. By leveraging gravity and low rolling friction instead of motors, the system minimises energy consumption and maintenance requirements.
“This design not only reduces operational costs but also ensures long-term reliability, making it an ideal solution for dynamic industries,” says Michael Gruber, Director, Customer Service & Support, Ferag.
In addition, Skyfall can handle a range of products, from cosmetics and apparel to electronics and even dangerous goods, making it versatile for a broad array of industries.
“For instance, if a customer needs their products delivered in a specific sequence for easier store restocking, Skyfall can ensure the correct store sequence when loading the truck. This means the goods are unloaded at the store in the correct sequence to be placed on the floor, saving time and storage in the back of the store. This helps optimise the entire supply chain, from the warehouse to the shop floor,” says Michael.
Complementing Skyfall’s capabilities is Denisort, Ferag’s tilt-tray sorting system designed for high-speed, high-accuracy performance. With a unique 3D architecture, Denisort maximises floor space while maintaining exceptional throughput. Its dynamic dual-tray configuration enhances sorting capabilities, making it ideal for high-throughput environments. Denisort is designed for industries like printing, where high-speed, error-free sorting is critical.
“For instance, in the newspaper industry, where thousands of copies must be sorted and delivered within hours, Denisort’s reliability and long lifespan are invaluable,” says Michael. “The system’s low maintenance needs make it an attractive choice for companies looking for long-term, trouble-free operation.”
Digital innovation
Ferag is at the forefront of integrating digital technologies into its material-handling solutions, empowering businesses with tools that drive operational efficiency and resilience. At the core of this effort is advanced data analytics, which optimises system performance by delivering actionable insights into operations, forecasting, and identifying potential issues before they escalate.
“Our AI-driven systems enable prescriptive maintenance by learning from past incidents, allowing us to proactively adjust material flows and tune systems to prevent issues before they arise,” explains Michael.
With its focus on continuous innovation and R&D, Ferag ensures that its products are not just meeting the current needs of industries but are future-proof, helping businesses stay ahead in an increasingly digital and automated world.
“Scenario modelling is a game-changer for our customers,” adds Justin Boyd.
“It lets them simulate different operational conditions to optimise layouts, predict bottlenecks, and make real-time decisions – all without disrupting operations. It’s like a sandbox for training, helping managers prepare for real challenges,” adds Justin.
Among the many roles played by digital technologies, safety stands out as a key focus.
“Safety technology, like wearables, ensures workers stay out of hazardous zones by sending real-time alerts,” explains Justin.
“The goal is simple – keep them safe and ensure they go home in better condition than they arrived.”
Innovative service tools and tailored approach
Ferag’s service offering goes beyond the conventional OEM support, setting itself apart through a combination of agility, innovation, and an understanding of customer needs.
While the baseline service offering across companies is similar, Ferag stands out by leveraging its software expertise to implement predictive and prescriptive maintenance – tools that not only identify potential issues before they arise but also optimise system performance in real time.
“With a young and agile team, Ferag can quickly adapt and implement solutions, exemplified by the rapid deployment of its system monitoring tool toMonitor, which was developed and implemented in just one week – something that would have taken years in larger organisations,” says Michael.
As the industry faces a shortage of qualified personnel, Ferag is tapping into the power of remote diagnostics and data analytics to address this gap. These tools help identify potential failures, reduce downtime, and streamline maintenance, benefiting both customers and the environment by reducing the need for spare parts and lowering costs.
“We also customise our support packages for diverse APAC markets, listening closely to customers’ pain points and tailoring solutions to fit their unique logistical challenges,” explains Michael.
Vision for the future
Looking ahead, Ferag aims to be a leading force in the intralogistics space across the APAC region, recognised for its innovation, customer-first mindset, and strong local presence.
In line with this vision, Ferag continues to prioritise investments in cutting-edge technology and workforce development. The company understands that advancements in AI, machine learning and the use of data lakes are reshaping the industry and is committed to staying ahead of these trends.
“As the landscape of AI and machine learning evolves, we understand the importance of staying ahead by equipping our team with thelatest knowledge and tools,”concludes Michael.
Learn more about Ferag and its services by direct contact via email at info-apac@ferag.com
Can Smarter Warehousing Boost Australia’s Fashion Industry?
2024 presented some challenges for the Australian fashion industry. A series of shifts and challenges have placed the sector under strain. Iconic brands like Dion Lee and Mosaic Brands closed their doors, and IMG’s departure from Australian Fashion Week disrupted the sector. Rising operational costs, increased global competition, and shifting consumer behaviours are among the contributing factors.
Micro-Trends: A New Frontier in Fashion
A key factor influencing Australian fashion is the rise of “micro-trends”—short-lived fashion movements amplified by platforms like TikTok and Instagram. This fast-moving cycle pressures brands to accelerate production and delivery. Ultra-fast fashion brands like Shein and Temu have leveraged advanced analytics and agile supply chains to dominate the market. Local Australian brands, burdened by higher production costs and slower logistics, find it increasingly difficult to compete at the same speed.
Fast Fashion’s Dominance and Its Impact
Fast fashion has transformed retail dynamics. Shein utilises advanced data analytics to predict trends and manufacture new designs with speed, while Temu’s aggressive pricing strategies have captured cost-conscious consumers. This shift also presents an opportunity for Australian brands to differentiate themselves through quality and sustainability—areas where fast fashion often faces criticism.
The Role of Supply Chain Efficiency
Supply chain efficiency has become crucial in today’s market. Fast and reliable delivery is no longer optional, it is essential. Smart warehousing and automation technologies offer a path forward, enabling local brands to streamline operations, reduce delays, and improve fulfilment speed. These innovations allow Australian fashion brands to remain competitive, even in a global market increasingly dominated by fast fashion giants.
Ferag’s Role in Fashion Retail Innovation
To remain competitive, Australian fashion brands need scalable fulfilment strategies that support both in-store and e-commerce operations. Ferag offers smart solutions for both B2B and B2C that combine both speed, accuracy, and lower labour costs
1. Getting Product to Shelf in Stores Quicker
How it works:
- Ferag’s Skyfall sequencing and doWarehouse’s smart waving and cubing modules pre-sort items in a sequence that allows product to be directly unloaded to shelf or rack.
- Product is sequenced into a carton or tote, in order line sequence, allowing layering of product via automation. This allows for direct unpacking from the carton onto the shelf in order
- Hangered garments can also be sequenced in order line sequence allowing garment trolleys to be built in a smart SKU sequence, for easy transfer to racks on the store floor
Key benefits:
- Reduces lost sales through faster restocking
- Improves space utilisation in-store
- Streamlines back-of-house operations, reducing labour costs
- Improves supply chain Service Level Agreement (SLA) metrics to stores
2. E-Commerce Fulfilment Excellence
- Managing Peak Demand with Automation
- Predictive loading: Ferag’s doWarehouse can utilise demand forecasts to pre-load products that are expected to have high demand e.g. new product launch or sales event. Skyfall pouch sorter: Stacks high-demand items for fast retrieval during peak periods, allowing orders to be automatically picked and then to packing in one-step handling
- Volume: Ferag’s smart solutions are designed to handle high volumes at speed
Key benefits:
- Increases fulfilment speed while reducing temporary labour costs
- Reduces the need for large automation costs to cover highest peak period, by flattening the peak
- Fast and Accurate Order Fulfilment
- Skyfall Fast-Track Lane: Dedicated lane for priority orders, ensuring rapid processing.
- High inventory accuracy: doWarehouse directs operators to the exact product location, displaying a visual product verification for accuracy.
- Automated Picking: doWarehouse supports a range of automated picking solution to ensure fast and labour efficient picking
Key benefits:
- Faster order processing leads to improved customer satisfaction
- Higher SLA performance reduces delays and enhances brand trust
- More repeat orders contribute to increased revenue
3. Freight Cost Reduction and Sustainability
- Reducing the number of cartons/satchels for the one consignment, as Skyfall and doWarehouse can logically group order lines together from the same or different storage areas, without the warehouse operator having to travel
- Inventory accuracy minimises returns: Fewer incorrect shipments lead to fewer unnecessary returns and increased customer loyalty.
Key benefits:
- Reduces shipping costs with fewer packages and reduced returns
- Enhances processing speed for high-demand periods
- Supports sustainability by reducing freight and consumables
Ferag’s range of smart solutions including Skyfall and doWarehouse unified control system (UCs) are designed to help fashion brands in Australia optimise their fulfilment operations, improve efficiency, cut costs, and deliver a better customer experience.
The Economic Impact of Fulfilment Innovation
Investing in supply chain efficiency does not just meet consumer expectations—it also drives profitability. Ferag’s doWarehouse UCS and Skyfall solutions reduce labour dependency, boost equipment efficiency, and lower return rates through more accurate fulfilment. This allows brands to optimise their operations, reduce costs, and improve EBIT, creating a more financially resilient business model.
Conclusion: Opportunity comes from challenges
Could the challenges of the Australian Fashion Industry in 2024 offer an opportunity for reinvention? By embracing innovation, sustainability, and smarter supply chains, Australian fashion brands can not only survive but thrive. Meeting the demands of the modern market will require significant investment in technology, but the potential rewards—an efficient, sustainable, and competitive industry—make it a step worth taking.
Read the Inside Retail article here
The COVID breakthrough
Developed during the COVID-19 pandemic lockdown, ferag.doWarehouse software is set to solve industry challenges.
Ferag is a Swiss-based manufacturer, specialises in conveying and processing systems for intralogistics, printing, and e-commerce industries.
In 2023, the company acquired dereOida, who created the doWarehouse software.
The doWarehouse system is a Unified Control System – UCS that combines key warehouse operations into a single solution.
It integrates Warehouse Management Systems (WMS), responsible for managing inventory and orders; Warehouse Control Systems (WCS), which oversee automated movements; and Warehouse Execution Systems – WES, which handle automation control, order processing, and workflow balancing.
This integrated solution simplifies warehouse operations, eliminating the need for multiple systems, while reducing integration time, risk,
and costs.
The system also delivers advanced data analytics that precisely track the time and cost associated with each resource.
These detailed insights enable warehouse supervisors to pinpoint inefficiencies, bottlenecks, and underutilised resources, providing actionable information to enhance productivity.
Additionally, the software automates inventory replenishment based on pre-set criteria, ensuring optimal inventory levels are maintained without the need for manual intervention.
Ever since the acquisition, dereOida’s team has worked as Ferag to continue to further develop the software.
Conception
This unique integration of a WMS, a WCS and a WES unifies operations, allowing for flexible integration of both manual and automated systems, regardless of hardware type. Meaning the software is hardware agnostic, so clients are not tied to a single equipment vendor.
Karl Friesenbichler, Head of Ferag’s Asia Pacific division, said the purpose of doWarehouse is to unify these systems into “a single source of truth”.
By consolidating WMS, WCS and WES functionalities, the need for additional solutions is eliminated.
Unlike typical automation vendors that focus on equipment sales, Ferag prioritises operational integration, ensuring clients benefit from a streamlined approach providing complete control and visibility across the entire warehouse operation.
Most warehouse equipment vendors supply warehouse control software to control and manage their hardware, creating islands of software that don’t communicate to each other.
“In contrast, our value proposition is fundamentally different,” said Karl.
“Our unique value proposition focuses on prioritising the operational framework before introducing hardware solutions.”
Karl said that the idea for the system emerged during the COVID-19 lockdown.
“I started developing this project when I was stuck at home,” he said.
“During the first lockdown, out of boredom, I recognised a problem in unifying a WMS with a WCS and a WES and decided to address it.
“I started working on it as a hobby, and two years later, I was ready to take it to market.”
With the foundational concept of doWarehouse established, the next step was expanding its reach beyond the local market, which led to the strategic acquisition by Ferag.
The Ferag acquisition
The system was conceived while Karl was CEO and founder of dereOida, a company specialising in UCS development.
However, dereOida focused mainly on the Australian market, limiting doWarehouse’s growth potential.
Since its acquisition by Ferag, the doWarehouse system has been adopted globally.
“The acquisition has transformed us from a local player to a global contender, facilitating expansion into Europe, the US, and Southeast Asia, with new offices to enhance customer service,” said Friesenchichler.
“Being part of a long-established global organisation like Ferag has allowed us to rapidly distribute our product worldwide while serving our customers locally in many countries. It’s exciting to witness this progress.”
Soon after the development of the software, Friesenchichler needed to grow his team to meet the increasing demand for both the technology and the operational processes.
Starting with 15 employees, Karl has now expanded the team to about 50, allowing him to scale capacity on a global level.
“As the company expanded its offerings, the internal team and customers needed to adapt to the evolving systems,” he said.
“The additional staff enabled them to take on more projects, increasing capacity and ensuring clients received the expertise needed to implement solutions effectively.
“This growth was essential for scaling operations and deepening understanding of the technology and business processes, especially after merging with Ferag.”
While Ferag’s customer base has enabled doWarehouse to expand globally, the company’s ethos remains focused on local needs.
“The phrase ‘think global, act local’ may sound cliché, but it effectively captures the essence of addressing customer pain points, which are often similar across industries worldwide,” said Karl.
“The key is to develop products that align with a global customer profile while ensuring they have a positive local impact.”
Karl explained that specific local regulatory requirements can be incorporated into the product roadmap when feasible.
“For highly specific requests that pertain only to a single customer, it may be more prudent to reconsider,”
he noted.
“Drawing on our extensive experience in operational processes, we can guide customers toward effective solutions that work well across various contexts.”
Cohesion of values
Karl emphasised that aligning personal and company values is essential for him, which played a major role in the merger between his company and Ferag.
“I’ve always believed that my personal values must align with the company’s values; otherwise, I can’t work there,” he said.
“It’s essential to reflect those values back to the staff and in leadership.
“ A key reason for my decision to join Ferag was the importance placed on values during our discussions about merging the two businesses.”
With a 65-year history and a large market share in warehouse automation, Ferag has consistently prioritised its customers.
This commitment to customer-centric values is echoed in the words of Karl.
“The core value at Ferag is to be there for customers – being honest and transparent, and always striving to achieve the agreed-upon goals, with profit being a result of that dedication,” he said.
“The culture here emphasises collaboration, mutual respect, and a commitment to our customers.
“This ethos, which we strive to instil in our staff, strongly resonates with my values; we don’t walk away from our customers.”
This commitment to user-friendly solutions has not gone unnoticed by those who matter.
“An essential indicator of our success is the feedback we receive from our customers,” said Karl.
“One of the best statements we’ve heard is that, not only have we implemented our system exceptionally well, but it’s also incredibly easy to use.
“Operators genuinely want to work with and engage with the system we provide.”
However, as the team grew and the product evolved, so did the challenges they faced, particularly regarding time management and the complexity of development.
Challenges
During the development of doWarehouse, the key challenge for Karl was a lack of time.
Despite that, there were challenges that Karl found to be enjoyable and educational.
For example, after a year of work, the first iteration of the software was scraped after a change in approach, leading to a decision to rebuild from the ground up.
“One obstacle involved integrating artificial intelligence effectively and designing the framework,” said Karl.
“Every decision felt like a tough choice. After 12 months of development, I had a beta version ready, but I questioned whether I would approach it the same way if starting from scratch.
“While unconventional, this decision proved to be the most effective course of action. Now, we have a flexible framework that our developers truly appreciate, making the experience quite rewarding.”
Karl soon knew that the newest iteration was a step in the right direction, once he had confirmed his first client.
“I was confident in the theory behind it, but it wasn’t until it went live with our first customer that I knew it was truly effective,” he said.
“That moment proved the concept; we could confidently expand our reach and scale up our operations.
“It was a significant milestone for us, marked by the success of our initial customer.”
The new iteration resulted in new developments within Ferag’s APAC division based in Sydney.
“I had my own business that developed this software, and we already had a team in place,” Karl explained.
“We decided to continue developing the product here in Sydney.
“This decision was very well received by the entire staff.”
The future of warehouse automation and Ferag
Karl envisions Ferag revolutionising automation and internal logistics through intelligent solutions and the integration of machine learning and AI to optimise product sales predictions.
The company is exploring machine learning and AI to analyse public datasets, predicting which products will see rapid sales in the future.
Also, in warehousing and logistics, the pace of product iteration is increasing, driven by competition in robotics and the emergence of Autonomous Mobile Robots (AMRs).
As the industry shifts toward integrating diverse solutions rather than relying solely on proprietary hardware, traditional large system integrators may face challenges.
“Flexibility and product iteration are essential for the future of system integration,” said Karl.
“Implementing exactly what the customer needs will define the new standard in the industry.
“A robust software platform like doWarehouse is crucial for effectively managing this vision, as companies without it, risk being left behind.”
To find out more, contact us on info-apac@ferag.com.au or contact us here
The positive impact on EBIT from safety
Ferag views safety as a strategic priority that can transform intralogistics operations. By embedding safety into every phase of projects, it helps businesses optimise efficiency, reduce costs, and enhance performance.
This article explores how organisations can take a similar approach, demonstrating how safety drives profitability and enhances operational success.
The positive impact on EBIT from safety
Safety initiatives directly influence the key drivers of EBIT: cost reduction, improved Service Level Agreements (SLAs), and revenue growth. Here’s how:
- Cost savings: Investments in safety reduce incident-related costs such as workplace injuries, downtime, and insurance premiums. These savings directly enhance operational profitability.
- Productivity improvements: A robust safety culture enables employees to work confidently and efficiently, minimising disruptions and delays. This leads to better SLA performance and operational output.
- Compliance and legal protection: Maintaining high safety standards while supporting ESG (Environmental, Social, and Governance) initiatives mitigates legal risks and ensures regulatory compliance. This proactive approach helps organisations avoid penalties and costly lawsuits, protecting both their finances and reputation.
- Workforce retention and attraction: A safe workplace fosters employee loyalty and attracts skilled talent. Reduced turnover ensures knowledge retention, while new talent contributes to enhanced productivity.
- Customer trust and reputation: A strong safety record builds trust with clients, enhancing the organisation’s reputation as a reliable partner. This often results in increased customer retention and market share.
Embedding safety into operations
To realise the benefits of safety, organisations should adopt a systematic approach to embedding safety into their operations. Key strategies include:
- Planning with safety in mind: From the initial stages of project planning, safety considerations should guide the design of processes, systems, and equipment.
- Tailored solutions: Safety systems should be customised to address the unique challenges and risks of each operation.
- Continuous monitoring: Safety is not a one-off initiative. Regular assessments and updates are essential to stay ahead of emerging risks.
- Training and awareness: Comprehensive safety training ensures that employees and stakeholders are aware of their roles in maintaining a safe work environment.
- Leadership commitment: Having dedicated safety leaders ensures that safety remains a priority at all levels of the organisation.
Safety as a strategic investment
While implementing safety measures requires upfront investment, the returns are substantial. Costs associated with documenting procedures, purchasing equipment, and training employees are outweighed by the long-term benefits of reduced incidents, enhanced efficiency, and improved profitability. In addition, organisations with strong safety frameworks often gain a competitive edge in securing new business opportunities, particularly in industries where safety records influence procurement decisions.
Adopting a data-driven approach to risk management, standardisation, and modernising safety systems and training programs can amplify these benefits. This strategy not only reduces costs but also boosts overall productivity, enhances safety awareness, and strengthens customer confidence, positioning organisations for sustained success.
At Ferag, safety is woven into the fabric of every solution delivered. By embedding safety into every aspect of project implementation, Ferag has helped clients achieve smoother operations, mitigate risks, and safeguard their people, assets, and reputation. This approach not only enhances operational performance but also supports long-term business growth.
Organisations that prioritise safety, as Ferag does, can achieve a competitive edge in the market. Safety is more than a responsibility—it’s a strategic advantage that drives efficiency, reduces costs, and improves EBIT. With a strong focus on safety, businesses can achieve operational excellence while fostering trust and loyalty among employees, partners, and clients.
Read the MHD article here
Meeting peak demands with automation
Ferag Managing Director and Head of Region APAC, Karl Friesenbichler, talks about the company’s warehousing solutions.
Ferag is a global company with its APAC head office based in Sydney and its global headquarters in Hinwil/Zurich.
It is a Swiss family-owned group and has been the global market leader in conveying and processing systems in the graphical industry for over 65 years.
Ferag has now shifted focus to Intralogistics and offers end-to-end solutions, from initial consultancy to system integration, project delivery, service and support.
Ferag’s product offerings encompass cutting-edge UCS (WMS/ WCS / WES) software, sortation systems, AMRs and AGVs, as well as service and support to ensure optimal performance.
With a strong emphasis on innovation and technology, Ferag maintains a global presence, represented by 19 sales and service companies, delivering tailored solutions designed to address warehousing demands.
During peak demand periods like Black Friday or promotional events, warehouses often struggle to meet capacity needs, despite the urgent requirement for fast order fulfillment in e-commerce.
As the Managing Director of Ferag APAC, Karl Friesenbichler, explains, this is a key issue – balancing cost efficiency with the need for speedy delivery to satisfy emotionally invested customers.
“The problem with e-commerce is the emotional journey of the buyer,” says Karl. “Once you purchase something, your money is gone, and you feel ownership of the product, even though it’s not yet in your hands. This is the big issue with e-commerce: the emotional aspect.
“As your supplier, I’m in a difficult position because I haven’t yet fulfilled my promise. I must deliver it as soon as possible because of this emotional attachment.”
When considering methods to manage these operations, some of the options are zone routing and automated storage and retrieval systems (AS/RS).
But as Karl explains, the uses for AS/RS systems are situational and a hybrid approach typically offers the best results.
“For large, bulky items, AS/RS can be inefficient, and for fast-moving stock, AS/RS may cause double handling, making it less suitable,” adds Karl.
“AS/RS excels in storage density, fitting many products into a small space, but during peak demand, it may lack the capacity to retrieve stock quickly enough.
“A well-designed warehouse typically combines different systems: fast-moving products are efficiently handled with a conveyor-based system or zone routing, while slower-moving, or less frequent items, can be stored in AS/RS.”
Success stories
Karl says that The Iconic, an online retailer, exemplifies the effective mix of manual and automated picking systems.
“The Iconic is a prime example of mixing manual picking areas with automated picking systems, using multiple different automated systems to meet various product requirements,” he continues.
“Cosmetics, perfumes, or high-value items are stored differently than super fast-moving fashion items, and fragile or dangerous goods require their own handling methods”.
“As an online retailer, The Iconic effectively uses an eclectic mix of systems tailored to their diverse product mix.”
Each system’s validity in the warehouse is crucial, but interconnection is key.
Traditionally, conveyors were used but had issues with space and fire exits. Recently, pouch sorters utilising ceiling space have become popular.
Automated packing integrates seamlessly, eliminating human interaction and easing peak day pressures.
ferag.doWarehouse advanced software further enhances efficiency by predictively moving stock into the pouch system before peak days, reducing peak demand.
These systems can ultimately handle up to 100,000 pouches, processing 30,000 pieces per hour, outperforming conveyors.
“Instead of occupying a large floor area where orders wait for pieces to be gathered from different areas, they utilise pouch sorting,” says Karl.
“This method eliminates restrictions on the number of orders that can be processed simultaneously, allowing operations to scale with demand.”
Demand forecasting
Karl highlights the challenge of forecasting and predicting warehousing demand, noting its propensity for inaccuracies.
Predicting merchandise behaviour proves challenging, but at Ferag, we can analyse product trends and historical data effectively.
“Using doWarehouse’s AI and machine learning, we identify patterns and enhance our forecasts,” says Karl.
“Our data science team supplements this with additional data such as weather patterns, holidays, migration trends, and customer demographics. These factors help predict if a product will sell faster each week, enriching forecasts provided by our customers, our merchandise or sales teams.
“For example, consider soft drinks: sales increase significantly during sunny weekends compared to rainy weather. For fashion items, online sales might spike on rainy winter days when people prefer shopping indoors. Our forecasting models account for these variables to optimise which products are stocked in our systems.”
Ferag have effectively implemented these predictive measures for their clients, namely, Mayoral.
It not only places orders but also collaborates closely with Ferag to continually enhance its systems. It also assesses whether actions were correct or if products need repositioning within an ASRS.
This feedback loop is crucial as it allows ferag.doWarehouse’s machine-learning algorithms to improve over time by learning from successes and failures.
Ferag SkyFall
One of Ferag’s flagship systems is called SkyFall. This is an innovative overhead conveyor system that utilises gravity and the third dimension.
It features a straightforward rail profile with roller bodies, enabling a range of items weighing up to 20 kilograms to be transported from point A to point B.
As Karl explains, the beauty of implementing a system like this is that it causes little disruption to processes.
“When considering how to integrate a significant level of automation into an existing warehouse with minimal disruption, our approach is designed to utilise space efficiently,” he says.
“By constructing automation systems beneath the ceiling, we require minimal floor space. This allows us to integrate new solutions seamlessly with existing infrastructure, minimising disruption.”
Karl says that the Skyfall system has a proven legacy of precision and robust engineering.
“The chain utilised in the SkyFall system has its roots in the graphics industry, initially developed for overhead transportation of newspapers,” he says.
“This gives a vivid image of newspapers gliding across the ceiling, which is essentially what our systems achieve. The technology behind the chain used in these systems has been refined over six decades.”
The technology embedded in these chains has ultimately undergone continuous refinement over six decades, embodying Ferag’s longstanding commitment to engineering excellence.
“There’s this current hype in the market around pouch systems,” says Karl. “It’s intriguing for me to highlight that while SkyFall isn’t a pouch system, the underlying technology that powers it predates this trend by six decades.
“It’s fascinating to witness the reliability, engineering prowess, and the innovative ideas that have shaped our systems through years of learning. These qualities are evident and constitute major feedback from our customers.”
Ferag expands operations in APAC
In a significant milestone of its evolution, Ferag Australia rebrands itself to Ferag APAC, a change aimed at aligning with its expanded presence throughout the Asia-Pacific region.
This change follows a period of extraordinary growth over the past nine months, during which the company expanded from 12 employees in Australia in September 2023 to over 60 employees throughout APAC as of today.
Regional expansion and new offices
Ferag APAC now operates offices in Australia, Malaysia, and India, underscoring its commitment to serving a wider market and enhancing its service capabilities across the region. This strategic expansion supports Ferag APAC’s vision of becoming a leading provider of innovative solutions within the intralogistics sector.
Customer growth and strategic acquisitions
The company’s impressive growth is also evident in its customer base. Following the acquisition of dereOida in September of last year, Ferag APAC has onboarded three iconic brands to its flagship software, ferag.doWarehouse. This strategic acquisition has strengthened Ferag APAC’s market presence and customer portfolio.
Significant increase in female participation
In alignment with its commitment to diversity and inclusion, Ferag APAC has seen a notable increase in female participation within its workforce. Since January, 12 female staff members have joined the team, raising the overall female participation rate from 8 per cent to 22 per cent. Even more remarkable is the rise in female representation in management, which has surged from 0 per cent to 20 per cent. This progress reflects Ferag APAC’s dedication to fostering an inclusive workplace and empowering women in the technology and intralogistics sectors.
Global hub for software development
With its expanded presence, Ferag APAC has become the global hub for the development of its innovative ferag.doWarehouse software. This strategic positioning enhances Ferag APAC’s capability to drive technological advancements and deliver superior software solutions to its global clientele.
Industry context
The broader Australian workplace sees a gender split of 53.4 per cent men and 46.6 per cent women. In contrast, the intralogistics market in Australia has a lower female participation rate, with men making up approximately 75 per cent and women 25 per cent. The Australian software industry reflects a similar gender distribution, with 75 per cent men and 25 per cent women (Australian Bureau of Statistics) (WGEA).
Warehouse Management Systems – How not to get burnt
With the complexity of the market growing due to an influx of solutions and players, businesses embarking on the journey of implementing a warehouse management system (WMS) face exciting yet daunting challenges. According to Ricardo, Sales Director at Ferag, the key to a successful implementation starts with self-knowledge.
“It’s really important for companies to understand their own operations thoroughly. Especially when operations managers are new or unfamiliar with the intricate details of their systems and processes,” Ricardo explains. He emphasises the importance of engaging with every section of the warehouse to grasp what employees experience daily.
Ricardo advocates for a partnership approach rather than a directive one, stressing the importance of choosing a WMS provider who listens and collaborates. “We believe in designing solutions with our clients, not for them. This collaborative approach ensures that the solutions are tailored to the specific needs of the business,” Ricardo says. This strategy not only aligns the system with the company’s existing processes but also enhances the overall functionality and integration of the WMS.
Addressing the automation dilemma, Ricardo suggests a cautious approach. “The best option often is not to jump straight into automation but to first understand and streamline your current processes,” he advises. This initial step allows for a more informed decision on whether automation is necessary or if manual processes simply need refining. Ricardo highlights the importance of identifying the most resource-intensive aspects of operations, such as labour and space, which are typically the most costly and impactful areas to address.
Furthermore, Ricardo points out the significance of data accuracy in the configuration of a WMS. “Data is the most critical part of warehouse design. If the data is incorrect, the whole solution will be flawed, regardless of how advanced the system is,” he says. He encourages businesses to ensure their WMS provider is not only taking in data but also thoroughly analysing it to understand the full scope of operations from receiving to shipping.
Ferag employs data scientists to enrich and verify data, ensuring that solutions are based on accurate and comprehensive information. “We don’t just accept the data we’re given; we delve into it, challenge assumptions, and enhance it to develop the most effective solutions,” Ricardo shares. This meticulous attention to data serves as a foundation for any WMS implementation, aiming to optimise efficiency and accuracy across all warehouse operations.
When it comes to implementation methodologies, Ricardo underlines the importance of a proven, flexible approach. “We adhere to industry-standard methodologies that allow for agility and quick adaptation, which is crucial for integrating new automation technologies as business needs evolve,” he explains. This flexibility is vital for maintaining cost-effectiveness and ensuring that the WMS can adapt to future changes within the company.
Ricardo also addresses the broader goals businesses typically aim to achieve through a WMS. “The primary aims are to enhance labour efficiency, maximise space utilisation, and improve overall operational throughput,” he states. By focusing on these areas, companies can not only improve their immediate operations but also lay a solid foundation for future growth and efficiency.
In terms of dealing with potential issues during the WMS implementation, Ricardo suggests that businesses should look for a partner who is prepared to adapt the solution to their needs rather than forcing the company to conform to the software. “It’s about finding a partner who is willing to mould their solutions around your processes, ensuring the WMS complements your operations rather than complicating them,” he remarks.
Lastly, Ricardo touches on the critical nature of choosing whether to automate certain operations or to refine manual processes. “Investing in the right areas at the right time is crucial. You may discover that enhancing your current operations is more beneficial than full automation,” he advises. This strategic approach allows businesses to optimise their investments, ensuring that any technological advancements, like WMS, genuinely benefit the operational dynamics and contribute to long-term success.
As businesses continue to navigate the complex landscape of warehouse management systems, the insights provided by Ricardo underscore the importance of a thoughtful, data-driven approach in selecting a WMS provider. By focusing on collaboration, data integrity, and strategic investment in technology, companies can enhance their operational efficiency and pave the way for sustained growth
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Why are some of Australia’s largest iconic brands jumping on board with the new kid on the block?
In the last few months, some of Australia’s largest and most prestigious brands have implemented ferag.doWarehouse (previously from dereOida). This roll-out includes major department stores, online retailers, third-party logistics providers (3PLs), amongst others. Most of these industry leaders are either in the process of going live, or already live with doWarehouse!
So, what sets this upstart Warehouse Management System (WMS) apart? Like every other WMS, it increases warehouse operations’ efficiency, boosts productivity, reduces order times, enhances stock accuracy, and supports cycle counting.
However, doWarehouse’s innovative approach distinguishes it from competitors. It is much more than just a WMS. It is a Unified Control System (UCS), which means it is a WMS, Warehouse Control System (WCS), Warehouse Execution System (WES) and/ or anything in between. Interfacing from your Enterprise Resource Planning (ERP) software all the way down to Program Logic Controller (PLC) level. It is fully and truly agnostic, offering best-in-class abstraction and optimisation, allowing for highly flexible and easy integration with equipment. In layman’s terms, doWarehouse not only manages your entire warehouse—it can also seamlessly integrate with your robots, warehouse hardware, and machinery, resulting in significant time and cost savings. You are no longer locked into outdated or unsuitable hardware, and you can select equipment that best suits your processes with the confidence that doWarehouse will manage them effortlessly.
Unlike other WMS providers, doWarehouse doesn’t require you to change your processes to fit the software. Most systems force you to mould your well-honed processes to their configuration—not so with doWarehouse! It also provides the flexibility to adapt new processes and functionalities as business needs evolve, such as shifting from retail to an online platform or integrating automated processes.
Its seamless integration and analytics enable quick and effortless setup and provides ongoing control and visibility of not only the different warehouse tasks, but also of their costs via meaningful reports and dashboards.
doWarehouse has been developed from the ground up utilising a state-of-the-art technology stack. This provides independence from the server operating system, it also offers scalability and excellent utilisation of server resources. In addition, dowarehouse’s modern architecture facilitates significantly quicker and cheaper modification and customisation.
In summary, doWarehouse UCS enables you to choose the equipment that best meets your warehouse requirements as well as stay up to date with the latest technology, without having to compromise on functionality.
doWarehouse was previously a part of dereOida. In September 2023, Ferag acquired dereOida, bringing doWarehouse and the Australian dereOida team into its fold.
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Geek+ and Ferag announce partnership
Geekplus, the mobile robot and smart logistics solutions company with Ferag APAC have announced a partnership, which will empower Ferag APAC to supply, install, and service Geekplus equipment.
Ferag notes this partnership will help it establish itself as a comprehensive solution provider for the Asia-Pacific region.
“I am delighted to partner with Geekplus for the sales and implementation of their robotics,” says Managing Director for the Asia Pacific at Ferag, Karl Friesenbichler.
“Many of our clients, including Myer – who has notably installed three Geekplus models, the Tote-to-Person, Shelf-to-Person and sorting solutions – are already reaping the benefits of Geekplus robots.”
Known for its pioneering solutions in order fulfilment, Geekplus caters to more than a 1000 international clients. Founded in 2015, the company has broadened its operations globally – now employing a workforce exceeding 1500.
It holds a strong market presence in the United States, Germany, the United Kingdom, Japan, South Korea, Mainland China, the Hong Kong SAR, and Singapore.
Ferag as the ultimate one-stop shop, consistently meets its clients’ exacting requirements with solutions that are both timely and within budget.
“Our strategic partnership with Ferag has been instrumental in supporting our market growth in the Asia-Pacific region,” says Head of International Business at Geekplus, Lit Fung.
“By leveraging their experience and adhering to the highest quality and service standards in system integration, we are ensuring efficient operations in our clients’ distribution centres. Looking ahead, we are excited about the prospects of more projects going live as a result of our collaboration with Ferag.”
This strategic alliance unites Geekplus’s cutting-edge suite of Goods-to-Person mobile robotic solutions with Ferag’s systems integration expertise and advanced warehouse software to offer clients across the Asia-Pacific region a fully integrated warehouse system tailored to their stringent specifications.