Decision intelligence in grocery logistics: over 1.8 million tonnes handled with zero left-behind goods

Optimizing pick and pack, palletisation, and stacking with prescriptive analytics: reducing wasted space and maximizing journey fill rates.

Markets

Logistics and supply chain

Solutions

Bin Packing as a Service

The challenge

Number1, Italy’s leading logistics operator in the large-scale grocery sector, runs a complex network of more than 50 sites (hubs and transit points), handling over 1.8 million tonnes of goods a year.

The main challenge was closing the gap between the “theoretical” and the “physical”: discrepancies between system-estimated volumes and the load actually built in the warehouse were generating hidden costs and logistics inefficiencies. Rigid algorithms and hard-coded logic limited organisational flexibility in the face of the strict customisations demanded by major retail chains.

To boost vehicle fill rates and manage this operational complexity, the company needed a standardised, fast and cross-functional process. The goal was to calculate the real load footprint from the order-planning stage onwards, cutting under-filled journeys and eliminating the risk of goods being left behind.

How we create value

Optit engineered an optimisation service, seamlessly integrated with Number1’s management systems, to automate order footprint estimation. The algorithm calculates the optimal build-up by combining two levels: the single order and the overall journey.

The optimisation engine runs a modular process that faithfully maps the entire warehouse workflow:

Pick & Pack: predictive calculation of the minimum number of boxes needed for piece picking.
Palletisation: simulation of the optimal make-up of single-SKU and mixed-item pallets, taking into account build constraints and customer customisations.
Stacking: calculation of pallet stackability to cut the number of stacks left behind per journey.
Physical constraint management: automatic integration of complex rules for display units, overhanging pallets, oversized loads and maximum heights.

By leveraging multi-order synergies, the system intelligently combines pallets belonging to different customers, maximising the height of the stacks loaded onto the vehicle.

Impact

The measured benefits confirm the economic and operational impact of the Decision Intelligence solution developed for Number1’s business:

+6% increase in the average height of the stacks built, optimising usable space.
A reduction of more than 2.5% a year in the total number of stacks generated.
Up to -3% in stacks left behind on direct journeys, and -1% on fixed routes between warehouses.
90% of calculations completed in under 3 seconds, giving planners maximum responsiveness.

The system has eliminated goods being left behind, standardised operational workflows and digitalised previously manual processes.