Leaders Of Logistical Efficiency

(INSIDE) SUSTAINABILITY MAY 2023

Staci US is a leading provider of supply chain end-to-end solutions. The company supports eCommerce, B2C and B2B clients across a diverse range of industries. Core services include multi-channel integrated fulfillment solutions, kitting, complex packaging, logistics and warehousing. Director of Sales & Business Development Jessica Warwick and Managing Director Johanna Pudda explained more to Hannah Barnett.

Efficiency is the name of the game at Staci US. The company constantly strives towards the most productive operations possible. Alongside achieving optimum efficiency are the core foundational values of the company: partnership, commitment, innovation and sustainability.
“These core values ensure that we remain responsive, passionate and proactive in all that we do. They ensure that we’re seeking continuous improvement in the logistical solutions that we implement, and that we are forward thinking in designing tomorrow’s technologies and processes,” as Jessica Warwick, Director of Sales & Business Development, summarised.

Stateside expansion

Though still relatively new to the US, Staci is an established logistical operator in Europe. It is crucial that the group’s 79 logistics hubs, across Europe and the US, are seamlessly interlinked to ensure maximum efficiency.

“We collaborate with the teams in Europe every day and share a lot of clients,” said Ms Warwick. “So, it’s really important that we stay in communication, and that the level of service, operations, KPIs and so on, remain consistent.”

Being straddled between the two regions has filled a gap in the market for Staci’s clients, too.

STACI US | PROFILE

“A lot of companies want a dual solution,” Ms Warwick explained. “They want one fulfillment centre in the UK, another in the US, and one partner to manage the logistics so there’s consistency across their operation. We have a few dozen clients who operate in more than one country – a lot of them across multiple regions, which I think is testament to the efficient way Staci functions.”

As a result of its excellent reputation in Europe, when Staci US opened its first warehouse in New Jersey, in 2019, it had three major clients already secured. Expansion continued consistently, despite the challenges of Covid. In 2022 it welcomed an outpost in Reno, Nevada. In March of this year, Staci US announced the acquisition of Amware Fulfillment, further enhancing the logistics network and warehousing footprint in the US. As a result of the acquisition Staci adds 15 new warehouses to their US network, with sites in California, Arizona, Texas, Georgia and Illinois, giving the company a total of 17 locations.

This expansion is in line with the wider Staci group turnover, which increased by over 400% in the last 15 years. “The group has seen tremendous growth,” said Ms Warwick. “And in the US, we’ve essentially gone from zero to over $200 million In revenue in our three short years here. We expect further growth of 20 percent over the next couple of years.”

Environmental efficiency

Staci US builds its policies around three pillars. The first focuses on the wellbeing of its employees and investing in their development. Pillar two is a commitment to protect the environment, and pillar three is about positioning Integrity at the forefront of business.

Ms. Warwick expanded further on pillar two: “In our innovative solutions to protect the environment, we take a two-pronged approach. The first prong is about reducing our carbon footprint for transport and logistics solutions. So, we’re looking at things like delivery by electric vehicles, e-scooters, bikes, anything that’s a clean or green vehicle.”

The second element of the two-pronged approach focuses on reducing the impact of the business on the environment. This is done by the optimisation of packaging, waste recycling and the reduction of energy consumption. “That is led by the technology at our warehouses,” Ms. Warwick explained.

“The software we use categorizes every item we’re shipping into the proper sized box. It’s telling us exactly how much packing materials to put in. Our Al cameras sense if we’re over-stuffing something with packing material. It allows us to be extremely efficient and consider the materials we’re using.”

Staci US offers carbon footprint calculators for clients, with the result that some choose to use dual-fulfilment options when moving goods coast-to-coast. All the company’s packaging is made from 100% cardboard recyclable fibres, sourced from domestic packaging suppliers. “We’ve had clients that are really impressed with our sustainable credentials,” said Johanna Pudda, Managing Director.

Rabot and other tech

While Staci US’ impressive 99.5% order fulfillment accuracy is above Industry standard, the company wants to drive toward 100% accuracy, in line with its ethos of constant improvement and maximum efficiency.

Rabot is a beta program the company is trialing that uses Al to Improve traceability, quality and, of course, efficiency. “We partnered with Rabot to improve productivity and the quality of every order packed at our facility,” Ms. Warwick said. “We have Rabot Al cameras Installed above our packing stations, and through machine learning the cameras identify errors and verify the contents of every order.”

Prior to employing the Rabot solution, Staci US measured its fulfilment accuracy manually. The process involved randomly selecting and opening packed orders and checking them against the bill of materials, evaluating the dunnage, and then repackaging them and sending them out. This cost the company 10% of its operational costs in the warehouse. And while this method of quality control gave decent insight into overall quality of packaging accuracy, it failed to explain why any errors may have occurred.

“A packer system Al gives real-time feedback to the packer to ensure that products are packed correctly and ensure that every item arrives in perfect condition,” Ms. Warwick said. “So, there are fewer damaged items. And that ultimately helps us reduce CO2 emissions, because we don’t have to travel to collect returns.”

The Rabot software has already helped ensure a 60% reduction in costs for quality assurance and customer support, a 20% improvement in packaging efficiency and a 33% increase in productivity by identifying process inefficiencies.

“Rabot has been instrumental,” agreed Ms. Pudda. “And now we’re able to use it on multiple fronts”.

“The goal is not only to have the quality assurance functionality, but to be proactive about removing operational errors. As we make the Al more Intelligent, we want to expand it to Europe and through the Staci group.”

There are other technologies the company is investing in, too: one is goods-to-person picking. This Al calculates the optimal picking route within the warehouse, minimising the walking the pickers do by bringing the goods directly to them. The software aims to make operations much more efficient.

Another investment is into a drone to increase inventory accuracy, which will have the knock-on effect of decreasing costs and improving safety all round. Both technologies are now being tested for production deployment and the company hopes to have them in operation by the end of the year.

“Productivity is key here,” summarised Ms. Pudda, “especially if we’re dealing with a B2C business, where we must maintain a very short turnaround time of about 24 hours and up to two days maximum. The fact is, in logistics, technology is the best way to innovate. It doesn’t replace humans; it assists them and is an excellent way to optimise workflows, make them faster and more efficient.”