Project Overview
A UK third-party logistics (3PL) provider operating 12 warehouses, handling 8.4M picks per year, and serving 8...
Technology Stack
Compliance & Standards
The Challenge
A UK third-party logistics (3PL) provider operating 12 warehouses, handling 8.4M picks per year, and serving 84 e-commerce clients (including 3 UK top-20 retailers) needed a unified smart warehousing platform — replacing a combination of legacy Infor WMS, manual RF gun picking, and spreadsheet-based KPI reporting. HMRC CDS (customs declarations for cross-border clients), DVSA (transport compliance), UK GDPR (client inventory data), and Cyber Essentials were mandatory. Budget: £150,000.
Our Approach
WMS inventory management
- 1goods receipt (GRN — barcode scan of inbound delivery → SSCC/EAN validation → put-away task generation),
- 2slot management (8,400 bin locations across 12 warehouses — location master with pick face, reserve, bulk storage slots),
- 3FIFO/FEFO compliance (food and pharmaceutical clients — expiry date tracking, FEFO allocation),
- 4cycle counting (perpetual inventory — automated cycle count task scheduling by ABC analysis),
- 5inventory reconciliation (client stock reconciliation portal — client sees real-time inventory levels).
IoT integration
Zebra scanners (RFID + barcode — connected via Zebra DNA CloudConnect to WMS API), forklift telematics (BLE beacon location tracking — forklift position accuracy ±2m in warehouse).
Pick optimisation
route planning reduces travel distance per pick — largest efficiency gain in warehouse operations.
Pick routing algorithms
- 1S-shaped (traverse each aisle end-to-end — simple, 40% improvement over random),
- 2largest gap (skip aisles with no picks — 25% further improvement on S-shaped),
- 3combined (combined algorithm — 68% improvement over random picking routes). Multi-order picking: batch picking (pick multiple orders simultaneously — pick to light or voice picking). Pick-to-light: LED light at pick location illuminates with quantity — picker confirms with button press.
Pick accuracy
- 99.94% (target: >
- 99.9%).
Pick rate
- 420 units/hour (target: >
- 380).
Labour scheduling
- predicted picks × average pick time = required pickers per shift (sent to planning system day before).
- E-commerce Client Portal — Real-
Client portal
each of 84 e-commerce clients has a self-service portal (React frontend — client-specific branding).
Portal features
- 1real-time inventory (live stock levels, reserved stock, available stock),
- 2order status (in-pick, packed, dispatched, delivered — tracking via Royal Mail/DPD/DHL webhook),
- 3returns management (return received → inspection → resaleable vs quarantine),
- 4KPI dashboard (fill rate, pick accuracy, despatch cut-off compliance, damage rate),
- 5invoicing (per-transaction billing — pick fee + handling fee + storage fee, automated monthly invoice).
UK GDPR
- client inventory data isolated by client ID (PostgreSQL RLS) — client A cannot see client B's inventory.
- HMRC CDS Cross-
Border Declarations
Cross-border logistics: 12% of warehouse volume is goods imported from non-UK (post-Brexit — requires customs clearance).
CDS integration
- 1Import declaration (CDS C88 — importer of record, commodity code, customs procedure code, tariff),
- 2duty calculation (UK Global Tariff API — commodity code × country of origin × preference agreement → duty rate),
- 3customs clearance status (CDS notification webhook → release goods for despatch),
- 4deferred duty account (DDA — bulk customs duty payment monthly rather than per declaration).
CHIEF to CDS migration
HMRC retired CHIEF in November 2023 — all declarations now via CDS.
ClickMasters CDS integration
established CHIEF-era integration replatformed to CDS API.
The Results
Platform live at 24 weeks, £138,000 — under budget. 8.4M picks per year across 12 warehouses.
Pick accuracy: 99.94% (target: > 99.9%).
Pick rate: 422 units/hour (target: > 380).
Inventory accuracy: 99.8% (cycle count programme).
Client portal adoption: 78 of 84 e-commerce clients active within 30 days.
CDS customs declarations: 100% automated (0% manual).
FEFO compliance: zero expiry date pick errors in first 12 months (pharmaceutical client — zero tolerance).
Client NPS: 84 (legacy: 32).
“8.4M picks. Accuracy 99.94%. Rate 422 per hour. CDS 100% automated. FEFO zero expiry errors. Client NPS from 32 to 84. 78 of 84 clients active within 30 days. The pick routing optimisation — 68% improvement over random picking — was the operational gain that paid for the platform. Our largest retail client saw £840,000 annual labour saving from pick rate improvement alone. The platform is now our competitive advantage in the UK 3PL market." — Operations Director, UK 3PL Provider (name withheld)”
Project Details
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