Optimizing Colissimo's Warehouse Management

The assignment discusses the challenges faced by Colissimo in managing its increasing parcel numbers and delivery errors. It recommends investing in more efficient warehouse management systems (WMS) and training operators to improve skills and reduce human mistakes. The use of automated live bottom trailers and 'put to light' systems is also suggested to enhance efficiency and flexibility in sorting parcels.

Operations Management: Individual
project
The Colissimo’s logistics hub of Bordeaux-Bègles
1) A detail of the chosen company, product or service.
For this individual project I decided to choose the service named Colissimo. Colissimo is
a delivery service for individuals, created in 1989, and is part of the French group, Le
Groupe La Poste. Colissimo ensures the delivery of packages with a delivery time of 48
hours in France, but this delay is not guaranteed by Colissimo. The service also allows
you to track your package using an identification number. Colissimo also offers the sale
of “ready to ship” packaging.
We will focus our analysis on a specific case, which is the Colissimo’s logistics hub of
Bordeaux-Bègles in France. This hub was created in 1794 and it’s now the oldest
sorting center in France. This logistics hub of 14 000m² worked 24 hours 6 days a week
and can handle between 140 000 and 220 000 packages per day. More than 185
employees are mobilized to run the center. The aim of this hub is to sort the entering
and outgoing packages. Indeed, the sort center of Bordeaux-Bègles handles every
package coming from the departments around Bordeaux and destined for the rest of
France but also every package coming from France destined to the 8 departments
around Bordeaux.
In this hub, the operations start with the arrivals of the packages by trucks at the
unloading docks. There started the unloading process of the truck's trailer. This can vary
depending on the type of trailer: classic trailer or live bottom trailer. For classic trailers,
the packages are packed on pallets or specific iron containers and have to be unloading
manually. For the live bottom trailers, packaged are stocked loosely and are unloaded
automatically on the sorting line thanks to live bottom trailer. For this process, heavy
packages have to be placed below to not damage the other packages during the
unloading. This is a video of the unloading of a live bottom trailer in the Colissimo hub,
who can help to have a better vision of the process:
https://youtu.be/_83dn11lLVI.https://youtu.be/_83dn11lLVI

For the next step of the operations, the packages enter in the sort line by portal. This
portal will read the barcode label to extract data about the package such as its weight,
its destination, its volume etc. Large packages going to a manual sort line, and when
they are sorted, the package are stowed depending on their destination to finally be
stocked in the shipping area waiting to be packed in a truck. Concerning casual
packages, named “machinable”, are sent to the sorter. It’s important to specify that the
large majority of packages are “machinable”. Then the sorting process take place with a
huge high flow sorter (291 meters) including 486 rocking trays. Every package is put in a
rocking tray when it enter in the sorting line, then dumb in a container that correspond of
its destination to finally be loading in a trailer to be shipped to his destination. Defective
packages are removed manually from the line by the operator and are send in
confection. To have a better visualization of the sorting line operation, this a video of
functioning of the Bègles hub sorting line:
https://youtu.be/YZ5At9Ff4-M.
2) An explanation of how you selected the above company, product, or service.
Firstly, I selected Colissimo because it is part of an important French group, namely Le
Groupe La Poste. It was also interesting to me to choose a sorting hub because I had
already visited a sorting center in the past, not a Colissimo center but a LaPoste center.
And even if Colissimo is one of the major actors of the package's delivery, some
improvements are possible, if not necessary. My choice of the specific case of the
Bordeaux-Bègles is based on the fact that this sorting hub is an old generation center
compared to the new generation of Colissimo center that they are creating since 2016.
The Bègles hub is still running well but some improvement of the operations
management is possible to improve the productivity of the hub. And finally, I decided to
pick this case because I found a really interesting online visit to this location who helped
me to have a concrete idea of the operations.

3) The Operations Management (OM) topic(s) that you selected: define it and explain
why it is important.
The Operations Management topic I choose is the supply chain management, and more
specifically for this case the warehouse management. In general, supply chain
management can be defined as the management and the planning of activities that are
involved in the production and distribution of products/services. It includes every process
from sourcing to post sale services. The warehouse management, for its part, is the
process, control, and optimization of warehouse operations from the entry of inventory
into a warehouse until items are moved, sold or consumed. In general, the operations
are simply defined by receiving and shipping. First, receiving means in taking,
identifying, inspecting and storing. Then receiving, covers different processes such as
packaging, picking, weighing, marking and delivering products from the warehouse to
the customer. When we talk about warehouse management, it also includes the
warehouse management process which is the way a warehouse operates, and can be
defined by the workflows, the processes, the teams evolved is these processes and the
tools and techniques used to optimize them. Warehouse management is crucial for
companies, especially for parcel transport companies such as Colissimo. Indeed a
mismanaged warehouse will face a host of problems that can impact productivity then
the profitability. Disjointed teams and employees, inaccessible inventory and equipment,
counterintuitive and redundant processes, Rigid and restrained lay-outs that undercut
productivity are some examples of results of poor management. On the contrary, a
good management of the warehouse’s operations and processes that ensure proper
training and skills for employees, a good safety of teams and equipment and the right
warehouse management software will maximize your productivity by saving time and
money.
4) How does the chosen OM topic(s) relate to your company, product, or service?
For a company such as Colissimo, time is money, every second that can be saved
would help the company to offer better services to the customers. Especially for parcel
delivery service, the warehouse operations are crucial. Nowadays, there is a continuous
growth of e-commerce delivery. In this context, sorting hubs face new challenges to
handle this increasing amount of packages that should be delivered. That’s not all,
because the consumers continue to have higher and higher expectations regarding the
delivery time. Indeed, 1billion parcels will have been delivered by Colissimo in 2020 by
the end of this year, which is a new record and an increase of 30% between 2019 and
2020. In view of these numbers, the sorting platform management will play a major role
to reach the productivity necessary to handle this continuous growth.

5) Provide a detailed analysis, including a listing and explanation of any findings,
suggestions, or recommendations for improvement.
Based on what I learned in Operations management and on my research about
Colissimo, the sorting platform of Bordeaux-Bègles, warehouse management and my
personal experience I will provide my personal suggestions and recommendations for
improvement.
First, about the process of unloading parcels from the trucks, we saw that the sorting
hub of Bègles uses 2 methods because of different trailers. Here my recommendation is
to invest in live bottom trailers for 2 reasons:
- Unloading is automated and quicker with live bottom trailers than classic trailers, so it will
save time and save operators' workforce to do something else.
- Using only one method of unloading (automated live bottom trailers) will establish a
standard for the process that can lead to a better efficiency and timesaving.
Due to the big growth of parcel numbers, the number of delivery errors also increased
from 1% to 2% for Colissimo. To remedy this situation, Colissimo should maybe invest in
more efficient and appropriate warehouse management systems (WMS) and some
training for his operators. New WMS will provide more data about packages and better
analysis of the data who can prevent some mistakes. The training of staff will improve
the skills of the operators and reduce human mistakes. Another tool that could be used
to avoid errors is a helping system named “put to light”. UPS is using this system to help
his operators to sort really small parcels. The operator scans the barcode then a color
light will turn on where the operator should put the parcel. In the Bègles hub small
packages are sorted autonomously but this system could be used for large packages
who are sorted manually by operators by putting on the right cart based on his postal
code. By using the “put the light” system, the operator just has to scan the barcode and
put the parcel in the lighting can, so it would avoid human mistakes such as reading the
wrong postal code or a misunderstanding of where to place the parcel.
An important aspect of warehouse management is flexibility and mobility. The sorting
platform can also consider some change to improve its flexibility and mobility. Moving,
loading, unloading packages can be facilitated by new generation articulated conveyors.
Autonomous follower carts could also facilitate moving parcels in addition to improve the
working conditions of operators.
To reduce their carbon footprint and transport more parcels per truck, Colissimo started
to use new “swap mobile” for their new generation sorting center. It is a mobile container
that is removed from the truck trailer and put on feet. This container can contain 4000
parcels and trucks can draw 2 swap bodies at the same time.

6) Conclusions
These past few years, the number of parcels has seen a spectacular growth due to the
boom of e-commerce. More recently, with the lockdown of February and right now with
second lockdown, customers have higher and higher expectations about delivery time
and companies have to adapt their supply chain management to the new standards. The
competition between companies is fierce. Since 2018, Colissimo created 4 new
generation sorting hubs to handle the growth of demand. But older centers such as the
Bordeaux-Bègles, should also be revised, new warehouse management processes can
be applied in aim to increase the productivity of those platforms to keep pressure on
competitors and satisfied consumers. Just as UPS is a leader in terms of parcel
shipping, Colissimo should keep investing in new technology and keep an eye on the
future supply chain trends.
7. Sources / References / Bibliography
Chaîne logistique et boom du e-commerce (Infographie)
Comment La Poste veut améliorer la livraison de colis - Stratégies Logistique
Comment Colissimo va tenter de mettre fin aux erreurs de livraison - Capital.fr
Une année record pour Colissimo ? - Stratégies Logistique
Comment ça marche une plateforme Colissimo ? - Info-Ecommerce.fr
Plateforme colis de La Buissière | Le Groupe La Poste
Rhône : UPS inaugure son plus grand centre français de colis
What is supply chain management? | UPS - United States
Comment fonctionne une plateforme de transporteur ? L'exemple d'UPS à Lyon - Info-
Ecommerce.fr
What is warehouse management | 10 guides to mastering commerce
UPS, la transformation radicale par les SI - Management des Systèmes d'Information -
Gestion de Projets