Driving the Future of Parcel Logistics

Q:  From your perspective, what are the most significant opportunities for parcel companies in this evolving landscape?

Brad:  Parcel companies have invested a tremendous amount in automation over the past decade, and they’re still automating significant parts of their operations to improve efficiency and manage labour constraints. With everything—from smalls to regular parcels to oversized items—running through the same network, one of the biggest opportunities is figuring out how to handle manual segregation at the doors and feed it into the system. Right now, that process is still very manual and challenging. So, the key questions are: how can we use robotics and automation to automatically unload mixed trailers as they arrive? How do we efficiently sort and segment oversized parcels? And if all of this is happening in the same facility, how do we automate that entire flow? Then there’s a third area to look at; how to bring automation into the process of feeding order consolidation and managing the final bag-out.

Rob:  Another opportunity lies in replacing outdated systems and increasing automation to maximise efficiency and productivity, meaning doing more with what’s already in the network. While automation presents clear operational advantages, there’s also a broader strategic shift underway, one that calls for a deeper collaboration between customers and suppliers. It’s time to engage in more strategic discussions as true partners. Parcel companies need to trust their networks, protect capacity and ensure availability, making strategic alignment more critical than ever. A strategic partnership delivers top-tier engineering and lasting support that businesses can count on to drive long-term success.

Q:  Market volatility has become the new constant. How can companies build greater adaptability into their sorting operations?

Brad:  Companies have to look to the future to figure out where their demand is heading, what the change in the customer mix is going to be, and how to improve this visibility through better use of data as they roll out automation. The challenge is accounting for these factors as accurately as possible.

Rob:  It’s about the business as a whole. If you want to handle volatility, the key is to keep fixed costs as low as possible and maximise flexible costs. That’s where CapEx and OpEx come together. It’s not just about introducing new equipment; it’s about leveraging knowledge, expertise and capabilities to help organisations better understand their data and their position to respond quickly and strategically as market dynamics evolve.

Q:  So, we see data now playing a central role in logistics. How can parcel businesses harness it more effectively to optimise processes and performance, and enhance customer experience?

Brad:  The next step forward is enabling real-time, data-driven decisions in operations. They have to understand how the current flow of products is impacting throughput and the overall productivity of their facility—and be ready to adapt. If we can enable facilities to run more efficiently by leveraging real-time data, that’s a huge step forward. Today, most systems provide reports, but those reports reflect what happened in the past—five hours ago, 24 hours ago, or last week. They don’t usually offer real-time operational insights. What they need are tools that can say, “Based on your current package mix, your expected throughput is X. You’ll need to run for an extra hour, so here’s your design rate and your design parameters.” The next big leap in efficiency will come from real-time data analytics. That’s what will really drive performance forward. Eventually, it’ll be machine learning that takes it further optimising the flow through the building and showing the impact on labour, timing and customer service. IT remains one of the final frontiers for driving real progress in these facilities.

Rob:  The real challenge isn’t collecting data; it’s interpreting it. Once you have the data, how do you analyse it and translate those insights into actionable code for machine learning? That’s the difficult part, especially if you’re doing it on your own. The true value of data emerges when examined from multiple perspectives—operational, mechanical, engineering, the machine’s viewpoint and maintenance. That multidimensional view is where powerful results take shape.

Q:  How can intelligent software improve operations, and what role does it play in enabling smarter, more agile intralogistics operations?

Rob:  Look at the warehousing environment. Intelligent software built on the same principles as slotting and digital twins, for example, can help parcel companies better understand and optimise their systems. Achieving this requires close collaboration between customer and supplier to evaluate how the system operates and identify opportunities for operational and maintenance improvements.

Q:  Cost-efficiency remains key in the high-volume parcel business. In what specific ways can automation contribute to reducing the cost per parcel while maintaining—or even improving—service quality?

Brad:  We can do a lot within the four walls, but the real transformation happens when you widen the lens to include the entire network. IT can make a meaningful difference, especially in transportation. Transportation is one of the largest cost drivers, making up 60 to 65% of total costs, followed by labour, which accounts for around 30%. To significantly improve efficiency and service levels, companies need to address transportation as a priority. That requires smart network analysis to position services where they’ll be most effective. Into the four walls, organisations should modernise their equipment specifications to take advantage of recent technological advances. While current electrical and mechanical systems are highly robust, many are based on older technologies. Upgrading can deliver significant capital savings and a solid return on investment over time.

Rob:  Building on that, parcel companies often have unique requirements and compliance needs, which drive up costs. By adopting reliable, high-performing industry standards, they can simplify operations and reduce expenses. Standardisation also enables better data collection and analysis supporting more accurate forecasting and strategic planning. Ultimately, that drives results-oriented performance agreements.

Q:  How does FORTNA’s approach and solutions align with these drivers, and how do you help your customers stay ahead of the curve?

Brad:  We bring together data-driven consulting, system design expertise, seamless integration, and lifecycle performance services. Our approach combines advanced software with cutting-edge technology. Two of the latest solutions we have developed to address our customers’ evolving needs are FORTNA Robotic Induction and FORTNA OptiSweep™. OptiSweep is an automated robotic system designed to streamline small order consolidation and transport within high-volume e-Commerce and sortation centres, significantly enhancing efficiency while reducing labour requirements.

Rob:  FORTNA has a unique advantage as we combine a strong background in parcel sortation with deep IT expertise in warehousing. This powerful blend allows us to deliver solutions that truly add value to our customers. We’re seeing a powerful convergence between these two areas. Enhanced process visibility and data insights enables the design of tailored solutions that meet specific business needs. For large e-Commerce companies, enabling better sorting and preparation for final delivery boosts efficiency and reduces shipping costs.

Published/Updated 6/10/25