An Odoo alternative for e-commerce: a comparison with Collana Diva Now

Home Odoo is a powerful ERP system that covers many industries with over 80 apps. It is precisely this breadth that raises a question for online retailers: how much customisation is required before the system can map their own e-commerce processes? Retailers dealing with multiple channels, returns and integrations often encounter three recurring issues when using cross-sector systems: one specialised alternative is collana diva now, our ERP solution for online retail based on Microsoft Dynamics 365 Business Central. All business processes are consolidated within a single software solution: without detours, without development effort, and without constant customisation. Odoo and collana diva now compared Every software solution has its pros and cons. This comparison summarises the key categories. Comparison as at: December 2025 Category Odoo collana diva now Headquarters Belgium Germany (DACH region) Deployment Three options: Odoo Online, Odoo.sh, On-Premise Cloud (SaaS model) Implementation time Depends on the project 8 to 12 weeks (depending on the project) Target audience SMEs across all sectors E-commerce, SMEs and start-ups Platform Proprietary architecture (Python/PostgreSQL) Microsoft Dynamics 365 Business Central Support and updates Included with Odoo Online and Odoo.sh; not included with On-Premise Included, with a dedicated contact person Pricing structure according to provider Open-source version free of charge (One App Free); Standard from €19.90 per user per month (from €24.90 after 12 months); Custom from €29.90 per user per month (from €37.40 after 12 months). Costs for implementation, data import or project management may apply. Business Central plus the diva-now module for around €99 per user per month, plus the base module for €49 per client per month (includes LabelPort and collana pay). Further modules available on request. E-commerce integrations Possible via apps Integrated interfaces to online shops, logistics partners and production Microsoft 365 suite Possible via apps Yes, fully integrated LabelPort integrated No, other providers available via apps Yes PSP connection Possible via apps Integrated multi-payment hub (collana pay) Multi-client capability Depends on the edition Yes Security and data protection GDPR-compliant GDPR-compliant, operated in Microsoft Azure data centres Trial version Yes No, but free live demo All information regarding Odoo is based on publicly available information from Odoo S.A. (as at October 2025) and is provided for general guidance only. „Odoo“ is a registered trademark of Odoo S.A. It is mentioned solely for comparison purposes. A word on open source: the free version sounds tempting. In practice, however, most retailers require additional development work to implement sector-specific requirements. These customisations cost time and money, which are not included in the licence fee. E-commerce features: Collana Diva Now covers online retail workflows within a single system. An overview of three areas. Inventory management and logistics: Centralised inventory management with real-time data: manage items, stock levels, prices and storage locations in real time, with available quantities and variants at a glance. Returns management: Process returns quickly and in a customer-friendly manner, with automated order reversal and stock reconciliation. Dispatch and Logistics: Integrated interfaces with dispatch service providers simplify label creation, parcel tracking and dispatch optimisation. Product Range and Purchasing: Accurate master data, clear supplier management and intelligent order suggestions. Sales and Customer Processes Order Processing: The entire order process from ordering through dispatch to invoicing, with automatable workflows. CRM: Customer data such as address, payment details, reviews and service contacts are centrally consolidated, including quotation and chat history. Marketing: Use customer data for targeted offers and email campaigns, managed across all channels. Administration and Financial Accounting Payment processing: collana pay is integrated and, as a multi-PSP hub, connects all standard payment methods. Accounting: Automatically generate invoices and receipts, process payments, and keep track of outstanding items and cash flows. Reporting and Controlling: Dashboards and reports provide real-time key performance indicators, from turnover to return rates. As the business grows, the solution scales with it, even beyond the German market. For businesses with more demanding requirements, collana diva offers the next level of functionality, built on the same Microsoft foundation. The benefits of the Microsoft-based collana diva now combine Microsoft technology with over 20 years’ industry experience in e-commerce. In practical terms, this means: a stable ERP platform with excellent future-proofing, the security standards of Microsoft Azure data centres, and the direct integration of Excel, Teams, Outlook and Power Automate into day-to-day operations. Six phases to collana diva now The migration from Odoo or another ERP system follows a fixed process: Consultation: Live demo and assessment of whether collana diva now suits your business model. Kick-off: Defining objectives, scope, requirements, modules and timelines. Onboarding 1: Setting up financial accounting, data migration, users, profiles, documents and email templates. Onboarding 2: Implementing purchasing, customer service, logistics and further interfaces. Fine-tuning: Tests, adjustments and checks ensure the software is ready for use. Go-live: Launch of live operations with support until everything is running smoothly. If you’re still at the early stages of your selection process, our ERP orientation and selection workshop can help you make a decision. You can find comparisons with other systems in our articles on alternatives to Xentral and alternatives to weclapp. FAQ: Frequently asked questions about collana diva now as an Odoo alternative Why is collana diva now the more specialised alternative to Odoo for e-commerce? collana diva now is designed specifically for e-commerce. The cloud-based ERP is ready to go without the need for extensive customisation, and there’s no need to search for the right edition. All data from sales, marketing, logistics and financial accounting converges on a central platform. What is the difference between collana diva now and Microsoft Dynamics 365 Business Central? Business Central forms the technical foundation. collana diva now supplements this with e-commerce modules: integrated interfaces to online shops and parcel delivery providers, the LabelPort dispatch module and the collana pay payment hub. You receive the Microsoft platform with pre-configured processes for online retail. What features does collana diva now offer retailers? The solution covers inventory management, returns management, dispatch, purchasing, order processing, CRM, marketing, payment processing, accounting and reporting. Everything runs on a single system. Is collana diva now a scalable solution? Yes, the cloud technology and add-ons scale with your business, even internationally. If your business outgrows the scope of functions, you can switch to collana diva without leaving the Microsoft platform. How quickly can collana diva now be implemented? Typically, implementation takes 8 to 12 weeks, depending on the complexity of the project. The process follows six phases, from consultation to go-live. Both Xentral and collana diva now cover the core processes of online retail. If you want to get started very quickly and can make do with a transaction-based starter package, Xentral offers a suitable model. If you’re looking for a Microsoft-based ERP system with an integrated payment hub, returns management, personalised support and a clear growth path, collana diva now is a strong alternative. Share this article on X LinkedIn Facebook WhatsApp Our latest news Which solution is right for your business? Would you like to know which solution suits your processes? Arrange a

Integrating Shopify and ERP: How to manage your shop via the backend

Home Shopify is one of the most successful shop systems in the German e-commerce sector. According to an analysis by uptain, it is the most widely used shop system amongst small and medium-sized online shops in Germany. On the front end, the platform offers a wide range of features: product management, checkout, payment processing and marketing. However, Shopify is not an ERP system. The platform only partially covers inventory management, logistics, accounts and customer service. This is exactly where collana diva now comes in: a cloud-based ERP system based on Microsoft Dynamics 365 Business Central, which connects to your Shopify shop via a web API and bundles all business processes into a single system, from order processing to bookkeeping. Where Shopify reaches its limits Shopify is designed as a shop system – an online sales platform. As soon as order volumes grow, typical gaps emerge in the backend: you manage stock levels manually or via individual apps that do not exchange data with one another. Orders from multiple channels (shop, marketplaces, high street) are processed in separate systems. The accounts department relies on exports and Excel spreadsheets rather than real-time data. Every manual transfer carries the risk of errors: overselling, duplicate entries, incorrect stock levels.   An ERP system bridges these gaps. It takes over the backend and lets Shopify do what it does best: sell. What the integration with collana diva now actually delivers collana diva now connects your Shopify shop directly to the ERP. All relevant data flows automatically between the shop and the system, without any data disconnects, without Excel, and without the need for duplicate data entry. A central, real-time overview of all key metrics. Orders, stock levels, customer data and turnover are all available in one central location. You can see at any time what has been sold, what is in stock and how your business is performing. Seamless communication between the shop and the ERP. The system automatically synchronises orders, customer data, payments and status changes between Shopify and collana diva now. Changes made in the shop have an immediate impact on logistics, accounts and customer service. A unified order overview across all channels. collana diva now consolidates sales from the Shopify shop, marketplaces and other channels. You work within a single system, regardless of where the order was received. Inventory management and logistics in one software solution: collana diva now combines traditional ERP functions with e-commerce-specific processes. The system manages the flow of goods entirely digitally: Real-time stock levels across all channels; automatic stock entries for orders and returns; pick lists, dispatch documents and tracking; support for multiple warehouses and locations; minimum stock levels, forecasting and replenishment planning. This is particularly beneficial for fashion retailers with high return rates. To find out how an ERP system addresses the specific requirements of the industry, read the article ‘ERP for Fashion’. Open interfaces for your system landscape: collana diva now integrates seamlessly into your existing system landscape and can be flexibly expanded. Possible integrations include: Shopify as a shop front-end (via web API) Marketplaces Shipping and logistics providers Payment service providers, for example via collana pay (multi-PSP hub) Other third-party systems via interfaces The interfaces operate bidirectionally. You enter data once; processes start automatically. Reduce costs, boost productivity An ERP integration has a direct impact on your cost structure in four key areas: Effect How it is achieved Less manual work Automated processes save time in day-to-day operations Fewer errors Consistent data prevents overselling and duplicate bookings Less IT overhead No in-house server infrastructure, automatic updates Greater transparency All key figures in a single system Cloud ERP, on-premises or stock management system? Depending on your size, IT structure and growth targets, three models are worth considering: Criterion Cloud ERP On-premises ERP Specialised stock management system Description Cloud-based solution, no need for your own server, quick Shopify integration Runs on your own servers, highly customisable, maintenance-intensive Focus on stock, dispatch and orders; weaker in CRM and accounting Advantages No maintenance, automatic updates, scalability High level of customisation, full data control Easy to use Suitable for start-ups, SMEs, growth-oriented businesses Companies with their own IT department Small shops with standard processes Anyone looking to scale professionally with Shopify is generally best served by a cloud-based ERP. It integrates quickly, scales alongside your online business and requires no dedicated IT infrastructure. Scalability: for retailers looking to grow Competition in e-commerce is fierce. Alongside turnover and conversion rates, efficient processes are key to long-term success. collana diva now is based on a cloud platform and supports you as your business grows: The system handles more products, more orders and more channels without the need for re-engineering. Marketplaces, payment providers and logistics systems can be added on a modular basis. All teams work from a unified database. The underlying Microsoft technology ensures updates and ongoing development.   Implementation takes 8 to 12 weeks, depending on the project: consultation with a live demo, onboarding with data migration, and a supported go-live. Our comparisons with Xentral, weclapp, Odoo and SAP Business One show which other systems are suitable for small and medium-sized enterprises. Frequently asked questions about Shopify and ERP What is Shopify and what are its limitations? Shopify is a cloud-based e-commerce platform. It allows you to create and run your own online shop without any programming knowledge, including product management, payment processing, mobile-optimised themes, SEO and marketing features, as well as thousands of apps in the Shopify App Store. However, Shopify is not an ERP system. The platform only partially covers complex back-end processes such as inventory management, planning and financial accounting. Why should I integrate Shopify with an ERP? An ERP system eliminates the need for duplicate data entry between the shop, warehouse and accounts. Orders, stock levels and payments are automatically consolidated within a single system. This reduces errors, saves time in day-to-day operations and makes your processes scalable. What tasks does collana diva now handle for my Shopify shop? collana diva now handles the back-end: inventory management, warehousing and dispatch, returns processing, purchasing and planning, accounts and reporting. The Shopify shop remains the front-end, with the Web API synchronising data in both directions. When does an ERP such as collana diva now become worthwhile? An ERP system is worthwhile as soon as manual processes start to hold back your growth. Typical signs include rising order volumes, multiple sales channels, growing stock levels or an increasing number of errors in stock records and bookkeeping. During the consultation, we’ll work with you to assess whether implementing the system is already cost-effective for your volume. Which ERP system is behind collana diva now? collana diva now is based on Microsoft Dynamics 365 Business Central. This provides you with a well-established core ERP system featuring e-commerce extensions, full Microsoft 365 integration and analytics via Power BI. Which ERP system does Shopify use? None. Shopify is a shop platform and does not include an integrated ERP. For inventory management, logistics and accounting, retailers integrate an external ERP such as collana diva now. Is collana diva now also suitable as an accounting solution for Shopify? Yes, financial accounting is part of the system. Payments, credit notes and receipts from the Shopify shop are automatically fed into the accounting system without the need for manual exports. Share this article X LinkedIn Facebook WhatsApp Our latest news Shopify at the forefront, collana

An SAP Business One alternative for e-commerce: a comparison of collana diva now

Home SAP Business One is SAP’s entry-level ERP system for small and medium-sized enterprises and is used across many sectors. Nevertheless, online retailers still wonder whether it is the right fit. In discussions with e-commerce companies, we repeatedly hear four reasons: SAP Business One is not primarily designed to meet e-commerce requirements. Multichannel integrations rely on partner connectors, add-ons or in-house development and incur additional costs. Long implementation times hinder agile growth. Licence and customisation costs mount up when the system needs to be adapted to retail processes.   Anyone wishing to avoid these customisation costs from the outset should choose a system that already includes the necessary retail functions. One such alternative is collana diva now, our cloud-native ERP solution for e-commerce based on Microsoft Dynamics 365 Business Central. SAP Business One vs. collana diva now A direct comparison of the categories highlights where the systems differ. Comparison as at November 2025 Feature SAP Business One collana diva now E-commerce integration Via partner connectors, add-ons and custom programming Pre-configured interfaces and modules Implementation time 8 to 12 weeks, depending on scope (project-dependent) Costs according to publicly available information Perpetual licence from €1,140 per user (Starter, depending on the package); Cloud subscription from €38 per user per month (Starter, teams of up to 5 people), from €91 per user per month (Professional). Costs for hosting, customisation, maintenance and support are additional. (Third-party figures) From €158 per user per month plus additional modules (see product page for available modules) Updates and maintenance: Chargeable projects; Automatic and at no extra cost; Cloud-first; Added subsequently; Cloud-native from the ground up; API flexibility: Limited; Open REST APIs. All information regarding SAP Business One is based on publicly available information (as at October 2025) and is provided for general guidance only. SAP does not publish a binding price list; terms and conditions are set by certified partners. „SAP Business One“ and „SAP“ are registered trademarks of SAP SE. These names are used solely for comparison and information purposes. E-commerce functions SAP Business One is designed for use across all sectors. collana diva now was developed for e-commerce, with integrated processes for purchasing, sales, stock and accounts. An overview of four areas. Multichannel management Centralised connection to and control of online shops Automatic real-time stock synchronisation Control of prices and offers by customer segment Fulfilment automation Dropshipping and just-in-time possible Configurable order rules based on availability Integration with delivery service providers via API and EDI, including dispatch and tracking data Invoice processing Returns management Fast returns processing with credit notes in the system Restocking and real-time stock updates Purchasing and sales Automated replenishment planning and optimised stock levels End-to-end document chains, product and customer histories Planning of marketing activities, campaigns and terms and conditions Business processes can also be automated and standardised. Thanks to the cloud, you can access your data at any time. The Microsoft advantage as a foundation: collana diva now is based on Microsoft Dynamics 365 Business Central, Microsoft’s cloud-based ERP. This brings tangible benefits: a tried-and-tested system with future-proof development, direct integration with Microsoft 365 (Teams, Excel, Outlook), Power BI analytics, the Azure cloud infrastructure, and support from Microsoft and a large community. Should your business outgrow the current scope of functionality, collana diva offers the next level of expansion on the same platform. Migration in four phases: The transition from SAP Business One to collana diva now follows a set process. You’ll be up and running in 8 to 12 weeks (depending on the project). Consultation and kick-off: During a no-obligation initial meeting, we get to know your business and you get to know our system. If you decide to go with collana diva now, we’ll draw up a roadmap. Analysis and mapping: We analyse your processes and data quality, and accurately map master data as well as document and tax logic to the new system. Customisation and data migration: Profiles, documents, price lists and configurable business rules are set up. We then migrate master data and selected open transactions. Training and go-live: Testing and training for key users and teams pave the way. Your data then goes live, and we remain by your side until everything is running smoothly. If you are still at the early stages of selection, our ERP orientation and selection workshop will help you make your decision. We have compared other systems in our articles on alternatives to Xentral, weclapp and Odoo. E-commerce integrations in collana diva now With collana diva now, you can use all the necessary platforms within a single system, including: Shop systems and online shops (e.g. Shopify) Payment providers (e.g. PayPal via collana pay) Parcel delivery providers (e.g. DHL) CRM, Power BI and other applications FAQ: Frequently asked questions about switching from SAP Business One What happens to my SAP data during the switch? Your data from SAP Business One will not be lost. We will transfer master data, open documents, balances and all other relevant data. We provide historical data as required, either via the migration of selected time periods or through an audit-proof archive. My staff are only familiar with SAP. How easy is the transition? The transition is prepared for through training sessions for key users and teams in Phase 4. Added to this is the familiar Microsoft environment: anyone who works with Excel, Outlook and Teams will quickly find their way around the interface. Can anything go wrong when switching ERP solutions? The structured four-phase process minimises the risk. Before go-live, we test all processes together, and our team supports the launch until the system is running smoothly. Does collana diva now offer all the functions that e-commerce businesses need? Yes, the solution covers multi-channel management, fulfilment, returns, purchasing, sales, payment processing and accounting. The LabelPort dispatch module and the collana pay payment hub are integrated. What size of business is collana diva now suitable for? collana diva now is aimed at e-commerce businesses, start-ups and SMEs with a focus on growth. Modules and the number of users scale with the business. Which solution is right for your business? SAP Business One is an established solution for medium-sized businesses seeking the SAP ecosystem and budgeting for customisation. For those growing in e-commerce who want a cloud-native system with pre-configured retail processes, an integrated payment hub and a predictable go-live within 8 to 12 weeks, collana diva now offers a strong alternative. Share this article X LinkedIn Facebook WhatsApp Our latest news Which solution is right for your business? Would you like to see the solution in action? Book a free migration consultation with our ERP experts.

Automating orders in e-commerce

Home / Automating Orders in E-commerce Monday morning, 8 am – and a pile of unprocessed orders from the weekend is already waiting. What initially took just a few clicks quickly becomes a real challenge as the business grows. Welcome to the day-to-day reality of a growing e-commerce business. Every order goes through numerous stages: order entry, stock availability, credit checks, payment processing. And with every step, the risk of errors increases. A tick in the wrong box, an overlooked address or an incorrectly recorded payment method is enough to upset a customer – even before the parcel has even been dispatched. As volumes rise, these challenges intensify. That initial „we’ll sort it out“ spirit stops working at the very latest when 50 orders a day suddenly turn into 500. Without scalable processes, the Christmas rush or the next sales peak will quickly become a bottleneck. Growth turns into overload. The solution? Automation. Not as some cold, tech-driven fad, but as a genuine breath of fresh air: for your team, for your processes – and for your customers„ satisfaction. In this article, we’ll show you how to automate your e-commerce order processes and why it pays off faster than you might think. Key points at a glance: Less chaos, more clarity: Automated order processes reduce manual intervention to a minimum Fewer errors, fewer returns: Savings of up to 30–40 % thanks to lower error and return rates Faster dispatch: Process times drop from hours to minutes – boosting customer satisfaction Scalability without extra costs: You won’t need extra staff, even during peak periods Seamless processes with ERP: Integrated systems such as collana diva now link sales, warehousing, accounts and dispatch Future-proof with AI: Artificial intelligence recognises patterns, learns as it goes – and automatically optimises over time ROI analysis: Why automating orders makes good business sense. “Time is money” – this principle takes on a new meaning in the dynamic world of e-commerce. Whilst competitors are still entering order data manually, an automated system has long since completed the entire ordering process: from data entry through to confirmation, payment and dispatch authorisation. The time saved is significant: for your business, your team and your customers. However, order automation is not a sure-fire success. It first requires investment in software (ERP systems), interfaces and change management. The key question is: is it worth it, and how quickly will the investment pay for itself? Costs versus benefits: what matters. The costs include: licence and set-up costs for the ERP system; costs for interface integration (e.g. with marketplaces or shop systems); Training for staff and admin teams Time spent analysing existing business processes. On the other hand, there is considerable potential for savings – both in terms of quantity and quality. Three reasons why automation pays off. 1. Reduction in manual errors & returns Automation significantly reduces sources of error in the ordering process. Incorrectly entered addresses, duplicate invoices or forgotten items are a thing of the past. Successful projects report up to 40 % fewer returns thanks to improved accuracy in order entry and management. 2. Faster dispatch, higher customer satisfaction Through automated tasks such as credit checks, payment confirmation or pick-pack-dispatch, processing times are reduced to just a few minutes. This means more orders are processed per day – and significantly more efficiently. The result: Shorter waiting times for customers, better reviews, higher conversion rates. 3. Scalability without the need for additional staff With the right solution, even large volumes of order requests can be handled – without having to increase staff numbers proportionally. Growing businesses in particular benefit from systems that scale with volume whilst keeping processes stable. Conclusion: Automation pays off – for everyone involved. Whether in procurement, the warehouse, dispatch or the finance teams – by automating your order processing, you not only take the pressure off your team but also improve the efficiency of your entire business processes. Intelligently automating ordering processes – what options are available? If you want to automate your ordering processes, you need more than just a few workflows – you need a system that intelligently links all processes together. It is only through the combination of real-time data, dynamic rules and cross-channel interface logic that an automated order process is created which is efficient, reliable and scalable. Below, we outline the key building blocks for successful automation in e-commerce and how businesses can use them to significantly boost their efficiency. Omnichannel order processing: A comprehensive view of all sales channels. Today, e-commerce takes place across many channels simultaneously – from your own online shop to marketplaces and brick-and-mortar POS. A good system consolidates all order requirements into a central workflow: Centralised data capture: All orders – whether from Shopify, Amazon, your own shop or the POS – are automatically routed to the ERP system Real-time synchronisation: Stock levels are continuously reconciled to prevent double sales and stock discrepancies Channel-specific workflows: Dispatch and invoicing processes can be individually automated depending on the platform Cross-channel functionalities: Automatically support hybrid models such as click & collect or in-store collection. This means you always have a clear overview of all orders. Without Excel chaos or manual imports. Intelligent validation routines: Real-time quality assurance. After being entered, all orders automatically undergo a series of checks. This ensures accuracy and saves a huge amount of time: Address validation: Automatic comparison with reference databases Credit check: Real-time risk assessment – controllable via a set of rules Stock check: Comparison with real-time data from the warehouse Plausibility check: Early detection of suspicious patterns (e.g. in cases of suspected fraud) Once manual, now automated: These checks are an integral part of a modern ERP system such as collana diva now – and are completed in seconds rather than minutes. Rule-based order management: Automation that thinks for itself Not every order is the same. That is why flexible control is needed: Prioritisation by customer status, payment method or delivery time Exceptions such as queries or special cases are automatically flagged for review Workflows adapt according to content and channel – without any manual intervention AI-supported rules learn and continuously improve processes This results in intelligent task management that adapts to your reality. Payment integration: Seamless payment processing Payment is more than just the final step in the ordering process – it is crucial for efficiency, liquidity and customer satisfaction: Multi-payment management: Manage all payment methods on a single platform – e.g. via collana pay Automated dunning: Incoming payments, chargebacks, escalation levels Process-dependent workflows: e.g. dispatch only after receipt of payment for prepayment Link to accounts: Data transfer via an interface to your financial system – e.g. DATEV A good ERP system combines ordering, payment and invoicing in a seamless process. Intelligent stock management: the basis for reliable delivery commitments. Without up-to-date stock levels, there can be no reliable order processing. These points are essential: Real-time stock management: Centralised

Effective demand forecasting: an explanation of the methods and their application.

Home / Effective demand forecasting: methods and their application explained. Any company that manufactures goods and requires materials to produce its end products must address the issue of demand volumes. What are the respective material requirements, and what demand for products, spare parts and saleable semi-finished goods can you expect in the future? Accuracy is essential here to ensure that production does not come to a standstill. The solution lies in demand forecasting, for which various mathematical and statistical methods are also used. Which types of demand are necessary and appropriate, what methods of demand forecasting are available, and how can you apply them in practice? We provide key definitions and clarify these questions in our article. The most important points at a glance: By carrying out demand forecasting, you ensure that you always order the correct quantity of parts and materials. This helps you avoid both shortages and surpluses. You can distinguish between different types of demand. These include primary, secondary, tertiary, gross and net demand. Various approaches are available for demand planning. Among the most important are programme-based and consumption-based demand planning. With an ERP system such as collana diva now, you can optimise demand planning and materials management. What is demand planning? By definition, demand planning is a business management process that companies carry out to determine their requirements. In materials management, demand planning is one of the most important methods, as it ensures the company’s supply of materials and identifies future material requirements. By definition, demand planning is also known as demand quantity planning, material requirements planning and procurement planning. Why is demand planning so important for companies? Because it helps to optimise costs and storage space. In materials procurement, accuracy is essential to avoid both overstocking and stockouts. This applies equally to goods, spare parts, saleable semi-finished products or assemblies, and production materials. In other words: demand forecasting forms the basis for all procurement strategies. It is not only procurement that benefits from this analysis, but also production. What raw materials, semi-finished products, assemblies and individual parts do you need to complete orders or keep production running? Here’s an example: a company manufactures wooden garden benches. It makes a significant difference whether the requirement is for 2 tonnes of wood, 12,000 screws and 30 litres of oil, or whether you only need 1 tonne of wood and 4,000 screws. An order for 4 tonnes of timber and 16,000 screws would, in fact, be an over-order, which incurs storage costs and ties up capital. An order that is too small, on the other hand, causes supply bottlenecks. Demand determination: Classification according to the following types of demand Before we look at the methods for determining demand, it is first necessary to classify demand according to the following types: Primary demand: Primary demand refers to end products and services that you sell directly to customers. These include, for example, finished cars, pyjamas, spare parts or wooden benches. Secondary requirements: This category covers all raw materials and components required for the manufacture of primary requirements or to fulfil firm customer orders. For example, car tyres or windscreens for cars, buttons for pyjamas, and wooden slats for the wooden bench. Tertiary requirements: Although these materials do not go directly into the end product or the primary requirements, you do need them to produce the product. These include operating and auxiliary materials (e.g. lubricants for machinery). This distinction between primary, secondary and tertiary requirements is based on the materials you need at each stage of production. In addition, you can distinguish between two further types of requirements: Gross requirements: This figure is obtained by adding together the secondary and tertiary requirements. This therefore represents the total requirements needed to manufacture the product. Net requirements: This, on the other hand, refers to material that you still need to procure through purchasing or production. The figure is calculated by subtracting the available stock from the gross requirements. Available stock = Stock + Reserved material + Open purchase orders and production orders – Safety stock Net requirements = Gross requirements – available stock Overview: Methods of requirements calculation There are various procedures used amongst the methods of requirements calculation. In addition to estimates, you can, for example, obtain some values directly from ERP software. Various mathematical and statistical methods are also used. The following methods are available for demand planning: 1. Programme-based demand planning (deterministic method) This method is based on current production plans and bills of materials. Primary requirements are determined by existing orders and plans. With the help of these, you can then plan secondary and tertiary requirements, calculate the necessary auxiliary materials and resources, and determine the gross and net requirements. 2. Consumption-based demand planning (stochastic demand planning) In the consumption-based (stochastic) method, future demand is determined by analogy with past consumption levels. An example? For July and August, the method calculates a quantity based on previous consumption and possible forecasts. Mathematical statistical methods (stochastics) are applied, which allow you to optimise the results. These are particularly useful when sales volumes fluctuate. The key factor is the demand pattern, which may be constant, trend-based, seasonal, sporadic or highly volatile. 3. Rule-based demand forecasting Put simply, rule-based demand forecasting involves an ‘if-then’ scenario. If a specific scenario occurs, a particular material requirement arises. For example, if a customer orders a car with special specifications, this results in a requirement for specific parts and accessories (e.g. leather in an unusual colour, on-board computer, etc.). 4. Subjective estimation (heuristic demand forecasting) If only limited historical data is available, you can estimate the expected demand. The estimate should then be based on experience and a certain level of expertise. However, this method is not recommended if another method is better suited to demand forecasting. Advantages and disadvantages of demand forecasting methods Each method has its own advantages and disadvantages, which you should weigh up. We have therefore compiled an overview of the key arguments below. Method Advantages Disadvantages Programme-oriented demand planning Lower stock levels, as production is based on customer orders Lower availability, as production only begins once an order is received High accuracy of demand planning based on bills of materials Increased lead times due to procurement lead times Consumption-based demand planning High delivery readiness and short lead times, as products are already in stock Higher stock utilisation, as production is for the market Low effort as calculations are based on historical values Inaccurate stock levels due to historical data Rule-based demand planning High cost-efficiency due to standardised processes Low flexibility, as seasonal changes or market fluctuations are not taken into account Good predictability due to fixed parameters Low adaptability Subjective estimation Low effort,

Understanding lead time: definition, calculation and practical examples.

Home Page Companies in the production and manufacturing sectors know that there are more factors contributing to success than just quality. Time, for example, also affects efficiency, competitiveness, costs, logistics, customer satisfaction and other aspects. A key performance indicator in this context is therefore lead time. What exactly does this term refer to? Why does this indicator play a crucial role in both manufacturing and logistics, and why should you not neglect to measure it? This article provides an overview of the topic and answers to these questions. Lead time: The essentials in brief Lead time is a key performance indicator that reflects the duration of production for an order. Lead time comprises components such as waiting time (dwell time), processing time, transport time and set-up time. A long throughput time is detrimental to a business, whilst short throughput times can, for example, help you reduce costs and improve your market position. ERP systems such as diva now can help improve processes and reduce throughput time by providing key data and real-time insights. Definition: What is throughput time? Throughput time is a key performance indicator in production processes and in warehousing. According to the original definition, throughput time refers to the time taken to complete a product, from start to finish. In other words: throughput time measures the production process of a manufacturing order. It has its origins in manufacturing. However, other sectors now also utilise it for process optimisation (e.g. in services or warehouse processes). It is not, however, limited to a single time span relating purely to manufacturing. Instead, various parts of the process play a role here: from receipt and preparation, through execution, to completion. Production planning Which phases are included in lead time? Let’s take a closer look at which components count towards lead time within the context of an order: Set-up time: Set-up time is the period required by companies to prepare and adjust the machine. This also includes data input. Processing time: Processing time includes all periods during production when you are actually processing the product. Waiting time (downtime): The terms ‘downtime’ or ‘waiting time’ refer to the period during which you cannot continue with the order. For example, the product may be waiting for the next available machine. Transport time: Transport time is the duration a product spends being moved within the factory (e.g. by forklift trucks, machines and conveyor belts). Storage time: This is the time that semi-finished goods or products spend in storage after manufacture. Additional time: This encompasses all the time required in addition to the process times. For example: inspection times or test runs. What is the significance of lead times for businesses? Businesses should never lose sight of lead times. A long lead time, for example, ties up a larger amount of capital, can reduce customer satisfaction, increase storage costs and even cause bottlenecks. A short lead time, on the other hand, offers many advantages. It can reduce a company’s costs (e.g. lower capital tie-up costs), increase customer satisfaction, speed up the supply chain and improve competitiveness. Further benefits include increased productivity and flexibility, enabling companies to respond more quickly to new market conditions. An example of calculating lead time in practice To calculate lead time, you can use one of the following formulas: Lead time = Order delivery date – Order receipt date Lead time = Set-up time + Processing time + Dwell time + Transport time + Storage time + Additional time A practical example illustrates the lead time involved in manufacturing a shelf: Process step Time component Time required Adjusting the machine to a specific saw width and loading the saw blades. Set-up time 10 minutes Cutting the individual wooden boards to size Machining time 30 minutes Transport to the next machine Transport time 5 minutes Sanding and drilling the holes for the screws Machining time 15 minutes Transport to the next machine Transport time 5 minutes Varnishing the boards Processing time 10 minutes Drying the boards Dwell time 12 hours Screwing the boards together to form the shelf Processing time 30 minutes Quality control Additional time 5 minutes Storage until dispatch Storage time 2 days Total lead time 2 days, 13 hours, 50 minutes How can the lead time be reduced? Optimising or reducing the lead time brings companies a host of benefits. To improve this, however, you should not only be familiar with the figures, but also focus on the right measures. This includes taking a close look at production control. This allows you to identify bottlenecks and compare the processing times of individual items. An ERP system provides all the necessary data for this and also enables real-time monitoring, so that you can react quickly. To optimise production, you can also use more efficient and high-performance machinery. These machines can carry out work processes more quickly, automate manual processes or perform several work steps simultaneously. In practical terms, this means you can reduce both processing time and transport time. You should also not neglect the further training of your staff. Training can help them improve individual work steps, achieve higher productivity and identify opportunities for process improvement. This also helps prevent errors and disruptions that can increase lead times. Track and measure lead times with collana diva now Would you like to improve your lead times? diva now can help you do just that! The ERP system can provide you with real-time data on various times, statuses, components and items. Gain complete transparency, identify potential for process improvement and benefit from reports and analyses. However, by using an ERP system such as collana diva now, you’ll enjoy even more benefits: reduce your costs and secure a competitive advantage. Bottlenecks are a thing of the past, and customer satisfaction can only go one way: up! By integrating with other systems, you can also optimise your stock management. Share this article X LinkedIn Facebook WhatsApp Our latest news Best Choice for smart businesses Contact us and we’ll find a bespoke solution for your business.

Calculating the cost of goods sold: A practical guide and helpful examples

Home Cost of goods sold is a key financial metric and plays a crucial role for businesses in the retail sector, manufacturing and other industries. By calculating your cost of goods sold accurately, you can analyse your costs, optimise them and thereby increase your profit. In this article, you will learn everything you need to know about calculating the cost of goods sold, its definition, the cost of goods sold ratio, and practical tips for optimisation. Key points at a glance: Cost of goods sold – Definition: The cost of goods sold describes the cost of goods sold or materials consumed during a specific period. It is a key financial metric in accounting and is recorded in the profit and loss account (P&L). Calculating cost of goods sold – formula: The calculation is carried out using the formula: Cost of goods sold = Opening stock + Additions – Closing stock This provides information on how much was spent on sales or production. Significance of the cost of goods sold: The cost of goods sold is crucial for cost control, pricing and determining gross profit within a company. An accurate calculation helps to assess profitability. Difference from the cost of goods sold ratio: The cost of goods sold ratio represents the relationship between the cost of goods sold and turnover. It is used to assess a company’s efficiency and to make industry comparisons. Optimising cost of goods sold with collana diva now: With the collana diva now ERP solution, businesses can efficiently manage their stock, production and material costs. Automated processes and real-time data help to reduce the cost of goods sold in the long term. What is meant by cost of goods sold? Cost of goods sold describes the costs incurred by a company for goods sold or materials used in production over a specific period. This key figure is crucial for tracking material costs and assessing efficiency in the use of resources. The cost of goods sold is usually calculated in the profit and loss account (P&L) and is recorded on the debit side of the P&L account. The definition encompasses both the opening stock of goods and additions, as well as the closing stock. Why is the cost of goods sold important? Cost of goods sold is not just a figure, but a basis for business decisions. Accurate calculation of cost of goods sold is essential because: Cost control: By analysing the costs of goods and materials, companies can identify inefficient processes. Profit and Loss Account (P&L): The cost of goods sold is directly included in the P&L and influences the reported profit. Pricing: The cost price is crucial for calculating the optimal selling price and, consequently, turnover. Improved efficiency: With an accurate overview of the cost of materials, resources can be utilised more efficiently. The formula for calculating cost of goods sold The basic formula for the calculation is: Cost of goods sold = Opening stock + Additions – Closing stock Where: Opening stock: The quantity of goods at the start of the period. Additions: All goods added during the period. Closing stock: The quantity of goods still in stock at the end of the period. This formula forms the basis for calculating the cost of goods sold, whether in manufacturing or in the retail sector. Practical example: Calculating the cost of goods sold Let us assume a company has the following figures, which we will use to calculate the cost of goods sold: Opening stock: €10,000 Purchases: €50,000 Closing stock: €15,000 The cost of goods sold is calculated as follows: Cost of goods sold = €10,000 + €50,000 – €15,000 = €45,000 In this example, the cost of goods sold amounts to €45,000. This figure shows how much the company has spent on goods sold or consumed during the period. Cost of goods sold vs. cost of goods sold ratio. The cost of goods sold alone is often not sufficient to assess a company’s profitability. This is where the cost of goods sold ratio comes into play. It describes the ratio of the cost of goods sold to turnover and is calculated as follows: Cost of goods sold ratio = (Cost of goods sold / Turnover) × 100 A low cost of goods sold ratio indicates that a company has its costs well under control. Depending on the sector, the ratio is typically around 20–40 %, although manufacturing companies often have higher figures. The significance of cost of goods sold in the profit and loss account The profit and loss account provides information on a company’s performance during the financial year. Cost of goods sold is recorded on the debit side of the profit and loss account as cost of materials. This item is important for calculating gross profit and thus determining the contribution to the company’s overall performance. How can the cost of goods sold be reduced? Optimising the cost of goods sold can therefore have a positive impact on the cost structure and profit. This raises the question: where exactly can companies take action? Optimise stock management. Optimised stock management is essential for minimising losses due to spoilage, theft or overstocking. Regular stock-takes help to keep track of current stock levels and respond early to potential sources of shrinkage. Efficient stock management can also save space and reduce storage costs. Strengthen supplier relationships. Good relationships with your suppliers can reduce the cost of goods in the long term. Negotiate discounts, better payment terms or volume discounts to lower the cost price of your goods. A long-term partnership with reliable suppliers also ensures stable supply chains and reduces risks. Adjust production. In manufacturing facilities, it is important to optimally align the quantity produced with demand. Overproduction leads to increased stock costs and tied-up capital. By carefully planning unit quantities and production volumes, businesses can significantly reduce the costs of materials and storage. Utilise automation. Modern software solutions such as our collana diva now enable the automation of inventory management and the calculation of the cost of goods sold. These solutions allow you to keep track of stock levels, goods received and goods dispatched in real time. Automated processes save time, minimise errors and thus contribute to the long-term optimisation of your overall cost structure. Frequently asked questions about the cost of goods sold What is the difference between the cost of goods sold and the cost of materials? The cost of goods sold refers to goods in retail, whilst the cost of materials covers raw materials and consumables used in production. How often should the cost of goods sold be calculated? The calculation is usually carried out at the end of a financial year, but can also be done quarterly or monthly. How does the cost of goods sold influence pricing? The cost price of the goods forms the basis for calculating retail prices in order to ensure a profit margin. Share this article X LinkedIn Facebook WhatsApp Our latest news Calculate the cost of goods sold easily with collana diva now This ERP solution is specifically designed to meet the requirements of e-commerce and offers flexible scalability to support your growth.

Online shops vs. high-street retail: What young e-commerce brands need to know

Home E-commerce is booming, and turnover figures are breaking new records virtually every year. Does this mean that online retail is triumphing over high-street retail, and that local shops are no longer an option for growth? Contrary to what many people think, the battle is far from over. In this article, we’ll explain the advantages of each sales channel and whether online retailers should be considering opening a physical shop. We’ll take a look at potential synergies and provide you with some practical tips to take away! At a glance: The most important points in brief Online retail is growing and achieving higher sales growth than brick-and-mortar retail. Nevertheless, at around 16 %, it accounts for only a small share of the total retail market. The biggest advantages of online retail for customers lie in convenience, the ability to compare products and prices, flexibility and choice. Online retailers gain a better understanding of purchasing behaviour, can grow more easily and have lower costs. The main advantages of high-street retail for customers lie in the shopping experience, personal advice, the availability of staff to speak to, and immediate product availability. Retailers can build stronger customer loyalty, create jobs and benefit from walk-in customers. A multi-channel sales approach harnesses the strengths of both sales models and opens up new opportunities such as improved service, click-and-collect, showrooms and stock availability checks. Brick-and-mortar retail does not make sense for every e-commerce business. It also depends on the type of goods, the financial resources available and the location. It is also usually associated with higher costs. By carrying out a location analysis, implementing process management via an ERP system and adopting a multi-channel strategy, businesses can lay solid foundations for growth. Are online shops replacing high-street retail? The statistics show that e-commerce is booming and experiencing incredible growth. A look at the figures reveals just how well business is actually going. Whilst online sales stood at around 42 billion euros in 2015, by 2024 they had already risen to over 80 billion euros. Let us now compare the trend in turnover growth for online and high-street retail from 2019 to 2022. According to the Federal Statistical Office, high-street retailers are performing significantly worse in this respect. Whilst e-commerce has achieved growth of 31.2 %, brick-and-mortar retail has seen growth of just 3 %. Does this trend prove that growth opportunities lie solely on the internet? To ensure we do not lose sight of reality, another statistical figure is crucial. If we consider the retail sector as a whole, online retail accounts for only 16 % of it. Depending on the statistics and survey, some institutes even arrive at lower figures such as 13.2 %. This means that local high-street shops are still the main drivers of turnover. Even though the global and German markets expect even stronger growth in online retail in the future. Online shopping has its advantages, but so does a physical presence. Young retailers in particular, whose businesses are still in the growth phase, are often faced with a strategic question: Should the focus be on expanding online retail – or is it also worth having a physical shop? Both models offer advantages – for you as a business and for your customers. The strengths of one channel are often the weaknesses of the other. That is why we have clearly set out the key benefits of both sales channels side by side below: Advantages of online retail Advantages of high-street retail Convenience: Customers can shop at any time and from anywhere – without having to search for a parking space or queue. Delivery is made straight to their doorstep. Personal advice: Many customers value having a knowledgeable member of staff on hand to answer questions, offer recommendations and demonstrate products in person. Price and product comparison: Users can compare products and prices directly within the shop – or get a quick overview of the market. Well-structured product pages with images and descriptions help customers make purchasing decisions. Shopping experience: Shopping becomes an event – browsing with friends, touching products, trying them out and comparing them directly. This sensory experience is hardly possible online. Open round the clock: An online shop has no opening hours. Your customers can shop whenever suits them best – even at night or at the weekend. Trust & loyalty: Personal contact fosters a sense of closeness and trust, and strengthens customer relationships in the long term. Customer data & insights: Through customer profiles and analytics, you get to know your target audience better. This data helps you to develop your product range and marketing strategy in a targeted manner. Immediate availability: Anyone who needs a product straight away can take it with them straight away – with no delivery time. Wide product selection: Whilst space is limited in-store, online you can theoretically offer an unlimited number of items. The only factors that come into play are your stock and delivery conditions. On-site staff: Whether it’s exchanges, returns or enquiries – in brick-and-mortar retail, help is available immediately, without the need for emails or helplines. Lower fixed costs: Without the rent or staff costs associated with a physical shop, your cost structure remains leaner. Local jobs: By running a physical shop, you create additional jobs and strengthen the regional economy. Customer reviews: Reviews allow buyers to get an idea of what others think about the products. You, on the other hand, can use them to improve your products and services. Walk-in customers: Unlike an online shop, which customers have to actively seek out, a high-street shop also attracts spontaneous visitors – thereby generating additional turnover. Scalability: Your shop is easier to expand than a high-street shop – allowing you to tap into new products, target markets or channels with greater flexibility. Good to know: So-called ‘advice theft’ is often cited as a disadvantage of high-street retail. This refers to customers seeking advice in-store but then buying the same items more cheaply online. Whilst this behaviour does occur, it only happens in around 10 % of cases. Interestingly, this effect is now also evident in e-commerce: around a third of customers first browse the online shop but then complete their purchase in a physical shop. Does it make sense to have a physical shop as a complement to online retail? There is no one-size-fits-all answer to whether you, as an online retailer, should open a physical shop as well – as the decision depends heavily on your products, your target audience and your growth strategy. One thing is clear: an additional sales channel

Advantages and disadvantages of a consignment warehouse

Home Page Companies and manufacturers often face a balancing act: on the one hand, there must be sufficient space for goods, spare parts or frequently required components. On the other hand, storage costs and risk should be kept as low as possible. Building your own goods or spare parts warehouse is therefore not always cost-effective. A modern alternative is the consignment warehouse – a form of storage in which the goods are stored at the customer’s premises but remain the property of the supplier until they are collected. Sounds practical? It often is – but not always. In this article, we’ll outline the key advantages and disadvantages of a consignment warehouse, explain when this storage model is worthwhile, and offer tips on how to set up a consignment warehouse successfully. What is a consignment warehouse? A consignment warehouse is a specialised warehouse set up by the supplier in the immediate vicinity – or even directly on the premises – of the customer, and operated at the supplier’s own expense. The goods stored remain the property of the supplier until they are removed, paid for or an agreed period expires. As a rule, a retention of title applies, meaning that ownership only passes to the customer upon removal. As soon as the customer removes items from the warehouse, the consumption is recorded and the supplier automatically issues an invoice. In this context, you will often come across the following terms in practice: Term Explanation Consignor This is the term used to describe the supplier who provides the consignment warehouse. Consignee: The customer or recipient who removes goods from the consignment warehouse. Consignment goods: Term for the goods in the consignment warehouse – derived from „consignment warehouse“. Consignment warehouse: an overview of advantages and disadvantages A good example of flexible warehouse automation is automated conveyor systems – these are available in various designs and can be perfectly adapted to your warehouse system: Belt and roller conveyors: Ideal for transporting pallets, cartons or containers. These modular systems are easy to integrate and ensure a steady flow of goods. Vertical conveyor systems: Connect different warehouse levels – from floor to ceiling. This allows you to make efficient use of your entire warehouse space without having to extend the building. A consignment warehouse can bring many benefits for businesses – such as reduced storage costs, greater flexibility and improved stock availability. However, potential drawbacks should also be taken into account when making a decision. Here is an overview of the key pros and cons at a glance: Advantages of a consignment warehouse: No investment in your own warehouse infrastructure is required – no need for your own warehouse building, staff or equipment. Immediate availability of frequently required parts (e.g. common consumables or operating materials), as the warehouse is located in the immediate vicinity. Lower risk for the purchasing company – the risk of expiry or obsolescence usually lies entirely with the supplier. Quality assurance provided by the supplier – the goods remain the property of the supplier until they are withdrawn. No capital tie-up costs – goods are only paid for upon withdrawal. Less administrative effort – the warehouse is managed by the supplier, allowing you to focus on your core business. Disadvantages of a consignment warehouse: Longer contractual commitment – you are often tied to the same supplier for an extended period. Time-consuming selection process – searching for, comparing and negotiating with suitable suppliers can tie up time and resources. Price increases by the supplier are possible – particularly with longer contract terms or exclusivity. Limited flexibility – switching to other suppliers during the contract term is often difficult. Additional service fees – consignment models can be more expensive due to logistics or administrative costs. Advantages and disadvantages from the warehouse operator’s perspective There are also specific advantages and disadvantages for the supplier – that is, the operator of the consignment warehouse. Advantages for the supplier: Greater customer loyalty: The consignment warehouse fosters a close business relationship that secures long-term customer loyalty. Competitive advantage: The additional service provides an edge over other suppliers. Planning certainty: Thanks to transparent stock movements, sales planning can be managed more effectively. More efficient distribution: Customers’ direct access to the goods can reduce the workload involved in distribution. Disadvantages for the supplier: High capital tie-up costs: The goods are held by the customer but remain the property of the supplier – this ties up capital. Ownership risk: Design changes, technical developments or obsolescence may mean that stored products have to be replaced at the supplier’s own expense. Risks of loss and liability: Damage, theft or loss of goods in the consignment warehouse is usually borne by the operator. Additional administrative burden: Operation and stock monitoring require a reliable IT infrastructure and clear processes. When does it make sense to set up a consignment warehouse? A consignment warehouse can be a sensible solution for both large corporations and small and medium-sized enterprises (SMEs) – particularly if the storage of parts or products needs to be flexible, low-risk and without major initial investment. This form of warehousing is particularly attractive for companies dealing in perishable goods. In such cases, the risk of spoilage and the costs of replacement parts can largely be transferred to the warehouse operator. A consignment warehouse also offers a high degree of flexibility for seasonal items that are only required during specific time periods. The same applies to companies for which the immediate availability of parts and materials is crucial – or where consumption is difficult to predict. SMEs in particular benefit from not having to set up their own storage space or invest in additional staff. Instead, projects can be implemented more quickly, whilst the company can continue to focus on its core business. Furthermore, there are two other scenarios in which a consignment warehouse can be worthwhile: Manufacturing businesses with multiple suppliers can create an effective supplier logistics centre through a central consignment warehouse. And companies operating internationally – particularly those with customers in other EU countries – also benefit from shorter delivery routes and reduced customs formalities.   What is a supplier logistics centre? A supplier logistics centre is a shared consignment warehouse operated by several suppliers – specifically for a single company or group of companies. The advantage for the company receiving the supplies is clear: it receives all the parts and materials required for production centrally from a single location, which significantly simplifies logistics, planning and supply security. The suppliers involved, in turn, may be able to share storage costs and infrastructure expenses, thereby increasing cost-effectiveness for all parties.

How To: How to automate your warehouse

Home Page Hardly any company today is spared the growing demands of the market. Digitalisation is transforming entire industries – and with it, expectations regarding delivery times, accuracy and service. At the same time, energy prices and production costs are rising. The result: your warehouse processes must operate faster, more smoothly and more reliably than ever before. The solution? Warehouse automation. But what exactly does that mean? Warehouse automation involves replacing manual tasks with intelligent systems – from goods receipt through order picking to stock management. This enables you not only to reduce errors and cut costs, but also to significantly boost efficiency, productivity and transparency. Warehouse automation thus becomes the key not only to improving logistics processes, but also to future-proofing logistics. Important: Warehouse automation is not just a trend, but a genuine necessity for remaining competitive – both today and tomorrow. Benefits of warehouse automation By investing in an automated warehouse system, you can significantly boost your operation’s productivity. In addition to the physical movement of goods, you also benefit from data-driven processes such as stock monitoring, material flow planning and the automation of repetitive tasks. The key benefits at a glance: Fewer manual interventions – fewer sources of error Greater precision through intelligent warehouse systems Increased efficiency through transparent, automated processes Better utilisation of warehouse capacity and resources High flexibility to respond to new requirements Reduced workload and improved safety for your team Clear, coordinated work steps Real-time data that enables you to make more informed decisions In short: With a well-designed warehouse automation system, you can reduce costs, boost your competitiveness and take your productivity to a new level. Warehouse automation technologies Modern technologies such as automated warehouse systems, robots, conveyor systems and warehouse management software (WMS) form the backbone of greater efficiency in the warehouse. Working together, they ensure optimised material flow, more precise processes and better utilisation of resources. The result is an integrated system that intelligently links processes and machinery. Whether it’s partial automation or fully automated warehouses – every technology plays its part in making your warehouse fit for the future. The level of automation in the warehouse depends entirely on your requirements, the size of the warehouse and the goods being stored. A small-parts warehouse requires different solutions to a pallet warehouse storing bulky goods. It is therefore worth comparing different technologies – and tailoring them individually to your warehouse processes. Overview: Common technologies for warehouse automation. Technology Area of application Advantages Challenges Shuttle systems Storage & retrieval in racking systems High speed, space-saving, scalable, minimised transport distances, faster availability of goods in the warehouse Higher initial investment Automated conveyor systems Transport of goods within the warehouse Seamless material flow, lower error rate, connection of different warehouse areas, improved throughput times, minimisation of bottlenecks Requires precise planning and integration Mobile robots (AMRs) Order picking, goods transport Flexible, easy to integrate, scalable, reduces workload for staff, uninterrupted processes, increased speed and accuracy; limited load capacity, dependent on floor conditions; stacker cranes (RBG); fully automated storage in high-bay warehouses; maximum use of space, high accuracy; maintenance-intensive, less flexible; Not suitable for every type of goods Pick-by-light systems Order picking Higher speed and accuracy in manual processes Limited flexibility with layout changes Autonomous vehicles (AGVs) Transport of pallets and heavy loads High load-bearing capacity, durable, suitable for repetitive tasks Fixed routes, less flexible than AMRs Warehouse management software (WMS) Monitoring, control and optimisation of warehouse processes Real-time transparency (optimised stock management), better resource utilisation, decision support, storage location allocation, extensive information within the software Implementation can be complex Differences in automation capabilities. Example: Conveyor systems A good example of flexible warehouse automation is automated conveyor systems – they are available in various designs and can be perfectly adapted to your warehouse system: Belt and roller conveyors: Ideal for transporting pallets, cartons or containers. These modular systems are easy to integrate and ensure a steady flow of goods. Vertical conveyor systems: Connect different warehouse levels – from floor to ceiling. This allows you to make efficient use of your entire warehouse space without the need for extensions. Automation of warehouse operations – the path to the right warehouse system When automating your warehouse system, it is essential to take into account the type of warehouse and the goods being stored. After all, a small regional business requires a completely different solution to an international corporation with a huge warehouse. For small and medium-sized enterprises (SMEs), modular systems featuring AMRs (autonomous mobile robots), pick-by-light systems and warehouse management software (WMS) are ideal. They are cost-effective, easy to integrate and offer a high degree of flexibility – ideal for getting started with warehouse automation. In large, high-volume warehouses, on the other hand, shuttle systems, stacker cranes and automated conveyor systems are more commonly used. These enable large volumes to be handled efficiently, make optimal use of storage space and significantly boost productivity. These automated warehouse systems are also highly scalable. If your warehouse has specific requirements and needs to adapt regularly to new product types, you can rely on a combination of WMS, mobile robots and AGVs. These systems can be flexibly expanded and dynamically adapted to new requirements. Automation of individual warehouse processes You do not need to automate the entire warehouse straight away – individual processes can also be optimised step by step: Putaway & stock management: Automated systems enable precise space allocation and a real-time overview of stock levels. Picking: Mobile robots and pick-by-light systems make picking faster and more accurate. Packing, dispatch & returns: Here, too, processes can be automated to reduce lead times and increase efficiency. This creates an automated warehouse that suits your business. Analysis of the current situation. Experts analyse the current state of your warehouse: spatial conditions, product structure, processes, objectives – everything is put on the table. Defining objectives. Together, we determine what needs to be achieved: greater speed, a lower error rate, process automation, improved safety or simpler software operation. Technology selection: The most suitable technologies are specifically selected – from automated warehouse systems to robotics and intelligent control software. Ensuring scalability: All solutions are designed to grow with your business and adapt to new requirements. Phased integration: Testing takes place before everything goes live – ensuring the transition to live operation runs smoothly and without risk. Cost-effectiveness and ROI – how warehouse automation really pays off. You’ve already read that warehouse automation makes processes more efficient. But what about the costs? This section looks at how warehouse automation also pays off financially for your business – and what role ROI (Return on Investment) plays in this. How does warehouse automation improve your cost-efficiency? 1. Reduced labour costs Automated systems take over repetitive tasks such as order picking, goods transport,