PSI Polska implemented AI algorithms in the Warehouse Management System at LPP S.A.

LPP E-commerce warehouse and PSIwms

Source: LPP

PSI Polska Sp. z o.o. has implemented a new AI based function in the Warehouse Management System PSIwms in the distribution center of the Polish clothing producer LPP S.A.. Based on artificial intelligence algorithms the modern solution will optimize the order picking route. This is to respond to the growing volume of online orders and a noticeable shift in the importance of various sales channels in the market.

The first tests confirmed that due to a machine learning mechanism the new tool shortened order-picking routes by 30 percent. Thus it significantly increased the efficiency of the order-picking processes at the distribution center by more than 11 percent.

LPP, the owner of Reserved, Cropp, House, Mohito and Sinsay brands, is one of e-commerce market leaders both in Poland and in Europe, handling around 11 million orders per year. Last year, the share of LPP’s online sales reached 12 percent. In the course of the Covid-19 pandemic online sales increased four times.

“As a result, it was necessary to optimize our logistics and IT systems to meet the demand without compromising the product quality and the lead time of online orders”, explains Jacek Kujawa, LPP Vice President. “This is why we decided to rely on our long-standing business partner, PSI Polska, to roll out the solution based on AI algorithms. This will significantly enhance the online orders processing efficiency.”
“With the new Warehouse Management System, LPP can guarantee quick and uninterrupted delivery of online orders to clients. The main task of the implemented algorithm is to efficiently solve the so-called travelling salesman problem”, said Jerzy Danisz, PSIwms Standard Development Director at PSI Polska. The system helps to find the shortest possible route connecting a number of locations on the map. “Mathematicians have been trying to solve this problem for years”, adds Danisz.