Distance and online selling

YellowCube: takes care of the entire logistics chain

The things that count in distance and online selling are speed, error- free picking, efficient returns management and low warehousing costs. Swiss Post's YellowCube logistics solution makes all this possible.

Chlorine-free printer paper, golden paper clips, shampoo for coloured hair or your favourite perfume – order it online today and Swiss Post will deliver it tomorrow. Now Swiss Post not only delivers goods from mail order companies, it can also store, pick and individually package them on their behalf, and print the shipping documents.

The solution

This is possible thanks to the YellowCube logistics solution. The centrepiece of YellowCube is a highly automated storage and picking facility. The service covers the entire logistics chain, from storage and nesting to packaging and the re-storage of returns. Here's how it works: shortly after Ms Jones places her online order for office supplies, robots collect the goods from the storage and picking system and bring them to the warehouse employees. The ordered goods are then labelled, packaged and shipped as a parcel, small consignment or letter. The next day, the office supplies are delivered to Ms Jones. If she doesn't want to keep the items, Ms Jones simply sends them directly back to Swiss Post. Swiss Post checks the return shipment and stores it again in the YellowCube system.

More time for your core business

YellowCube fills the last gap in Swiss Post's e-commerce solution. It is designed for mail order companies who use the Internet as a sales channel and are looking for an external solution for their logistics. Patrick Stucki, Head of YellowCube, sees only benefits: “YellowCube takes care of the entire logistics chain for online retailers. They receive competitive logistics facilities and can achieve economies of scale. They also save on storage and personnel costs, and don't have to worry about the processing of returns. Ultimately, all of this gives them more time to concentrate on their core business.” And there's another advantage: YellowCube stores return shipments back into the system very quickly, so the products are immediately available for the next order.

In April 2014, Swiss Post is starting operations at the first YellowCube storage and picking facility at Oftringen near the Härkingen parcel centre.

Market/volume trends

The logistics sector continues to be characterized by increasing competition and price pressure, both nationally and internationally. Customers are price-sensitive and have high expectations as regards quality. As a result of deregulation and changing customer needs, there is increasing overlap between the courier, express and parcels segments and traditional dispatch. Parcel volumes increased year-on-year, both domestically (+ 2.8 percent) and in terms of imports and exports (+ 12.5 percent). This is due to the increase in online business and the integration of Swiss Post International import and export activities.