Estafeta Uses Augmented Reality Tech in Warehouse Management

Mexican logistics company Estafeta reported that e-commerce in Mexico reached a value of roughly MX$342 billion (US$14.7 billion) last year. The company went on to explain that 75 percent of Mexico’s 79 million internet users make purchases online, spending on average MX$6,920 (US$298) per quarter. Out of these online buyers, 82 percent want a convenient location to pick up their orders, while 94 percent prioritize short delivery times.

In the same report, Rolando Marín, Director of Logistic Solutions at Estafeta, speaks about the impact that logistics has on the success of online businesses and the portfolio of services that has led Estafeta to be the logistics partner of 80 percent of the most successful e-commerce businesses in the country. Marín said that to meet consumer demand, it is necessary to have cutting-edge technological tools, specialized personnel, top-of-the-line infrastructure and land and air fleets with national coverage capacity. All these qualities must be integrated into one logistics solution. He said that Estafeta is capable of offering tailored solutions that integrate the services an e-commerce business needs to develop successfully.

Marín pointed out that the company will invest approximately MX$150 million (US$6.5 million) in the implementation of augmented reality technology for the administration of warehouses. Among other benefits, this will allow a substantial increase in the number of pieces handled per day, from 70,000 to 160,000 on average. Also, it will provide greater accuracy and flexibility in the assembly of orders, which will mean lower operating costs.

Furthermore, Estafeta is set to open a new 23,000m2 warehouse within the San Martin Obispo logistics park. The new warehouse’s layout will be innovative, due to its Diamante System. The new technology that Estafeta will implement makes it possible to deliver orders with an error margin of virtually zero.

Marín explained that there are three factors that determine the success of online businesses in Mexico. First, inventory control, according to the level of market demand and purchasing trends. Two, reverse logistics, which is the capacity of dynamically dealing with returns and exchanges. Three, offering cash on delivery, which is important in a country that has a low rate of bank penetration.

Marín noted that Estafeta offers each client a wide portfolio of services, making it possible for small online stores and international companies to obtain benefits. Among these services there is the option to configure delivery times to adapt to particular needs. Also, information on the status of shipments and request for collections is available through a platform called My Post Office. Furthermore, web services solutions integrate with the client's platform to facilitate the managing of their account, which represents significant savings in time and money. Finally, Estafeta can deliver at convenience stores and other convenient locations.