how procurement choose the right parcel handling system

• Parcel Handling System Procurement Checklist
• The Core Functions of a Parcel Handling System
• The Key Components of Parcel Handling Systems
• Defining Operational Requirements
• Choosing the Right Parcel Handling System Architecture
• Key Performance Criteria Procurement Must Evaluate
• Common Procurement Mistakes to Avoid
• How Joloda Hydraroll Supports Procurement Decisions
• Choosing The Right Parcel Handling System

To discover the best parcel handling system for your operation, procurement teams should define:

1. Peak parcels per hour
2. Average daily throughput
3. Parcel dimensions and weight range
4. Required sortation accuracy
5. Available warehouse space
6. Existing WMS/WCS/ERP systems
7. Expected business growth
8. Maintenance requirements
9. Budget (CAPEX & OPEX)
10. Required ROI timeframe

Package handling systems of various pieces of equipment:

• conveyors, including belt, roller, telescopic and spiral;
• parcel sorting equipment e.g. cross-belt sorters, tilt-tray sorters and sliding shoe sorters;
• scanning and identification systems, such as barcode scanners, RFID readers, optical character recognition (OCR) and dimensional scanning;
• integrated control software e.g. warehouse management systems (WMSs) and warehouse control systems (WCSs).

Required Automation Level

The business must decide how much automation to introduce. To do this, procurement must compare necessary labour and costs with automation costs and benefits.

They have three main parcel handling system options:

• manual: keeps upfront costs low and operations flexible, but is slower and prone to human errors;
• semi-automation: technology completes laborious, straightforward tasks, and personnel complete complex ones;
• full automation: boosts throughput, is highly accurate and generates a return on investment (ROI), but requires major upfront investment.

Manual vs Semi-Automated vs Fully Automated Parcel Handling

Interact Analysis predicts growth for the parcel sector, with an average annual growth rate of approximately 6% until 2030, reflecting growing investment in automated parcel handling.

Sortation Technology

Automated Parcel sorting systems exist in various types:

• Crossbelt Sorters: these systems feature small, motorised belts on a continuous track which move items in different directions. They sort different-sized items precisely and reduce errors;
• Shoe Sorters: these systems feature sliding shoes attached to the conveyor that push the items into the correct lane. They work well for boxes, cartons and polybags of different sizes;
• Slide Tray Sorters: these sorters feature trays mounted on a moving conveyor tilt and slide items into the right chute when they reach their destination. They suit parcels and small items that need gentle handling.

When evaluating performance, procurement departments look at several things:

Integration with existing systems

For maximum performance from the entire parcel handling system, procurement evaluate the complexity of equipment integration into existing systems, such as WMSs, enterprise resource planning systems (ERPs) and transport management systems (TMSs).

Seamless integration is invaluable for incorporating parcel handling equipment, and can provide a significant competitive advantage.
They also evaluate API connectivity: is it possible to share data across the network?

Accuracy and data capture of dimension, weighing and scanning systems (DWSs)

Procurement departments look at whether DWSs collect and record parcel data accurately, as this data will go into WMSs and TMSs to calculate shipping costs.

This is essential for accurate billing. The slightest miscalculation can push the goods into a higher billing tier. Businesses also won’t undercharge for space.

Total cost of ownership: the most essential procurement metric

The total cost of ownership (TOC) calculates a product’s cost over its entire lifespan, including both direct and indirect costs.

This means considering capital expenditure (CAPEX), such as the cost of equipment and installing it; and the operating expenditure (OPEX), which looks at short-term costs, such as utilities, labour, maintenance and repairs.

Less obvious costs include:

• the risk of downtime
• training to operate and maintain equipment
• integration costs

Return on investment (ROI)

ROI calculation is important. How much ROI does the automated parcel processing system generate? How quickly? Does the performance justify the cost?

We provide various solutions to support parcel handling systems.

End-to-end parcel handling solutions

To support warehouse parcel management, we offer these parcel conveyor systems:

• Belt Conveyors: versatile, affordable, heavy-duty belt conveyors that boost handling efficiency, make handling safer and handle a wide variety of items;
• Roller Conveyors: our durable, versatile roller conveyors that are easy to maintain and suitable for a wide variety of industries to increase productivity and efficiency and make parcel handling safer;
• Telescopic Conveyors: telescopic convertors that extend and retract for swift loading and unloading, and support warehousing, distribution, manufacturing, e-commerce and retail operations;
• Spiral Conveyors: high-quality spiral conveyors that save space and not only transport items, but can store them, sort them, heat or cool them as they move and serve as a buffer zone between different zones or machines;
• Vertical Conveyors: durable L-shape vertical conveyors that cut labour costs, save space and handle a wide variety of items;
• Curve Conveyors: low maintenance curve conveyors that optimise space and curve around existing machines while serving in heavy-duty applications;
• Flex Conveyors: versatile flexible conveyors that can be adapted into different shapes to suit your operations and transport goods in various industries, including packaging and labelling, warehousing and fulfilment, logistics and distribution and more.

The best parcel handling system aligns with long-term operational strategy, not short-term cost. That’s why procurement departments establish their business’s requirements clearly first, then evaluate parcel sorting equipment’s performance and TCO. Just as crucially, they conduct due diligence and verify suppliers’ claims. Not doing so could be costly.

Having delivered conveyor and sortation solutions across logistics, e-commerce, retail and manufacturing operations, we've seen that procurement projects are most successful when future throughput is used as the basis for system specification.

If you want to improve your parcel handling efficiency, start the ball rolling by contacting our experts by emailing at hello@joloda.com or messaging us via our contact form. We’ll visit your premises, analyse your facilities and operations to recommend the best parcel handling system(s) and install everything so you can optimise parcel handling quickly.

How do procurement teams calculate the required capacity for a parcel handling system?

Procurement teams should calculate the required capacity of a parcel handling system using peak hourly throughput rather than average daily parcel volumes. Peak demand provides a more accurate representation of the maximum workload the system must handle without creating bottlenecks.

It's also advisable to include additional capacity to accommodate seasonal peaks, business growth and unexpected fluctuations in demand. Specifying equipment based solely on current average volumes can lead to underperforming systems and costly upgrades in the future.

What factors should procurement consider when comparing parcel handling systems?

When comparing parcel handling systems, procurement teams should evaluate far more than purchase price. Important considerations include throughput capacity, parcel types, automation level, software integration, scalability, maintenance requirements, energy efficiency, reliability, supplier support and total cost of ownership (TCO).

Assessing the complete lifecycle cost, including installation, maintenance, spare parts, labour savings and future expansion, helps procurement teams select a solution that delivers long-term operational value rather than simply the lowest upfront cost.

How can procurement teams reduce risk when investing in a parcel handling system?

Procurement teams can reduce risk by clearly defining operational requirements, calculating long-term throughput needs, evaluating total cost of ownership (TCO) rather than purchase price alone, and verifying suppliers' technical capabilities through case studies, site visits or customer references.

Working with an experienced supplier that provides system design, installation, software integration, commissioning and ongoing maintenance support also helps minimise implementation risks and ensures the parcel handling system continues to perform as operational requirements evolve.