UPS-owned Happy Returns saw 40% faster processing speeds at its three hubs during peak season compared to previous years, the company announced last month. The acceleration allowed the company to ship returns to retailers faster for inventory restocking.
Automation replacing manual processes at the locations primarily drove the faster processing speeds, COO Tim Fehr said in an interview with Supply Chain Dive. The main automation component of those hubs are Geek+ sorting robots, which were installed last year.
"We were very focused on having the entire network automated before peak so we could achieve those results," Fehr said.
The returns provider is planning for further automation advancements at its facilities this year, according to Fehr. While he didn't specify what those upgrades would be, Happy Returns' announcement offered a hunt about its next moves.
"We're exploring new types of robotic automation to handle higher volumes more efficiently and reduce the physical strain on warehouse workers — including the potential use of robotic systems for unloading trucks to further streamline operations," Happy Returns said in the announcement.
Beyond automation, Happy Returns' speeds have also benefited from earlier UPS delivery times to its facilities. Fehr said it worked with various industrial engineering groups at its parent company to receive returns around 8 a.m. or 8:30 a.m., compared to previous times of noon to 1 p.m.
The additional hours give Happy Returns a larger window to process those returns for outbound shipping in the afternoon, typically to the facilities where the order originally was fulfilled from, Fehr said.
"We're getting more stuff outbound, and we continue to work with UPS on that, and I think we can get even earlier delivery times," he said.
As the number of returns Happy Returns handles grows, the company will lean on automation to more efficiently use space at its facilities in Pennsylvania, California and Mississippi, Fehr said. Happy Returns is satisfied with the three-hub footprint, as it is already able to meet retailers' needs with the existing footprint, he added.
