**Hakkila, Finland**: PostNord’s Hakkila terminal has boosted productivity by over 25% through a digital thread sorting system using computer vision and real-time tracking, enhancing operational oversight and paving the way for future hyper-automation in parcel logistics.
PostNord has successfully enhanced operational efficiency at its Hakkila terminal in Finland by implementing an innovative digital thread sorting solution, resulting in significant improvements in productivity, process optimisation, and overall parcel throughput. The solution, introduced following operational challenges at the relatively new but quickly congested terminal, has transformed the way the facility monitors and manages its internal processes.
Located in Hakkila, Finland, PostNord’s terminal faced various issues tied to site design, fluctuating parcel volumes, and shifts in management and operational procedures. These factors contributed to difficulties in maintaining consistent operational quality, limited oversight on resource allocation and process compliance, and a lack of measurable performance data. Christian Østergaard, PostNord’s lead visionary and senior group strategist, explained that after the terminal’s initial peak season proved disorganised and inefficient, management approached Østergaard’s team for assistance to address concerns related to productivity, throughput, and efficiency.
The introduction of a digital thread sorting solution, developed through the integration of multiple technology projects within PostNord, aimed to provide comprehensive real-time visibility across all assets and workflows in the sorting centre. This solution pairs computer vision capabilities with a real-time location system (RTLS), backed by sensor data strategically placed throughout the facility. The objective was to continuously monitor worker locations and operational flows to ascertain whether processes were optimal or required improvement.
Implementation began in May 2023 and was completed by January 2024, with a graduated rollout involving close collaboration with local management to customise the solution according to operational needs. Among the first challenges addressed were an underperforming sorting machine and ensuring adherence to first-in, first-out storage principles. Ensuring trust among staff was central to deployment; as Østergaard noted, “When you come in with a new technology, it’s important to gain the trust of the people who will use it.”
PostNord partnered with Tata Consultancy Services (TCS) for the development of computer vision models and the Finnish startup Quuppa for their high-precision indoor tracking technology. The rollout included installing Quuppa’s RTLS technology, which involved a comprehensive site survey and infrastructure installation to enable tracking of mobile devices and forklifts. This tracking capability has allowed the terminal to map internal transportation flows, such as movement between sorting machines and cross-docking zones, identifying inefficiencies and enabling workflow optimisation.
The digital thread system processes key performance indicators and analytics in near real-time, delivering actionable insights directly to relevant personnel. This has led to more effective work floor management, improved sorting chute handling, reduction in internal transport trips, and enhanced use of cross-docking areas. PostNord has reported a greater than 25% increase in operational efficiency during sorting, a 32% rise in parcels sorted per hour, and an improvement in the percentage of sorting staff achieving key performance indicators—from 20% to 54%. Ravi Kiran Kotty, digital transformation technology strategist at PostNord, emphasised the importance of a gradual and iterative implementation: “It was a slow evolution… Once it was implemented, we would evaluate whether it added value before moving on to the next one.”
One notable feature of the system is a visual ‘traffic light’ tool that signals to staff the areas within the facility requiring attention—green indicating normal activity, yellow indicating high attention, and red signifying critical zones. This simple, intuitive communication method addresses the terminal’s 8% monthly staff turnover, enabling employees to respond efficiently without managerial instruction. As Kotty highlighted, this innovation contributed to a nearly 30% increase in parcels handled per hour.
Beyond efficiency gains, the digital thread solution has contributed to improving PostNord’s reputation as a modern and technologically adept employer. Østergaard noted the positive employee response, highlighting the workforce’s tech-savvy nature and expectation for an innovative work environment. The system’s anonymous productivity measurement respects privacy while offering actionable data on process effectiveness and resource deployment.
Cost-wise, the technology pilot achieved a return on investment in less than four months, underscoring the financial viability of this innovative approach. The successful pilot has laid the groundwork for further expansion: PostNord is currently extending the digital thread solution to its operations in Denmark, with plans to implement it across the country’s two largest terminals following initial deployment.
Looking ahead, PostNord intends to use the digital thread as a foundation for progressing towards hyper-automation of its terminal operations, integrating additional functionalities such as asset tracking, forecasting, and digital twin modelling. This strategic development advances the company’s vision for touchless parcel handling by 2032, aiming to increase efficiency while enhancing sustainability.
The experience at Hakkila has highlighted several lessons, including the critical role of tech-savvy management and workers for successful technology adoption, the value of leveraging existing infrastructure for new insights, the need for collaborative partnerships, and the importance of clear and simple communication of operational data.
In summary, PostNord’s innovative deployment of a digital thread sorting solution at its Hakkila terminal reflects a significant step towards data-driven parcel logistics, delivering measurable improvements in sorting performance and laying a foundation for future technological advances in postal operations.
Source: Noah Wire Services
