(St. Gallen/Arbon) Today, just three years after the start of the transformation, MS Direct in Arbon processes up to 20,000 orders a day. This was made possible by a pragmatic approach, tech expertise and, above all, a highly motivated team.
From vision to reality
MS Direct is a leading e-commerce logistics service provider based in Switzerland and Germany. The portfolio includes smart solutions in the areas of fulfillment and cross-border shipping for online stores. MS Direct takes care of the entire order processing for online retailers, from warehousing and the pick & pack process to shipping and returns processing.
MS Direct relies on automation and technological expertise to constantly increase efficiency, serve customer requirements even better and further expand its strong position in the highly competitive market. The declared vision: to become the leading tech player in the European e-commerce logistics industry.
After just three years, MS Direct has already taken a big step towards this goal. By moving into a 40-year-old industrial site in Arbon – a classic brownfield site – the service provider has laid the foundations for its technological future.
Actively shaping change
The technological change at MS Direct is also a response to the complex challenges facing the industry. Firstly, there is the shortage of skilled workers: according to an HSG market study from 2024, there will be a shortage of around 80,000 workers in the Swiss logistics sector by 2032. At the same time, there is intense cut-throat competition in which service level agreements and high customer satisfaction have long been mandatory requirements rather than differentiating factors.
Added to this are increased customer requirements: According to Swiss Post’s E-Commerce Sentiment Barometer 2025, 68 percent expect returns processes to be easy to understand and 88 percent expect a quick refund. Next-day delivery is demanded by 38 percent and same-day delivery by 16 percent.
When it comes to sustainability, 72% demand less packaging waste. As a member of the Science Based Targets Initiative (SBTi), MS Direct has also committed itself to clear climate targets for reducing emissions by 2030.
The biggest challenge for MS Direct itself: The company transformation required comprehensive change management. Technology is only as strong as the people who drive it forward. Employees were involved at an early stage in order to establish an innovation-driven culture.
Start small, learn quickly, scale up in a targeted manner
Instead of a rigid master plan, MS Direct opted for an agile approach: start small, learn quickly, scale in a targeted manner. The first step was to analyse the company’s own processes and determine where the greatest benefits could be achieved with automation. Focusing on the greatest potential in each case, MS Direct tested different technologies and automated its processes step by step.
At the same time, MS Direct relies on Citizen Development for the development of control solutions. To this end, the company has its own Digital Service Team, which builds its own software using low-code, among other things. This makes MS Direct less dependent on expensive software service providers and allows it to benefit from maximum agility.
With this approach, MS Direct made rapid progress. Initially, core processes such as warehousing were automated, then adjacent processes such as picking and finally the individual stations were connected with intelligent conveyor technology. And all of this is controlled in the background by software developed in-house.
From robots to AI: an integrated technology approach
The list of completed projects is impressive. The focus was on the AutoStore system completed in 2023: 79 robots move around 60,000 containers in a high-density small parts warehouse, which enables four times the capacity in the same space – without the need for lighting, heating or air conditioning.
In the same year, a three-storey, 1.4-kilometer-long conveyor system went into operation in the returns operation. This saves handling steps and speeds up the processing of returned items.
This was followed just one year later by a fully automated packaging machine that produces customized cardboard packaging – up to 600 pieces per hour. On-demand packaging reduces cardboard material, eliminates the need for stuffing material and minimizes transport volumes. All of this in turn leads to a better carbon footprint.
In fall 2024, a port of the AutoStore was equipped with an AI-controlled picking robot that is directly integrated into MS Direct’s warehouse management system. Equipped with computer vision and zero-shot learning, the robot arm can visually recognize objects in bins via a camera and thus grasp them in a targeted manner – without having to be trained. Impressive: the robot manages up to 2,900 picks a day with a success rate of 98%.
There has also been a lot going on at MS Direct this year: the AutoStore was extensively expanded in the summer and its capacity doubled. A dynamically controlled conveyor system now connects the system directly to the packing stations and an autonomous mobile robot (AMR) delivers the replenishment of goods.
The hardware is supplemented by digital control tools developed in-house and an AI-supported forecasting system that calculates order volumes and goods flows and enables more precise personnel planning.
Measurable benefits for all parties involved
The investments are paying off. For online stores, the greatest added value is the extended cut-off time. Thanks to the shorter throughput times, they can now offer their end customers order deadlines up to 20:00. In addition, the numerous automations lead to a reduced error rate in picking and optimised shipping by saving on material and postage costs. Thanks to AI-supported forecasts, MS Direct can now also guarantee even more stable staff planning.
End customers also benefit directly: they have longer order times and receive their parcel the next day. As less filling material is required for shipping, this also contributes to the unboxing experience – an aspect that is important for one in four customers.
Innovation also works in SMEs
How does a medium-sized company finance such a transformation? MS Direct relies on flexible procurement models instead of huge budgets. Innovative technologies are tested using rental models or pilot projects before large investments are made. This allows for agile evaluation and targeted scaling.
The iterative approach significantly reduces the risk. Instead of putting all its eggs in one basket, MS Direct develops automation step by step.
The next step
MS Direct continues to work without a rigid master plan. The focus is on continuous further development of the implemented technologies. An important building block is the Digital Warehouse Twin – a digital twin of the warehouse in Arbon. This virtually maps all processes, flows of goods and system interactions and enables simulations of different scenarios before they are implemented in reality. The digital twin is therefore the ideal testing ground for new technologies.
MS Direct also has ambitious plans for the systems: additional AI-controlled picking robots will go into operation in 2026, further AMRs and AGVs will further automate the internal flow of goods and AI-based personnel planning will continue to learn. At the same time, adjacent processes will be increasingly linked by conveyor technology. And last but not least, computer vision is to be increasingly used to support core processes.
MS Direct impressively demonstrates that comprehensive logistics automation is not a privilege of the big players. With the right methodology, courageous decisions and a culture that promotes flexibility and learning, even medium-sized companies can make the leap to becoming tech players.
The transformation is therefore not just a success story from the Swiss logistics sector, but a role model for all those facing similar challenges.
