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The Future of Sustainable Manufacturing is a Hybrid Approach

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3pls, Archives, Global Logistics, Global Trade Daily

The Future of Sustainable Manufacturing is a Hybrid Approach

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If you’re in the retail business, one of your worst nightmares is being stuck with boxes and boxes of unsold inventory taking up space in your warehouse. Wasted stock can be a huge cost to your bottom line and pose serious risks to your business.

For eco-conscious brands, a lot of unsold inventory is also detrimental to the environment, especially if the products are textile-based. Of the more than 100 billion items of clothing produced each year, some 20% go unsold leftovers are usually buried, shredded, or incinerated (Forbes).

Businesses that end up in an overstock situation generally use traditional bulk manufacturing which requires products to be made and then warehoused until they are shipped. While there is a risk of costly unsold inventory, bulk production can also be economically effective if a product is proven to be a best-seller.

On the opposite side of the spectrum sits on-demand manufacturing–a process by which goods are produced only when they are needed and in the quantities required, eliminating the cost and effort of storing and managing inventory. Although on-demand products are not produced at economies of scale, businesses can more easily and quickly test and go to market with new products and designs.

Previously, businesses would need to choose one method or the other but with recent advancements in technology in the past decade, retailers can get the best of both worlds through hybrid manufacturing. An economically and environmentally sustainable solution, a hybrid approach blends the cost-effectiveness of bulk production with the risk-free per-order fulfillment process of on-demand manufacturing.

How Hybrid Works

Before adding any new item to product lines, experts recommend testing them through on-demand manufacturing to ensure viability. An on-demand approach gives retailers the freedom to sell more SKUs and products that they might not think will take off en masse. Once retailers know a product has the potential to move into mass production, the switch can be made. Eventually, when interest wanes and the product becomes more evergreen but to a smaller audience, retailers can realize ongoing value by going back to an on-demand approach.

Having spent a career as the former VP of On-Demand at One Live Media, an eCommerce agency that works in sports, music, and entertainment, I am well versed in fulfilling merch orders for thousands of sports teams and artists including but not limited to the L.A. Lakers, KISS, Willie Nelson, and Zac Brown Band. Before getting stuck with a warehouse full of stuff, my team would run every new product through the on-demand cycle. Most of the brands we worked with fulfilled 25-60% of their orders through on-demand and the rest with mass production. It’s important to find the right mix of on-demand products and bulk inventory in order to optimize sales.

Why Utilize a Hybrid Approach

Adapt to trends quickly without risk. Culture is now manufactured on-demand. In the past, consumer trends were generally set by businesses. However, in the recent decade, the tables have turned and consumers are setting trends on social media. Because buyers are now changing the way we capitalize on culture, it is affecting how brands produce and manufacture products on-demand. With a hybrid approach, brands can quickly mock up a design and add the product to their online store without prepaying for costly order minimums by first using on-demand manufacturing. If the product doesn’t fly off the shelf, then you can simply remove it from your store and not have to worry about piles of unsold inventory. If it proves to be successful, then they can switch the production process to bulk manufacturing.

Improve cash flow. When a business utilizes a blend of on-demand and bulk manufacturing for its products, it can more easily optimize its cash flow. For bulk products, they can get a higher per product profit margin due to economies of scale. For on-demand products, they don’t have to pay for costly inventory or order minimums, freeing up a business’s cash flow. This liquidity allows brands to boost revenue-driving activities such as marketing, which increase sales, and ultimately grows their business.

Shift toward sustainability. Being eco-conscious is no longer a consumer marketing trend, it is a real practice many businesses are implementing in their business model. Because on-demand manufacturing allows companies to produce only what consumers order, it eliminates unnecessary production and harmful waste—saving both the business’s bottom line and the environment.

Be better prepared for economic disruptions. When COVID-19 disrupted supply chains across all industries last year, many retailers were forced to shut down and were left with boxes of unsold inventory. When utilizing on-demand manufacturing in a hybrid approach, it is important to look for a provider that manages a distributed supply chain network. This type of fulfillment process allows on-demand manufacturing providers the ability to carry a large number of product SKUs in more than one facility, therefore orders of that product are able to be fulfilled in multiple locations. That means if one location closes or has an external disruption— they can seamlessly move order fulfillment to another facility.

It has never been easier to embrace a hybrid manufacturing approach. Many retailers can use traditional manufacturing for bulk products that sell all year round in conjunction with on-demand for short-term collaborations and innovative, trending designs. Because on-demand doesn’t require a large amount of startup capital, it is a low-risk method that can lead to high returns. The ease and efficiency of on-demand combined with the cost-effectiveness of traditional manufacturing is truly paving the way for the future of sustainable retail.

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Dale Manning is Head of Market Expansion at Gooten

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Archives, Global Logistics, Global Trade Daily, Warehousing

How to Know You Need to Upgrade Your Warehouse

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Whether you rent or own, warehouses come with high costs for any operation. In the U.S., pricing for physical space is at a premium and steadily rising. Add in labor, equipment, racks, and maintenance, and it can be hard to find room in a warehouse budget for upgrades. That means companies tend to put them off until sometime dire happens.

Don’t put your operations at risk by waiting once the warning signs are there. Avoid becoming a cautionary tale by staying alert for indicators such as mis-picks, tech hurdles, cluttered space, and waiting trucks. Here’s what those signs may look like for you and a few ways to respond.

Mis-picks are on the rise

Warehouses and fulfillment operations live and die by metrics. One of the most important is the mis-pick rate, especially if the warehouse lacks other verification before packing. When mis-picks increase, costs can rise exponentially. You’re potentially paying for additional shipping twice (return and replacement), losing products that expire or can’t be returned, and increased labor for returns processing.

When mis-picks increase, companies need to review processes and the warehouse itself. Suboptimal layouts and outdated technology can mean pickers are always in a hurry. SKU overcrowding makes it much easier to pick the wrong item, especially if you offer a product in multiple sizes.

Warehouse upgrades to target mis-picks include increasing your physical space, auditing options, and adjusting travel lanes, and implementing scanners to verify SKUs during the picking process.

You can’t implement the tech you need

Technology is the primary way companies respond to mis-picks because many wearable devices and even smartphones can scan barcodes and link with inventory tools. Unfortunately, warehouse designs and structural elements might limit your ability to use these solutions.

Modern warehouses need reliable, fast Internet connections and space for tech as well as inventory.  You might be due for an upgrade if connection speeds prevent real-time updates or if your network doesn’t cover the entire warehouse floor. Check if you need an electrical upgrade, too, because increased demand from servers, equipment racks, and new tools may lead to tripping or overloading a circuit.

Returns and kits don’t have their own place

As companies grow, their products tend to diversify. In the eCommerce arena, that tends to include kits and subscription options. Those options can increase recurring revenue but require increased production space to store materials and assemble boxes. Kits can be assembled before an order, speeding up fulfillment but needing dedicated shelving or storage. Scaling also goes hand-in-hand with increased returns processing.

This growth creates two demands on space that often lead companies to move to a larger warehouse or outsourcing to a 3PL that has relevant experience and available space. Shrink your inventory holding or expand your real estate to meet these needs. As you grow, there are few options. Waiting too long to increase the available physical space can quickly lead to mis-picks, lost items, damage, and products that languish on back shelves or forgotten racks.

Your dock has become a logjam

If time is money, loading dock issues could be costing you much more than you realize. Poor scheduling, slow unloading, manual inventory updates, and accidents all increase that cost. Dock issues are a clear sign that you should upgrade your space to minimize risks to your people, operations, and margins.

One of the best operational upgrades a company can make is to switch to dock scheduling software. Options generally integrate well with order management tools, making it easy to book appointments. They’ll help you plan and make the best use of your team and tools while ensuring you’re getting trailers and deliveries that work with your dock doors.

You may need to move to a large facility or significantly change your loading area layout if there’s not enough physical space to offload trucks quickly. Inbound inventory needs ample room, and tight spaces make it easy to miscount, trip, fall, or damage goods with handcarts and forklifts.

If your dock operations are leading to common accidents, it’s time for an immediate upgrade. Protect your people and give them the improvements they need to work slowly and safely. It’s the most important upgrade you can make.

Bring it back to change management

The need to upgrade a warehouse typically comes after discovering a process issue. Team leads or managers notice a problem and trace it back to fulfillment. That’s true for declining customer service, increased costs, complaints from carriers or partners, and much more. To respond, a company looks at undertaking a directed improvement with new people, processes, tech, or location. Typically, that means multiple options for how you upgrade.

The most beneficial problem resolution is one that sticks. That reality makes change management a core feature of success, though it can often be left out during decision-making. Give your team and operations their best chance at an upgrade with a positive ROI by considering teams and current practices when you weigh your options.

Letting change management guide problem resolution helps ensure your team gets an initial benefit and can maintain it. From there, you can continue to refine and maximize that gain. And, in some cases, you might realize that reliable change requires more capital than you have for the improvement. Outsourcing may then be your most effective solution and choosing a reliable 3PL means you’ve got successful change management built into the decision.

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Archives, Global Logistics, Global Trade Daily, Stories

Riding the Wave of Demand: All it took was a Global Pandemic to Sort Out the E-Commerce Winners from the Losers

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Undeniably, businesses all around the world today find themselves grappling with the profound changes we are experiencing as the world comes to terms with the impact of this pandemic.

All across the world, businesses—from the local deli to major conglomerates—are transforming their offline and online operations as they seek to protect their customer relations. With consumers confined to their homes, we are experiencing an enormous e-commerce surge, which is set to have an unforeseen impact on consumer behavior.

It is a phenomena experienced by existing e-commerce platforms like Ding.com and newcomers focused on in-store sales alike: Overnight, we’ve all been forced to pivot, regardless of our platform, size or clout. As lockdowns continue in many parts of the world, and people continue to practice caution in regions where they have been lifted, online sales have increased exponentially, especially in the food and grocery space.

While many e-commerce retailers adapted their existing digital strategies to maintain presence and reach, others lacked the infrastructure, confidence, and social media savvy to stay as close as possible to their customers during the pandemic.

Making the Connection

Has COVID-19 merely accelerated rapidly changing consumer trends toward e-commerce? Perhaps, although such is the force of human nature, there will always be room for offline exchanges. Critically, as we seek to enter recovery, how do we keep customers engaged long after the fear from the pandemic subsides?

Our own experience is instructive of the challenges many businesses are facing. At Ding.com, the first thing we did after the outbreak was declared, was to remove all fees for our customers globally for an initial period—a significant investment, both financially and operationally. It meant that we could help people stay connected to their loved ones during those early, fearful days.

Making those connections took a monumental effort, as we needed to action this decision across every one of our operators, countries, teams, languages, and technologies. It also served another vital purpose. The lockdowns compelled Ding.com to transition to working fully remotely–we closed all our offices at the same time–so we learned how to communicate and work together well remotely, making quick decisions together despite being physically apart.

The Art of Pivoting Under Pressure

The lockdowns implemented by various governments led to an instantaneous spike in demand for our products as specific countries went into lockdown we saw a direct correlation in terms of demand for mobile top-up–first Italy, then Spain, then France, then the UK, and across the Middle East. We had to make big investment decisions on going into markets that might not have been traditional markets for us–pivoting under pressure is quite an art.

The move into online retail can seem daunting, especially if it is forced by unforeseen factors such as this major public health emergency rather than as part of a carefully planned long-term strategy. Trust is key to earn and retain consumer loyalty, so too is visibility. Many retailers fear they lack the technical knowhow. But we know that the heart of any retail experience is knowing your customer and knowing what they want.

It pays to invest the time and energy now into making the transition to digital a long-term success. In my view there are three key principles to live by when you are considering adapting your business to an online model:

 1. Be Easy to Find

Be everywhere where your customer is–make it really easy for them to find you.

2. Be Easy to Buy

Speed and ease are key to building trust and winning business. Guide your customers on every part of the journey. From browsing to payments, be where they need you.

3. Be the Reason They Stay

Make it the most wonderful experience for them once they’re here. Listen to their needs, continue to evolve to serve those needs, reward their loyalty and commitment to you.

The principles can seem overwhelming, especially if you are an SME or a start-up or a business whose main model is offline. So it’s best to start small and scale-up.

When you’re getting your business set up online, the opportunity to sell to a global audience is an enthralling one. But slow down. A McKinsey A report on rapidly setting up an e-commerce function suggests success is possible in a relatively short timescale, pragmatism is wise in the beginning. This might mean limiting delivery to a certain region or offering a more limited range of products at the outset. This gives companies the chance to identify and address pain points and bottlenecks before scaling up to full capacity.

It’s vital, as you move online, to make the most of what analytics can tell you about your customer. Online shoppers give retailers a wealth of information about themselves when they make a purchase. Google or Facebook demographic information will tell you where they live, their ages, and gender, while the website and e-commerce tool itself will tell you how often a customer shops on your website, what category of products is most important to them, and how much they spend. In the marketing world, this is known as a customer persona.

This information is crucial, as it can be used to retarget them with similar products in the future. It will also allow merchandising managers to understand which products appeal most to your target demographic, and which are of little interest and should be discontinued. You can also boost sales by combining social media platforms with email marketing. It pays off handsomely: according to Oberlo, every $1 invested in email marketing results in $42 of sales.

Go Big, or Go Home

In many respects, we have no choice but to adapt, if recent actions by major players such as Amazon and Facebook to increase their market share are anything to go by. On May 19, Facebook announced that it will launch a full shopfront on both its Facebook and Instagram platforms.

With more than 3 billion monthly active users between them, the opportunity for consumers to make direct sales within those apps will be a gamechanger for the social network. It also represents an unmissable opportunity for new streams of revenue for retailers, whether they’re a mom-and-pop store or a major enterprise when their consumers can shop in real-time.

If you take your time and get it right, the rewards of online are unending and will help you achieve the best of both worlds. Despite, or perhaps because of this unprecedented business interruption, there has never been a better time to ride the wave of demand for online.

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Denise Dunne is chief growth officer at Ding.com, the No. 1 international mobile top-up platform. Having joined the Dublin, Ireland-based company in November 2019, she is now responsible for Ding.com’s consumer business. She arrived at the 14-year-old concern with 15 years of experience from a number of international companies, including MindSauce, Neom and Paddy Power. Developing and executing robust customer growth strategies and delivering transformational revenue growth is what Denise has spent her career doing.

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3pls, Archives, Global Logistics, Global Trade Daily

How to Prepare Your Online Store for the Holiday Season During COVID-19

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We’re already getting super hyped for the holiday season. From delicate snowfalls to generous gift-giving to spending time with family and loved ones, it really is the most wonderful time of the year.

But if you work in retail, the holiday season can mean something VERY different. Many boutique owners find themselves busier than ever during the holidays. Most years, the holiday season means long lines at malls, loads of crowds, and tons of in-person sales. But this year’s going to be totally different.

Online stores have steadily grown in popularity over the years – but COVID-19 made the shift to e-commerce accelerate at its fastest ever rate. This holiday season will be totally dominated & led by e-commerce stores. Many believe the 2020 holiday season will be the single biggest e-commerce event in HISTORY.

If you own an online boutique, that’s great news for you! It means you’ll have the chance to capture all kinds of new and existing customers looking to buy gifts for their loved ones (and take advantage of the great deals for themselves, too). But it also means you’ve got to brace yourself. Things are about to get WAY busier.

Whether you’ve already made it through many a holiday season as a boutique owner before or this will be your first one, read on to learn how to prepare your online store for the holiday season during COVID-19.

Make it easy for your customers to buy online

Make sure you’re totally prepared to accept online orders – and that your website makes the online buying experience as soon as possible. Go through your online store as though you were a customer and make sure the entire buying process is crystal clear. Take a moment to work out any kinks you find so you can provide a seamless buyer journey. If this is your first time selling online, make sure payment solutions are totally ready by running a few test purchases.

Once you’ve done that, update your website for the holiday season. Update your inventory so in-stock items are clearly marked. Promote seasonal offers and holiday deals throughout your website. Clearly display your boutique’s shipping and return policies, especially if you’ve modified them for the holidays. The easier it is for your customers to make a purchase (and take advantage of awesome holiday deals), the more likely they’ll be to do so!

Plan & stock your inventory in advance

And by “in advance,” we mean ASAP! It’s always a good idea to start stocking up on holiday inventory early, but this year it’s more important than ever. Many shipments have been delayed due to the pandemic, so the sooner you can order your inventory, the better.

Make sure you choose to work with a reliable supplier. While the increase in high demand affects retailers like you, it also affects manufacturers, distributors, and wholesalers in a big way. Order early and choose a supplier with great customer service. Supplied is a great option for online boutique owners looking for a wide variety of wholesale boutique items, flexible payment terms, and free shipping (yes, even during the holidays!)

Schedule out promotions

Many customers pretty much expect great holiday promotions from the brands and boutiques they love. Start planning out what sorts of promotions you’ll run and when you’ll run them. Stagger promos and marketing efforts carefully so you have a flow of ongoing sales instead of a few huge peaks. It’ll make it easier for you to fulfill orders and provide great service.

With COVID-19, it’ll be difficult to predict exactly how long shipping times will take. To make it easier for you to ship items out well in time for the holidays, incentivize early buying with sales. Experts predict that Amazon’s October Prime Week will cause many buyers to purchase holiday gifts earlier than ever before. Consider offering a sale during it in an effort to pick up some of that traffic.

You’ll also want to make sure you take advantage of Black Friday. Many of the largest retailers have already announced that their stores will be closed for Thanksgiving weekend, meaning there will be far fewer in-person Black Friday doorbuster deals. Try and capture some of that excitement online by offering a great deal for Thanksgiving weekend.
Expect delays

During the 2020 holiday season, getting packages to arrive on your customers’ doorsteps on time will be tricky. Encourage people to buy early. Be transparent about shipping delays you’re aware of and do your best to manage your customers’ expectations. As tempting as it may be, don’t promise a delivery date you can’t guarantee.

Once the guaranteed holiday shipping deadline passes, offer virtual gift cards that can be instantly delivered and used towards any item in your shop. This provides a way for last-minute shoppers to still support your shop.

Prepare for fulfillment & delivery

A lot of online boutique owners are out there running a one-woman show – but during the holiday season, you might want some help. If you usually do shipping and fulfillment operations all by yourself, consider enlisting a friend or an employee to help with the busy season.

If you have a brick-and-mortar location or a lot of local customers, offer in-person pickup to allow customers to save on shipping costs – and to allow you to package and mail fewer orders!

To sum up – to prepare your online store for the holiday season during COVID-19, you’d best get started now. Start ordering wholesale boutique items now so you have plenty of time to prepare for any delays, update your inventory, schedule out promotions, and allow your customers to order their gifts as early as possible.

Supplied members enjoy up to 75% off of wholesale prices on over 100,000 wholesale boutique items. And with free shipping, flexible payment terms, and no minimum orders, it’s perfect for stocking up quickly in preparation for the holiday season. Become a member (it’s free!) and place your first order today.

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Joseph Heller is a small business expert and CEO of SuppliedShop.com. Supplied makes it easier for small boutique owners around the world to access high-quality, affordable wholesale boutique items, whether to stock their physical store or IG shop.

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3pls, Archives, Global Logistics, Global Trade Daily

E-Commerce Logistics and Supply Chains: Journey to the Future

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The transition of commerce to an electronic format is a well-established and economically sound process which is in its prime. Shopping and paying online has already become an integral part of modern life. Conversion of e-commerce platforms is more than 7% versus just 3% in the retail sector. But how has the transformation of e-commerce affected logistics?

The transportation of products remains a physical process that cannot be realized through the Internet. However, electronic administration of logistics processes is available now, and advanced technologies help optimize the product movement along the supply chain. How does this all happen and what are the current trends – let’s understand.

Why Classic Logistics Has Become Obsolete

The answer is simple: needs are growing.

If we immediately exclude the possibility that a business delivers goods on its own without involving third parties, then, in any case, there is some company in the chain between the brand and the consumer. With its help, goods get into the hands of buyers from different cities and countries.

But if earlier, in most cases, it was a matter of delivering the product to stores and other retail structures, now everything is much more sophisticated. Buyers may request delivery to their nearest post office, special pick-up point, or even directly to their home. This required a qualitative change in storage conditions and technologies used.

Reasons for the Rapid Development of Logistics

In order to take their place under the sun in a trading niche, brands choose the most effective methods. This is what is most appreciated by any buyer – a wide range of products and short delivery time: who would want to wait for their goods for several months? The same goes for digital commerce. Therefore, you should not be fooled, for example, a case of Photza digital photo retouching service, when they reduced the delivery time from 3 days to 2 and began to send ready-made photos not only through your personal account on the website, but also duplicated by email link to Dropbox, increased conversion by 17.3%.

A good example of successful adapting to new realities is Amazon. By activating 50 picking warehouses throughout the United States, this giant got the opportunity to promise customers next-day delivery. With the help of a special code (SKU), each item was designated, then it arrived at the distribution center, and was ready to be further piece-picked for individual orders.

The closer the inventory to the buyer, the faster the delivery. Other retailers and businesses quickly realized this and began to deploy new capacities, using both internal departments and shared resources managed by third-party partners.

New Trends and Their Impact on Logistics

Implementation of Digitalization

This is a crucial thing that makes sense to mention. Advanced technologies, the ability to create and use customized software adapted for each business and its logistic model, electronic databases and much more allowed many brands to reach a new level.

Digitalization not only accelerates work, but it also provides greater stability and sustainability in the implementation of supply chains. With its help, brands can check the availability of products in any storehouse at any time, request information on the latest deliveries as well as the status of different orders, manage inventory and pre-compile optimal routes.

The Same-Day Delivery

The question of how to speed up the process of getting the product into the hands of the buyer continues to occupy the minds of brands. The most relevant category of goods for delivery on the same day is, of course, food. One can also include consumables here. Short-lived commodities do not stand the test of time, therefore, special conditions must be provided for them. And this is not a whim of the client or the quirk of the manufacturer, but an urgent need.

Moreover, there is a certain relationship between service and money, which people consider appropriate to pay for it. This balance should be carefully calculated and taken into account. It is also interesting that more than 60% of clients are willing to pay more in order to receive the goods on the same day or at least the next day. If the brand has the opportunity to fulfill this desire, then we can say that it is already one step ahead of its other less savvy competitors.

To reduce the cost of delivery and ensure its optimization, platforms such as Uber implement market models that analyze and compare supply and demand. For example, they select available couriers and orders received in real time and, by appointing a courier to deliver a product, seek to minimize the average travel time. The whole system is fully automated: large amounts of money were invested to ensure its correct functioning. Notably, they fully paid off, because as a result, the organization has received a platform that provides stable and trouble-free operation.

The scheme of working with local couriers is gaining momentum, and in the near future, many large retailers are expected to switch to it. This is convenient and, as indicated above, requires the greatest cost only at the initial stage of implementation. With the correct formulation of the problem and the determination of the goals pursued, success will not be long in coming: it remains only to maintain the system and periodically update it. No one wants to be left overboard as an outdated option.

Couriers Robots

Delivery of goods by robots is also not as far away as it might seem. Starship Technologies is already launching its standalone food delivery robots in Tempe. Self-guided robotic vehicles can carry orders weighing up to 40 pounds over a distance of 3 miles. Autonomous navigation is provided by a 360-degree camera, which makes a robot an absolutely independent counterpart to couriers, reducing labor costs by more than 70%. Bots work best in urban centers.

There is no information about possible obstacles to their movement yet. In addition, such machines encounter far fewer legal barriers than their unlucky colleagues – drones.

The Power of Social Media

While marketing and link building strategies allow the brand to improve its online visibility, social networks dominate in matters of instant communication with customers. Clarification of address details, obtaining prompt feedback and providing the information requested by customers optimize logistics processes from a coordinating point of view.

SaaS Options to Streamline Supply Chains

Manual supply chain management with modern production volumes nowadays seems almost impossible; to say the least, then certainly both an outdated and inefficient method. Therefore, many businesses resort to various software-as-a-service supply management options.

This process became especially popular after the entry of cloud computing into the game. It made available timely informational and structural updates and created easy ways to manage infrastructure costs.

Advanced Product Tracking Scheme

The use of GPS has become another milestone in the history of an e-commercial boom. With its help, it became possible to track the location of the goods at any stage of their journey, whether it be moving to a regional storehouse or last-mile delivery. Moreover, tracking is a useful option for customers: they can clearly imagine and assume how much they have left to wait for their goods.

In the event of an unforeseen situation, brands can immediately detect problems and take all necessary measures to restore the procedure for transporting products to the buyer.

In the End

Modern problems require modern solutions. Therefore, in parallel with the new e-commerce opportunities, up-to-date options appear that handle the transportation of small and large goods equally well. Digitalization has given a significant impetus to the growth of new capabilities. Timely delivery at a price that satisfies the customer is what businesses strive for by updating their logistics models.

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Marie Barnes is a Marketing Communication Manager at LinksManagement, where you can buy real backlinks, and is a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.

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Archives, Global Trade Daily, Special Reports, Warehousing

WFH? Here’s How to Manage your Ecommerce Order Deliveries Successfully.

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The outbreak of the novel coronavirus has turned the whole world upside down. No one is sure about anything anymore. And that scares us. Luckily, the culture of remote working has been catching on. There are a gazillion tools that help you get rid of the snags of WFH. Regardless, managing your team as an ecommerce business owner remotely is no joke. Especially during a time when you cannot afford to lose business or customers.

Here’s a cheat sheet to stay on top of your orders in the age of social distancing.

1. Real-time shipment monitoring: The good news is that there is a greater push for shopping online. More and more customers are seeking comfort in the ease of ordering products online. In the US, there has been a surge in the ecommerce order volume for health and beauty products. The real challenge is staying on top of order fulfillment. You need a unified portal that tracks and monitors your packages in real-time. While your logistics team may be efficient, it is prudent to have visibility into shipment details. A real-time shipment tracking system that feeds you with the total shipments, total deliveries, potential delivery exceptions for every single day at all times. A real-time tracker is a great way to oversee your team’s order fulfillment efficiency with zero manual intervention.

2. Real-time Delivery updates: Your customers are anxious about their orders. More than ever before. If you see a sharp rise in the “ Where is my order” calls to customer support, rest assured, it is the new normal. Instead of overburdening your lean support team, send delivery updates to your customer proactively. Inform your customers of the order location. Auto-set triggers to initiate notification for any change in the shipment transit activity. Your customer stays in the know of the order shipment status at all times.

3. Custom exception notifications: Delivery exceptions are a downer. Lost, delays, damages can ruin your customer’s delivery experience. When left unattended, a bad delivery experience could quickly spiral out of control. To salvage this situation, act immediately. Whenever your real-time tracker notifies you of a potential disaster, come clean and inform your customer.

“Hey Mike. We regret to inform you that your order [ tracking# 887676756454] is experiencing a delay. But we assure you that we are working with our shipping partner to get the order to you at the earliest. Thanks”

Surprisingly, buyers are quite understanding and more cooperative once they are informed of any issue beforehand. In fact, your customers appreciate your transparency.

4. Carrier performance monitoring: When your business is fulfilling orders using more than one shipping carrier, how do you evaluate them. Even global carriers such as FedEx, UPS or DHL have their share of strengths and weaknesses. How do you play to the carrier’s strength so as to benefit the most? Easy. Measure their on-time delivery performances. Categorize their OTD across different zones, different days of the week and different package dimensions. Or simply plug into an Audit tool that can generate all this for you.

5. Cost-saving recommendations: Companies across the world are laying off employees. There is a huge drive for cost-cutting across organizations. Brick and Mortar stores are brainstorming ways to omnichannelise their user experience. The least you can do as an ecommerce business owner is to audit your shipping invoices. If you have not automated your auditing process yet, time to reconsider. An in-depth invoice audit not only results in instant savings on your shipping costs by disputing service and billing errors, but they also unearth strategies to optimize your shipping spend. The need of the hour is to shave away all the payment excesses and billing overcharges.

AuditShipment is an automated invoice audit service that identifies more than 50 carrier errors across vendors, disputes billing errors, validate tariff rate against SLA and offers benchmark discount reports. They also help get you refunds on late shipments from vendors like UPS, FedEx, etc. In addition to offering post-order fulfillment audits, our advanced technology also offers real-time shipment tracking and custom delivery notifications. With AuditShipment, stay on top of your orders at all times.

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Archives, Global Trade Daily, International Trade, Stories

Ecommerce Shipping Guide 2020: All You Need to Know

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This year, the ecommerce shipping industry is adapting automation and other efficiency-boosting tech tools for a 360-degree transformation. The shift in trends that began in 2019 is only going to pick up pace this year, with two of the most important trends of automation and scaling globally gaining impetus.

In 2019, 79% of US ecommerce shoppers said that free shipping would make it more likely for them to buy things online.  53% of users abandon the cart because of hidden costs like shipping, tax, etc. That’s how important shipping is for ecommerce sales.

So what changes should you be prepared for in 2020 when it comes to shipping?

What do you need to know about ecommerce shipping?

These are some of the questions we aim to answer through this guide.

A Step-Wise Peek Into the Ecommerce Shipping Process

Step 1 – Understanding a shipment

The most basic thing you need to understand is what constitutes a shipment. A shipment can be one thing or multiple things, created as a result of an order placed by a customer through online channels. One order might have multiple shipments too.

Step 2 – Using a shipping management software

Managing an inventory, especially when you are listing your products or services on multiple platforms, is a must. Using shipping management software keeps you organized. It also helps you check the status of every order in real-time.

Step 3 – Choosing your shipping carrier

There are a host of shipping carriers that are preferred by ecommerce companies like UPS and FedEx, among others. Therefore, compare the costs, the insurance, the delivery times, and the network of a shipping carrier before choosing one.

Step 4 – How to ship?

What is the most effective shipping method for you? By air, sea, or road? Ascertain this.

Step 5 – Determining whether to ship globally or locally

Will you be taking orders from international customers, or will you be shipping only in your city, state, or country? Answering this question will help you streamline the process.

Step 6 – Tracking & communication

Your work only begins once you have shipped an order; it does not end there. Customers prefer to have constant communication about their orders through tracking. Until the product is delivered, your job is not done.

Step 7 – Packaging and labeling

Incorrect labeling or inefficient packaging can cause damage or loss. Also, a badly packaged product negatively affects brand reputation.

Step 8 – Calculating costs

Shipping costs are one of the most important heads in your company’s balance sheet. Consider the factors like shipping methods, package dimensions, third-party-logistics, etc. while calculating the costs.

Step 9 – Knowing the regulations

You have to check the rules and regulations for all the countries or states you are shipping to. Some products cannot be shipped, while some need to have accompanying documentation, especially when you are shipping globally as they pass through customs. Know this beforehand.

Step 10 – Auditing & refunds

One of the most important steps is auditing your shipments. Shipping carriers might often overcharge you or levy incorrect fees and charges on your shipments. Automated or manual auditing allows you to claim refunds, making a slight addition to your capital.

Shipping Trends to Watch Out For in 2020

1. Going global

The whole world is a market. ecommerce companies are scaling internationally to boost growth. The demand for non-local products (that gain an ‘imported‘ or ‘exotic‘ tag) is only increasing. About 2.2 billion users are expected to shop online globally by 2021 – that’s your market if you go global.

2. Technology

The use of technology has increased efficiency, revenue, minimized errors and facilitated a better organizational structure. You can use shipping automation software solutions or something as simple as chatbots for your customers to track or know more about their orders.

3. Multi-channel presence

Just using one ecommerce platform like eBay or Amazon is not something online sellers prefer anymore. The new trend is to have a presence on multiple channels to maximize the chances of getting sales.

4. Faster delivery

Shorter wait times and same-day delivery options are what are in demand this year. Instant logistics is a major trend. A survey revealed that 88% of online shoppers are willing to pay for same-day delivery.

5. Personalized and premium packaging

Most ecommerce companies are spending a lot of money on designing the packaging. It works great for branding and says a lot about the company. Offering the users an option to personalize packaging is fast becoming a trend. 52% of customers are willing to make repeat purchases if the online merchant offers premium packaging, while 62% were more likely to purchase from a brand that used sustainable packaging.

The Past and the Present

The evolution of shipping and logistics in e-commerce has been phenomenal, especially in the last five years. The shipping modes, costs, size of warehouses, delivery times, packaging materials are only some of the things that have undergone a change. Internet of Things (IoT), machine learning (ML), automation, real-time tracking, Artificial Intelligence (AI), etc. have brought about this evolution. And this year, the ecommerce shipping industry is set to revolutionize with about 25% of the world shopping online. Are you ready?

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Ana Shan is a product evangelist at AuditShipment.com, an AI-driven audit service that automatically captures more than 20 carrier errors and helps businesses save up to 16% of their shipping costs.

e-commerce
Archives, Global Trade Daily, Stories

5 Must-Have Features of Enterprise E-Commerce

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E-commerce is everywhere — unless, of course, you look in the B2B space. Unfortunately, one segment lags behind all the rest when it comes to online sales: manufacturers. Just 38% of manufacturers have e-commerce websites, and only 6% of all manufacturer sales come through this particular channel. 

Part of the reason manufacturers are so slow to adopt e-commerce can be traced back to the old adage “if it ain’t broke, don’t fix it.” The traditional ways of doing business largely haven’t posed a problem yet, so many manufacturers don’t feel a real sense of urgency to explore the increasingly relevant direct-to-consumer model. 

It also has a lot to do with technical hurdles. For many manufacturers, moving to e-commerce involves taking on yet one more system to master — that or an expensive integration with their current enterprise resource planning (ERP) software. It’s nearly impossible to get an e-commerce platform to talk to an old “closed” mainframe, so plans to upgrade often involve a two-year timeframe or longer to get everything up and running. They might also involve a million-dollar price tag. Not surprisingly, this tends to put e-commerce on the back burner pretty quickly. 

And it’s important to note, too, that most manufacturers work through distributors and dealers, making e-commerce seem like nothing more than a mere alternative to their current traditional sales channels. 

A Missed Opportunity

What many manufacturers seem to be missing, though, is that B2B customers are also B2C customers. Chances are that they’re already shopping online for their personal needs, and not having a way to buy their business products and services online can have a hefty negative impact on the customer experience. If you’re manufacturing a commodity product and your sales process lacks the convenience of shopping for that product online, your customers might begin to look elsewhere. 

Remaining passive about e-commerce is simply the wrong approach, especially with B2B buyers moving more of their purchases online all the time. As it stands, nearly half of all companies utilize online channels for 50% to 74% of all their corporate purchases. Not being online just means you’ve missed out on an opportunity — not only to secure additional sales, but also to broaden your reach to a global level. 

Also, remember that it’s easier than ever for competition and new players in the market to get in front of your customers via Google, Facebook, and email. Not having an e-commerce site could easily cost you market share, even if the competition’s product isn’t as good as yours.

Beyond the Basics

Knowing that it isn’t enough to conduct all business offline, know, too, that it isn’t enough to just invest in getting an e-commerce platform, leave it there, and call it good. Your site has to offer the functionalities necessary to run an online business. If your system doesn’t support multiple pricing tiers, it probably also doesn’t mimic your current sales process. Clearly, that’s not a good thing. 

Your site needs to be able to support multiple buying options, such as “requests for quotes” as opposed to a shopping cart model. It can take time to arrive at a number in a complex B2B transaction, and the last thing you want is for a customer to have to take the interaction offline just to finalize scope and nail down specifics. 

This naturally leads to my next point. Assuming your e-commerce site comes equipped with all the basics like browse, add to cart, checkout, email confirmation, etc., there are a few features to look out for at the enterprise level. Those often include the following:

System integration options

In e-commerce, a certain amount of coordination is necessary between the website itself and your back-end system that you use for inventory and accounting purposes. Without proper integration, order fulfillment can easily get problematic. Focus on maintenance, data input, and offering a seamless user experience. Most of all, understand all the system integration options of your marketplace website before going with one provider over another.

Proper data to support search

Product information is important. It’s what consumers see prior to making a purchase decision. But it can sometimes pale in comparison to the product data used behind the scenes. A number of data fields and HTML tags enable your products and website to rank in both Google and on-site search results. Make sure your platform accommodates these options. Also, inquire about the tracking capabilities of your on-site search function. It can be useful to monitor what users found — and didn’t find — during a visit.

Customer tiers

At the enterprise level, you’ll likely run across different types of customers. Being able to segment these customers into various tiers can come in handy. Based on their purchase history, for example, you might determine that one tier would respond well to a certain promotion while another’s browsing behavior could inform subsequent product recommendations. In other words, segmenting tiers allows you to personalize your messaging, pricing, and other marketing efforts to fit the needs of your customers. So look into this functionality while reviewing your e-commerce options.

Analytics integration

Whether you’re looking at an off-the-shelf platform or a custom solution, reporting is very important. At a bare minimum, make sure a standard tool like Google Analytics can be integrated with your e-commerce system. You’ll also want to inquire about the setup of advanced features like e-commerce tracking.

Merchandising

Generally, any platform you go with will provide the functionality of assigning products to categories. This can help with on-site search and make it easier for visitors to browse your product line. Beyond that, you might wish to feature certain products. The question, then, is what ability do you have in the platform to create banner ads, highlight related products on a product page, create landing pages around a spotlight topic for the month, and feature products in other ways? 

Providing a good online experience naturally makes customers feel good about doing business with you. It also increases the likelihood of driving new customers to your business without needing to invest in additional resources. 

Ultimately, you can handle more transactions with an e-commerce site in your corner. Just make sure your site provides you with all of the functionalities you need to keep your business running smoothly and your customers happy. 

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Michael Bird is the CEO of Spindustry, a digital agency focused on e-commerce, SharePoint portals, and enterprise websites. He has almost 30 years of experience in interactive development, user behavior, and business solutions. His successful agency, Spindustry, puts these strategies into practice to help businesses grow.

3PL
3pls, Archives, Global Trade Daily

IN-HOUSE VS. 3PL: WHAT TO CONSIDER

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Otherwise known as a third-party logistics provider, a 3PL is utilized by a range of businesses to support logistics and supply-chain management specifically as it applies to distribution and fulfillment services. Pre-1970s transportation contracts were comprised of the shipper (the giant retailers, wholesalers and manufacturers) and the shipping carrier. This all changed however with the introduction of an increased number of “sellers” to the market. These sellers didn’t count on logistics as part of their core competencies, and that produced what economists refer to as a “gap” (in the market). The 3PL jumped in to occupy said gap and the rest is history.

Major legislation passed in 2008 legally held 3PLs as responsible for the inventory they receive/hold/transport as the actual owner said inventory. Roughly 86 percent of Fortune 500 companies and nearly all (96 percent to be exact) of Fortune 100 companies use 3PLs today. 

Despite the high uptake of 3PLs, like most industries there are detractors when it comes to outsourcing order fulfillment. Some of the pros listed for keeping things in-house are:

-You understand your business at a level no third party could.

-Issues are easier to resolve.

-Change and/or minute-by-minute adjustments are more flexible and manageable.

Along the same lines, there are experiences with 3PLs that have left sour tastes because:

-Once a relationship is established and a contract signed with a 3PL, it can be difficult to exit.

-Relinquished control can be complex when it comes to deliveries and client relations.

-It can be difficult to communicate with external drivers/shippers or similar transport personnel in the field.

Of the above, the last point, communication with field personnel, is the principal sticking point. If order fulfillment is linked closely with 3PL transportation personnel, which in most cases it is, having a clear understanding of supervisory roles and what to do in the event of delays or poor communication is vital. Notwithstanding for the most part, the pros to working with a 3PL in a smart and effective manner far outweigh the cons.

For example, concentrating order fulfillment and similar tasks in-house takes up a tremendous amount of resources, which equates to more work and a larger staff. Many relationships, with the carriers most notably, are characterized by a disproportionate number of problems due to the complexity of the job, and it is also equally difficult to know if the rates one is paying in-house are truly competitive with what a 3PL can provide.

A 3PL can compare and select the most competitive rates due to a very wide supply of carriers. They, of course, have lower overhead costs and less staff overall is needed. Then there is perhaps the most compelling argument in 2019 for a 3PL relationship: the latest technology is always up-to-date.

With regards to order fulfillment, a 3PL provides an array of functions, but two areas stand out:

Warehousing

Many 3PLs maintain extensive warehousing facilities and especially when confronting the decision to invest and open a warehouse in a foreign company, a 3PL might make better sense. Granted, one does lose a bit of control not being able to oversee warehouse management processes, but it is likely that a 3PL with warehouse management experience in said foreign country would encounter fewer costly surprises than a new company in a given territory.

At a warehouse level most 3PLs run a warehouse management system (WMS). There is no “one size fits all” solution here as a WMS can be highly complex or as simplistic per firm needs. The value added with a WMS is shippers can access reports, track inventory and easily monitor progress. This is done remotely, of course, and most 3PLs that have an advanced WMS can seamlessly integrate it with enterprise accounting software or enterprise resource planning solutions.

Picking, Packing & Shipping

Once an order is placed or something needs to be retrieved or moved, picking, packing and shipping take place. This is where coordination meets timing meets client expectations. A wrong move will cost money and potentially a client’s contract. One of the more common mistakes that occur when trying to run a warehouse (in-house as opposed to using a 3PL) is if packing and shipping procedures are not clearly understood and/or if the company has little experience in this area, generating the appropriate labeling and being able to negotiate favorable rates with carriers such as UPS, USPS and DHL cannot be leveraged. An experienced 3PL in this instance is an invaluable resource to count on.   

Prior to transitioning into “things to consider” before choosing a 3PL, perhaps the best argument for their existence is technology related. A tech-enabled 3PL leverages the latest fulfillment software to streamline the flow of information, which saves time and automates nearly everything along the supply chain. Second, being able to split inventory across fulfillment centers via software integration and advanced analytics drives effective chains and reduces errors over the long term. No one firm can be an expert in everything and successful 3PLs invest in technology knowing that their clients simply do not have the time nor resources to do the same. They are rightly betting the 3PL will do that for them.

Things to Consider

Prior to embarking on a relationship with a 3PL in the order fulfillment arena, there are several issues that should be addressed:

-Can the 3PL commit to ongoing and irregular investments that will always be needed to keep up with augmenting capacity?

-Is it beneficial to commit to these investments on an ongoing basis?

-With seasonal drops or sales spikes, unplanned expenses generally come together: A good 3PL provider can manage these market fluctuations and protect businesses accordingly.

-Regarding handling, the amount of time spent handling special packing materials can be onerous: a 3PL provider can maintain consistency and decrease costs.

Specific Questions for the 3PL Provider

-How do you administer your accounts?

-Will I have access to your reporting data?

-Does the firm count on personnel with regulatory experience?

These issue areas and questions will help in the initial vetting process. Regardless of whether the firm chooses to stay in-house or contract a 3PL for order fulfillment duties, knowing what the other scenario that has not been selected will cost and look like is vital to any intelligent decision.