Last-Mile Delivery and Other Trends in Order Fulfillment
In today's digital age, businesses are constantly seeking ways to enhance their operations and stay competitive. One effective approach is through the use of outsourced fulfillment solutions. This article explores the advantages of outsourced fulfillment and provides insights into choosing the right provider. Additionally, it delves into the benefits of partnering with logistics companies and understanding their role in elevating ecommerce success. Lastly, it uncovers the concept of a Warehouse Management System (WMS) and how it can optimize order fulfillment. Join us as we delve into the world of outsourced fulfillment, logistics, and warehouse management.
Exploring Outsourced Fulfillment Solutions
Utilizing outsourced fulfillment solutions is a game-changing approach for many businesses in 2023, frequently leading to cost reductions and enhanced operational efficiency.
Advantages of Outsourced Fulfillment
Outsourced fulfillment can significantly streamline your brand's processes. It frees up time and resources, allowing your business to focus more on its core competencies. It's like having an extra set of hands that handle the heavy lifting of dealing with inventory management, packaging, and shipping orders, all while ensuring excellent customer service. Additionally, they often have established relationships with carriers, which can lead to better shipping rates and faster delivery times, further boosting your customer satisfaction.
Choosing an Outsourced Fulfillment Provider
The key to successful outsourced fulfillment begins with choosing the right provider. Consider factors like their reputation, cost-effectiveness, integration with your existing systems, and scalability. A provider like Simple Fulfillment, which specializes in eCommerce Fulfillment and FBA Prep, might fit the bill for many eCommerce brands.
Boosting Ecommerce with Logistics Companies
Harnessing the power of logistics companies can provide a competitive edge in eCommerce, enhancing operational efficiency and customer satisfaction.
Logistics Companies: A Competitive Advantage for Ecommerce
Logistics companies handle the complicated, often time-consuming aspects of eCommerce, such as inventory management, warehousing, packing, and shipping. By doing this efficiently, they can help your business meet customer expectations for speedy and accurate delivery, freeing you up to concentrate on your brand and customer service, which gives a significant competitive advantage in today's fast-paced eCommerce landscape.
How to Leverage Logistics for Ecommerce Success
To leverage logistics for eCommerce success, consider partnering with a company that offers tailored solutions for your brand. This could mean a company that integrates seamlessly into your order management system provides real-time data analytics or offers cost-effective shipping solutions. A logistics firm should be seen as a partner, not just a service provider.
Deciding When to Engage a Logistics Company
Integrating a logistics company into your operations doesn't have to be a daunting task. It can be done strategically and at the right time to provide maximum value.
Factors to Consider When Partnering with a Logistics Company
Some factors to consider include: your order volume, current cost and efficiency of fulfillment, scalability projections, and customer service standards. If these are areas you're struggling with or could improve, it could be the right time to engage with a logistics company.
Benefits of Early Engagement with Logistics Companies
Engaging a logistics company early in your business's lifecycle could help preempt potential issues by ensuring a solid foundation for fulfillment from the start. It aids in scalability and reduces the risk of growing pains as your business expands.
Logistic Services that Elevate Your Business
The right logistic services can be a catalyst for your business's growth and success.
Types of Logistic Services
Logistic services usually fall into categories like transportation, warehousing, packaging, and inventory management. Recent trends also feature value-added services such as real-time tracking and advanced analytics.
Finding the Right Logistic Service for Your Business
Identifying the right services requires understanding your business's unique needs. Are you looking to improve your shipping speed? Or perhaps you're struggling with inventory management? Once you've identified your needs, look for a provider that excels in that field.
Understanding the Role of a Logistics Company
A logistics company is much more than a middleman for your products; it's a strategic partner that can shape your business's success.
Defining Logistics Company
A logistics company manages the flow of goods from the point of origin to the point of consumption. Simply put, they ensure your products get from A to B smoothly and efficiently.
Key Responsibilities of Logistic Companies
Key areas include transportation, warehouse management, packing, inventory management, and order fulfillment, and often include customer service aspects related to the logistics process. Due to their comprehensive responsibilities, they have immense potential to impact customer satisfaction and the operational efficiency of your business.
Unpacking the Concept of Warehouse Management System (WMS)
Effective warehouse management is key to successful order fulfillment, and that's where a Warehouse Management System (WMS) comes in.
Characteristics of an Effective WMS
An effective WMS provides real-time inventory accuracy, supports efficient pick and pack processes, integrates with your order management system, provides data for analysis and decision-making, and scales with your business growth.
Benefits of Using a WMS
Using a WMS, businesses can streamline their order fulfillment process, reducing errors and increasing efficiency. Not only does this help satisfy customer expectations of speedy and accurate order delivery, it can also help save costs related to warehousing and distribution. Ultimately, the key advantage of a WMS is that it can help businesses deliver a remarkable customer experience consistently. And there you have it! A comprehensive look at how outsourced fulfillment and logistics companies can aid in your ecommerce success. So, is it time you considered this leap?
Exploring Outsourced Fulfillment Solutions
As we move deeper into the digital age, businesses are constantly looking for ways to enhance their operations and stay competitive. One effective way is through outsourced fulfillment solutions. Let's unpack what this means and the advantages it brings to your business.
Advantages of Outsourced Fulfillment
Outsourced Fulfillment can be the secret weapon of a thriving eCommerce brand. It lets you focus on your core business while the logistics and warehouse management are being handled by professionals. They take care of the storage, picking/packing of your goods, managing inventory, and shipping orders directly to your customers. The result? Greater operational efficiency, cost savings, and satisfied customers due to timely and accurate deliveries. Now, wouldn't that be a game-changer for your business?
Choosing an Outsourced Fulfillment Provider
But the trick is to find the right outsourced fulfillment provider, isn't it? It can be like finding a needle in a haystack. The right provider should not only have a proven track record in eCommerce fulfillment but also offer scalability as your business grows and possess tech infrastructure for real-time inventory tracking. So take time, evaluate your options, and find a match that fits your business requirements like a glove.
Boosting Ecommerce with Logistics Companies
Another powerhouse to turbocharge your eCommerce operations can be partnering with logistics companies. Let's explore how they bring competitive advantages and ways to leverage these for eCommerce success.
Logistics Companies: A Competitive Advantage for E-commerce
Logistics companies can be the wind beneath your wings in the eCommerce landscape. They expedite your delivery process, enhance customer satisfaction, and create a smooth return management system. And in today's instant-gratification culture, wouldn't quick deliveries and seamless returns set your brand apart? Plus, they handle international shipping and customs, breaking geographic boundaries for your business. It's like having a magic carpet, taking your business places, don't you think?
How to Leverage Logistics for Ecommerce Success
So, how can you harness the power of logistics for eCommerce success? Partner with a logistics company that aligns with your business goals has strong links with carriers, offers customized solutions, and leverages technology for tracking and transparency. Remember, the right partnership can fuel your growth trajectory like never before!
Deciding When to Engage a Logistics Company
Now, the question is, when should you engage a logistics company? Let's delve into the factors that play major roles in this decision.
Factors to Consider When Partnering with a Logistics Company
Your business size, complexity of operations, geographic spread of customers, and growth goals are a few of the factors when deciding to engage with a logistics company. If managing logistics is taking up significant time and diverting you from core business functions, it might be time to consider a partnership. It's like passing the baton in a relay race so you can focus on sprinting forward, right?
Benefits of Early Engagement with Logistics Companies
What's the advantage of an early engagement with a logistics company? Much like early birds catching the worms, early engagement helps iron out logistical issues, implements efficient processes, and saves costs even before they escalate. Now, that sounds like a strategic move, doesn't it?
Logistic Services that Elevate Your Business
Let's now discuss different types of logistics services and find the one thatβs right for your business.
Types of Logistic Services
Freight transportation, warehousing and distribution, cross-docking, order fulfillment, inventory management - There's a buffet of logistic services out there, each serving a specific need. It's like a puzzle; you need to find the pieces that fit perfectly into your business model.
Finding the Right Logistic Service for Your Business
Consider your business needs, future growth plans, and budget. Whether it's efficient warehousing, fast freight transportation, or effective inventory management, align your choice with your business goals. Think of it as hiring an employee β you'd want someone who is the right fit for your company, wouldnβt you?
Understanding the Role of a Logistics Company
Let's step back and understand what a logistics company does and the key responsibilities it shoulders.
Defining Logistics Company
A logistics company can be your master strategist for managing the flow of goods from the point of origin to the point of consumption. Its role is multi-dimensional β streamlining operations, ensuring efficient storage of goods, and overseeing timely deliveries. It's your behind-the-scenes hero enabling smooth operations, wouldn't you agree?
Key Responsibilities of Logistic Companies
From warehousing, transportation, and inventory management to order fulfillment and return logistics, the responsibilities of a logistics company are vast. It's like the backbone, supporting and enabling your business operations, enhancing customer satisfaction, and driving business growth.
Unpacking the Concept of Warehouse Management System (WMS)
Last but not least, let's discuss the Warehouse Management System (WMS), its characteristics, and benefits.
Characteristics of an Effective WMS
Think of an effective WMS as the conductor of an orchestra that manages different parts in complete harmony. It provides real-time inventory visibility, optimizes warehouse layout and processes, helps manage resources, enhances order fulfillment efficiency, and integrates with your transport systems. Now, wouldn't that be music to your ears?
Benefits of Using a WMS
An effective WMS boosts warehouse efficiency, reduces errors in order picking and shipping, helps better inventory control, and eliminates paperwork. Besides, it enhances customer service with faster deliveries and fewer order discrepancies. Now, imagine untying this bundle of benefits for your business. Exciting, isn't it? The world of eCommerce can be competitive and complex. But with the right outsourced fulfillment solutions, logistics partnerships, and technologies, you can navigate with confidence and grow your business. At Simple Fulfillment, we understand this and are committed to providing customized and scalable eCommerce fulfillment solutions to empower your brand. Navigating the world of ecommerce can be complex, but with the right outsourced fulfillment solutions, logistics partnerships, and technologies, your business can thrive. Simple Fulfillment is dedicated to providing customized and scalable ecommerce fulfillment solutions to empower your brand. By leveraging the advantages of outsourced fulfillment, logistics companies, and a Warehouse Management System, you can streamline operations, enhance customer satisfaction, and drive growth. It's time to consider making this leap and unlock the full potential of your business in the digital landscape.
β
It's easy to see why eCommerce has grown in popularity: Nothing beats pressing a button to order a product and have it delivered straight to your door when it comes to convenience. Add in the fact that the current COVID-19 pandemic has produced a new housebound environment, and eCommerce is likely to remain potent for years to come.
β
Modern technology has altered the way companies operate, primarily for the better. Sadly, it has also resulted in several novel challenges. The same innovation that allows consumers to buy goods with the click of a button often assumes that this will deliver the product on time.
β
Fast, effective, and dependable order fulfillment is critical to maintaining customer loyalty, but it is also one of the most challenging challenges every company faces. When a customer purchases, the order fulfillment process starts and ends when they arrive securely on their doorstep. The final stage of the distribution process is known as last-mile delivery. It poses the most critical obstacle and cost for many distributors or logistics firms (aka final mile delivery).
β
Improvements in the last mile distribution process of eCommerce delivery have become a central focus for companies and the third-party logistics providers (3PLs) that support them, fueled by customer demand for quicker delivery times and greater visibility. Before the COVID-19 pandemic, there was considerable momentum; however, the effort to boost last-mile delivery intensified in 2020.
β
Because of quarantines, stay-at-home orders, and health issues about in-person purchasing, the pandemic flipped the supply chain segment on its head. In achieving a competitive edge in last-mile delivery, the businesses must consider the top trends, adjust to an ever-changing environment, and enhance the customer experience.
β
Continue reading to find out more about last-mile delivery and how you can use that to improve order fulfillment.
Last-Mile Delivery- Definition & Top Trends Impacting Order Fulfillment
β
What is Last-Mile Delivery?
The transportation of goods from a transit hub or warehouse to their ultimate delivery destination is referred to as the last mile delivery method. Most of the time, the final destination is the customer's front door. Last-mile distribution strives to distribute goods to customers as soon as possible while keeping company costs to a minimum. Customers can quickly find an alternate product or retailer if shipping options do not meet their needs, so last-mile delivery is an essential cog in the eCommerce system.
β
It puts retailers and third-party logistics suppliers uncomfortable because last-mile logistics costs can be high β accounting for more than half of overall costs. Labor, route planning, fleet costs, and warehousing all add up. To provide free shipping to their customers, they can cover the costs themselves or look for ways to offset the cost by establishing strict order requirements.
β
Last-Mile Delivery During the COVID-19 Pandemic
Despite the initial market changes, the COVID-19 pandemic has only intensified eCommerce development. According to Adobe Analytics numbers, eCommerce revenues were up 55% yearly for the first seven months of the year, culminating in $434.5 billion in online sales. Adobe Analytics also projected that by October 5, 2020, total internet sales in 2020 would exceed total online sales in 2019. Much of this purchasing can be explained by the fact that many consumers sought retail therapy to relieve pandemic-induced distress, particularly during initial stay-at-home orders.
β
Because non-essential shops were closed for an extended period, making in-person buying impossible, and it's easy to see why eCommerce became so popular. While the volume of eCommerce purchases has decreased as more stores have reopened, COVID-19 has established a new normal in customer buying patterns and last-mile delivery standards.
Top Trends in Last-Mile Delivery
Here are some trends that businesses are actively researching and introducing to improve the last-mile delivery process and meet growing customer demands to receive their orders on time and monitor every move along the way.
β
Intelligent Technology to Improve Supply Chain Visibility
eCommerce companies, as well as their consumers, are concerned with visibility and monitoring. Informing consumers of the present status of orders and where a shipment is on its way to its final destination is just the beginning of what is to come in the future. Shippers and logistics firms are looking at ways to pinpoint the precise position of orders.
β
Innovative technology has allowed businesses to provide their customers with the transparency and accountability they want, from using GPS and RFID tags to monitor the position of shipments in real-time to implanting sensors in packages to control their humidity and temperature.
Analytics Reduces Costs
When combined with analytics and forecasting, the amount of knowledge generated by the intelligent technologies described above can also help to reduce overall fulfillment costs. Analytics enables businesses to track and identify cost-cutting opportunities across their entire supply chain.
β
Minor improvements do not seem to have a significant effect on initial costs. Still, when implemented to economies of scale, data analytics offer insights that help reduce costs while maintaining service consumers' quality. As a result, the total costs of last-mile delivery can be reduced, allowing more businesses to provide expedited shipping solutions such as two-day and even same-day delivery.
β
Last-Mile Delivery Would Allow for Faster fulfillment
Because of the Amazon Effect, customers expect their goods to be shipped within two days at the very least, and businesses must fulfill orders at an ever-increasing rate. Shipments that used to take days to process now being pushed into hourly, if not faster, time frames. Last-mile delivery is rapidly poised to join the trend for more rapid fulfillment. In fulfilling the short window of requirements, the order must be processed and ready to ship by the time it arrives at an eCommerce website.
β
Companies must adjust to this model or risk being eaten up by larger rivals that can provide it. It would be best if you made every effort to reduce your last-mile distribution window. One method is to collaborate with a 3PL provider with a sophisticated warehouse and inventory management system that allows you to optimize any aspect of the delivery process.
β
Centers for Urban Fulfillment
Increasing the number of warehouses or distribution centers is another way to improve delivery speed and provide benefits such as same-day delivery. It works well in big cities where the distribution centers are close to the most significant customers.
β
Amazon has fueled this trend with its two-hour delivery choice, especially with its Amazon Fresh offering. Other businesses have begun to employ this approach, which provides them with convenient access to their consumers and enables them to offer same-day or next-day delivery.
β
Related article: Different Ways to Fulfill Shopify Orders
β
Micro Warehousing
Another way last-mile distribution will boost order fulfillment activities is to rent additional commercial space and use it for your company's fulfillment operations. It is because a rise in order volume necessitates a broader footprint to achieve the surge in orders.
β
You can devote different micro warehouses for various deliveries and allocate the inventory accordingly if you have more facilities committed to fulfilling orders. You may have one area stocked with the most common items for next-day and same-day delivery and another with a relatively slow shipping period.
β
Autonomous Vehicles, Drones, and Robotic Delivery are Becoming Increasingly Important
It may not occur in 2021, but with more businesses experimenting and disturbing the space, self-driving vehicles or trucks would affect last-mile delivery shortly. Any eCommerce business should be aware of this trend, even if it is many years away.
β
Self-driving cars, drones, and robotics will all play a role in improving last-mile distribution solutions. Once automation has advanced to the extent where it can provide good durability and same-day delivery, its adoption would be highly prevalent across the fulfillment landscape.
β
Crowdsourcing and the Gig Economy
In the last mile distribution market, technology-based solutions that use crowdsourcing and the gig economy to deliver goods to the end-user have begun to emerge. It has been dubbed the "Uberification of the fulfillment Vacuum." technology may link individual delivery vehicle owners with businesses that need their orders to be distributed in particular areas. Since the technology enabling this does not necessitate the upfront capital investment required in conventional fulfillment, there are fewer trade barriers. In essence, if you own a car or truck, you can be the last mile link in a company's supply chain.
β
Crowdsourcing last-mile delivery is not without difficulties. Since crowdsourcing necessitates a network of independent contractors on which you must rely upon, there is some concern that you may have less exposure than you'd get from conventional fulfillment methods. If something wrong happens with a delivery, you always have to fix the issue.
β
Delivery Outsourcing
Rather than outsourcing last-mile distribution to a 3PL, some eCommerce companies manage fulfillment in-house, using their number of cars or a hybrid fleet to deliver their items.
β
Outsourcing is now the most popular practice for handling last-mile deliveries; this is a development worth watching as businesses strive to manage their supply chain end-to-end in-house. Some 3PL providers have enhanced their own, more efficient last-mile distribution operations to cope with insourcing.
β
Hybrid Fleet Model
Some retailers have implemented a hybrid fleet model, which combines their in-house fleet with third-party suppliers and gig and crowdsourced delivery drivers. It enables them to further scale their last-mile operations in response to changes in demand.
β
A transportation management system capable of integrating all of the different aspects under the last mile distribution umbrella is required for a hybrid fleet process. This transportation management system must include a centralized dashboard to optimize routing, track vehicle position, and receive delivery updates. It should also include comprehensive analytics, including historical reports and other features. Provided that it is properly implemented, a hybrid fleet model can combine scalability and power, making it one of the latest innovations in last-mile delivery today.
β
Bottom Line
The technology being used to push the limits of last-mile distribution is increasingly becoming more nuanced and broad in scope. It is anticipated to remain as eCommerce grows, as does the increased demand for quick and reliable last-mile delivery. There is no one-size-fits-all approach to last-mile delivery issues. Outsourcing to a third-party logistics supplier could be the best option for some companies, combining technological improvements and analytics to manage rising last-mile distribution difficulty while still reducing total fulfillment costs.
β
Irrespective of your fulfillment plan, the value of maximizing last-mile delivery cannot be overstated. It's essential to remain on top of the developments we discussed and figure out how they fit your overall fulfillment plan.
β
Next article: All About LTL (Less Than Truckload) Freight