5 Strategies That Can Help You Improve E-Commerce Fulfillment

5 Strategies That Can Help You Improve E-Commerce Fulfillment

Every business needs a plan to survive, and they should also have strategies and tactics to achieve results. Strategies are long-term goals that drive business decisions from the top down. Meanwhile, tactics are the specific steps teams take to implement decisions.

Put another way, your strategy is your destination, and tactics are your options for transportation. In assessing your supply chain, you need to identify tactics and logistics solutions to push your e-commerce business objectives.

How to Identify Your Business' Priorities

To have a good strategy, you need a thorough understanding of your supply chain and fulfillment centers’ capacity and limitations. Identify how you can spend less on labor without sacrificing product orders, or how you can reduce the cost or time for shipping items to customers.

When you make your assessment, you should also find a way to eliminate backorders and shrinkage, increase your fulfillment center capacity, and improve your inventory control. Here are some ideas to help you address the most common concerns regarding supply chain management.

1. Lower Shipping Costs by Having Multiple FCs

Customer expectations rise when top performers in a niche fulfill orders promptly. If you want customer loyalty, one way to get it is by ensuring low shipping costs and faster delivery. Determine if having more than one FC (fulfillment center) is the best way to set up operations. Account for the costs and timeline needed to prepare additional staff and facilities, and compare the savings you will get from a multiple-center setup.

2. Increase the Number of Orders Fulfilled

Accuracy and timeliness in fulfillment are vital in ensuring customer satisfaction. Large centers benefit from voice picking, pick-to-light and put-to-light systems, and other robotic applications. 

However, you should make an effort to discover the best options for your company. Be sure that these enhancements fit your unique needs and are necessary for making fulfillment quicker. Companies that offer warehouse management services could identify which systems benefit your business.

3. Use Your Warehouse Space Efficiently

It's expensive to operate fulfillment centers—business owners must account for occupancy, labor, storage, and materials handling among other costs. These add up to about 15 to 20% of the cost per order, making optimization essential.

Space efficiency means reconsidering layout, product flow, labor, and storage. Short-distance movements, safety, and throughput in a warehouse are also factors in maximizing space.

4. Implement a New System for Your Fulfillment Center

A long-term project for optimizing your FC would be transitioning to more advanced systems and automation. A large-scale change is a significant investment that requires a lot of deliberation; larger installs of over $1 million frequently miss deadlines or overshoot budgets. Make project management a part of your decision-making for your supply chain.

5. Use Third-Party Providers Instead of Internal Fulfillment

It's possible to achieve better numbers by partnering with a third-party logistics provider. For some companies, especially smaller ones, this might be the most cost-effective solution. It's worth looking into if your prospective 3PL has robust technology, built-in systems, and offer customized solutions.

Partner with the Right Distribution Service

Companies have distinct offerings and merchandise strategies, so they will also need various fulfillment facilities and processes. Whether in-house or third-party, your e-commerce business needs an affordable logistics solution that promptly and efficiently delivers products.

Comet Delivery provides top-notch logistics services. We offer customizable trucking, logistics, and warehouse solutions for businesses, ensuring deliveries that fit our clients' schedules. Contact us for a quick quote, and let's talk about driving growth for you today!

Call our 24 hour hotline: 1-888-266-3833 and find out how Comet can serve you and your customers.

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