Facing challenges in e-commerce fulfillment

In today’s digitally driven world, e-commerce is booming with no signs of slowing down. In fact, according to a recent article by Oberlo.com, e-commerce sales are expected to account for 13.7 percent of retail sales worldwide this year. In order for e-commerce companies to continue to grow and succeed in this competitive, ever-evolving environment, they need to understand the challenges in the industry and how to address them.

One significant challenge e-commerce companies are facing across the board is order fulfillment. With same day shipping and next day shipping options being expected (and often demanded) by customers, warehouses are being flooded with orders that need to be out the door and on the road quickly. A traditional warehouse system focuses on bulk orders and shipments, which can be ineffective and costly with e-commerce orders. In order to meet consumers’ deadlines, less than truckload shipping must be properly utilized.

Orders not only need to be shipped on time but also must be accurate, so they do not come back through your warehouse as a preventable return. According to Invsep, 23% of returns are made due to a customer receiving the wrong item. With a surplus of orders coming in and going out each and every day, errors can be easily made if a proper picking and packing process is not set in place. This is when workforce management is critical, as all employees on all shifts must be correctly trained.

Even when consumers receive the correct item, they still may return it. Unfortunately, returns are inevitable, and this is why reverse logistics has become just as crucial as the order fulfillment process. Online shoppers now expect the return process to be just as simple and painless as their shopping experience. In order to meet their expectations, your warehouse team must have a timely process in place to minimize the costs of returns.

Last, but certainly not least, is the challenge of inventory management. Accurately measuring your inventory can be very difficult and requires close attention. A variety of factors play into your inventory management, including demand, the amount of warehouse space you have available and the amount of time it takes to restock items. Also, low and peak seasons play a pivotal part in managing your company’s inventory, such as the holiday season. These times of the year must be prepared for ahead of time.

At NOTS Logistics, we have the resources and rigor to take on e-commerce companies’ logistics. As a 3PL provider, we offer customized distribution, workforce management, transportation and warehousing services all under one roof. Our comprehensive services save our clients time and money, as we create a superior experience for their customers. It also enables them to focus on the big picture aspect of their business while we sweat the small stuff. If you would like to learn more about our e-commerce logistic services, contact us today.