Enjoying rapid growth in e-commerce sales is a significant problem to have. However, scaling up too quickly without proper planning can often lead to periods of poor service. Do you outsource warehouse and delivery operations to a third-party logistics company (3PL)? Or do you expand and upgrade your in-house operations and take on more fixed costs and new commitments?
How the e-commerce world is changing
The expansion of omnichannel retailing
Distributors and retailers combine online and offline channels for a seamless shopping experience, including click-and-collect and in-store returns for online purchases. Subscription-based models are gaining popularity, offering customers regular deliveries with added convenience and savings. The challenge is managing inventory in real-time across all channels.
Mobile driven purchases
More consumers are shopping on their smartphones and tablets. Mobile payment solutions and dedicated branded shopping apps enhance the buying experience. Social media platforms use AI, machine learning, and chatbots to provide personalised shopping experiences. Augmented Reality (AR) helps customers visualise products in their environment before purchasing.
Logistics and delivery solutions
Warehouses and fulfilment centres increasingly use an Inventory Management System (IMS) and a Warehouse Management System (WMS) to optimise their logistical operations. Automation tools like robotics and sortation systems speed up order processing and reduce errors. Customers demand delivery flexibility, including same-day or next-day options and easy returns, managed by Transport Management Systems.
How to scale up your e-commerce operations
Scaling up to 2000 parcels per day
As your business grows, you need the operation to become more sophisticated. Reliable product and sales data are crucial. Consider a specialist shared-user 3PL option for benefits like shorter contract commitments and shared labour, WMS, and space. 3PLs offer advanced picking strategies, high stock accuracy, efficient packing and dispatch, and strong relationships with transporters and couriers.
Scaling up beyond 2000 parcels per day
Larger-scale e-commerce businesses tend to operate their warehouse operations themselves or work closely in partnership with a dedicated 3PL. Key considerations include ensuring your e-commerce platform can handle increased volumes, automating inventory management and order processing, and strengthening relationships with suppliers and transporters.
As your business grows, so does the volume of data. Use advanced analytics tools to gain insights into customer behaviour, sales trends, and operational efficiency. Protect customer data from cyber threats.
Regularly track key performance indicators (KPIs) such as new customer acquisition, on-time deliveries, and return on investment (ROI). Review transport management processes to meet sustainability objectives, such as using electric vehicles and optimising delivery routes.
Do you manage more than 5000 packages per day within your facilities?
You may need to ramp up your automation solutions to manage increased order volumes and stay competitive efficiently. These may include adding automated sortation and shuttle systems or autonomous mobile robotic vehicles. The e-commerce landscape is becoming more dynamic, customer-centric, and technologically advanced. A high-volume operation requires an efficient omnichannel strategy and a smooth integration with other supply chain operations. This is reshaping how your business will operate in future. Will you be ready?
Are you looking to scale up your e-commerce operation, enhance customer satisfaction, and achieve sustainable growth? Contact SCG today to learn how we can help you streamline your supply chain and drive your business forward. Ring us at +44(0)1926 430 883 or email at info@sccgltd.com.
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