Preparing for the surge in demand in the end-of-year peak selling season? Pressure will be felt on inventory management, shipping logistics and handling processes. By having a clear understanding of customer demand and inventory needs, you can optimise operations to minimise the risk of stockouts and delayed shipments.
Efficient order fulfilment is key
Efficient multi-channel order fulfilment covers a range of systems and tasks, from receiving inventory to delivering items to customers. Running out of stock on promised items leads to customer dissatisfaction, and failure in the overall customer experience can harm brand reputation and profitability.
Current trends in order fulfilment
E-commerce growth has accelerated the take up of cloud-based warehouse management systems (WMS) and inventory management systems (IMS) which speed up order fulfilment operations. An IMS can significantly reduce errors, it will provide a tracking system for each item and streamline the picking, packing, and returns processes.
Automated guided vehicles AGVs, drones and robotics are part of the trend toward more warehouse automation leading to less reliance on humans to perform repetitive tasks. IoT is a network of equipment and tools used to communicate and collect data using physical devices linked to the internet, including mobile phones, headphones, wearable gadgets, and lighting.
Reviewing previous processes and experiences throughout peak season sales is a way to learn from past mistakes. Data analytics plays an important role in demand forecasting and inventory management despite not being able to accurately predict market sentiment.
We have identified four areas for a successful peak season:
1. Ensure your warehouse is optimised to handle increased volumes.
Review current processes, equipment, and resources to eliminate inefficiencies and adjust accordingly. Remove obsolete, slow-moving stock to make more space. Streamline repetitive tasks in order processing and inventory management, use predictive analytics to forecast demand, and leverage technology solutions to improve order accuracy and reduce fulfilment time.
2. Provide the customer with delivery options.
Offer a range of delivery options such as same-day delivery or click-and-collect. A smooth running and efficient picking and packing process is vital to achieving this. Optimising packaging reduces shipping costs.
3. Manage warehouse staffing levels.
Extra staff is essential for order fulfilment at peak times. Setting up extra shifts and overtime is a good strategy, but you will need more help.
4. Returns and exchanges.
Managing returns can be complex but handling them smoothly promotes customer loyalty. The volume of returns is likely to increase in the peak season. This may be because of damaged or defective items but also may be due to unmet expectations or external events that you have no control over.
10 actionable tips
1. Understand your customers based on past sales.
2. Review your warehouse layout and workflow to cater for increased volumes.
3. Forecast inventory requirements to ensure you will not run out of stock.
4. Source or manufacture items in line with supplier lead times.
5. Reduce human error and minimise labour costs by automating essential processes.
6. Optimise storage by having easy-to-find or reach high-volume items most accessible. Label all aisles and storage areas clearly.
7. Plan and act on sourcing and training extra labour.
8. Select and negotiate with reliable delivery partners and couriers to provide a wide range of options for the customer.
9. Streamline returns process.
10. Consult with experts in inventory management and order fulfilment.
SCCG’s warehouse consulting team is highly skilled in inventory management and automated solutions. We have considerable knowledge and experience in defining policies and ensuring that your inventory levels are fully optimised for the peak season.
Call us on +44(0)1926 430 883 or email at info@sccgltd.com
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