Inventory location - a relevant factor for e-Commerce

Supply Chain leaders are reconsidering how their operations need to perform after the pandemic by re...

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Posted by Dave Food on Jul 1, 2021 5:50:34 PM
Dave Food

Supply Chain leaders are reconsidering how their operations need to perform after the pandemic by recovering, adapting and producing success in the course of global-ever-increasing e-commerce activity.  The location of your e-Commerce warehouses  impacts your business; it requires needs to be replaced by your business.

Ponder the full omnichannel range

The top link in the Logistics chain is the site of an organisation fulfilment warehouse and other inventory centres.  It makes inventory location an even more relevant factor in the fulfilment process. One way to deliver orders fast and cost-effectively is by decreasing the distance between customers and products; it is why retailers are transforming low-performing vacant stores and malls into warehouses and dark stores.

Remodel business to meet changing demands

The ‘dark store’ retail model is globally more popular due to Covid-19; it converts traditional retail stores into local fulfilment centres.  With no in-store customers to attend, retailers can have time to expand online demand and cope with immediate delivery whilst fulfilment staff can dedicate time to other activities.  No doubt, this model works for the predictable future, no matter what the ‘the new standard’ looks like. People are now more used to grocery shopping online, increasing by 30 per cent globally, bringing consumers great satisfaction. 

 

Neighbouring inventory centres

The best possible framework for warehousing, picking, packaging, and transporting online orders varies from one organisation to another.  However, for any business with an e-Commerce division, a primary logistical aim is to make possible the immediate and most cost-efficient delivery benefiting the end-user, but it implies higher shipping costs. To accomplish it, stockpile inventory closer to your most crowded customer’s place.

How new brands manage multiple locations 

Today’s successful brands recognise a new way of doing business through innovation, adaptation, and customisation; by developing matchless position and customer’s visions, you can craft timely-meaningful experiences and links that let you build up new chances to grasp customers.  Historically, businesses operated only one fulfilment centre.  Avoid the additional-unfavourable business cost, such as paying extra for shipping on a single order by storing articles localised in multiple warehouses.

Inventory at multiple locations demands a well-organised predictive model which considers what to sell and where. A complex inventory system leads multiple developing brands to seek third-party (3P) fulfilment partners, no matter who is storing, picking, packing and shipping your online orders to establishing sales patterns. 

Same-day and hourly delivery models 

Both e-Commerce and Shipping are considerable costly when doing business, particularly when factoring in last-mile delivery. Same-day and hourly delivery models are becoming more ‘the norm’; organisations focus on mounting inventory in cities to accelerate delivery to keen consumers in populated areas without charging first-rate payment.

Competing in today’s dynamic e-commerce market requires sellers to have management competencies and complete inventory visibility. Data should ensure all goods are satisfactorily kept in the right place at all times. Better analyse customer data to settle delivery time and maintain that information at hand;  explore the delivery area(s) you require to be nearby to supply one-hour, same-day two-day delivery.

You get better profits when shipping less

Keep top of mind that every online order involves at least two shipments: the inbound shipment of goods to your warehouse or fulfilment centre and the outbound shipment to your customer. With all the other shipping variables in the picture, do not let a ‘below average location’ be the cause of interfering with your outcomes.

Further comments: the location of e-commerce fulfilment and delivery management has a significant impact on operating costs. A data-backed strategy approach can do more to get better margins than possibly any other operations-based decision. Keep your standards high.

What do you consider a significant e-Commerce impact for your organisation? 

 

Prophetic Technology

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