Emiza is the most trusted logistic , supply chain service provider and best Warehousing Companies in... View MoreEmiza is the most trusted logistic , supply chain service provider and best Warehousing Companies in India . With a customer-centric approach and deep expertise in logistics, we empower your business to grow rapidly and scale new heights. Our tailored services are designed to fuel rapid growth and seamless scalability, ensuring your operations are efficiently managed and your customers consistently delighted.
The storing and managing of inventory waiting to be sold online is referred to as ECommerce warehousing . In some cases, the warehouses are owned by the eCommerce companies; however, in most cases, this function is outsourced or contracted to 3PL providers who manage the fulfillment function end-to-end for the eCommerce company.
Custom Bonded Warehousing
Custom bonded warehouse securely store goods by exporters and importers until they can identify the correct market to sell these goods. Emiza offers a container pickup and returns facility to and from the port, which takes away the unnecessary travel and allows businesses and importers to develop long-lasting and mutually beneficial relationships with trusted partners like Emiza .
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emiza inc
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The rapid growth of eCommerce has transformed the retail landscape, making online shopping an essential part of daily life. With consumers increasingly opting for convenience and speed, eCommerce businesses must adapt to meet these demands. At the core of this transformation lies the eCommerce warehouse—a pivotal element that supports the entire online retail ecosystem.
Efficient warehousing is not just about storing products; it’s about ensuring that items are delivered swiftly and accurately to customers. In this blog, we’ll explore why eCommerce warehouses are crucial to online retail growth and how they drive operational efficiency, customer satisfaction, and business scalability.
The Critical Role of eCommerce Warehousing in Online Retail
eCommerce warehouses are more than just storage spaces. They are dynamic centers for managing inventory, fulfilling orders, and facilitating returns, making them integral to the online shopping experience. Without an efficient warehousing strategy, eCommerce businesses can face delays, stockouts, and increased operational costs—all of which can negatively impact growth.
See Also: eCommerce logistics
Here’s how eCommerce warehouses play a vital role in the success of online retail:
1. Speedy Order Fulfillment
One of the biggest expectations of today’s online shoppers is fast delivery. Whether it’s same-day or next-day delivery, customers want their orders to arrive as quickly as possible. Efficient eCommerce warehousing allows businesses to store products closer to their customers, enabling faster order fulfillment.
Strategically located warehouses can significantly reduce the time it takes to deliver products to customers. For example, having warehouses near major urban centers or shipping hubs means orders can be processed and shipped within hours, rather than days. This quick turnaround is critical in maintaining customer satisfaction and building brand loyalty.
2. Efficient Inventory Management
Accurate inventory management is key to avoiding stockouts and overstocks, both of which can disrupt sales. An efficient eCommerce warehouse system tracks inventory in real-time, ensuring that businesses know exactly how much stock they have on hand. This prevents lost sales due to stockouts while also minimizing the costs associated with holding excess inventory.
Moreover, modern warehouse management systems (WMS) can integrate with eCommerce platforms to provide real-time data on stock levels. This helps businesses forecast demand more accurately, plan for restocking, and manage seasonal fluctuations in order volume, all of which contribute to smoother operations and better customer experiences.
3. Streamlined Returns Management
Returns are a common part of the online shopping experience, and the ability to handle them efficiently is crucial to customer satisfaction. An eCommerce warehouse that has a streamlined returns process can quickly inspect, restock, or dispose of returned items, ensuring minimal disruption to inventory levels.
4. Scalability for Business Growth
As eCommerce businesses grow, their warehousing needs change. A small operation might begin with a single warehouse, but as order volumes increase, additional warehouses or larger facilities may be required. eCommerce warehouses offer the flexibility to scale up or down based on demand, making them crucial for businesses aiming for long-term growth.
5. Cost Efficiency Through Third-Party Logistics (3PL)
Managing warehousing operations in-house can be expensive and complex, especially for small and medium-sized eCommerce businesses. This is where third-party logistics (3PL) service providers come in. These companies specialise in handling warehousing, inventory management, and order fulfilment, allowing eCommerce businesses to focus on their core operations.
See Also: inventory management techniques
Conclusion
eCommerce warehouses are the backbone of online retail growth, enabling businesses to meet customer expectations for fast, accurate, and cost-effective delivery. From efficient inventory management and streamlined returns processes to scalable solutions and cost savings through 3PL partnerships, warehousing is a critical component of success in the eCommerce sector.
As technology continues to evolve, eCommerce warehouses will become even more efficient, allowing businesses to grow and thrive in an increasingly competitive market. By investing in the right warehousing strategies and solutions, eCommerce businesses can ensure that they are well-positioned for sustained growth and success.
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emiza inc
posted a blog.
The rapid growth of eCommerce has transformed the retail landscape, making online shopping an essential part of daily life. With consumers increasingly opting for convenience and speed, eCommerce businesses must adapt to meet these demands. At the core of this transformation lies the eCommerce warehouse—a pivotal element that supports the entire online retail ecosystem.
Efficient warehousing is not just about storing products; it’s about ensuring that items are delivered swiftly and accurately to customers. In this blog, we’ll explore why eCommerce warehouses are crucial to online retail growth and how they drive operational efficiency, customer satisfaction, and business scalability.
The Critical Role of eCommerce Warehousing in Online Retail
eCommerce warehouses are more than just storage spaces. They are dynamic centers for managing inventory, fulfilling orders, and facilitating returns, making them integral to the online shopping experience. Without an efficient warehousing strategy, eCommerce businesses can face delays, stockouts, and increased operational costs—all of which can negatively impact growth.
See Also: eCommerce logistics
Here’s how eCommerce warehouses play a vital role in the success of online retail:
1. Speedy Order Fulfillment
One of the biggest expectations of today’s online shoppers is fast delivery. Whether it’s same-day or next-day delivery, customers want their orders to arrive as quickly as possible. Efficient eCommerce warehousing allows businesses to store products closer to their customers, enabling faster order fulfillment.
Strategically located warehouses can significantly reduce the time it takes to deliver products to customers. For example, having warehouses near major urban centers or shipping hubs means orders can be processed and shipped within hours, rather than days. This quick turnaround is critical in maintaining customer satisfaction and building brand loyalty.
2. Efficient Inventory Management
Accurate inventory management is key to avoiding stockouts and overstocks, both of which can disrupt sales. An efficient eCommerce warehouse system tracks inventory in real-time, ensuring that businesses know exactly how much stock they have on hand. This prevents lost sales due to stockouts while also minimizing the costs associated with holding excess inventory.
Moreover, modern warehouse management systems (WMS) can integrate with eCommerce platforms to provide real-time data on stock levels. This helps businesses forecast demand more accurately, plan for restocking, and manage seasonal fluctuations in order volume, all of which contribute to smoother operations and better customer experiences.
3. Streamlined Returns Management
Returns are a common part of the online shopping experience, and the ability to handle them efficiently is crucial to customer satisfaction. An eCommerce warehouse that has a streamlined returns process can quickly inspect, restock, or dispose of returned items, ensuring minimal disruption to inventory levels.
4. Scalability for Business Growth
As eCommerce businesses grow, their warehousing needs change. A small operation might begin with a single warehouse, but as order volumes increase, additional warehouses or larger facilities may be required. eCommerce warehouses offer the flexibility to scale up or down based on demand, making them crucial for businesses aiming for long-term growth.
5. Cost Efficiency Through Third-Party Logistics (3PL)
Managing warehousing operations in-house can be expensive and complex, especially for small and medium-sized eCommerce businesses. This is where third-party logistics (3PL) service providers come in. These companies specialise in handling warehousing, inventory management, and order fulfilment, allowing eCommerce businesses to focus on their core operations.
See Also: inventory management techniques
Conclusion
eCommerce warehouses are the backbone of online retail growth, enabling businesses to meet customer expectations for fast, accurate, and cost-effective delivery. From efficient inventory management and streamlined returns processes to scalable solutions and cost savings through 3PL partnerships, warehousing is a critical component of success in the eCommerce sector.
As technology continues to evolve, eCommerce warehouses will become even more efficient, allowing businesses to grow and thrive in an increasingly competitive market. By investing in the right warehousing strategies and solutions, eCommerce businesses can ensure that they are well-positioned for sustained growth and success.
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The direct-to-consumer (D2C) model has revolutionised retail by allowing brands to sell directly to customers, bypassing traditional middlemen. While D2C brands gain control over pricing and customer experience, their success largely depends on efficient fulfilment. Behind the scenes, warehousing is a critical element that drives D2C success, enabling brands to store, pick, pack, and ship products quickly and accurately.
In the competitive e-commerce landscape, customers expect fast and reliable service, which makes efficient fulfilment more important than ever. This blog will explore how warehouse management, inventory control, and logistics strategies power D2C brands, helping them grow and meet consumer expectations.
Read More: inventory management techniques
The Role of Warehousing in D2C Fulfilment
Proximity to Customers for Faster Delivery
In the D2C space, customers expect their orders to arrive swiftly, with many brands offering same-day or next-day delivery. This has made the strategic location of warehouses a critical factor in reducing delivery times and shipping costs. By placing warehouses closer to key customer locations, brands can reduce delivery times, which improves customer satisfaction and lowers shipping costs. Optimising Warehouse Management Systems (WMS)
Efficient warehouse management is crucial for D2C brands to maintain smooth operations and meet customer demand. A Warehouse Management System (WMS) automates various tasks such as inventory tracking, order processing, and fulfilment, streamlining warehouse operations and improving accuracy.
Inventory Control and Stock Management
Effective Inventory Control is essential to ensure that products are available when needed, without tying up excess capital in overstocking or suffering from stockouts. For D2C brands, real-time inventory tracking and demand forecasting are vital to striking the right balance between having enough products to meet demand and minimising storage costs.
Poor inventory management can result in lost sales due to stockouts or wasted resources due to excess stock. By implementing strong Inventory Control practices, D2C brands can manage fluctuating order volumes while minimising costs. This includes monitoring inventory levels and analysing customer demand to predict future needs accurately.
The Role of Logistics in D2C Success
While warehouse management is central to fulfilment, logistics and supply chain management complete the equation. The ability to move products efficiently from warehouses to customers is what ultimately determines whether a D2C brand can meet its delivery promises and maintain customer satisfaction.
The Value of Third-Party Logistics (3PL)
For many D2C brands, partnering with third-party logistics (3PL) providers is a smart way to scale operations without the need for massive investments in warehousing infrastructure. 3PL providers handle everything from storage and inventory management to order fulfilment and shipping, allowing brands to focus on product development and marketing.
By outsourcing logistics to a 3PL provider, D2C brands can benefit from established networks and expertise in logistics and supply chain management. This is particularly advantageous during peak seasons or periods of rapid growth, when a brand may need additional warehousing space or fulfilment capacity. A 3PL provider can offer the flexibility needed to meet fluctuating demand without overextending resources.
Also Read: warehouse companies
E-Commerce Logistics and Last-Mile Delivery
In D2C fulfilment, the last mile — the journey from the warehouse to the customer’s doorstep — is arguably the most important part of the process. Efficient eCommerce logistics ensures that this final leg of the delivery process is fast, accurate, and cost-effective.
With consumers demanding more visibility into their orders, many D2C brands invest in logistics solutions that provide real-time tracking and notifications, enhancing the customer experience. By optimising last-mile logistics, brands can not only meet but exceed customer expectations, leading to increased customer satisfaction and repeat business.
Conclusion
In the D2C model, efficient fulfilment is the foundation of customer satisfaction and business growth. From strategic warehousing placement to advanced warehouse management systems and partnerships with 3PL providers, D2C brands must prioritise logistics to succeed in a fast-paced, competitive market. Effective Inventory Control, combined with optimised e-commerce logistics, enables brands to meet rising customer expectations for fast, reliable, and cost-effective delivery.
By focusing on fulfilment, D2C brands can differentiate themselves, build strong customer relationships, and drive long-term growth.
Source: https://www.emizainc.com/d2c-brands-fulfilment-how-warehousing-drives-direct-to-consumer-success/
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A company will be highly expected to have a well-run and well-managed supply chain in today’s competitive business environment. Businesses need to have a benchmark of how well they are doing in their supply chain operations. The simple solution would be to monitor and analyse certain indicators one would call Key Performance Indicators (KPIs). These would provide invaluable insights to successful operations and their efficiency. In the context of India, where the supply chain faces its own unique challenges, the Key Performance Indicators are something that needs to be chosen well.
What Are Supply Chain KPIs?
KPIs are quantifiable metrics used to track and measure a business’s performance. These are measurable values which demonstrate how efficiently the business is attaining business objectives. This process enables companies to identify their strengths and pinpoint areas of improvement; strategizing and taking data-driven decisions towards best optimised operations within the supply chains.
Essential KPIs for Measuring Supply Chain Success
1. Order Accuracy Rate
Order accuracy is the most critical KPI in the list, which measures the percentage of placed orders that are delivered exactly according to the customer’s instructions. Discrepancies in an order are the reasons that give rise to the consequences of returns, excess shipping costs, and dissatisfied customers. For instance, an organisation like Amazon India maintains a very high order accuracy to ensure customer delight. A high percentage of order accuracy within a company is indicative of well-aligned order fulfilment processes with customer requirements.
2. Accountants may refer to inventory turnover ratio
Inventory turnover ratio is a measure that provides information on how many times a company sells and eventually replaces its inventory in a given period. A high inventory turnover ratio means well selling products of a company. On the contrary, it may relate that there is overstocking occurring or the progressiveness of the goods is slow. Retail giants like Reliance Retail are monitoring this KPI with a lens totally focused on reducing inventory levels and related costs of holding down while ensuring that they are not over-affected or under-stocked with products.
3. On-Time Delivery Rate
A most important KPI is on-time delivery, which is a percentage share of delivered orders among all orders promised to be delivered on-time. In a country like India, where the logistic problems are so common because of traffic congestion and problems in the infrastructure, holding a high OTD rate is indispensable. As a case in point, Flipkart tries its level best to fare well in on-time delivery, especially during peak shopping seasons, like Diwali, with a view to generating more customer satisfaction and loyalty.
Read More:eCommerce logistics
4. Supplier Lead Time
Measures the amount of time taken by suppliers for delivery after placing an order. Lower lead times would mean a faster replenishment of inventories and reduced carrying costs. Companies such as Maruti Suzuki focus on reducing their supplier lead time to ensure the production process is smooth and continues without any interruption.
5. Cost of Goods Sold (COGS)
COGS is the direct cost related to the production of the goods a company sells. By keeping close tabs on this KPI, it helps a business learn how much it spends making its products and where savings can be realised. For example, Tata Motors could be evaluating its cost of goods sold to determine if its production processes and supply chain are effective in keeping the costs of manufacturing vehicles at a level that is competitive.
6. Return Rate
High return rates should alert companies to problems experienced by customers with the product, and it is, therefore, a very important indicator of customer and product management. If the return rates are alarming, it could be due to quality of products, false descriptions, or bad packaging. Myntra is one of the leading e-commerce platforms in India for fashion, capturing these return rates and working continuously on increasing the product quality and thereby reducing the returns to a minimum as these cost a lot.
Also Read: inventory management
7. Freight Cost per Unit
This KPI indicates the transportation cost incurred to deliver each unit of product. Companies providing logistics services can identify potential areas of cost reduction by monitoring this KPI. BigBasket, an online grocery delivery service, may track freight costs per unit in order to optimise delivery routes and decrease total transportation costs, resulting in competitive prices for their customers.
In the complex area of supply chain management, more especially in a very diversified and dynamic market like India, it becomes acutely important to make the right selection and to keep track of KPIs. Therefore, key indicators such as order accuracy, inventory turnover, on-time delivery, COGS, lead time of the supplier, return rate, and freight cost per unit reflexively influence the business toward an understanding of its supply chain performance.
Those Indian companies that will track these KPIs and act proactively to better them would succeed more in driving operational efficiency, cutting costs, and increasing value to the customer further.
Source: https://www.emizainc.com/key-performance-indicators-kpis-to-measure-supply-chain-success/
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One of the fundamental inventory management issues that all businesses have to tackle is seasonal demand. Whether we are looking at festive seasons like Dussehra and Diwali in India or back-to-school dates, inventory demand tends to go up. It’s crucial for business owners to forecast and observe seasonal changes in order to plan their inventory better, anticipate any stockouts, and avoid overstocking and sales losses. The reason why seasonal inventory management is important is that it helps businesses identify the inventory they require, at the right time. In this article, we will explain what seasonal demand is and its impact on inventory, and introduce some practical strategies for better seasonal inventory management.
Comprehending Seasonal Demand
Seasonal demand denotes the anticipated cyclic shifts in customer’s demand across certain times of the year. Consumer spending picks up during festivals such as Diwali, Eid and Christmas every year in India, and one can witness higher sales in the retail, electronics and fashion retail sectors. Summer and winter also bring higher demand for products related to air conditioners, fans or winter wear depending upon the season. Businesses need to plan and align their inventory management strategies to available seasonal trends so that they can cater to customer demands without compromising on their inflated costs.
Seasonal demand poses several challenges to inventory management:
Stockouts:
In the high seasons, for instance, inadequate stocks may be prepared due to an unpredictable high demand, and as a consequence, some sales are lost and disappointed-customers ensue. For example, a retailer who failed to order festive clothes in anticipation of Diwali would have missed out on significant business.
Read More : inventory management techniques
Overstocking:
On the other hand, the business might overestimate the demand and, in the process, overstock the inventory, which in turn costs the business more in inventory holding cost. One classic example is when the clothing firms stock up the winter wear and then realise that this is the only merchandise they are unable to sell in the course of the year due to the end of the winter season, which they have failed to predict, This forces the retailers to sell them at very cheap prices to clear their shelves and thus lower their profit margins.
Supply Chain Strain:
This often creates a lot of stress to meet high levels of consumption in summer by sourcing raw materials, hence causing delay in transportation and cost increases sharply. For example, in the case of manufacturers, there can be an issue in meeting the production rate during extremely busy periods like the wedding season in India that affect delivery and stock.
Preparing for Concessionary Seasonality:
Some Strategies With such patterns of sales, the specific business must necessarily employ different principles of inventory management. Here are some proven strategies:
Accurate Demand Forecasting:
It is true that having accurate demand forecasts is key to good seasonal demand management. This implies that when organisations have the historical data of sales and the trend analysis of the market, it becomes easy to estimate the level of demand that is expected at a particular season For instance, ‘Myntra’, the Indian fashion e-tailer, employed sophisticated mathematical models to predict demand for various categories of products during the festive period. This helps them to effectively order the stocks to avoid instances where there is no stock or instances where there are excess stocks.
Flexible Supply Chains:
This brings the flexibility of the supply chain ensured, thereby enabling a prompt adjustment to the demand. Regular supplier dealing, extension of sources and JIT systems adopted by the business are some ways in which inventory may be effectively controlled. For instance, BigBasket, an e-grocer with the largest market base in India, has a well-constructed supply management mechanism helping it expand during yuletide periods like New Year or Pongal.
Inventory Buffer:
Every company should ensure they have safety stocks, which is another inventory management technique of coping with unpredicted high demand. At the same time, this issue should not be overdone and the buffer should be adjusted based on the company’s budget. A classic example is Fabindia, which holds a minor safety stock for products such as ethnic wear and home dècor during festive months. This also helps the business to be capable of fulfilling customer expectations on the products to be supplied on the market without compromising on the quantities stocked.
Also Read : eCommerce logistics
Seasonal promotions and clearance sales:
Some measures that companies can take after the season to get rid of excess inventory include having further sales promotions or clearance sales. It also benefits removing stocks that did not generate a lot of sales while providing a shopping attraction to bargain hunters. Lifestyle and Shoppers Stop, etc. , usually conduct sale campaigns during the off season of winter or summer collections to ensure good stock turnover.
Conclusion
Flexibility in inventory management, which allows companies to adjust to seasonal demands, has its advantages but also comes with drawbacks. Therefore, if businesses fully appreciate the implications of these oscillations, and employ splendid ideas like; forecasting, rocking supply chains, inventory hedges, and strategic promotional plans, they can fully harness the benefits of shifts in stock velocities.
In the ever-fluid market that is India, cultural influence and seasonal changes have been known to have a substantial impact on the consumer market, A well-prepared business for the upcoming seasons is likely to have A positive impact on its financial position. That’s why you should arrange your business today to face whatever the future holds in the light of seasonal demand.
Source : https://www.emizainc.com/the-impact-of-seasonal-demand-on-inventory-management-and-how-to-prepare/
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emiza inc
posted a blog.
One of the fundamental inventory management issues that all businesses have to tackle is seasonal demand. Whether we are looking at festive seasons like Dussehra and Diwali in India or back-to-school dates, inventory demand tends to go up. It’s crucial for business owners to forecast and observe seasonal changes in order to plan their inventory better, anticipate any stockouts, and avoid overstocking and sales losses. The reason why seasonal inventory management is important is that it helps businesses identify the inventory they require, at the right time. In this article, we will explain what seasonal demand is and its impact on inventory, and introduce some practical strategies for better seasonal inventory management.
Comprehending Seasonal Demand
Seasonal demand denotes the anticipated cyclic shifts in customer’s demand across certain times of the year. Consumer spending picks up during festivals such as Diwali, Eid and Christmas every year in India, and one can witness higher sales in the retail, electronics and fashion retail sectors. Summer and winter also bring higher demand for products related to air conditioners, fans or winter wear depending upon the season. Businesses need to plan and align their inventory management strategies to available seasonal trends so that they can cater to customer demands without compromising on their inflated costs.
Seasonal demand poses several challenges to inventory management:
Stockouts:
In the high seasons, for instance, inadequate stocks may be prepared due to an unpredictable high demand, and as a consequence, some sales are lost and disappointed-customers ensue. For example, a retailer who failed to order festive clothes in anticipation of Diwali would have missed out on significant business.
Read More : inventory management techniques
Overstocking:
On the other hand, the business might overestimate the demand and, in the process, overstock the inventory, which in turn costs the business more in inventory holding cost. One classic example is when the clothing firms stock up the winter wear and then realise that this is the only merchandise they are unable to sell in the course of the year due to the end of the winter season, which they have failed to predict, This forces the retailers to sell them at very cheap prices to clear their shelves and thus lower their profit margins.
Supply Chain Strain:
This often creates a lot of stress to meet high levels of consumption in summer by sourcing raw materials, hence causing delay in transportation and cost increases sharply. For example, in the case of manufacturers, there can be an issue in meeting the production rate during extremely busy periods like the wedding season in India that affect delivery and stock.
Preparing for Concessionary Seasonality:
Some Strategies With such patterns of sales, the specific business must necessarily employ different principles of inventory management. Here are some proven strategies:
Accurate Demand Forecasting:
It is true that having accurate demand forecasts is key to good seasonal demand management. This implies that when organisations have the historical data of sales and the trend analysis of the market, it becomes easy to estimate the level of demand that is expected at a particular season For instance, ‘Myntra’, the Indian fashion e-tailer, employed sophisticated mathematical models to predict demand for various categories of products during the festive period. This helps them to effectively order the stocks to avoid instances where there is no stock or instances where there are excess stocks.
Flexible Supply Chains:
This brings the flexibility of the supply chain ensured, thereby enabling a prompt adjustment to the demand. Regular supplier dealing, extension of sources and JIT systems adopted by the business are some ways in which inventory may be effectively controlled. For instance, BigBasket, an e-grocer with the largest market base in India, has a well-constructed supply management mechanism helping it expand during yuletide periods like New Year or Pongal.
Inventory Buffer:
Every company should ensure they have safety stocks, which is another inventory management technique of coping with unpredicted high demand. At the same time, this issue should not be overdone and the buffer should be adjusted based on the company’s budget. A classic example is Fabindia, which holds a minor safety stock for products such as ethnic wear and home dècor during festive months. This also helps the business to be capable of fulfilling customer expectations on the products to be supplied on the market without compromising on the quantities stocked.
Also Read : eCommerce logistics
Seasonal promotions and clearance sales:
Some measures that companies can take after the season to get rid of excess inventory include having further sales promotions or clearance sales. It also benefits removing stocks that did not generate a lot of sales while providing a shopping attraction to bargain hunters. Lifestyle and Shoppers Stop, etc. , usually conduct sale campaigns during the off season of winter or summer collections to ensure good stock turnover.
Conclusion
Flexibility in inventory management, which allows companies to adjust to seasonal demands, has its advantages but also comes with drawbacks. Therefore, if businesses fully appreciate the implications of these oscillations, and employ splendid ideas like; forecasting, rocking supply chains, inventory hedges, and strategic promotional plans, they can fully harness the benefits of shifts in stock velocities.
In the ever-fluid market that is India, cultural influence and seasonal changes have been known to have a substantial impact on the consumer market, A well-prepared business for the upcoming seasons is likely to have A positive impact on its financial position. That’s why you should arrange your business today to face whatever the future holds in the light of seasonal demand.
Source : https://www.emizainc.com/the-impact-of-seasonal-demand-on-inventory-management-and-how-to-prepare/
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In the fast-paced world of retail, effective returns management is no longer a luxury—it’s a necessity. Given the surge in online shopping, there’s an increasing number of returns that brand owners have to deal with than ever before, hence making it more important for efficient returns management. This is where 3PL providers will know how to handle all of these areas and have the requisite capabilities. The rest of this post will explore how they improve the returns management process for retailers:
Efficient Reverse Logistics
At the core of returns management is reverse logistics, which refers to handling goods from customers moving backwards in the supply chain—back in direction to retailer or manufacturer. These 3PL providers are more than successful in reverse logistics, due to their experience and the technology they use for efficient routing of shipments, reducing transportation times and costs, etc. They can, for example, centralise returns from many locations to one location where they will be handled faster.
Integration with More Advanced Technologies
To do this, 3PL providers rely on state-of-the-art technology—including automated returns processing systems and live tracking tools. These technologies help retailers provide a returnless experience for their customers, including easy returns request, behaviour-based automated shipping label generation and real-time tracking of the status. These systems are highly integrated with the platform of the retailer to make sure that there is a seamless and transparent process for handling returns, contributing immensely in increasing customer satisfaction.
Restocking and Inventory Management
Even after the product is returned, it has to be examined, tested & restocked. 3PL providers have the infrastructure and proficiency to carry out such functions effectively. When it is integrated directly with inventory management software, businesses can determine the state of returned items in a matter of seconds and decide whether to relist them for sale or get rid of them. This quickly allows retailers to turn over the returned goods without causing too much of a loss on their inventory and sales.
Read More: inventory management techniques
Cost Reduction:
Managing returns yourself can be expensive, both in terms of the time and money spent on labour, logistics and
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A Warehouse is the fundamental component of every e-commerce company, as you may have heard a lot. Let’s expand on that tale: the two main arteries that keep the warehouse’s heart pumping are operations and logistics. Similar to blood flow, order never ceases! Automating your warehouse system provides efficiency in operations, keeping the warehouse lucrative and healthy, just like the nervous system ensures blood flow in your body.
Why Should Your Warehouse Be Automated?
Even if you decide to rent one, a warehouse is undoubtedly your biggest investment when it comes to turning a profit for your online store! And the costs don’t end there maintaining the warehouse comes at a substantial additional cost. Your most important construction pieces are labour, equipment, and supplies. Although labour may be employed intelligently, the other building pieces are fixed.
Of course, having enough labour is important, but what if I told you that you could only allocate labour where it is truly needed? The correct technology may increase productivity, accuracy, and cost savings in your process.
Let’s take a closer look at how automation might lower your warehouse costs:
Recognizing Warehouse Cost
In the warehouse, you incur several fees. Let’s examine all the expenses you incur!
Fixed costs: These include rent, taxes, security, and other expenses that don’t change regardless of how the warehouse operates.
Variable Cost: This varies according to the volume of your output. For increased manufacturing, you’ll need additional labour, packaging, raw materials, and other resources like energy.
Operational costs, which include upkeep, utilities, and equipment operating expenses, are the most important kind of expenditures in a warehouse.
You know what the out-of-the-open costs are, but your earnings are steadily being drained by operational and financial leaks that are not readily apparent.
Read More: inventory management techniques
Lower Warehouse Expenses with the Correct Automation
We will now examine the advantageous domains in which automation serves as a cost-saving measure.
1. Manpower Optimization and Cost-Reduction
You may have encountered this in your experience managing a warehouse: some inevitable situations arise due to misunderstandings or a lack of personnel at critical periods, which leads to a reduction in earnings. What if we told you that by examining it once an hour, you could maximise picker-level efficiency?
It is feasible, really! It guarantees the correctness of any information transmission by averting any potential misunderstandings. Since technology is involved, pinpointing the precise location of the disparity and finding a remedy is simple! We are aware that time is money, and that conserving time will save you money.
2. Automated Storage Optimization
In every warehouse, stocking inventory is a routine operation that you try your best to make go well. However, you are using storage incorrectly if you are unable to utilise it to its full potential. With automated storage optimization, for example, you may set up zones or lanes in your warehouse to keep the best-selling products closer to the picking zone. This increases picking efficiency and, eventually, shortens the order-to-ship time.
3. Visibility of Inventory Centralised
It may surprise you to learn that having a single platform with all of your inventory information synchronised with your orders and warehouse powers your business to its peak. Because everything is monitored by portable devices’ precision, there is less likelihood of inventory leaks. You can manage anything, including changing out your inventory based on damaged or returned goods or expiration dates.
Whether it’s an item or a product, the traceability that comes with inventory automation may help you operate at all levels. The batches you wish to make or package your items may be swiftly combined. When automation meets your needs, it’s a good fit for your e-commerce firm. Your order processing will become more rapid and effective with creative tracing.
4. Lower Errors Result in Lower Returns and Logistics Expenses
Returns are one of the regular responsibilities that e-commerce companies have to deal with. Reducing returns is the major objective, with the primary motivation being to cut costs associated with all the additional logistics.
Second, there is an impact on client satisfaction. Regardless of the reason for the returns inaccurate information retrieval, erroneous product delivery, or anything else the expense remains the same. For this reason, you require a warehouse with streamlined return handling and an automated information flow.
Also Read : inventory management
Choose the Storage of the Future
An intelligent warehouse belongs to smart vendors. The keystone of creating a smart warehouse is strategically using automation to meet your inventory and operational requirements. Allow us to illustrate: A brand of healthy snacks was having problems due to the short shelf life of its products. More returns and a loss of inventory were the outcomes of this. Occasionally, goods that couldn’t be sold at the market were stored there.
They managed its expiration by setting a tolerance threshold with the appropriate automation. This made a lot of things simpler. As an illustration, a product’s shelf life was six months. Five months was the tolerance specified. Once a specific level of tolerance was established, the product would not be further processed for sale. The items that still had time before they expired might be kept in storage. All the extra logistics were saved at once, and the returns were reduced! What matters most is that the clients were happy.
This is what your automation is aiming for. It should optimise your growth, match your company goals, and improve process efficiency rather than just being a piece of technology.
Source : https://www.emizainc.com/the-role-of-automation-in-reducing-warehouse-costs-and-errors/
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Selecting the best third-party logistics provider (3PL) doesn’t have to be hard, but it does take careful thought. After all, the 3PL you select will have a significant long-term influence on the expenses, supply chain, and customer service of your company. Ten of the most crucial elements to take into account when selecting the best 3PL service for you will be covered in this article.
Choosing 3PL now entails more than just moving and storing merchandise. The majority of 3PLs have created a wide range of services to satisfy the exacting requirements of contemporary manufacturers and customer demand.
The majority of fulfilment partners will highlight their sophisticated operations, strong carrier partnerships, and industry experience, regardless of whether they are logistics generalists or specialise in a particular vertical. These characteristics are shared by the majority of fulfilment providers; therefore, you should view them as fundamental rather than differentiators.
After that, it’s critical to collaborate with a logistics service provider that can assist you in reaching your objectives and growing your company, not simply in using them as a highly efficient storage facility. When selecting the best 3PL for your company, there are 10 things to take into account, regardless of your market, industry, or region.
Capability:
Be it pallet displays, subscription box services, reverse logistics, kitting, or fulfilment, you want to be sure the third-party vendor you select can adapt to your changing requirements. A 3PL could be excellent in one service area but not have the adaptability or knowledge to fulfil your other needs.
Make sure your supplier has straightforward connections with the eCommerce platform of your choosing in order to meet the growing demand from consumers for contemporary storage and Shipping solutions. Additionally, make sure they offer a business intelligence interface that enables you to quickly and easily make data-driven choices in real time.
Stability:
Long-standing 3PL companies have a wealth of expertise in offering top-notch supply chain management and logistics services. A 3PL with years of expertise adjusting to market advances can help you remain ahead of the curve in the ever-evolving logistics business.
Choose a fulfilment company that has established itself as a leader in the supply chain industry, has many sites to expedite shipment and broaden its reach across the country, and has a solid track record of delivering exceptional customer support.
Reputation:
In logistics and fulfilment, reputation is crucial. Although satisfied clients are the most crucial statistic, a 3PL’s reputation is also based on satisfied vendors, carriers, and staff.
Working with a reliable logistics business is crucial since these companies have the ability to use their network, staff, and industry contacts to discover solutions to problems. For example, you may typically save money on shipping expenses by using a 3PL since they can negotiate carrier prices for bulk delivery, something that an individual firm cannot accomplish.
Safety and Security:
The way a 3PL handles safety says a lot about how well it performs overall. In order to stay in compliance with the industry’s almost continual changes to safety laws, it’s critical to work with a 3PL that keeps abreast of the most recent developments. In addition to worker safety and asset protection, you want a fulfilment partner who takes security seriously.
Customer Service:
The foundation of every relationship is service and attention, which should be considered while selecting a 3PL supplier. Providers of third-party logistics that make investments in customer service are aware that quality control and superior customer service benefit both your brand and the manufacturer.
Successful 3PLs can easily and swiftly recognize problems and fix them. A seasoned 3PL can offer business tools that make it simple for you to track items, estimate savings, and determine delivery windows. To put it briefly, they assist in simplifying and relieving the burden of managing your company’s logistics, allowing you to concentrate on what is really important – expanding your enterprise.
Scalability:
If you currently operate at scale, the correct 3PL can make scaling simpler. Is the 3PL you wish to work with able to manage the volume of goods, recalls, and adjustments required to keep your business running smoothly and cut expenses?
Make careful to find out how much inventory a prospective logistics provider can manage, what their maximum daily throughput is, and how fast and effectively they choose, pack, and transport goods while conducting an interview.
Customization:
Third-party logistics might signify many things depending on the modification. You want a fulfilment partner who can provide you tailored solutions that flow naturally into your supply chain if you’re in the retail, business-to-business, or eCommerce distribution space.
You’ll want a fulfilling business that can customise the consumer experience all the way down to the packing slip for packaging and delivery. With the same level of individualised attention to detail and customer care that your clients have grown to expect, the ideal 3PL may operate as an imperceptible extension of your brand.
Accuracy:
Accuracy is one of the most crucial aspects to take into account when selecting a 3PL service. The internal procedures your 3PL has developed over time determine inventory, shipping, and order accuracy. Customers will be dissatisfied, and you will incur return expenses if your 3PL lacks correct inventories, shipments, or orders.
Ask a 3PL partner about their accuracy rates and warehouse management system before choosing one. You might wish to consider alternative solutions if they are not utilising the newest technology or if their accuracy ratings are lower than 99.9%.
Responsiveness:
Reactivity is evaluated not just on how well things go during regular operations but also on how well things go during problems. When investigating and evaluating 3PLs, remember to ask these crucial questions:
How do you manage interruptions in the supply chain?
How do you react when the number of orders, the destinations, or the stock levels vary?In the case of a product recall, how are items tracked?
You may learn a lot about the type of business you’re working with and if they can manage your logistics by finding out the answers to these questions.
Technology:
The sophistication of logistics is based on technology. It is essential to ensure that the 3PL you select offers enterprise-level technology that expedites the order-to-delivery process.
To suit your demands, make sure your 3PL has the greatest support team and uses the newest technology. This may be as simple as connecting with your order management system, using business information to assist in making prompt, well-informed choices, or having an excellent IT support staff.
The benefits of 3PL fulfilment solutions:
Using logistics service providers has several benefits over doing things internally. The main advantage is that they can handle your shipping and inventory, giving you up to work on other projects. Additional benefits include:
-Enhanced capability
-Increased effectiveness
-Decreased mishaps during delivery
improved understanding of supply chain activities
-Lower overhead expenses
Your time is valuable regardless of the type of business you operate, be it a small, handcrafted eCommerce store or a massive online retailer. For those who want to handle everything internally, hiring your own shipping employees may seem like a good alternative, but using a logistics service provider can save you more money and give you with greater ease.
How a 3PL Can Reduce Your Ordering Costs
You may order in bulk and save money. If you place a large enough order with one supplier, they will probably give you a discount. You may even be able to work out special arrangements with your favourite vendor in some circumstances. Make sure you inquire about volume discounts from your 3PL to find out whether you can save money on orders.
Are You Prepared to Switch to a 3PL?
Once more, the first step in selecting a 3PL supplier is to determine your initial motivation for exploring a shift. The explanation might be as straightforward as this: perhaps you’ve outgrown your present fulfilment capacity or are finding the entire logistical procedure to be too much to handle. Working with a 3PL might, in any event, free up more time and resources for tasks like product development and marketing.
The next step is to actually meet with the fulfilment professionals at a 3PL warehouse to discover more about their strategy and service skills if you’ve decided why it’s in your company’s best interest
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Over the past few decades, warehousing has seen a tremendous change, going from basic storage facilities to intricate hubs of order fulfilment and logistics. Technological improvements, the transition to e-commerce, and the increasing needs of consumers and companies have all contributed to this growth. For companies hoping to maintain their competitiveness in the fast-moving market of today, understanding this evolution is essential.
Traditional Warehousing: The Basis for Storage
Warehouses used to be big, immobile buildings used mostly for storage of commodities. Large companies and manufacturers who needed to keep goods in bulk before distributing them to retailers or consumers were the principal users of these facilities. With tall shelves and large floor surfaces devoted to storing goods for lengthy periods of time, space was the main feature.
Operations in these old-fashioned warehouses relied mostly on physical labour. Order preparation, product movement, and inventory management was within the purview of the workforce. This was a laborious and error-prone process. Furthermore, conventional warehouses frequently functioned as independent businesses with a storage-only emphasis, cut off from other components of the supply chain.
Even with their drawbacks, conventional warehouses were essential to the supply chain. They gave businesses the space and equipment they needed to keep vast amounts of inventory, guaranteeing that the items would be available when needed. But the demands on warehouses also started to shift in tandem with changes in customer expectations.
See Also : Warehousing companies in India
Modern Warehousing: An Era of Enhanced Productivity and Networking
The emergence of global trade and e-commerce has significantly changed the storage scene. From being merely places to store goods, modern warehouses have developed into vibrant, technologically advanced hubs forsupply chain management and order fulfilment. These cutting-edge warehouses are made to satisfy the needs of a consumer-driven, quick-paced market where efficiency, precision, and speed are critical.
The incorporation of technology is one of the biggest changes in contemporary warehousing. Warehouse operations have been transformed by automation, artificial intelligence (AI), and the Internet of Things (IoT). In order to reduce mistakes and the need for manual labour, automated systems transport items throughout the warehouse, manage inventory, and track orders in real-time. Businesses can improve their supply chains with the help of AI-powered analytics, which offer insights into order trends, demand forecasts, and inventory levels.
Furthermore, warehouses of today are used for more than just storage. They provide services including order fulfilment, packaging, and even last-mile delivery, making them essential components of the supply chain. This change has opened up warehousing to companies of all sizes, not just big names. Smart storage solutions are now accessible to small and medium-sized businesses (SMEs) to compete in the marketplace.
Warehousing and its Future
Storage technology is still evolving, and its evolution is far from done. More automation, improved communication via IoT, and the application of sophisticated robots are probably in store for the warehouse of the future. These developments will increase customer happiness, cut expenses, and simplify operations even further.
In summary
The transition from traditional to modern warehousing is a reflection of the evolving demands of both customers and enterprises. Emiza stands at the forefront of this shift, offering cutting-edge warehousing solutions designed to meet the needs of today’s dynamic market. By embracing smart storage solutions, businesses partnering with Emiza ensure they are fully equipped to thrive in the competitive landscape and adapt to the ever-changing demands of modern commerce.
Source : https://www.emizainc.com/the-evolution-of-warehousing-from-traditional-storage-to-smart-warehousing-solutions/
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