As businesses get more competitive, e-commerce merchants need to continuously explore ways to improve operations, lower expenses and improve the customer experience.
Order fulfillment is a goal and challenge for any company. And while supply chain
have faced interruptions due to the recent pandemic outbreak, the demand for fast delivery is still highly present. As the world is adjusting to a new normal and supply chains begin to recover, building an effective order fulfilment process is a priority for e-commerce businesses.
Letâ€™s explore how you can improve the process, from order placement to delivery.
Evaluate your service-level metrics
Analysing your metrics in customer service and fulfilment helps to ensure that your company performance is hitting the mark in all key areas and meeting high expectations from customers. For customer service, look at your â€˜turnaround time email inquiriesâ€™ for instance. Answering emails within two hours of receipt displays outstanding performance.
Fulfilment metrics can be measured by dock-to-stock time, initial order fill rate and same-day order shipping. Clearing orders for customers within a 24-hour period is an excellent measure of customer service at the order level.
Effective picking and slotting
Most of a pickerâ€™s time, as much as 60-75% is spent travelling from one location to another in the warehouse when picking orders. If you improve your slotting planning, it can help to reduce travel significantly and lower the cost per unit picked. This includes separating similar products or SKUs that could be mis-picked, and placing fast-moving units in strategic zones with fast access and no bending or reaching required.
Having the right warehouse can also help you plan your picking and slotting tactics, and reduce time taken. Ideal for start-ups and e-commerce businesses, our property at 5 Toa Payoh West offers small work and storage spaces from 50 to 600 sqft â€“ under our subsidiary, Work+Store. It is suitable for business seeking storage warehouses for rent
and a conducive environment to work in: carry out logistical duties, improve procurement and fulfil orders for customers. With a central location, this B1 light industrial building has close proximity to Caldecott MRT, Braddell and Tao Payoh MRT. Units start from 1,500 to 24,000 sqft at $1.95 asking rent psf, which can be used for office and storage purposes. Other amenities include ample food options and carpark lots.
The picking and packing department in your warehouse make up more than 50% of your cost per order. By establishing consistent standards for warehouse labour productivity, you can have a more efficient operation with lower labour costs. One way you can do so is by applying automation and technology in increase the workspace. Whether itâ€™s tilt tray sorting or voice picking, you can aim to raise the productivity goals reasonably.
Itâ€™s also good to manage the daily workload effectively, by letting your teams know how many orders need to be completed to meet customer expectations. Work towards filling all orders and shipping them on the day of receipt, instead of against the clock by the end of a shift.
Establish your safety stock
To ensure a faster, more efficient order fulfilment process, you always want to ensure that your warehouse is carrying just enough stock â€“ which can be achieved by safety stock. It works by having a set number of products always in stock so you can avoid running order and still be able to fulfil orders. The purpose is to absorb the variation in demand, like the sudden and unexpected spikes in order volume.
Measure your safety stock quantities using statistical methods that looks at measuring spikes instead of the average customer demand. This helps you to avoid carrying too much inventory that will impact your fulfilment costs.
Another property you can consider is located at 38 Ang Mo Kio and offers up to 6,225 sqft! There are 3 units available, starting from 4,903 sqft with 4.5m ceiling height and 2.5kN/m2 floor loading capacity. Located between Ang Mo Kio Ave 5 and Ave 3, this property comprises of 3 connected multi-storey buildings with a corporate frontage. It is also designed to serve consumers with various in-house products such as lockers, self-storage and event hall that is well-equipped for rental. Work+Store, our subsidiary, is available in the property too, to offer storage and work spaces for rent in Ang Mo Kio
with units that can provide an optimal working environment. Other amenities include 3 cargo lifts, 4 passenger lifts, in-house canteen, accessibility via CTE, and season parking for cars & heavy vehicles.
Donâ€™t miss our limited-time offer on selected office and industrial spaces for rent
! Enjoy 50% off rental rates when you sign up before 30 Sep 2020.