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eCommerce has become more prevalent worldwide for the past decade and is expected to grow even further in the next few years. It’s no doubt why many small businesses are now considering having a web store and online sales channels to keep up with their competitors. In addition, the need for third-party logistics (3PL) companies is also increasing to allocate storage space and staff time needed to fulfill orders and hold inventories.
To answer the growing demand, here are the top five best warehousing practices that shippers and warehouse managers might want to consider to improve production and provide clients with viable solutions.
1. Effectively Manage Returns
Returns are crucial to allowing consumers to have their peace of mind during online shopping. Most customers are less likely to make an online purchase if they see that there are no corresponding return policies or they are too expensive. In order to avoid this, shippers need to be responsible for processing returns effectively when they come in, take on free return shipping costs as much as possible, and adequately printed shipping labels. Amazon and Wal-Mart, for instance, are providing unparalleled return options to make any potential returns smooth and free of charge to their consumers.
2. Be Proactive in Pulling Orders When They Come In
An eCommerce warehouse needs to process several types of orders, including groceries, vegetables, fresh fruits, cosmetics, apparel, accessories, and a lot more. Shippers must manage to pull all incoming orders to meet consumers’ demands proactively. The key to efficiently do this practice is to prioritize order picking. Classifying orders into less important and more important categories might help in efficient order fulfillment and processing.
3. Track Progress and Order Fulfillment Via Metrics
eCommerce is rapidly growing, and the number of incoming orders seems to be endless. Shippers need to use metrics in tracking percentage orders fulfilled and shipped within the given time requirements. Moreover, the accuracy of picked orders, packaging and shipping, and labor productivity must also be tracked.
4. Make Use of Incentives
It is crucial to ensure your staff members are working efficiently. You may implement an incentive-based program to encourage them to work at their best and increase their progress and productivity. For instance, a staff member who has the lowest error score for the month may be allowed to take additional purchase-to-orders (PTOs). As a result, the staff member will be encouraged to work productively to access efficient, low-cost, and faster shipping options.
5. Optimize Transportation Requirements for Picking Products
Physically picking up products is costly due to corresponding labor costs. Moreover, the cost of shipping transportation to customers also represents the highest cost in the supply chain. So, the warehouse must be proactive in working to reduce its expenditures on transportation by packaging and picking products for intermodal transport. In this way, shippers can decrease fuel costs and transit times, which is a good thing to promote faster, on-time delivery.
Warehousing is one of the most complex and expensive 3P Logistics functions. Make sure to apply the five practices mentioned above to significantly increase your success in rendering quality warehousing solutions to your clients.
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