Jamie C. Winters, Author at Falcon Fulfillment

Building E-commerce Infrastructure Solutions For Scaling

Building E-commerce Infrastructure That Scales: Solutions for Growth

For e-commerce businesses aiming to scale up operations, generally, the presence of the right infrastructure is crucial. Overall, this infrastructure encompasses all the tools, technologies, facilities, and services essential to run an online retail business – ranging from storefront setup to order delivery.

As your e-commerce venture expands and order volumes surge, ensuring your infrastructure’s robustness and flexibility becomes imperative. At this point, investing in scalable infrastructure enables your business systems and processes to seamlessly adapt to evolving demands. Moreover, it prepares you for the future, facilitating the onboarding of more customers, exploration of new markets, and the launch of additional product lines.

This article provides insights and tips on constructing a future-ready e-commerce infrastructure capable of scaling alongside your business growth.

Robust E-commerce Technology Stack

The technology powering your online store and back-end operations stands as the foundation of your e-commerce infrastructure. As your order processing capabilities and inventory scale up, it’s crucial to ensure that your tech stack can adeptly support higher volumes without crashing.

Some key elements of a scalable e-commerce technology setup include:

E-commerce Platform – An enterprise-grade platform like Shopify Plus or Magento can smoothly handle large catalogs, high traffic and order volumes. They offer flexible hosting, built-in analytics, scalable databases, CDNs, caching, etc.
Order Management System (OMS) – A robust OMS seamlessly manages order processing across channels. It should easily integrate with other systems like your e-commerce platform, ERP, warehouses and 3PLs.
Warehouse Management System (WMS) – An advanced WMS gives you real-time inventory visibility and scalable order fulfillment across multiple warehouses. Systems like Logiwa offer clear workflows, wave planning and labor tracking.
SEO and Hosting – Invest in managed enterprise SEO and ultra-fast web hosting (with auto-scaling) to handle increasing visitors and conversions. Use a CDN like Cloudflare for faster load times.

These best-in-class technology systems will cost more upfront but deliver the scalability and performance needed to grow your e-commerce infrastructure solutions.

Order Fulfillment and Logistics

For online retailers, order fulfillment and shipping constitute a substantial portion of operations and costs. As your business scales, you require flexible solutions capable of managing double-digit order growth month-on-month.

Transitioning to an in-house fulfillment operation necessitates substantial upfront and ongoing investments in real estate, infrastructure, labor, and technology. However, opting to partner with a third-party logistics (3PL) provider offers immediate scalability to address seasonal peaks and accommodate sales growth.

Here are some tips for setting up scalable fulfillment and shipping with a 3PL partner:

On-Demand Warehousing – Cloud warehouses provide you pay-as-you-go storage space that automatically adjusts to your inventory needs. This saves fixed infrastructure costs while offering unlimited room to stock more inventory as you grow.
B2C Delivery Network – Select a 3PL with an extensive delivery network covering your target regions. This ensures speedy B2C shipping and returns even as your customer base expands geographically.
Order Volume Ramp-Ups – Have open conversations with prospective 3PL partners regarding your current and projected order volumes. Confirm they can smoothly handle 10X or 100X spikes during peak or as you grow.

Overall, partnering with a top-tier 3PL like Falcon Fulfillment provides you the technology, infrastructure, delivery capacity and accountability needed to rapidly scale your store order fulfillment.

Inventory and Demand Planning

For on-time order delivery, you need sufficient inventory to meet customer demand – today and in future. Inventory planning, forecasting and optimization are crucial to scale up e-commerce operations profitably.

Start with safety stock planning to determine minimum inventory levels needed to meet baseline demand and seasonal fluctuations. Take upcoming promotions and new product launches into account as well.

Next, build data models using historical sales data, trends and external signals like holidays, competitor promotions, etc. Also develop rolling forecasts to predict demand changes and optimally scale up stock inventory.

Continuously track fulfillment metrics like order cycle times, stockout instances and excess reserves. In addition, maintain healthy fill rates based on your goals for order accuracy and on-time shipment rates.

As you grow, regularly evaluate inventory policies and restocking models. Make data-backed decisions on whether to scale through physical warehouse expansion or just-in-time inventory via dropshipping.

Overall, leveraging data, analytics and the expertise of a 3PL partner will enable you to fluidly align supply and demand. This is key to managing inventory costs while building e-commerce infrastructure solutions.

Building Strategic 3PL Partnerships

Given today’s supply chain disruptions and labor shortages, as a result, developing strategic partnerships is necessary for long term e-commerce success. But choosing the right partners can get overwhelming with so many 3PLs now offering branded D2C solutions.

Here are some tips on finding 3PLs to provide scalable infrastructure and services while saving you time as you grow your online business:

Omnichannel Order Fulfillment – Seek 3PLs equipped to handle omnichannel processing and complex order orchestration across your website, retail stores, marketplaces and more.
Pay-As-You-Go Pricing – On-demand fulfillment solutions let you easily scale up or down based on real-time business needs rather than forecasts. There are no fixed monthly costs or commitments.
Best-In-Class Technology – Choose a partner offering cloud-based Warehouse Management Systems (WMS), intuitive dashboards and EDI integrations with major e-commerce platforms and sales channels.
End-To-End Services – Look for 3PLs offering a wider range of value-added services (VAS) beyond the core warehousing and shipping capabilities. This saves additional integration and vendor management effort as you scale.

Establishing win-win, trust-based relationships with providers powering critical business functions is key for sustainable long term growth. Taking the time to vet and onboard the right technology and logistics partners will pay dividends as your e-commerce infrastructure solutions expand.

Beginner’s Guide to Third-Party Logistics (3PL)

The world of e-commerce is always changing, understanding the roll of Third-Party Logistics is integral to keeping up. This beginner’s guide to third-party logistics (3PL) will delve into the essential aspects, offering insights into fulfillment services, warehousing, and much more.

With the right foundation and expert partners supporting your systems and processes, your e-commerce business can successfully evolve from a seed round startup to a Series C unicorn venture.

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by Jamie C. Winters

Inbound and Outbound Logistics - What you need to know

Inbound and Outbound Logistics

Logistics coordinates and moves resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. It is the process of doing this. Regarding e-commerce, logistics management involves a significant aspect of business operations. Furthermore, logistics is a considerable expense, with businesses spending more than $1.64 trillion on logistics-related activities last year alone. What are the main differences between inbound and outbound logistics? What are the main challenges, and how can streamlining logistics benefit your business? This text and more will cover all this, read on!

Inbound vs. Outbound Logistics

Inbound logistics refers to where goods and materials enter the supply chain to sell to the customer. Outbound logistics refers to the process where the company sells and delivers the finished products to the customer. Streamlining both aspects of logistics is crucial to the company’s profitability and success.

What is outbound logistics?

Outbound logistics involves storing and moving goods to the customer or end user. Outbound logistics includes the systems required to prepare, pack, and deliver packages. The steps include order fulfillment, packing, shipping, and customer service related to delivery.

Warehousing

In order to meet customer demands, an e-commerce business needs a warehouse or storage facility to store surplus inventory. The US Business Inventory/Sales Ratio is 1.33, up from 1.26 last year. You can store your inventory in your own warehouse or partner with a third-party provider. Warehousing is a significant expense for e-commerce businesses. Whether you outsource your warehouse needs or handle them in-house, it is a crucial part of outbound logistics.

Inventory Management

Most e-commerce companies use inventory management software to maintain a consistent flow of orders and sales. Inventory management involves carrying adequate levels of stock to fulfill customer orders. It is a vital part of business management because it allows companies to boost profits and reduce overhead. There are many benefits to employing an automated inventory management system, including improved accuracy and better transparency. Inventory management also includes:

Product locations
Quantities of each product type
Profit margin by style, model, product line, or item
Setting the ideal amount of inventory to have in back stock and storage
How many products to reorder and how often
When to discontinue a product

Streamlined inventory management can boost profitability and improve customer experience. It allows you to capture and fulfill every sale while simultaneously avoiding overstock.

Order Processing

When a customer orders through the sales channel, a notification is sent to the warehouse for fulfillment. The staff in the warehouse receives the order and verifies its validity. They ensure the product(s) are in stock and can be made ready to send out to the customer.

Picking, Packing, and Kitting

All items are packaged, sealed, and labeled for shipment at this stage. Once an order is received and verified, the order has to be carefully picked, packed, and prepped for transport. Some items or orders, like subscription boxes, also require kitting services, where more than one product is carefully assembled into one shipment or package.

Transportation

Transportation involves any method or mode to move goods from your storage warehouse to a carrier distribution center or direct-to-customer. When moving goods to a distribution center or fulfillment facility, larger vehicles like freight carriers, semi-trucks, and rail lines are used. Then products are separated into smaller vans or vehicles to be delivered to the end consumer.

Last Mile Delivery

The final aspect of outbound logistics is the last-mile delivery to the end customer. Whether the package is delivered to a home or office, this is the culmination of the logistics journey. If the final delivery is unsuccessful or the product arrives damaged, the product may be returned, triggering an inbound logistics process (returns).

What is inbound logistics?

Inbound logistics is when a company secures raw materials, goods, and supplies to produce products it will sell to an end consumer. It is the receiving or incoming part of the supply chain cycle. A few of the critical components of inbound logistics include:

Sourcing and Purchasing

Inbound logistics starts with identifying the materials, goods, or supplies needed to build your product. Next, research potential manufacturers or suppliers of those goods or materials. Once you’ve identified suitable partners, engage with them directly to purchase and receive the materials. Maintain accurate records from purchase orders to ensure smooth reconciliation with shipments.

Transportation

When a manufacturer/vendor ships goods, they provide a notification. This notification includes a tracking number, which helps warehouse and distribution teams prepare for the efficient receipt of the items.

Receiving

First and foremost, this part of inbound logistics involves receiving shipments at the warehouse or distribution center. Loading dock staff then evaluate the shipment for damages and accuracy. Once the shipment is approved, the goods are stored in a designated storage facility or moved to a secondary manufacturing or assembly area. Finally, all goods ready for customer sales are input into the inventory management system and stored carefully.
Each step plays a crucial role in ensuring the smooth flow of goods and materials throughout the organization. Receiving shipments efficiently and accurately is essential for maintaining optimal inventory levels and meeting customer demand.

Reverse Logistics

The final aspect of inbound logistics occurs after a sale. Reverse logistics includes adding products back into the supply chain due to a product return. Check out 4 Ways to Streamline Returns Management.

Challenges of Inbound and Outbound Logistics

Inbound logistics challenges

The main challenges of inbound logistics include the following:

Finding reliable and trustworthy suppliers
Sourcing affordable suppliers and manufacturers
Balancing inflow and outflow of goods to maintain adequate materials without overstocking
Managing transportation delays and boosting supply chain resilience
Maintaining receiving and quality control processes

Outbound logistics challenges

The main challenges of outbound logistics include the following:

Hiring quality staff to manage order processing
Maintain order accuracy and efficiency
Negotiating transportation and shipping contracts to keep costs low
Meeting delivery timeline expectations
Reverse logistics management and process

Benefits of optimizing logistics

Inbound and outbound logistics are necessary for business operations to run smoothly. Without products, there are no sales, and vice versa without sales. Therefore, inbound and outbound logistics must work together for optimum success. This text provides some ideas to optimize your logistics process.

Maintain optimal inventory levels

Having too much or too little inventory is not ideal. If you order too much inventory, then you risk paying high storage fees. If you order too little, you miss out on sales opportunities and risk disappointing customers. To maintain optimal inventory levels, you need to commit to regular inventory audits, offload slow-moving stock or deadstock, invest in items with higher turnover rates, and those products with higher margins. Successful companies regularly review demand forecasts and take physical stock counts. Striking the correct inventory levels will reduce overhead costs from storage, improve product performance and profitability, and improve procurement workflows.

Improve warehouse management

Implementing a streamlined warehouse management process reduces human error and will improve order accuracy, shipping efficiency and maximize storage utilization. Most companies use software programs that help to automate inventory levels, trigger reordering events, automate picklist creation, and track shipment deliveries.

Beginner’s Guide to Third-Party Logistics (3PL)

Partner with a 3PL to optimize logistics

If you spend more than 15% of your time managing your logistics, it might be time to investigate working with a 3PL. 3PLs partner with e-commerce businesses as experts who handle inbound and outbound logistics. They manage receiving, warehousing, negotiating with shipping carriers, and returns. Some 3PLs, like Falcon Fulfillment, can provide flexible inventory storage in their fulfillment centers.

Find out more about how Falcon Fulfillment can take the stress of managing logistics off your plate. Get in touch with one of our friendly agents today.

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by Jamie C. Winters

Canada Post Strike Backlog: Challenges and Recovery Ahead

Canada Post Strike Ends—But Digging Out the Backlog Has Just Begun

The recent Canada Post strike may have ended, but the challenges of addressing the massive backlog have only just begun. Businesses and consumers alike are grappling with delays, affecting everything from e-commerce fulfillment to international shipping. As postal workers return to their duties, the road to recovery highlights the importance of efficient supply chain management and alternative fulfillment solutions.

A Rocky Return to Normalcy

After four weeks of halted operations, Canada Post faces a daunting task: processing millions of undelivered packages and letters. This backlog impacts various industries, including warehousing and distribution, as businesses scramble to meet customer expectations. The strike’s ripple effects underscore the need for robust order tracking and management systems to mitigate disruptions during such events.

Third-party logistics (3PL) providers have been instrumental in filling the gap. Companies relying on Canada Post have turned to alternative carriers like UPS and DHL, leveraging scalable fulfillment solutions to maintain on-time delivery for their customers. However, even with these measures, challenges persist.

The Impact on E-commerce and Beyond

E-commerce fulfillment has been hit particularly hard. Online retailers depend heavily on reliable shipping and delivery services to meet the demands of same-day and next-day delivery. With Canada Post’s services disrupted, businesses have had to explore cross-docking and bulk shipping options to keep their supply chains moving.

Moreover, fulfillment centers are under pressure to adapt. Many have ramped up warehouse automation and implemented advanced inventory tracking software to improve order accuracy and quality control. Despite these efforts, the backlog has exposed vulnerabilities in inventory management and fulfillment cost analysis.

Lessons Learned in Fulfillment and Logistics

The Canada Post strike serves as a stark reminder of the importance of supply chain optimization. Businesses can take several steps to safeguard against future disruptions:

Diversify Carrier Options: Relying on a single carrier can be risky. Companies should establish relationships with multiple providers for greater flexibility.
Invest in Technology: Cloud-based warehouse management systems (WMS) and transportation management systems (TMS) can enhance visibility and efficiency.
Focus on Last-Mile Delivery: This critical stage of the supply chain often determines customer satisfaction. Partnering with reliable carriers and optimizing routes can mitigate delays.

Recovery Efforts Underway

Canada Post has announced plans to prioritize essential services, including passport deliveries, while gradually addressing the backlog. However, this process will take time, especially given the complexities of freight consolidation and customs brokerage for international shipments.

For businesses, maintaining transparency with customers is key. Clear communication about delays, combined with proactive solutions like dropshipping or vendor-managed inventory (VMI), can help mitigate customer dissatisfaction.

The Role of Third-Party Logistics Providers

3PL providers have emerged as heroes in this crisis, offering value-added services (VAS) like kitting and assembly, freight forwarding, and reverse logistics. Their ability to adapt quickly to changing circumstances has been a lifeline for many businesses. By leveraging 3PL technology solutions, companies can better manage inventory forecasting and demand planning, ensuring smoother operations even during disruptions.

Beginner’s Guide to Third-Party Logistics (3PL)

Moving Forward

As Canada Post works to restore normalcy, businesses must take stock of their supply chain resilience. The strike has highlighted the need for scalable fulfillment solutions, advanced order fulfillment metrics and reporting, and enhanced safety and security measures in warehousing.

While the Canada Post strike may be over, the journey to recovery has just begun. Businesses must adapt, innovate, and invest in robust logistics strategies to navigate the challenges ahead. By doing so, they can not only survive but thrive in an increasingly complex and interconnected world of fulfillment and logistics.

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by Jamie C. Winters

Why Companies Use 3PL Providers

Why Companies Use Third-Party Logistics (3PL) Providers and the Benefits

Outsourcing fulfillment and supply chain operations to a third-party logistics (3PL) provider offers numerous benefits for companies seeking to optimize their warehousing, distribution, inventory management, and overall logistics performance. Specifically, as the supply chain grows more complex, many businesses find it advantageous to leverage the expertise of 3PLs to handle logistics functions so they can focus on core competencies.

What is a 3PL?

A third-party logistics provider manages warehousing, transportation, freight forwarding, order fulfillment, reverse logistics, and other supply chain activities on behalf of client companies. Rather than handling these complex logistics operations in-house, businesses outsource them to 3PLs that have the advanced technology, extensive carrier relationships, and supply chain know-how to expertly coordinate global shipping, inventory management, and multi-channel order processing. These considerations are why companies use 3pl providers instead of trying to manage all these functions on their own.

As specialists in warehousing, distribution, and transportation solutions, 3PLs enable companies to scale operations, enter new markets, and meet customer delivery expectations in a dynamic business landscape. They provide flexible, scalable fulfillment and shipping solutions tailored to each company’s requirements.

Benefits of Using a 3PL Provider

Reduce Logistic Costs

By leveraging the economies of scale 3PLs enjoy from working with multiple clients, businesses can reduce overall logistics costs associated with operating their own fulfillment centers and managing transportation. In addition, outsourcing to 3PL providers also converts fixed costs into variable costs, resulting in a more predictable, cost-efficient model.

Access Advanced Technology

Top 3PL providers offer cutting-edge warehouse management systems (WMS), transportation management systems (TMS), inventory management software, and other technology to gain end-to-end visibility and control across the supply chain. This technology is invaluable for forecasting, inventory optimization, and providing exceptional customer experiences.

Focus on Core Business

Rather than directing valuable resources toward managing logistics operations, companies can shift focus to critical functions like production, marketing, and product development by partnering with a 3PL provider. The 3PL becomes an extension of their business, handling vital but non-core supply chain activities.

Improve Customer Service

By leveraging 3PL transportation networks and technology solutions, businesses can ensure on-time order delivery, provide real-time shipment tracking and visibility, process returns, and enable emerging delivery options to effectively serve customers. They also gain access to additional services like kitting and assembly.

Enter New Markets

3PL providers empower businesses to expand into new domestic and international markets by handling complex import/export processes, customs brokerage, final-mile delivery to global locations, and localization expertise to navigate regulatory environments. Their global warehouse networks and logistics capabilities facilitate scalable market growth.

Meet Customer Expectations

Today’s on-demand economy requires fast, flexible delivery options. So, 3PLs enable businesses to provide same-day and next-day shipping capabilities to meet and exceed rising customer expectations. Additionally, their technology also supports real-time order tracking and visibility.

Improve Supply Chain Agility and Resilience

By coordinating transportation across extensive carrier networks, 3PL providers enhance overall supply chain resilience for clients. Their ability to quickly reroute shipments and leverage alternative solutions prevents disruptions to inventory and order fulfillment flow. They add flexibility and continuity that supports growth.

How 3PL Providers Streamline the Supply Chain

One of the reasons why companies use 3pl providers is to help with supply chain management. Through technologically advanced, strategically located fulfillment centers, 3PL providers offer warehousing, pick/pack processes, kitting and assembly, and value-added services to swiftly fulfill online orders, retail replenishment orders, and manufacturing production orders. They also split large orders as needed to optimize transportation.

Shipment Consolidation and Distribution

To maximize transportation efficiency, 3PL providers consolidate less-than-truckload (LTL) shipments from multiple clients into full truckloads. They also optimize delivery routes, leverage aggregated volumes for lower shipping rates, and handle global distribution challenges. This reduces freight costs and environmental impact.

Real-Time Tracking and Visibility

Utilizing shipment tracking interfaces and supply chain data analytics, 3PL customers can closely monitor order status across the fulfillment lifecycle for this purpose. This includes inbound inventory to warehouses, order processing stages, carrier status updates, and final delivery. Enhanced visibility facilitates proactive issue resolution.

Reverse Logistics and Returns

Returns processing and reverse logistics present significant challenges, especially for e-commerce businesses. For those reasons, 3PL providers simplify, accelerate, and reduce costs associated with RMA approvals, refunds/replacements, transporting returned items, inspecting for damages/defects, and managing asset recovery.

Beginner’s Guide to Third-Party Logistics (3PL)

Choosing the Right 3PL Partner

With an array of 3PL providers to choose from, conduct thorough research to select one that best matches your business requirements, operational workflows, technology needs, inventory profiles, transportation lanes, and customer expectations. In essence, carefully assess their range of supply chain services, existing client base, customer service standards, operational performance metrics, stability and years in business, advanced technology capabilities, and global warehouse footprint. This helps ensure an excellent long-term strategic partner to streamline your supply chain.

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by Jamie C. Winters

3 Keys to Improving Your E-commerce Fulfillment Process

3 Keys to Improving E-commerce Fulfillment Process

As an e-commerce business, your fulfillment process is one of the most important factors in your success. Ultimately poor fulfillment can lead to dissatisfied customers, lost inventory, and financial losses. In contrast a well-designed and optimized fulfillment process can improve customer satisfaction and ensure your business runs smoothly. Here are 3 keys to improve your e-commerce fulfillment process:

1 – Have a Clear Fulfillment Strategy:

A clear fulfillment strategy will ensure that your products are delivered on time, in good condition, and that your customers get the best possible experience. A good plan will involve selecting a method for order fulfillment that is cost-effective, flexible, and meets the needs of your existing customers. When determining which fulfillment strategy is best, it is crucial to consider future growth. Here are the main types of e-commerce fulfillment strategies:

Merchant Direct Fulfillment

Merchant direct fulfillment, also known as in-house fulfillment, is best for small to medium-sized businesses with lower sales volumes. In general the benefits of this strategy include lower fulfillment costs (you only pay for shipping), complete control over the entire process, and the ability to add personalized touches to orders (hand-written thank-you notes, etc.). Conversely, the drawbacks of in-house fulfillment are that it is time-consuming, you often pay higher shipping premiums with lower order volumes, and human error is common.

Dropshipping

Dropshipping is a fulfillment strategy where the entire process is hands-off. E-commerce brands that use dropshipping can select, package, and ship their products directly to customers without ever having to handle the physical inventory in-house. This is a very effective strategy for start-ups with limited resources. The benefits of dropshipping are it takes very little upfront capital to get started, the manufacturer or vendor handles inventory management, and it is easy to market test new products. The limitations of dropshipping are lower profit margins, lack of inventory control, higher shipping costs, and delivery delays are frequent.

Third-Party Fulfillment (3PL)

Like dropshipping, the 3PL fulfillment strategy takes most of the headaches of shipping orders off your plate. In essence this strategy involves partnering with a third party that handles everything from receiving, storing, inventory tracking, picking, and packing to last-mile delivery. In addition, some 3PL companies even offer value-added services like returns management. The benefits of working with a 3PL to improve your e-commerce fulfillment include gaining insight and expertise, saving time and money, flexibility to scale for seasonal sales cycles, and improved customer satisfaction. In contrast, the drawbacks of 3PL fulfillment include added costs, finding a reliable partner can be difficult, and sometimes customer service issues can become complicated.

2 – Streamline Your Processes:

Streamlining the e-commerce order fulfillment process is essential for businesses aiming to increase efficiency and customer satisfaction. Automating processes, optimizing warehouse layout, and integrating inventory and shipping systems are some of the best tactics to streamline the order fulfillment process. Here are a few others:

Automated Inventory Management
Integrated Omnichannel technologies
Multi-site distribution centers
Optimized warehouse layouts and workflows
Reduce manual processes when possible

3 – Consider Outsourcing:

Outsourcing e-commerce order fulfillment can be a great way to improve efficiency. Overall this process involves having a third-party logistics provider manage the inventory, packing, and shipping of orders for a business. It can enable companies to access warehouses and the latest technology to fulfill orders quickly and accurately. Outsourcing fulfillment can also allow businesses to focus on other vital areas, such as marketing, customer service, and product development. Additionally, outsourcing fulfillment can save money on labor costs, reduce their carbon footprint, and improve customer service. When looking for an outsourcing partner, select one with experience in e-commerce fulfillment that aligns with your business’s values.

Beginner’s Guide to Third-Party Logistics (3PL)

If you want to learn more about how working with Falcon Fulfillment can help streamline your fulfillment, reach out to one of our agents today.

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by Jamie C. Winters

E-commerce Delivery Speed: Meeting Customer Expectations

E-commerce Parcel Delivery Speed: Meeting Customer Expectations

Fast e-commerce parcel delivery speed has become the norm in retail, led by Amazon and big box players. But attempting to compete on speed can negatively impact profits for smaller online sellers. Understanding what delivery times truly matter to your customers is key.

What’s more important than fast delivery is fulfilling expectations set through your brand promise and aligning services accordingly. Meeting delivery estimates accurately is better than promising unrealistically fast service. Optimizing order fulfillment starts with understanding real consumer preferences.

Consumer Preferences: Cheap and Free Over Fast

Despite the race for faster delivery, price and free shipping still reign supreme for most online shoppers over speed. Research shows the top reasons for buying directly from a brand are better pricing and free delivery rather than fastest delivery. Particularly with commoditized products, consumers will opt for longer transit times to reduce costs.

Sustainability concerns also play a role. More customers choose reduced emissions over fast shipping, valuing responsible delivery. The rise of BOPIS (buy online, pick up in store) also demonstrates convenience can trump speed.

Implementing Fulfillment Solutions for E-commerce Delivery Speed

With delivery speed often less critical than expected, online retailers can focus investment on efficient fulfillment:

Warehousing and Distribution
To enable fast delivery across wider geographies, brands open more warehouse locations holding inventory while increasing logistics costs. Assess if this Fulfillment Network Optimization is worthwhile or if you can fulfill orders sufficiently from fewer locations.

Transportation Management

Choosing the right parcel shipping carriers and service levels to balance cost, speed and reliability is key. Leveraging a 3PL can help with Carrier Selection and Management based on Order Tracking and Metrics.

Last-Mile Delivery

While consumers see this final step, optimizing the entire supply chain is important. Using 3PL Delivery Services can improve last-mile speed and reliability without overinvesting internally.

Order Fulfillment Technology

Warehouse Management Systems, Order Management Software, Fulfillment Analytics, Tracking Portals and Inventory Management help orchestrate omnichannel fulfillment while providing inventory visibility and actionable data.

Managing Customer Expectations

Brand trust hinges on aligning marketing with actual fulfillment capabilities. Clearly communicate delivery estimates at checkout based on Origin and Destination, Carrier Speed and past Performance Data rather than arbitrarily accelerating targets.

Highlight other benefits beyond pure speed in messaging, like:

Free shipping or returns
Loyalty programs
Curated recommendations
Personalization

Adjust delivery targets seasonally based on Order Volumes instead of a one-size-fits-all approach. Be transparent on timing fluctuations for Inventory Availability.

Offer faster expedited delivery as a premium service for urgency rather than making it the norm. Upselling premium forwarding, even at an additional fee, caters to customer choice.

Use Fulfillment Partners Strategically

Comprehensively optimizing e-commerce order fulfillment requires advanced capabilities outside an online retailer’s core competencies. Working with a reputable 3PL provides integrated Instant Scalability:

Multi-node Distribution Networks positioned near key customer bases
Mature Transportation Partnerships with discounted parcel carrier rates
Experience Accelerating Last-Mile Through Higher Delivery Density
Existing Order Management Infrastructure ready for quick onboarding
Volume-Based Priority in Downstream Handling Allowing Predictability

This enables small to midsize ecommerce companies to provide consistent fulfillment, competitive transit times and high Order Accuracy without extensive development costs. The expertise and technology infrastructure needed to excel at ecommerce order fulfillment can be gained through partnership.

Beginner’s Guide to Third-Party Logistics (3PL)

Balancing Delivery Speed, Costs and Customer Service

Finding the optimal balance between delivery speed, operating costs and customer service boils down to aligning services with brand positioning and actual fulfillment demand. Being honest about delivery timing while eliminating unattainable expectations lets retailers focus investment more precisely on the areas that truly matter for service quality and profitability.

Falcon Fulfillment is your reliable partner in the logistics journey, providing security and unmatched service. Your product’s safety is our priority, ensuring a smooth delivery to your customers’ hands.

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by Jamie C. Winters

Switching 3PL Provider Considerations for a Seamless Transition

Switching 3PL Provider Considerations: Essential Steps for a Seamless Transition

Businesses relying on third-party logistics (3PL) providers often consider a shift to enhance their operations. The benefits of outsourcing fulfillment are undeniable, but choosing the ideal provider requires careful consideration. Here’s a comprehensive guide to assist in this pivotal decision process. To start, make a list of must-have services based on current and projected volume. Additionally, research a range of potential partners with proven expertise in warehousing, packaging, and shipping orders on time. Then, compare rates and service levels to find the best value aligned with your budget and growth strategies. Finally, vet each 3PL’s reliability and on-time delivery records over several years. Above all, choose a provider that offers flexibility to scale up or down as market conditions change.

Evaluate Your Current Provider

Firstly, assessing your existing 3PL’s performance is the initial step. Consequently, scrutinize their service quality, cost, and reliability against your business requirements. Here are some questions that aid in judging their efficiency:

Meeting accuracy and on-time delivery expectations?
Do fulfillment services align with business needs?
Does the fee structures match industry standards?
Transparent reporting for inventory and order tracking?
Handling returns and refunds efficiently?
Rating communication levels on a scale of 1-10?
Scalability potential aligned with future plans?

Research Potential Providers

Identifying prospective providers initiates the research phase. Subsequently, explore reviews, testimonials, and comparison studies. Thereafter, a useful starting point could be WarehousingAndFulfillment.com, linking you with over 500 pre-vetted 3PL companies.

Consider Your Customers’ Needs

Prioritize your customers’ experience by giving paramount importance to their needs when considering a new provider. For example, envision various enhancements, including quicker order deliveries, diverse delivery choices, enhanced packaging, and supply chain solutions. Additionally, it’s crucial to address prevalent customer pain points such as stockouts, slow deliveries, tracking issues, return difficulties, damaged goods, and inventory discrepancies.

Ask Questions

Switching 3PL providers requires engaging with potential providers with pertinent inquiries. Here’s a set of questions to help in your decision-making process:

What is their expertise in omnichannel fulfillment and technology integration?
What warehouse automation strategies do they implement?
How do they utilize streamlined operational technologies?
What procedures do they follow for vendor receiving and inventory management?
What protocols are in place for lost inventory or incorrect orders?
How are their fee structures and service inclusions designed?
What are their specializations in product types?
Do they have minimum monthly order volume requirements?
Is same-day order processing feasible?
What accuracy guarantees do they provide?

Switching your 3PL fulfillment provider requires thorough consideration to ensure optimal service for your business. Particularly given that each provider varies significantly, this necessitates making an informed decision based on current evaluation, meticulous research, and customer-centric approaches. Ultimately, aligning with the right 3PL provider holds the potential to not only enhance operations but also elevate customer experiences significantly.

Beginner’s Guide to Third-Party Logistics (3PL)

Discover how Falcon can elevate your fulfillment standards. Contact our team today.

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by Jamie C. Winters

E-commerce Return Management: How to Avoid Returns Altogether

Let us be the first to say: HAPPY RETURN SEASON!

Ok, we get it. We know it’s not happy and you’re hoping it ends soon. Thankfully, we’re here to teach you how to improve your overall e-commerce return management so you don’t have to start off your new year with return-season sadness.

What is E-commerce Return Management?

E-commerce return management is the small but ever-so-important area of business that manages the overall return process for your e-commerce company. Whether you have great or poor return management, utilizing new tools to improve your processes will reduce your carbon footprint, improve the shopping experience for customers and increase overall customer retention and satisfaction.

E-commerce Return Season

With us only days into the new year, return season has inevitably come along with 2022. Although we see a rough 30% of customers returning items within the first month of the post-holiday season, that number is increasing thanks to the 2020 pandemic.

As we enter return season with a thought-out strategy and incredible patience, it’s important to note that between 5% and 15% of all items customers ordered last year will be returned to stores. This makes up roughly 10% of all holiday sales made in 2021.

Not to mention, 9%-10% of your overall returns are estimated to be fraudulent.

How Covid-19 Impacted Returns

How did the pandemic affect return rates exactly? Well, according to the market research group Mintel, it found that 38% of all UK online shoppers said that the Covid-19 outbreak “had made them more confident in returning online purchases”.

This means that consumers are more comfortable buying, trying, and returning products than ever before.

According to research from Digital Commerce 360, retailers saw a 41% increase in 2021 returns compared to the 2020 holiday season.

What does this mean for e-commerce companies moving forward? Returns aren’t going away, which is why it’s important to come up with a strategy to offer easy, hassle-free, and environmentally-friendly return opportunities to customers.

Let’s learn how.

The 3 Ways to Accept Returns

Mail Item(s) Back to Warehouse

Offering customers the option to return items to your warehouse is a no-brainer. Whether they want to exchange their order, receive store credit, or simply get a refund, it’s up to you to provide easy means of doing so and the quality customer support your buyers need to have a great shopping (and returning!) experience.

As a buyer, sending items back to a warehouse can be a hit or miss. If the pants your customer ordered are a bit too small, they send them back in hopes they will receive the correct size based on their first item, the second time around.

Providing accurate information about your items helps customers make the correct purchase the first time as well as improves returning experiences

To learn in what ways your e-commerce brand can provide a better shopping and returning experience, check out our 2022 eCommerce breakdown where we go over the secrets you’ll need to succeed.

Return in Store

Did you know that 62% of shoppers are more likely to shop online if they can return their purchase to a physical store? Unlike returning to a warehouse, local storefronts allow customers to avoid waiting periods and return items in-store.

This cuts out waiting times, shipping carriers, and allows customers with the opportunity to exchange items in person, almost guaranteeing they’re buying an item exactly how they want it.

Allowing customers to return items in-store also motivates in-store shopping experiences. Although this digital age is fun, entertaining, and sometimes mind-bending, nothing beats that good ole’ fashioned feeling of entering a store, being greeted by staff, and losing yourself amongst physical products.

Don’t underestimate the power your physical store-front can bring your company, even if customers are returning items.

Partner with a 3PL for E-commerce Return Management

Utilizing a middleman not only changes the e-commerce game but also takes the stress out of return management.

Partnering with a 3PL allows your customers to return any and all items back to your partnered 3PL warehouse without any effort on your part. When working with the right 3PL, they will have teams designated to help customers return items, exchange items, and answer any questions or concerns they might have.

What’s not to love about a fulfillment process that does the heavy lifting for you?

Steps to Successful E-commerce Return Management

Improve Return Policy

Improving your return policy is the first step when improving your overall e-commerce return management process. By following these simple steps, you’ll have an easy-to-follow return policy for your customers in no time.

Make your return policy easy to find

Making your return policy prominent for customers is key. Using eye-catching colors, moving banners, pop-ups, or large, easy-to-read fonts will help your buyers locate, read, and understand your return policy before making a purchase and blindly returning items.

Don’t make it too formal

Remember, you’re talking to your customers. Not lawyers, doctors, or big wig business owners (if in the case you do, disregard #2 altogether), but regular customers who want regular verbiage.
Explain your return policy in a simple and easy-to-read format with easy-to-understand language.

Be upfront about shipping costs and define the expected condition of returns

Nobody likes surprise fees – make sure you clearly identify return shipping costs (if any) in your return policy. Additionally, predetermining what conditions your return policy covers – is equally as important.
Outlining what is and isn’t returnable, makes it clear for customers what they can return, when, and in what condition.

Use customer feedback

Don’t create a return policy and cement it into the framework of your website. Instead, update it regularly with changes provided through customer feedback.
Allowing buyers to let you know what they do and do not like, will give you the chance to become better and offer an even better shopping experience moving forward.

Automate Return Management

Switching to an automated system for returns and exchanges could save you time, stress, and money. Utilizing an automated option will allow your customers to skip the long customer service line and ditch waiting periods altogether.

With automation, buyers can return and exchange at the click of a button with little to no help on your part.

Learn more about how automation is making its mark on e-commerce and in what ways you can utilize it for 2022 in our upcoming e-commerce trends article.

Sustainable Returns

Customers want sustainability – and they want it now. Not just with their initial purchase, from material to packaging to delivery, but with returns too.

Did you know that around 5 billion pounds of returned goods wind up in landfills annually? According to MarketWatch, that’s nearly 5 million metric tons of CO2. Every. Single. Year. So, how do you offer sustainable returns? Here is a shortlist of things you can do right now.

Consolidate orders

There’s no reason multiple items in one order should be shipped in separate packaging. Combine orders together to eliminate wasted space and unnecessary packaging materials.

Eliminate unnecessary filler and empty space

Aside from consolidating orders, eliminating unneeded package filler and unused space is a great way to lower your company’s carbon footprint.

Reward customers for choosing greener shipping options

We know customers like their deliveries fast, but, do they like eco-friendly delivery more? Motivate and reward your customers when they choose longer delivery times or utilize BOPIS options.

“Opting for standard delivery rather than next-day could help decrease carbon dioxide emissions by about 30%.”
According to the MIT Center for Transportation and Logistics

If you’d like to learn more about sustainable packaging and how you can start your transition to a greener environmental impact, check out our eco-friendly packaging guide.

Protect Against Fraud

You know it, we know it, and your customers know it – the season of fraudulent returns is upon us. Even if you read this in July, chances are that fraudulent returns are still an issue you’d like to snuff out. Here is a short list of ways you can protect your company against return fraud this return season and forever after.

Modify for the holidays

A return policy is not a one-size-fits-all type of thing. When the holidays come around or even a special sale, it’s important to update your return policy with relevant information and communicate it with your customers.

Receipts

It’s fairly simple – don’t accept returns without a valid receipt. Include this in your return policy.

Tagging items

An up-and-coming idea that will inevitably gain more and more traction is the use of return security tags for items. Using items like a 360 ID tag will make it harder for customers to wear their purchase for an occasion and send it back immediately afterward.

By introducing return tags, buyers can try on their purchases, but once the tag is broken – it can not be returned. Tagging items will also help verify that the items you receive as a return, is in fact the same item you originally sent out.

Restocking fees

I prime way to deter people from buying that brand new TV for game day and returning it a day later, is to introduce restocking fees for high-cost items. By utilizing a restocking fee, potential scammers won’t receive any benefit for returning items and instead will lose money.

Steps to Avoiding Returns

The best kind of e-commerce return management is when you don’t have any returns to manage. Avoiding returns will not only create a better customer experience, but will also decrease stress on your customer service team, improve customer ratings and recommendations, and decrease your overall carbon footprint.

Let’s get into some ways you can avoid returns altogether.

Include Clear and Easy to Find Product Information

You’d be surprised with the kind of details customers need in order to be satisfied with their product. When writing item descriptions, include every detail you possibly can.

How large is it, how much does it weigh, what color is it, how can it range between customers, etc. Providing as much information as possible will help your customers receive exactly what they expected, eliminating their need for a return.

Use 3D or AR Website Functions

Another up-and-coming trend is the use of 3D or AR website functions. These elements allow customers to see what an item will look like in their home, on themselves, or what it would look like in person.

This creates yet another safety net by giving your customer a full view of what to expect out of their item, reducing the overall return rate for dissatisfaction.

Provide Accurate Photos and Videos

Nobody likes receiving a product that looks incredibly different online than in-person.

Editing your products to look better online will make them look worse in person.
Using extra props for product photography will make customers assume their order will include extra items.
Using colors and lighting to drastically alter your product will make the product look different in person.

Long story short: capture your product in the exact way your customers will receive it.

Encourage Customer Reviews and Feedback

Reviews and feedback are now one of the leading factors to whether or not a buyer will make the purchase. Encourage your customers to leave reviews and feedback on items and overall experience to help land more sales and increase the overall reputation of your brand.

Packaging Items with Travel in Mind

The truth is, some 30% of items are returned because they arrived to the customer faulty or damaged. By eliminating unnecessary space, you improve the chances of items arriving undamaged.

However, packaging items with the understanding that they will be traveling inside trucks, planes, ships, and be at the mercy of package handlers – you must prepare for the worst.

Keeping items packaged tight will decrease the chances of moving around, bumping into each other, or any other opportunity for damage.

E-commerce satisfaction shipping delivery

The Impact of Shipping and Delivery on E-commerce Satisfaction

In the evolving world of e-commerce, customer satisfaction hinges not only on product quality and price but also on the efficiency and reliability of shipping and delivery services. Understanding the significance of these factors is crucial in enticing potential e-commerce leads. In this blog, we delve into the key takeaways from a recent survey regarding shipping and delivery experiences, and how these findings can shape your approach to enticing e-commerce businesses.

Returning with Falcon

We know you’re reading this with a bead of sweat running down your forehead. There’s so much information, return fraud is on the rise, the planet is dying, and now you have to worry about re-writing an exceptional return policy, amidst the thousands of other things you’re already worrying about.

We’ve got just the thing for you. Partner with Falcon and ditch the stress of returns, fulfillment (and even customer service) altogether – it really is that simple.

Contact us today and get started on your de-stressing.

Let’s Talk!

Connect with us!

by Jamie C. Winters

Managing Expectations This Holiday Season

The Shipper’s Guide to Managing Expectations This Holiday Season

The holiday season is the most wonderful time of the year – but also the most stressful for many e-commerce businesses. With heightened consumer demand comes pressure to meet and exceed customer expectations for product availability, shipping speeds, and service. Therefore, this holiday season, focusing on inventory and delivery management will be key to managing customer expectations and minimizing issues. In particular, optimizing inventory levels and Implementing efficient fulfillment processes are essential. Additionally, providing transparency around order status through tracking information and proactive customer communication creates a positive customer experience. Ultimately, e-commerce brands that invest in strong operations this holiday season will be rewarded with satisfied, loyal customers and positioned for future success.

Inventory Management is Crucial

With many consumers still relying heavily on e-commerce, even the largest retailers can struggle to keep popular products in stock. To avoid disappointing customers with out-of-stocks:

Invest in inventory management software with demand forecasting capabilities. This will help you predict spikes in demand for top-selling items based on past sales data, search trends, and other factors.
Build safety stock levels to account for heightened demand. Don’t just rely on past sales – increase stock of your top SKUs by at least 20%.
Streamline supply chain management and implement solutions like Vendor-Managed Inventory (VMI) for key vendors. This gives you visibility into their stock levels and production capacity ahead of the season.
Scale up workforce for receiving, storage and order fulfillment with temporary or outsourced Warehouse and Distribution staffing. This will prevent bottlenecks as order volume increases.

Optimizing Delivery is Key

Consumers have come to expect ultra-fast, free shipping across all online purchases. To meet delivery demands:

Negotiate discounted shipping rates with carriers through annual contracts and volume discounts. This will help offset surcharges and keep free shipping profitable.
Invest in Transportation Management System (TMS) routing software to map optimal delivery routes and consolidate shipments. This reduces mileage and transit times.
Offer premium last-mile delivery services through same-day or next-day carriers in key regions. Though costly, this caters to customer convenience and impulse purchases.
Set reasonable lead times on website, with caveats around potential weather or demand-related delays. Under-promise and over-deliver to exceed expectations.

Keep Customers Updated

The best way to manage expectations is through transparency. Leverage these tools:

Implementation of Order Tracking software gives shipment status updates directly to customers. This reduces inbound inquiries on delivery ETA.
Utilize email and text capabilities in Warehouse Management System (WMS) to proactively notify customers of any order changes, delays or shortages.
Empower customer service team to instantly access inventory counts, order status and delivery details to quickly resolve issues.
Send personalized email notifications to re-engage customers if items become back-in-stock or to suggest alternative gift ideas for out-of-stocks.

By optimizing inventory availability, implementing delivery solutions and improving transparency, e-commerce businesses can better manage the pressures of peak demand. Follow these fulfillment and technology strategies for your most seamless holiday season yet. Delighted customers and positive reviews will set your brand up for success in the new year ahead.

Additional Inventory Management Tips

As mentioned, keeping popular products well-stocked is crucial during peak demand. A few additional inventory management tips include:

Implement perpetual inventory methods with cycle counts every 1-2 weeks leading up to the holidays. This identifies discrepancies between system records and physical counts early for correction.
Segment inventory by velocity (fast, medium and slow-movers) to prioritize availability of top-selling SKUs. These A-class inventory items drive the majority of holiday revenue.
Utilize an Inventory Tracking software or WMS to reduce rate of misplaced items within the warehouse. This provides real-time visibility by assigning unique IDs to each SKU for easy location.
Test unmanned solutions such as autonomous mobile robots and automated storage and retrieval systems to handle more supply without expanding workforce. This speeds up fulfillment even during labor shortages.

Demand Forecasting and Safety Stock Levels

Getting inventory demand forecasts wrong during the unpredictable holiday season can be detrimental. Avoid stockouts by:

Working with vendors and suppliers early to confirm production windows and raw material availability for top inventory. Confirm they have labor to scale production if needed.
Evaluating trends from prior holiday seasons, including major retail events like Cyber Week and Green Monday, to estimate sales velocities by product category.
Building in flexibility to pivot staffing and inventory allocation based on intra-season demand fluctuations.
Budgeting for excess buffer stock to account for forecast error – this is especially important for imported or long-lead-time items.

Enhancing Last-Mile Delivery

As mentioned in the original post, upgrading last-mile delivery capabilities is no longer a “nice-to-have” but requirement for modern consumers. Things to consider:

Explore crowdsourced same-day delivery options to offset rising rates from traditional couriers during peak season.
Provide customers visibility into all available delivery options and associated costs at checkout. This avoids later frustration if buyers feel misled by marketing promises.

Beginner’s Guide to Third-Party Logistics (3PL)

Companies who can balance profit and delight this holiday season will earn customer satisfaction, invaluable word-of-mouth, and sales long after the seasonal rush ends.

Let’s Talk!

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by Jamie C. Winters

Why Taking a Year-End Physical Inventory Count Matters

Taking a physical inventory count is an essential process for any business that holds stock, raw materials, or finished goods. Whether you manage a large fulfillment center or a small retail store, counting your physical products regularly is key to the accuracy of your inventory records, detecting potential inventory discrepancies, and even calculating your tax obligations properly. Read on for a comprehensive overview of what a physical inventory entails, why a year-end count is so vital for any business, and how you can streamline the process for maximum efficiency.

What Does Taking Physical Inventory Involve?

Physical inventory refers to the process of manually counting, weighing, or otherwise quantifying every item currently held in your warehouse, fulfillment center, retail location, or other facilities. This provides you with extremely accurate data on your stock levels, allowing you to compare the real-world figures to your existing inventory management records.

For businesses that handle a lot of products, counting inventory can be a massive undertaking potentially involving closure of facilities so that counts can be conducted without interference from regular operations. An inventory count should document details like:

Product SKUs
Exact quantities on hand for each item
Locations of various products
Any damages, defects, or quality issues noticed

Once counting is complete, you can compare the results to your expected stock levels based on purchasing and sales records. This reveals any inventory errors like theft, damages, or database inaccuracies so they can be addressed.

Why Year-End Inventory Counts Are Critical

While regular cycle counts are important for inventory accuracy, a comprehensive physical inventory at year-end provides unique benefits that support sound financial practices and operational efficiency.

Calculating Cost of Goods Sold: For tax purposes, you must determine your business’s cost of goods sold (COGS) annually to ascertain net income or loss. Since the value of your year-end inventory directly impacts this key calculation, an accurate count is essential.

Detecting Shrinkage Issues: A yearly physical inventory review makes shrinkage stand out clearly. If your actual stock doesn’t align with projections, it allows you to pinpoint problems like damages, miscounts, theft, or other causes of loss so you can implement preventative processes. This protects profits.

Informing Better Decisions: An accurate inventory overview enables data-backed decisions about purchasing, storage needs, staffing, loss prevention, and more as you enter a new financial year. This leads to supply chain optimization.

Planning Sales or Cycles: For businesses with annual sales cycles, a physical inventory check allows you to verify that you have adequate quantities on hand to meet customer demand without tying up excess capital unnecessarily.

The Importance of Inventory Accuracy

An accurate inventory count is crucial for several reasons beyond calculating taxes and detecting shrinkage. A few key benefits include:

Improved Customer Service Levels: When you have reliable visibility into actual product availability, you can confidently make sales promises and meet customer delivery expectations. Overselling stock leading to backorders or stockouts erodes trust.
Better Demand Forecasting: With concrete data on true stock positions, your demand planners can create superior projections for future inventory needs. This allows you to align purchasing and production with expected sales more precisely.
Increased Operational Efficiency: When inventory data aligns with reality, warehouse workers can optimize picking paths, ensure adequate storage space, and improve product slotting to boost productivity. Confidence in inventory accuracy leads to process improvements.
Funding Core Business Functions: For some businesses, inventory itself acts as collateral that allows increased borrowing capacity from lenders. Thus, verified quantities can facilitate access to working capital necessary for growth.
Mitigating Supply Chain Risk: From unexpected demand spikes to overseas shipping delays, supply chain disruptions remain commonplace. However accurate inventory counts help quantify your existing buffer so contingency plans reflect your true ability to absorb volatility.

Streamlining Year-End Inventory Processes

Careful preparation and management are key to making huge inventory counts efficient. Here are some top tips for streamlining your year-end physical inventory process:

Schedule Strategically: Choose a slower sales period so you can minimize business disruptions. Often January provides a perfect window between holidays and the new year rush.

Classify Products: Sort items based on sales velocity (ABC classification) so prioritization decisions are streamlined.

Enlist Help: Depending on inventory size, you may need additional staff or 3PL assistance. Provide training to anyone assisting with the count.

Map Out Locations: Create detailed maps showing all inventory locations to simplify searching and ensure comprehensive counts. Distribute to all counters.

Organize Inventory: Straighten shelves and storage areas so nothing gets missed. Group like products together.

Support Counters: Ensure teams have needed equipment like scanners for efficiency. Provide packing materials like boxes or crates to hold counted items.

Track Progress: Use checklist templates, maps, or warehouse management software to mark sections once counting in specific areas concludes.

Perform Cycle Counts: Supplement a major physical count with more frequent cycle counts of especially valuable stock or fast-moving products.

Year-end Physical Inventory Count Accuracy Best Practices

Alongside periodic cycle counting and annual physical inventory reviews, you can employ several ongoing best practices to sustain inventory accuracy:

Invest in WMS Solutions: Advanced warehouse management systems with real-time tracking preserve visibility as products move through fulfillment workflows. This forms a perpetual inventory management backbone.
Incorporate Scanning: Leverage barcode and RFID scanning at all critical inventory handling points like receiving, putaway, picking, and shipping. This instantly updates volumes in the WMS.
Perform Regular Audits: Even with strong inventory control technology, periodic hands-on spot checks verify that everything is capturing correctly at a granular level. Quickly address any inconsistencies.
Train Staff Thoroughly: Review standard operating procedures surrounding inventory transactions with warehouse personnel routinely to ensure systematic data capture and reinforce accountability at every turn.
Seek External Expertise: Work with experienced inventory management partners or consultants to gain an independent perspective on existing processes and tools while benefiting from industry best practices.

Rather than an annual inconvenience, view physical inventory counts as instrumental for unlocking transformative benefits, from supply chain resilience to data-driven growth, leading into the new year. Contact fulfillment experts for personalized guidance tailored to your operations.

Beginner’s Guide to Third-Party Logistics (3PL)

Reach out for personalized guidance on optimizing your unique inventory processes.

Let’s Talk!

Connect with us!

by Jamie C. Winters