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Flawless Fulfilment – The Challenges

Organisations are continually looking to improve Key Performance Indicator (KPI) metrics to deliver  flawlessly. Yet what we are experiencing in e-commerce and omni- channel is unprecedented, with every aspect of  this  process becoming more complex and dynamic, due to five accelerators simultaneously impacting order processing:

  • Volume – organisations have more orders, stock keeping units (SKU) and product variants to manage as well as more returns; yet order size is decreasing as consumers opt to make smaller purchases, more frequently.
  • Velocity – rising consumer expectation is affecting delivery timelines. Next day is the new normal, with same day become ever more prevalent. Organisations are coming under greater pressure to deliver in shorter timeframes.
  • Variation – organisations need to meet evolving customer delivery options, from store to home or lockers, and ensure the entire process is frictionless. Customers have no tolerance for late, damaged or incorrect orders.
  • Verification – to meet delivery promises, handle emerging universal product code standards and protect brands from the rising tide of fraud and theft in the supply chain, real-time track and trace capability has never been so critical.
  • Volatility – from planned peaks such as Black Friday promotions to unplanned troughs caused by sudden marketplace shocks, managing extreme volatility requires tight inventory management and an adaptable workforce that can respond flexibly to demand spikes.

At the same time these accelerating forces, increases in transportation, warehousing space and labour costs are driving up the cost per order, while fierce competition is putting pressure on margins.

Warehouse operations face a perfect storm – and the challenge is to improve efficiency, streamline processes and reduce the cost-to-serve.

Read More:- The Warehouse Manager’s Guide to Improving Efficiency