With labor costs increasing, parcel shipping becoming more expensive and carriers struggling to support peak volumes, companies are implementing new strategies with micro fulfillment centers or MFCs. The concept is not new and they’re not for everyone, but it’s worth assessing how it might fit into your fulfillment network strategy.
Inventory is the largest balance sheet asset in most companies. Optimizing it has a huge impact on profitability and customer service. Here are 6 key metrics every ecommerce company should measure, how to calculate each and how a partnership between fulfillment and merchandising will benefit profitability and efficiency.
Absolute productivity has declined in many ecommerce fulfillment centers because productivity has not kept up with the rate of increased costs. Some larger companies are paying $18 to $20 per hour in some markets. With this in mind, here are 6 ways to become more efficient and reduce costs in your ecommerce fulfillment operations.
In 2021, will order demand continue at the same volume? How will it change? And how will it impact my labor demand? For many multichannel companies, this means moving toward fulfillment automation in order to decrease the amount of labor and its increasing costs. Here are 2 scenarios where automation was cost justified.
For some ecommerce and multichannel companies, using third-party fulfillment (3PL) can be a viable alternative and provide high customer service as an option to internal fulfillment. The burning question for management: “How will it compare in terms of costs?” Here’s a step-by-step process for conducting your analysis.
Picking errors have a very high cost to your ecommerce business in both actual costs and in lower customer satisfaction, lifetime value (CLV) and retention. These problems will erode your business’ profitability and damage the customer experience. We’ll help you identify the costs and share 6 ways to minimize picking errors.
In developing an ecommerce fulfillment center move plan, it is helpful to understand some common problems other multichannel companies have encountered, including lack of a sufficiently detailed planning and budgeting process and inventory inaccuracy before and after. Following these 10 steps will help make your move a success.