What is Batch and Serial Number Tracking?

Batch and serial number tracking is a process used to identify and track products. This process helps to maintain control over the production process and can be used to ensure the quality of the products. It also helps to identify and trace any problems that may arise in the manufacturing process.

Batch and serial number tracking involve assigning each product with a unique identifier. This unique identifier is used to track the product from production to sale. It also allows for the tracking of the product’s history, such as where it was produced, when it was produced, and who produced it. This information can be used to identify any potential problems with the product and to take corrective action.

What is a Batch Number and how it works?

A batch number is a unique identifier assigned to a group of products that were manufactured together. It is used to identify and track the products from production to sale. The batch number is typically printed on the product’s label or packaging.

The batch number can be used to track the production process and to identify any potential issues with the product. For example, if a product is found to be defective, the batch number can be used to trace the product back to the production line and determine the cause of the defect.

Batch picking works in 4 steps:

1. Generate picking lists for each order

A document called a picking list is used to convey information about the items that must be sent to a customer, such as SKU(s), quantities, and storage location(s) of the inventory.

When orders have the same picking lists, batch picking is the most effective method. This enables the picker to have a queue of orders ready for dispatch to various customers.

Printed lists are uncommon in today’s world. Instead, wearable devices and technology are utilised in modern warehouses to combine, allocate, and fulfil each order, eliminating the need for paper.

2. Group orders by common items

To perform batch picking, orders that have identical items must be combined into a batch. An order management system or a warehouse management system (WMS) can automatically group orders that are batchable and contain the same items and quantities.

3. Give a batch to a picker

A warehouse management system (WMS) can create batch pick lists for each picker, optimising the retrieval process of items. However, if done manually, it may be necessary to create an efficient route for each picker to retrieve all the SKUs.

4. Pick all items in the order

To avoid wasting time or taking unnecessary steps, each picker must adhere to the picking list and optimise their route to select the correct items. After picking the SKUs for the batch orders, the orders can be passed on to a packer, and the picker can proceed with the next batch.

The advantages of batch picking

1. Less foot travel for employees

Warehouses can be enormous, and traveling between each section of a warehouse can be time-consuming. If employees must retrieve items from multiple, distant locations, order fulfilment will take longer. Batch picking simplifies operations by allowing workers to complete the same task in bulk, reducing the distance they need to travel and increasing their productivity.

2. Faster picking rates

Efficient order fulfilment is a significant factor in the success of warehouse operations. Batch picking can help employees minimize their movement around the warehouse, allowing them to complete their tasks more quickly. By reducing travel time between orders, pickers can process orders more rapidly, decreasing the average time required to fulfil an order.

3. Reduced costs

As productivity rises, the amount of manpower required for picking decreases, resulting in minimal overtime and subsequently lowering the expenditure on labour costs.

What is a Serial Number?

A serial number is a unique identifier assigned to a single product. It is used to identify and track the product from production to sale. The serial number is typically printed on the product’s label or packaging.

The serial number can be used to track the production process and to identify any potential issues with the product. For example, if a product is found to be defective, the serial number can be used to trace the product back to the production line and determine the cause of the defect.

What is the Difference between Batch and Serial Numbers?

The main difference between batch and serial numbers is that batch numbers are assigned to a group of products that were manufactured together, while serial numbers are assigned to a single product. Batch numbers are typically used to track the production process and to identify any potential issues with the product. Serial numbers are typically used to identify and track individual products.

One example of a product that uses batch numbers is cosmetic products. Each batch of cosmetic products produced by a manufacturing company is given a unique batch number, which allows the product to be traced and identified in the event of a recall or quality issue. This helps ensure the safety and quality of the medication being distributed to consumers.

The Importance of the Right Technology for Batch Control

The right technology is essential for effective batch control. Technology such as RFID tags and barcode scanners can be used to track and identify products. This technology can help to ensure that the right products are being produced and that any problems are identified and addressed as quickly as possible.

In addition, software technology can be used to automate the batch and serial number tracking process. This can help to reduce the amount of time and effort required to track and control batches of products. It can also help to ensure that the data is accurate and up-to-date.

How Batch and Serial Number Tracking Can Help With Control

Batch and serial number tracking can help to ensure that control is maintained over the production process. It can also help to identify and trace any problems that may arise in the manufacturing process. This can help to ensure that only the highest quality products are produced.

Batch and serial number tracking can also help to improve the efficiency of the production process. Tracking the production process can help identify any areas that need improvement and ensure that the production process is running as smoothly as possible.

Benefits of Batch and Serial Number Tracking

Batch and serial number tracking can provide many benefits, including:

• Improved control over the production process
• Improved product quality
• Reduced costs associated with product recalls
• Improved efficiency of the production process
• Improved traceability of products
• Reduced time and effort required to track and control batches of products

3PL Batch and Serial Number Tracking Software Solutions

There are many software solutions available to help with batch and serial number tracking. These software solutions can help to automate the process and ensure that the data is accurate and up-to-date. They can also help to reduce the amount of time and effort required to track and control batches of products. But reliable and robust software solutions can differ quite a lot and you won’t always get the level of service you would expect.

3PL’s fusion software lets you automate your order fulfilment at scale, optimise your operations for efficiency and cost, use the delivery experience to beat shopper expectations and create better customer experiences that bump up long-term loyalty. Our team will help you set up and implement batch and serial tracking to get your operations running smoothly

Tips for Implementing Batch and Serial Number Tracking

To ensure the success of batch and serial number tracking, there are some tips to keep in mind:

• Make sure that the right technology is in place to track and control batches of products effectively.
• Make sure that the data is accurate and up-to-date.
• Ensure that the right processes and procedures are in place to track and control batches of products.
• Ensure that all relevant stakeholders are aware of the batch and serial number tracking process.
• Ensure that the batch and serial number tracking process is integrated with other systems.

3PL is your go-to partner for batch and serial number control

Batch and serial number tracking are essential for the production process. 3PL have years of experience with this service and know the ins and outs of getting it set up. Our dedicated team will help you with the set up and walk you through the Fusion portal where you will be able to review/track and analyse every order. You’ll gain insights into the logistics of your products and orders allowing you to provide a better service to your customers and ensure you’re delivering the highest quality of products.

You source and sell – leave the rest to 3PL!

Speak to our team today to get started.

Here are our top 10 movers and shakers to be alive to:

1. Overall UK ecommerce growth will slow down to pre-pandemic levels.

2. A Year of Survival – particularly for aggregators and resellers with thin margins.

3. Cost reduction imperatives will drive sellers to invest in technology and business process often outsourcing physical operations.

4. Amazon’s fees and advertising costs will continue to rise – leading many sellers to diversify their sales channels.

5. Bitcoin and other forms of Crypto will start to emerge for online transactions.

6. Growth in DTC e-commerce sites will continue to build momentum. The rising tide will float all DTC boats, but Shopify will be the primary beneficiary.

7. Liquidation sites will benefit from high inventories and slower ecommerce growth.

8. Container shipping costs will drop as demand levels out and supply chain bottlenecks continue to be resolved.

9. eBay will do quite well with an increase in re-commerce and the rise in discount shopping.

10. More ecommerce sellers and sites will embrace Artificial Intelligence.

1. Sustainability

Barely a day goes by now without headlines about climate change, environmental destruction and eco-protests dominating the news.

Because of this, consumers are becoming more concerned about sustainability than ever before.

In fact, despite the emerging cost-of-living crisis, sustainability is still top of the agenda for consumers. According to a recent piece of research carried out by American Express, 65% of shoppers think about the environmental impact of the items they buy.

What’s more, 63% of respondents to that same survey said they will only shop with online retailers that offer sustainable, green, delivery options.

So, if your eCommerce business isn’t already taking sustainability seriously, it NEEDS to in 2023.

There are a number of ways in which you can green your eCommerce business. Actions you can take include switching to sustainable packaging, choosing an eco-friendly fulfilment provider, switching to sustainable suppliers for your goods and services and more…

2. Mobile shopping

It’s not an exaggeration to say that the web is mobile now. For younger consumers in particular (think Gen Z), being ‘online’ no longer refers to being sat in front of a computer. In fact, many consumers now equate being online with their smartphone.

And, this doesn’t just apply to browsing. It applies to making purchases too.

According to market research agency Statista, mobile devices are responsible for 71% of retail traffic and 61% of online purchases.

Mobile is now that important to eCommerce retailers.

It’s vital then that your eCommerce store is optimised for mobile in 2023. This includes using a responsive design – so that your site looks great and is fully functional on any mobile device.

Fail to do this, and you’ll lose customers to those retailers who have truly embraced ‘m-commerce’ in 2023.

3. Social retail

Social retail is a trend which has been gaining popularity over the past year, but we predict that 2023 is the year it truly takes off.

Defined as ‘the use of social media platforms to sell products’, social retail has emerged thanks to platforms such as Instagram and TikTok allowing retailers to set up shopfronts directly on their platforms.

With shopfronts embedded natively on social platforms, eCommerce retailers are able to directly engage with their target audience and reduce the number of clicks consumers have to make in order to complete a purchase.

It’s a tactic which works particularly well for direct-to-consumer brands, and – at the time of writing – is responsible for something like 13% of all online sales (according to marketing software company SEMRush).

That’s an impressive number, and one that should inspire your brand to embrace and run with social retail in 2023.

4. Personalisation

Personalisation is a trend which has been floating around the eCommerce space for a couple of years – but we think the potentially challenging trading conditions of 2023 are what will see this trend truly embraced by online retailers.

Why? Because, according to the State of Personalisation report from Twilio Segment, 60% of consumers say they’ll become repeat consumers of a brand if they have received a personalised shopping experience.

When you consider that it costs less to retain a customer than acquire a new one, this is an important piece of information for eCommerce brands.

So, 2023 should be the year that you invest in personalising your marketing and sales efforts.

Whether it’s something as simple as personalised emails (which have a 6.2% higher open rate than regular emails by the way!), or going further and allowing people to customise their products (see: Nike), personalisation should be on your ‘to do’ list next year.

5. Subscriptions

If you offer consumable goods (e.g. beauty products, razors, hygiene products), and you don’t already offer shoppers a subscription option – you need to do so in 2023.

Consider the following:

• Over a quarter of weekly online shoppers have at least one subscription (as per research from Kearney).
• One in 10 people are a member of a subscription service of some kind (via Shopblocks).
• Demand for subscription gifts has doubled over the last four years (via Shopblocks).

Those are some powerful and eye-opening stats. If you want to drive revenue and customer retention in 2023, then subscriptions should certainly be part of the mix.

Offering subscriptions does have its own unique set of challenges, however, so it’s vital that things like your subscription fulfilment services are geared up appropriately.

6. Augmented reality

With ever more people making purchases online, eCommerce merchandisers have been exploring new ways to display their products.

For retail verticals such as fashion, this is especially important, as it can be difficult for consumers to truly understand what a particular item is like from a static 2D image.

That’s why augmented reality is set to be one of the hot eCommerce trends to watch in 2023.

Expect to see the most forward-thinking retailers using demo videos and augmented reality to allow consumers to see products in 3D and visualise them in their own home, etc.

This isn’t merely technological vanity, either; it actually works! According to research from Google, shoppers engage with 3D and enhanced images of products 50% more than they do with static 2D ones.

If you want to boost your eCommerce website’s conversion rate in 2023, the answer is clear; invest in augmented reality!

Get your eCommerce brand ready for 2023 with 3PL

If you want to embrace the trends outlined above and grow in 2023, then you need a third-party logistics provider that truly understands eCommerce.

Meet 3PL!

We’re the leading logistics and fulfilment provider for leading eCommerce brands, offering everything from eco-friendly fulfilment, to subscription box fulfilment, crowdfunding fulfilment and more…

Speak to 3PL about your eCommerce fulfilment requirements now

For more eCommerce fulfilment, logistics and shipping advice, read the 3PL blog…

Everything You Need to Know About D2C eCommerce Fulfilment | How Can Outsourcing to 3PL Help Your Business Cut Costs? | How to Choose the Best eCommerce Fulfilment Service for Your Business

What is a contact centre?

A contact centre is a centralised point where all interactions with customers are funnelled and dealt with.

Customers contact businesses in many ways, from telephone calls to emails – and it’s the job of contact centres to deal with these enquiries – regardless of the format they take.

Contact centres are typically divided into two distinct types:

• Inbound contact centres.
• Outbound contact centres.

Inbound contact centres deal with enquiries from customers – providing advice, information, updates, and dealing with complaints.

Outbound contact centres are those that reach out to individuals – traditionally by phone.

In an eCommerce context, a contact centre will generally combine both of these functions – dealing with inbound enquiries from customers, and providing outbound communications, for example letting customers know about a change in the status of their order.

What is contact centre outsourcing?

Contact centre outsourcing refers to the scenario in which an eCommerce business partners with a third party who will run their contact centre on their behalf.

In other words, rather than going to the time and expense of setting up a contact centre in-house, an eCommerce brand chooses an outside company to deal with their inbound and outbound customer service requirements.

The advantages of contact centre outsourcing

Outsourcing your contact centre requirements can have a number of benefits for eCommerce brands. This is especially true if your eCommerce brand is in the early stages of growth and development.

Below, you’ll find the top benefits of contact centre outsourcing.

It’s cost-effective

Setting up a dedicated contact centre isn’t cheap. You need to pay for staff, equipment, software, and office space (and that’s just for starters!).

These are a mix of upfront and ongoing costs – which tie up a lot of your capital. This is capital which could often be better used on activities that’ll further grow your business, such as sales and marketing campaigns.

By outsourcing your contact centre to a third party, you’ll be able to benefit from great customer service, but at a fraction of the cost of setting up a contact centre in-house.

It improves customer experience

If you’re running a rapidly growing eCommerce brand, then you’re probably struggling to stay on top of the amount of customer enquiries you’re receiving.

This can lead to a sour taste in many consumers’ mouths.

With large eCommerce brands being able to provide answers to customer queries around the clock, customers have become used to getting relevant, comprehensive answers quickly.

If your brand is to compete in the crowded eCommerce space, you need to be able to respond to customers in the same timely fashion.

Outsourcing your contact centre allows you to do just that.

Access to expertise

Handling customer enquiries – especially varied enquiries – is a specialist skill.

It’s a skill that you and your internal team may not be particularly adept at. This is why it makes sense to outsource your contact centre to a specialist.

Think of it this way; a third party contact centre provider is focused solely on dealing with customer enquiries. They’ll have the experience, systems, processes, and people to deal with large volumes of enquiries professionally.

That’s something that would take you and your internal team likely years to develop.

Third party contact centres also tend to have advanced data collection tools and will be able to provide you with detailed analytics such as average wait times, the number of different types of enquiries and more.

These can be incredibly valuable insights and, again, aren’t something you’d necessarily be able to develop in-house.

Improved customer retention

According to a survey conducted by Gravy Solutions, 69% of people shop more frequently with brands that offer consistent customer service.

By outsourcing your contact centre, you can capture that 69% of people, with consistently good customer service.

Third party contact centres are incentivised to offer the very best customer service – plus, you can quantify this by asking them to report on KPIs around customer satisfaction and retention.

Improved availability

Related to the above point, outsourced contact centres can improve your customer retention rate simply because they make you more available to your customers.

What we mean by this, is that outsourced contact centres can be available 24-7 (or at least extended hours), so your customers can get the answers they want at any time of day.

This puts you on a similar footing to the very biggest eCommerce brands like Amazon, where customers return time after time because they can always get an answer about their orders…

The disadvantages of contact centre outsourcing

Like any form of outsourcing, contact centre outsourcing does have a few disadvantages. We’ve outlined these drawbacks below.

Less control

If you’re very concerned over controlling your brand’s messaging, then outsourcing your contact centre can diminish your level of control.

This is only a minor drawback, however, as many third party contact centre providers will work closely with you to establish things like tone of voice, the key messages that need to be conveyed etc.

Lack of industry knowledge

This isn’t a universal drawback, but rather a note of warning.

If you don’t select the right third party contact centre provider, then you may find they don’t have the detailed industry knowledge that is needed to provide a proper level of service to your customers.

This can be solved by only working with a third party contact centre that can provide a demonstrated track record of working in your industry.

Lack of qualitative feedback

Third party contact centres will be able to provide you with detailed analytics regarding call volumes and types. However, they may not be able to provide you with qualitative feedback, such as customer comments on the quality of your service or products.

This isn’t necessarily the end of the world though, as it’s possible for eCommerce brands to gather this qualitative feedback through other channels such as email surveys, social media platforms and on-site chatbots.

How outsourcing your contact centre can enhance the customer experience

As we’ve just seen, contact centre outsourcing comes with a whole host of benefits. Here at 3PL, our outsourced contact centre service stands out from the rest. Here’s why:

• Your brand, in safe hands. Our team will work closely with your brand to understand your needs and ensure your customers receive the perfect support.
• We’ll respond to your customers quickly. Our experienced support team is adept at responding to enquiries quickly and accurately.
• Never miss an order again. Not only are our advisors able to expertly answer your customers’ questions, but they are able to process orders directly over the phone, taking payments in line with PCI compliance.
• Industry-leading returns. Because 3PL also offers complete logistics and fulfilment, we can also handle your returns – delivering faster refunds and timely replacements – making you the envy of your competitors.
• We’re more than an outsourced contact centre! As the point above mentions, 3PL also offers a complete range of eCommerce fulfilment services, meaning we are the one-stop-solution for the most ambitious eCommerce brands.

Speak to 3PL about your contact centre outsourcing today

It’s time to supercharge your customer service and overtake your competitors. Speak to 3PL today, and find out how we can take your contact centre operations to the next level.

Find out more about 3PL’s outsourced contact centre services now

For more eCommerce advice and information, read the 3PL blog…

A Step-by-Step Guide to Improving Post-Purchase Customer Experience | When to Make the Switch From In-House to Outsourced Fulfilment? | 7 Strategies to Supercharge Your Omnichannel eCommerce Growth

]]> https://www.3p-logistics.co.uk/3pl-blog/how-to-use-demand-forecasting-to-grow-your-ecommerce-business-in-2023/ Tue, 22 Nov 2022 16:00:30 +0000 https://www.3p-logistics.co.uk/?p=4297 Are you hoping to significantly grow your eCommerce business in 2023? Then there’s one particular skill that can help you achieve this – demand forecasting. To find out more about demand forecasting and how to apply it in your business, keep reading…

What is eCommerce demand forecasting?

eCommerce demand forecasting refers to the process of predicting future demand for your products.

Demand forecasting can cover your entire inventory, be it products which you’ve been selling for years, or new products that you’re thinking about stocking.

It’s possible to create a demand forecast using a number of sources, however the most common source of data is historical sales records – which are typically drawn from an eCommerce business’ order management system.

Why is eCommerce demand forecasting important?

As you’ll be aware – running an eCommerce business, particularly one that is growing or at scale – is a complex, challenging affair.

Not only are you likely to have lots of inventory to deal with, but you’ll have the challenge of fulfilling orders to different parts of the country, dealing with supply chain disruptions and more.

Not to mention your competitors! Today’s eCommerce industry is becoming more competitive than ever. You not only have to compete with the giants such as Amazon, but a continual influx of new start-ups too.

That all adds up to a scenario where the answer is demand forecasting.

Demand forecasting can help you to avoid the mistakes that can result in your customers going elsewhere and your business failing to grow.

The types of mistakes that demand forecasting can help you avoid, include:

• Running out of stock during peak sales periods, losing you valuable customers.
• Overspending on inventory that doesn’t sell – leaving you with valuable capital tied up in stock.
• Struggling with cash flow as a result of capital being tied up in slow moving items of inventory.
• Having to spend too much on overheads due to incorrect inventory allocation.

What are the different types of eCommerce demand forecasting?

Depending on the scale of your eCommerce business, the retail niche you work in, and the markets you serve, different types of eCommerce demand forecasts will be more suitable for you.

Below, we’ve detailed some of the most common types of eCommerce demand forecasting by level and time.

Macro-level

A macro-level demand forecast examines future demand in the broadest possible way.

This type of forecast examines the wider market and economic conditions in which an eCommerce business is operating. Such a forecast will consider things like inflation, consumer confidence, government fiscal policy and more.

Because macro-level demand forecasts are so broad – and encompass so many varying factors – they are more suited to larger businesses which are able to fund this level of market research.

Micro-level

A micro-level demand forecast is one that takes a ‘deep-dive’ into an individual eCommerce company’s operations and performance.

This type of demand forecast understands that individual eCommerce firms can do very little to influence macro factors, and instead focuses on things that a firm can influence.

Factors that will be taken into account in a micro-level demand forecast include past sales performance of key categories, profit margins of individual items, and the cost of production and cash flow and how these things impact inventory.

Aside from demand forecasts that take either a broad or very narrow view, there are also demand forecasts that look at differing lengths of time. These are short-term and long-term demand forecasts.

Short-term

As the name suggests, a short-term demand forecast looks at potential demand over a shorter period of time – typically looking at a three to 12-month period.

Short-term demand forecasts are particularly good for businesses that are affected by seasonality. For example, if you sell tents and outdoor equipment, a forecast will look ahead to the next summer – having looked at the previous summer’s sales data to determine how much stock will be needed.

Long-term

A long–term demand forecast will normally attempt to anticipate demand anywhere from 12 months to three years ahead.

One of the major reasons for conducting a long-term demand forecast is to determine whether you should introduce new products and product lines into your business. Likewise, a long-term demand forecast will examine whether your business needs to adopt new sales channels.

Because this type of forecast is covering a longer period of time, it’s better able to observe changes in consumer purchasing habits and trends.

For example, if you’re thinking about social commerce (e.g. selling directly to consumers through platforms like TikTok and Instagram), then a long-term forecast can help you determine whether this will be a worthwhile investment or not.

How to conduct a demand forecast for your eCommerce business

As you have read so far, conducting a demand forecast is certainly a worthwhile exercise for the majority of eCommerce brands. But, if you want to conduct one, what are the next steps?

Select targets

Before you dive in and start pulling months and years of sales data from your systems, you should first set some targets; in other words, think about the questions you want the forecast to answer.

Once you’ve identified these questions and targets, you can start crafting a forecast that actually helps to answer them.

Collect and save data

The foundation of any successful forecast is good, clean, accurate data. If you’re going to effectively answer the questions you set out earlier, you’re going to need the data that’ll provide the answers.

The most important data for your forecast will be your sales data. Accessing this data is usually as straightforward as downloading it from your CRM or order management platform.

Remember, though, that a good forecast will also look at wider trends – including competitors, the wider market, the economy – so remember to include some of this data from outside your business.

Data analysis

Once you’ve gathered all of your data, it’s time to analyse it.

If you’re a smaller eCommerce company, then it should be possible to do this manually, using spreadsheets and charts to identify key sales/demand trends.

However, if you’re a very large eCommerce company, it’s likely that you’ll need to call in the services of a professional data analyst to help you manipulate and handle the data to yield useful insights and trends.

Ongoing adjustments

Having completed your forecast, you want to make sure it doesn’t sit on a shelf gathering dust.

Instead, you want to put your money where your mouth is, and start implementing changes within your business based on the forecast.

So, if your forecast indicates falling demand for a particular line of products, make sure your reorder points are changed so that you keep less of that particular item in stock.

Implementing your forecast can certainly be daunting, but the other option – working based on sheer guesswork – is far worse!

Ensure your inventory and fulfilment is on point with 3PL

You may have created the finest demand forecast in the world, but if you struggle to manage your inventory and process and fulfil orders efficiently, you may as well not have a forecast!

If you’re struggling to stay on top of your inventory and fulfilment, then why not consider outsourcing it to an expert third-party logistics business like 3PL?

We take away the hassle of managing your own inventory and fulfilment so that you can focus on what you do best – marketing and selling your awesome products!

Sounds interesting? Then speak to 3PL today and our friendly experts will be able to answer all of your questions!

Find out more about 3PL’s eCommerce fulfilment services now

For more eCommerce fulfilment, logistics and shipping advice, read the 3PL blog…

How Can Outsourcing to 3PL Help Your Business Cut Costs? | How to Choose the Best eCommerce Fulfilment Service for Your Business | Everything You Need to Know About D2C eCommerce Fulfilment

The cost of living crisis and how it impacts your business

If you run an eCommerce business, then you’ve undoubtedly noticed that costs for all sorts of business essentials have been rising over the past six to 12 months.

Whether it’s your energy bills, the cost of materials, or your wage bill, it must seem like every part of your business is becoming more expensive to run.

You’re not alone.

According to a survey carried out by Nucleus Commercial Finance, 72% of business owners say the current cost of living crisis is a major concern regarding the survival or growth of their business.

The same survey also highlighted the key areas where rising costs are most pressing:

• Rising cost of energy.
• Cash flow.
• Employee retention.
• Transportation costs.

There are numerous reasons as to why costs are rising in these areas, but there are two overarching themes that have been identified as being responsible for rising costs.

The COVID-19 pandemic

One of the key drivers of inflation has been identified as the COVID-19 lockdowns of 2020 and 2021.

With the economy effectively being put ‘on ice’ for long periods of time, this resulted in very significant disruptions to supply chains, huge changes in demand profiles and more.

This has resulted in significant levels of inflation across the world – the UK is expected to see inflation of 11% by the end of this year – and as a result rising prices for a whole range of basic business inputs such as materials and goods.

Energy

With the introduction of the COVID-19 lockdowns, demand for oil and gas collapsed. This resulted in the cancellation of numerous large oil and gas projects around the world.

As demand for energy returned following the ending of lockdowns, we found that the energy industry was only able to offer constrained supply – resulting in higher prices for energy.

This curtailed energy supply situation was greatly worsened following the Russian invasion of Ukraine in early 2022. With Russia closing off major gas pipelines to Europe, the cost of energy has risen yet higher.

These overarching themes are the reason that eCommerce brands are facing rising costs in nearly every part of their business.

So, what’s the answer?

One of the key things you can do to help your business cut costs and increase your profit margins, is to outsource your fulfilment to 3PL.

Keep reading to find out more.

Why outsourcing your fulfilment can save your business money

If you’re an eCommerce business, then you’ll no doubt be aware that the process of fulfilment involves numerous inputs – inputs which cost you money.

Fulfilment also requires a significant knowledge base; something which can be difficult to develop when you’re focusing on the wider operational aspects of your business.

The solution to these problems (and more), is to outsource your fulfilment to what’s known as a third-party logistics provider. Below, we’ve set out the many benefits associated with doing this.

Expertise

The chances are, you’re an expert when it comes to the products you sell. But, are you an expert at running fulfilment at scale?

If you’re not, then it makes sense to outsource your fulfilment to a dedicated third-party fulfilment provider like ourselves here at 3PL.

Companies like 3PL do nothing but fulfilment for other companies. It’s their sole job to ensure that your fulfilment process is run as efficiently and effectively as possible.

By choosing experts to carry out your fulfilment, you’ll be reducing the number of costly mistakes that you’d incur if you tried to run all of your fulfilment in-house.

Better labour allocation

As you’re probably aware, running fulfilment operations in-house can be a rather labour-intensive affair.

Not only do you need people to process orders, but you need people to manage inventory, run the pick and pack process, maintain customer communications, arrange delivery and negotiate with couriers etc. There’s a lot to do!

By outsourcing your fulfilment to 3PL, you can allocate your employees to more value-add tasks such as marketing or sales, improving your revenue and profitability.

Reduced material costs

Customers expect orders they place with eCommerce stores to arrive perfectly packaged.

But, in today’s world of increasing materials costs, this can end up costing you a small fortune.

If you outsource your fulfilment to a third-party logistics provider, then you can significantly reduce, even eliminate, these costs.

A provider like 3PL will include the packaging of orders within their service. Plus, because 3PL provides packaging services to tens of other eCommerce brands, it is able to make use of economies of scale to purchase packaging materials at rates far lower than an individual brand could ever hope to negotiate.

The result is that you get packaging at far lower costs than if you were to try to buy it yourself.

Reduced fixed capital

If you attempt to run your fulfilment in-house, you’ll quickly find that much of your capital quickly becomes tied up in fixed assets.

For example, as you grow, you’ll need to invest in a larger warehouse for your inventory. You’ll need to invest in fixtures and fittings for the warehouse. You’ll need to invest in fulfilment software and tech to run the warehouse and associated fulfilment operations.

These things tie up your capital in assets which aren’t necessarily the best use of that capital.

By outsourcing your fulfilment to 3PL, you won’t have to invest your hard-earned capital in fixed assets, and instead can use it for more growth-oriented activities such as sales and marketing campaigns instead.

You’ll also benefit from economies of scale, too. Because a 3PL carries out fulfilment on behalf of multiple brands, you’ll benefit from having a large, modern warehouse for your inventory (which you probably couldn’t afford if you were running fulfilment in-house).

Lower transportation costs

With fuel costs being a major driver of inflation, the cost of transporting orders to customers is one of the biggest things that is cutting into the profits of eCommerce brands at present.

As you’ve probably found, couriers are being faced with much bigger fuel bills, and they are passing these costs onto you – the customer.

However, there is a solution. Yes, that’s right! Outsourcing your fulfilment to 3PL.

It’s about negotiating power.

At 3PL, we carry out fulfilment for multiple eCommerce brands, meaning we send hundreds (even thousands) of parcels from our distribution centres each day.

This means that we are able to negotiate very competitive rates from our pool of courier companies. These rates are far cheaper than an eCommerce brand would be able to negotiate on their own.

Thus, it makes sense to outsource your fulfilment to 3PL, and benefit from significant cost savings across every point of your fulfilment process!

Outsource your fulfilment to 3PL today

With the peak selling season nearly upon us, and little sign of the cost of living crisis abating, there’s never been a better time to outsource your fulfilment.

We work with eCommerce brands big and small to ensure their fulfilment is as cost-effective as possible, helping them to achieve higher revenues and better profit margins.

If that sounds like something that would work for your brand, then speak to 3PL today!

Discover more about 3PL’s eCommerce order fulfilment services now

For more eCommerce fulfilment, logistics and shipping advice, read the 3PL blog…

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1. Organise your warehouse

In the run-up to the holiday period, you should take the opportunity to get your warehouse as organised as possible.

After all, your warehouse is where the shipping process begins. You want to make sure that your warehouse is as organised as possible, so that when all those holiday orders start pouring in, you and your warehouse team can fulfil them as efficiently as possible.

It can be a good idea to map out your warehouse’s floor plan and discuss any pain points that currently exist with your fulfilment team. It’s likely they’ve spotted potential improvements that you’ve missed (such as changing the locations of popular product lines, etc).

2. Talk to your suppliers

In addition to making sure your warehouse is in order, you want to make sure your inventory is in order, too.

As such, reach out to your suppliers as early as possible and discuss your holiday inventory requirements.

Where possible, share your predicted order volumes, which lines are likely to prove the most popular, and when you’re going to need to replenish these lines. By coordinating closely with your suppliers, you can avoid running out of stock during one of the busiest times of year.

3. Mark out key dates in your calendar

Make sure that everyone in your business is aware of the biggest shopping days over the holiday period.

It can be all too easy for these big sales days to creep up on you and your team. So make sure that everyone is aware of these dates, and ensure they are scheduling leave, arranging rotas etc that take them into account.

These exact dates will vary depending on your eCommerce brand, but major sales dates during the holiday period include:

• Black Friday – Friday 25th November 2022.
• Cyber Monday – Monday 28th November 2022.
• Christmas Day – Sunday 25th December 2022.
• Boxing Day – Monday 26th December 2022.

4. Talk to your delivery companies

According to research conducted by Salesforce, last-mile delivery services are expected to exceed capacity by 5% during 2022’s holiday season.

That potentially translates into fierce competition for delivery slots, delayed deliveries and even missed deliveries.

As such, you want to gain a clear picture of your delivery company’s holiday shipping requirements. For example, your delivery company may extend delivery lead times, put in place new rules, or even different pricing structures (such as surge pricing).

This can not only impact customer satisfaction, but also your bottom line. So, talk to your delivery company about their holiday shipping requirements sooner rather than later!

5. Offer free shipping for the holidays

These days, there’s more competition for holiday-season spending than ever before.

Which makes offering free shipping a good idea.

Sure, you’ll incur higher costs, but this can be more than offset by the higher volume of orders you’ll potentially receive.

If you want to try to mitigate the higher costs you’ll incur by offering free shipping, you could factor in shipping costs to your product prices.

6. Ensure you’re offering order tracking

When a customer has ordered a product from you during the holiday season, they’re almost certainly ordering it for a set date, e.g. Christmas Day.

With that in mind, it’s essential that you offer your customers order tracking, so they can see the progress of their order – and ease any worries they may have.

It’s estimated that customers look at order tracking pages 3.5 times per order (and in some instances, as many as five times per order!). Order tracking is that important.

What customers DON’T want is for their order to disappear into a black hole. If they can’t see where their order is, they’re more likely to call you – resulting in more work for your customer service team and decreased satisfaction for the customer.

7. Communicate, communicate, communicate

Following on from the point above, it’s vital that your customer service processes are up to scratch ahead of the holiday season.

Most importantly, you need to make sure you are communicating with your customers in a transparent and honest way.

If an order is going to be delayed, then communicate that. By being as honest and transparent as possible, you’ll find that customers will be more understanding.

What customers won’t like is being kept in the dark about their orders. So, even if it’s bad news, make sure you communicate it!

8. Scale up your fulfilment team

If you’re expecting a particularly large surge in order volumes over the holiday period, then it’s a good idea to scale up your fulfilment team.

Should you decide to do this, and hire temporary workers, make sure you hire them in advance of the holiday period so that you have sufficient time to train them and integrate them into your existing fulfilment team.

9. Use holiday-specific packaging and inserts

The holidays are a special time of year. So, why not convey some of that feeling via your packaging?

Even if you just add holiday-themed inserts to your orders, this can create a more joyous unboxing experience – increasing the chances that your customers will shop with you again in the future.

10. Outsource your holiday shipping and fulfilment

If you’ve read all of the above and come to the conclusion that it’s a lot of work, you’d be right!

The above best practices are absolutely worthwhile, but we understand that it can be quite a daunting task. Particularly given how steep the learning curve can be for many aspects of holiday shipping and fulfilment.

That’s why it can make sense to outsource your holiday shipping and fulfilment to a 3PL (also known as a third-party logistics provider).

3PLs are able to take care of your entire fulfilment and shipping process from end to end. And, because this is their sole job, they’re experts at it!

Plus, because 3PL’s undertake fulfilment and shipping on behalf of multiple brands, they are able to achieve economies of scale, and negotiate highly competitive shipping rates that you alone could not.

Does that sound like something that would benefit your eCommerce business? Then speak to 3PL today.

Find out more about 3PL’s eCommerce fulfilment services now

For more eCommerce fulfilment, logistics and shipping advice, read the 3PL blog… 

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