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The unique demands of e-commerce are very different to traditional retail channels, and distribution operations must be specifically tailored to reflect this.
Key to an efficient e-Commerce logistics operation, is perfecting the design and process flows to optimise layouts, workflows, resources and systems in a 24/7 picking operation.
The Supply Chain Consulting Group (SCCG) team of Specialist Supply Chain & Logistics Consultants are experienced in e-Commerce logistics projects, having worked with leading online retailers.
The exclusive video interview below from Bodybuilding.com demonstrates the benefits of a purpose built e-Commerce distribution centre, the specific operational requirements for e-commerce and the speed and volume at which orders can be processed with relatively low staff levels.
It is all about the design and process flows to optimise layouts, workflows, resource and systems in a 24/7 picking operation. The Logistics and Distribution Centre Design Specialists at The Supply Chain Consulting Group have developed with the market requirements and we now have a number of e-fulfilment projects successfully completed.
Operations set up to deal with medium size or bulk orders to retail outlets (B2B) that then ‘add-on’ e-commerce direct to the consumer (B2C) are suddenly faced with the realisation that the on-line buying habits of the consumer can have a serious impact on the picking and despatch operations.
These changes to buying habits, made possible by the ease at which product can be ordered and returned include:
The nature of the B2C e-commerce model means that the order profiles are likely to change as the B2C orders will be smaller (i.e. fewer items per order) as opposed to the medium or bulk B2B orders.
Operating both B2B and B2C order profiles in the same facility is common with many companies, however there are many different opinions on how it should be done, and how successful it is.
The option of a dedicated e-commerce fulfilment centre is naturally preferred, however not always possible depending on the level of investment required, as often these facilities will have a degree of automation and mechanisation.
However, if designed and equipped correctly, a purpose-built e-fulfilment centre, can usually despatch a greater number of orders and individual items per operator hour than trying to integrate it into most traditional B2B warehouse and picking operations.
There are no unilateral right or wrong answers for an e-commerce logistics and fulfilment strategy as it is dependent on several factors including product mix, sector, ratio of internet orders to total orders, facility size and capability etc…
Examples of projects the warehouse and distribution centre consultants have carried out for purpose-built e-fulfilment pick, pack and despatch include the European logistics centre for Global e-commerce retailer Bodybuilding.com, the case study for which can be read by clicking here.
In addition SCCG was awarded a contract in 2018 to fully design and cost and subsequently programme manage the automation procurement, fit out, implementation testing, and commissioning of a new fully automated purpose built 250,000 sq. ft. e-fulfilment and distribution centre in the UK, for a sizable on-line retailer, to go-live by 2022.
The demands of e-commerce are very different to more traditional sales channels and the standard or more traditional warehouse and distribution operations (however sophisticated) are not always set up to deal with e-fulfilment operations.
Some of the questions you need to consider when deciding on your e-fulfilment strategy and which can be addressed by the experienced e-commerce logistics consultants at The Supply Chain Consulting Group include (but not limited to):
The fact remains that the e-commerce retailer needs payment systems, administration and customer service personnel, warehousing and stock management systems and a physical logistics infrastructure to provide the same or better service as a bricks and mortar retail outlet.
The question is what is the best strategy for your e-commerce logistics operations?
The best starting point is to call the experts at The Supply Chain Consulting Group at 01926 430883, or email us at [email protected] You can also complete our enquiry form here.
Building transport, inventory and location strategies around your customer service goals. Developing a logistics infrastructure that meets your business goals.
Our knowledgeable Supply Chain Consultants have built Cost-to-Serve models to allow companies to unlock hidden profit potential by understanding the costs involved in serving specific customers and products. Understanding each clients’ individual priorities and the specific complexities of each business; The SCCG team carefully utilise specific models, in order to custom-build solutions for each client.
Synonymous with Supply Chain is Inventory Optimisation, for which our Supply Chain Consultants use ‘Inventory Modelling’ to establish the correct level of stock for any given situation – balancing the need to maintain a high-level of customer service with the desire to minimise working capital.
As part of the Global Supply Chain – Import, Export and Logistics – is the part of the supply chain processes that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customs and customer requirements.
Inventory modelling can be used to define the correct stocking policy for a large range of SKUs – for example, which SKUs should be stocked in local branches, and which should be held in one national centre.
Supply chain and Logistics Specialists highly experienced in all aspects of Supply Chain and Logistics Operations, Distribution Network Strategy, Warehousing Operations, e-commerce Logistics and Warehouse and Distribution Centre Design.
