Research proves that 17% of consumers may not shop with a retailer again after receiving one late shipment. Also, over half of the consumers wouldn’t shop with a retailer after two or more late deliveries. You don’t want this to happen to your business, right? Knowing how to have efficient on-time deliveries is essential for your dropshipping business. For the order fulfillment of your dropshipping business, continue reading to discover the 9 amazing tips to deliver on time.
Use Forecasting Methods and Invest in Additional Inventory
Sharing forecasts for the next few months or year can be especially helpful in supply chain operations. Several forecasting tools are on the market to help dropshipping businesses gain visibility into their supply chains and determine how to prepare. Research and decide which forecasting method is best suited for your business. Understanding your lead time will make it easier for you to keep a proper in-stock rate and prevent stock-outs or excess inventory. Consider using additional inventory management systems to optimize order frequency and keep costs down.
Open Local Warehouses
Depending on the size of your business, you may want to consider opening local warehouses. Many large online stores have multiple storage facilities located throughout the country, which makes it easier for them to distribute their products quickly. First analyze what locations you send the majority of your shipments to. Then determine whether it makes sense financially to open up warehouses in these locations so you can meet your customers’ needs and deliver on time.
Determine Product Demand
Review your previous sales transactions and customer data to determine what types of products are the most popular. This can help you predict product demand. Once you’ve identified what items are likely to be popular with your customers, you can increase your stock accordingly. This can help you fulfill orders faster and increase your revenue margins.
Offer Real-Time Order Tracking
Invest wisely in a reliable order management software program to help you track the location of your delivery drivers and shipments. Then provide your customers the option of checking on the status of their delivery online. This will improve communication between you and your customers, by showing them where their shipment is at different stages of the delivery journey. It’s also a good way to keep your customers informed about unexpected delays.
Improve Supplier Relationships
Maintain solid relationships with suppliers and other members of the supply chain.You can create a scoring system to measure supplier performance. In this system, important factors must be considered, such as pricing attributes, response and lead times, willingness to stock inventory, and meeting quality specification expectations
Maintain A Steady Production Rate
Keeping your production steady gives the sales and marketing team visibility on production so they can make accurate projections. Don’t overload your production line, and avoid making last-minute schedule changes at all costs. A minor change may seem beneficial in the short term, but the medium- and long-term effects are crucial. Waste increases, production employees are put under added pressure, shipments are likely delayed, and customers are likely to be dissatisfied.
Provide The Correct Delivery Address
It is very important that you provide the delivery address clearly on your purchase ordersespecially if the products are to be delivered to a different address. This will help reduce the risk of sending your products to the wrong destination. In addition to the delivery address, you may also add more information like contact person & phone number, email address to forward the Tracking number, .
Have Flexible Coverage
Ensure you always have backup options. Whether it’s bringing in more drivers when necessary or more vehicles, you need to make sure that on time delivery service is happening, no matter what the situation.
Understand Supplier Timelines And State Your Preferred Method Of Delivery
Understanding your supplier’s operations and bottlenecks can help you better plan to deliver on time. Imagine there are two substitutable products, where product A takes 30 days for production and product B takes 10 days for production. In such a case, it is better to place orders for product B instead of A to increase the shelf availability. Also, as, at the time of placing your orders, inform your suppliers the way you would like to receive your products. There are different methods of deliveries. All these work together to ensure that you deliver your customers’ products on time.
The fact that 57% of customers won’t return to a retailer after three late deliveries means that delivering on time is a critical factor in customer satisfaction and retention. The bottom line is that delivering products on time will help you to improve operational efficiencies, get better reviews for your online store, generate higher revenue margins, and ultimately increase the success of your business.
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