fbpx

FAQ
Get a FREE quote!
 
 
Improve-Fulfillment-Warehouse-Operations-in-2022.jpg?strip=all&lossy=1&fit=1200%2C800&ssl=1

How to Improve Fulfillment Warehouse Operations in 2022

March 25, 2022 eCommerce TipsEntrepreneurs

In the last two years, every aspect of warehouse fulfillment has been impacted by disruptions. Port congestion, Factory shutdowns, space restraints, labor shortages, extreme weather events, trade conflicts, increasing delivery delays, tariffs, and costs have caused unheard challenges.

While numerous people are quick to blame the pandemic, the real issue lies in the inflexible, traditional supply chain models that are incapable of quickly reacting to unprecedented changes.

Though there are doubts, there are also opportunities in warehouse and supply chain management as we focus on 2022 and beyond. Those opportunities are guided by technologies, as well as by alterations in consumer behavior.

With experts anticipating many of these problems persisting, here are four ways you can improve fulfillment warehouse operations to create more energetic supply chains and succeed over disruptions in the New Year:

Supply Chain Resilience

As mentioned in the opening paragraph, it has been a tough period for warehouse fulfillment operations. The reasons are varied and include labor and material shortages, and shipping issues. Those things most likely won’t last forever, but the more general experience of interruptions has radiated a spotlight on the problem of supply chain resilience.

Creating a supply chain resilience requires a wide strategy, with agility being a necessary factor. With agility merged into your supply chain, you can move when disruption takes place. You might even be able to move before the disruption has an effect.

However, if you want your supply chain to become more agile, you need information. Information increases clarity and helps with decision-making, both of which are needed for an agile approach. Therefore, we can expect more companies to establish more supply chain resilience throughout 2022 and beyond by making digital supply chains that optimize integration at all points.

Distribution & Fulfillment Networks

The increase in e-commerce activity and supply chain interruptions is driving the want for industrial real estate, resulting in record-low vacancy rates and growing rents that are assumed to continue through the end of 2023. With warehouse space greatly limited, many business owners still rely on a single central warehouse, with 41% of business owners self-fulfilling multiple channels from one major distribution network last year.

In today’s uncertain world, it is no longer enough to operate out of a single facility. One bad weather, labor strike, or other localized interruptions can bring your whole distribution operations to a standstill. In addition to supply networks and manufacturing, businesses should explore other ways to increase their distribution and fulfillment networks, such as dark stores, micro-fulfillment centers, ship-from-store fulfillment or even subcontracting it to a third-party logistics (3PL) provider.

Delivery & Pickup Strategies

While the ecommerce industry has been facing issues with a driver shortage for years, this issue was further worsened by increased e-commerce sales and labor restrictions due to the COVID-19 pandemic. This has had a harsh impact on railway shipping as well as last-mile delivery, the most costly and tedious part of the shipping process.

In response to increasing capacity constraints and package volumes, conventional parcel carriers like FedEx and UPS are continuing to increase surcharges and rates in 2022, creating more issues and costs for shippers this year.

Despite current supply chain problems, most sellers plan to offer same-day delivery by 2025, up from the 35% that do so today, according to a recent survey. To achieve this goal, numerous business owners are exploring backup delivery providers and strategies, including on-demand delivery services like Instacart and DoorDash and in-store pickup alternatives such as buy online pick up in-store (BOPIS) and curbside pickup.

Manufacturing & Supply Networks

Business owners that depend heavily on overseas manufacturing have been hit a bit harder by current supply chain disruptions. Numerous furniture and apparel manufacturers that transferred production from China to Vietnam after the U.S. imposed tariffs on Chinese products in 2018 were left in a wobble when the second wave of COVID-19 swept through the country last fall. Port congestion, inflated ocean freight costs, and capacity shortages caused more headaches for toymakers going into the holiday season, with Hasbro reporting that $100 million worth of orders went unfilled in the third quarter of last year.

While onshoring is a heavy undertaking and might not be appropriate for all companies, it is essential to expand your supply and manufacturing network beyond one country. Unlike numerous other dressmakers, Levi Strauss & Co. fared well through interruptions, thanks to a diverse network that spread over more than 20 countries. This vast network not only allows the denim brand to move production when essential but also maximize its supply chain to reduce costs and increase delivery and production speeds.

Bottom Line

Retail has significantly changed than it was just a couple of short years ago, thanks to the universal health crisis. The ecommerce market has grown nearly beyond recognition, placing warehouse fulfillment operations in some tough positions. All the trends on this list will help warehousing fulfillment and supply chain operations improve throughout 2022, becoming more productive ambitious, and efficient, while also increasing revenue. It is a time of transformation, and that brings issues, but there are breath-taking opportunities too.

Contact us today at Fulfillman to know more about our services. We specialize in providing excellent Drop Shipping services, Warehouse fulfillment, China sourcing, Third Party Logistics, and so forth. Our dedicated experts will be available to speak with you and discuss the options available to you. We guarantee you get quality and excellent services that gives 100% client satisfaction.

Fulfillment-Warehouse-Operations.jpg?strip=all&lossy=1&ssl=1

10 Expert Tips to Improve Fulfillment Warehouse Operations

July 22, 2019 eCommerce Tips

Fulfillment warehouse operations involve processing and packaging of manufactured products by third-party logics (3PL). Managing fulfillment warehouse operations entails supervising the product inventory, storage, distribution, packaging, and shipping. In other words, it implies enhancing the efficiency of the warehouse operations. Monitoring and improving warehouse operations are pertinent to ensure that you run a successful dropshipping business.

In this write-up, we will walk you through the tips to employ in improving fulfillment warehouse operations.

Check the Quality Control

To ensure that the products in the inventory are in excellent condition it is vital to carry out quality control on each one of them. Allowing your customers to perform the quality control themselves will not bode well for your business. The conditions and accuracy of the products are to be examined to ensure they are in perfect shape before shipment.

Deal in Quality Products

Investing in high-quality products is important in enhancing fulfillment warehouse operations. Quality products that are on by the staff at the warehouse do not break which in turn boosts productivity.  Investing in a cheap product may appear a cost-effective and profitable way to run a fulfillment warehouse but, in the long run, it will not be so. In running a fulfillment warehouse in monetary terms, quality products save you time, money and enhance productivity.

Carry Out Maintenance

In fulfillment warehouse operations, machines are bound to breakdown at some point. This could affect productivity negatively when it breaks down unexpectedly. Proper functioning of the machines and increase and maintenance of productivity can be ensured by scheduling maintenance plans. Inspecting the machines ever so often ensures that problems are detected and repaired. The problems are identified before they become too serious and expensive to repair. Create your maintenance schedule plan to have your machine inspected and maintained regularly.

Adopt Information Technology

There are innovative technologies rolled out that you can utilize in the inventory management of a fulfillment center. These technologies function regardless of the size of the warehouse. Information technology helps you record the production, packaging, and movement of an item around the warehouse. The fulfillment warehouse operation management system can be used to track order and record stock shipment to the customer.

The technology helps you generate data and analytics that can be used to gain insights on how to run the warehouse operations better and grow your business.

Delegate Functions

The management of the stocks produced accounts mostly for the labor cost in warehouse operations. During the picking, packing of items, which are eventually returned for processing, the bulk, weight, and distance, determines how quick they will be manufactured. The closer the proximity of the picked-up item is to the processing area, the quicker the production will be. This saves time in producing and making a product available in the inventory.

Invest in Real-time Inventory

Having a real-time inventory keeps you informed of the number of inventory you have available and the supply chain performance. This is done irrespective of the time and location. How do you keep a real-time inventory? Get a cloud-based software system. A cloud-based software system gives you access to automate your inventory. The inventory becomes optimized such that you will be notified on inventory that has fallen short of the product safety standards. This goes a long way to increase efficiency and profitability.

Put in Place Safety and Standard measures

The warehouse should not be made a deathtrap for workers. A fulfillment warehouse that is not safe for the employees, especially the poorly trained or inexperienced, could lead to accidents and injuries. These could lead to litigation from the employees and subsequent covering of their medical bills. Indicate the danger and safe zones to the employees and make the warehouse safe to enable them to become highly productive.

Besides, you will extend the lifespan of the warehouse, machines, inventory and more. It is cheaper to keep the warehouse safe than fixing after it is damaged.

Seek the Assistance of an Expert

The counsel of an expert that is experienced fulfillment warehouse operations could go a long way to assist you to optimize yours. An expert in the supply chain, especially a leader in the third-party logics industry can give you the leg up you need to run fulfillment warehouse operations smoothly.

Incentivize

Attaching bonus to work performance of the workers boosts their input and efficiency. As long as the objectives and task are clearly stated, morale, employee satisfaction, and loyalty are taken to a new level. Ensure that you make the target known to employees in their units and incentivize.

Warehouse Design

The layout of the warehouse has a way of influencing inventory management and productivity. Designating an appropriate space for each activity ensures efficient workflow. Allocating insufficient space for each activity affects the other in one way or the other. Insufficient storage space of the stocks can lead to error in accounting for the goods purchased and taken out of the inventory. Even when a stock is misplaced, it could be difficult to track. This could take enormous time and energy to locate. Organizing your warehouse in a way that it creates an environment for effective workflow.

There you have it! Above are some insightful tips to improve warehouse operations. The benefit of improving fulfillment warehouse operations is that it gives you a chance to grow your business. It ensures that the inventory management system is in place. This saves time and helps businesses become more efficient and profitable to its owner.

Contact us today at Fulfillman if you need a reputable fulfillment services company for your ecommerce business. We are a reliable provider of various services such as Warehouse fulfillment, China sourcing, Third Party Logistics, Drop Shipping, Crowdfunding Fulfillment, and so forth.

What’s more, our dedicated team will be available to speak with you and discuss your needs. We will provide suitable answers to your questions and concerns. With us, you are guaranteed to get quality and excellent services that give 100% client satisfaction.