Scaling your eCommerce business by combating warehousing management challenges

Scaling your eCommerce business by combating warehousing management challenges

Scaling your eCommerce business by combating warehousing management challenges

web store needs to change with changing customer demand

Online retail sales continue to boom, especially since we are in the midst of the festive season. Ecommerce is certainly one of the fastest-growing industries, but it’s also suffering from constant challenges specifically in terms of warehouse management. This is truer for warehouses that serve as eCommerce and multi-channel sales fulfilment facilities. Add return management into the mix, and you create an epicentre for volatility.
According to Deloitte’s annual forecast, eCommerce sales are estimated to grow by 22%. The increase in festive season sales can impact warehouse fulfilment processes in the eCommerce and multi-channel sales space. The aftermath is far more concerning because the return rate will subsequently increase as well.
The hard truth is that eCommerce multi-channel sales and returns present a critical challenge for retailers at any time of the year. Perhaps no warehouse has to deal with a greater level of volatility as an eCommerce or omnichannel fulfilment centre.

Capex investment and lead time

For a retailer, investing in building its own warehouse leads to huge Capex investment. Moreover, given the other factors such as logistics and operational requirement needed to be put in place, the lead time for the warehouse to start functioning is around 6 to 9 months. Also, capacities are generally added in big chunks for warehouses which often leads to underutilization.

Inhouse warehouse management is expensive:

Warehousing by itself is considered to be a specialized activity. Moreover, the demand of same-day delivery has put the onus on building a robust warehouse management system which itself increase the operating cost. Moreover, unavailability of skilled manpower and high attrition is something retailers have to frequently deal with.

Distributed demand but single warehouse:

For omnichannel retailers, the demand for order delivery comes from multiple channels which include multiple marketplaces, own web stores and offline stores as well. This invariably creates a burden on a single warehouse leading to the longer delivery time and higher logistics cost.

Scalability challenges:

Huge volume fluctuations within a month and for many other months creating hindrance to scale. Also, the presence of dynamic sales mix leads to a realignment of operations.
Keeping these challenges in mind, e-retailers need to focus their efforts on effective inventory management and speeding up the delivery timeline. When competing with hundred of e-retailers globally, brands need to make sure they always have enough products for their consumers using effective demand forecasting.

Need for a powerful platform to turbocharge your multi-channel eCommerce business:

The fast-paced eCommerce growth demands eCommerce, Retail and logistics companies to enable effective and efficient eCommerce fulfilment. Today’s customers expect a timely delivery – same day or within two days, along with real-time tracking of their orders. You need a game-changing platform to streamline your multi-channel operation, drive peak selling performance, achieve complete control over your business and hit phenomenal revenue number.
You would need a warehouse management platform that will own all your SLAs and inventory accuracy, provide faster onboarding anywhere anytime, provide set up of operation and fulfil all orders from the same inventory.
Ultimately the platform should be able to enable higher efficiency, lower dependency on skilled manpower, zero-order cancellation, faster delivery at a lower cost and catapult your revenue 2x or 3x times.

Looking for a fully managed eCommerce fulfilment management solution? Learn more

Karishma Kiran
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