online seller bristol meetup - vdepot 29th jul, 2015
TRANSCRIPT
How to fulfil ecommerce orders effectively
Hamilton House, Bristol29th July 2015
Agenda - 4 Parts
1. My experience as an ecommerce seller
3. Ecommerce: A few market trends
4. Outsourcing fulfilment: When, Why, Who?
2. Fulfilment challenges
2015201420122011201020062003
My Experience
Part 1: My experience as an ecommerce seller
•Ecommerce: Time & Commitment1: Conclusion
Fulfilment Challenges
Part
2
Expe
rienc
e
Your Fulfilment Experience?
1. Not quite started yet2. I do it all myself (from home)3. I do it all myself with (additional storage)4. I own a warehouse and have a team5. I outsource my fulfilment
What is your biggest fulfilment challenge?
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kg
1m
30kg
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
Seasonality Space Stock Locations• Plan ahead• Multi skill staff• Delivery options• additional resource• pickable stock• 3PL
• Sku location• Logical layout• Workable space• Appropriate needs
• Risk assessments• Fork lift truck• Holiday/Sickness• Motivated staff
• Time management• Post office • Cut-off time• Customer service
• Packaging• Backup plan• Product compatibility• Damages• Service levels• Communication
• Over 1m• Over 30kg• Supply & demand• additional surcharges• Historically subsidised
• 3% Average return• Return policy• Return envelope• Attract customers• Order qualifier
• Cost• Branding• Packaging rules• Add ons/up sell
• Space is final• Restricts growth• Paying not using• Increases overheads• Shelving/Racking
Part 2: Fulfilment Challenges
• Many• Various• Different by product or market
2 Conclusions
Ecommerce: A few Market trends
Part
3
Ecommerce
Lockers3rd Party Shop
Carriers
Outsourced warehouse
Suppliers / Shops / Manufacturers
Own warehouse
Own Haulage
Shop
Fulfilment
Outsourced Haulage
Business
Retail
£107 Billion
/ Fulfilment
Ecommerce
Outsourced warehouse
Outsourced Haulage
Duplication, Duplication, Duplication, The importance of integration
Ecommerce Multichannelsoftware
CRMsystem
Courier system
Accountspackage
Fulfilment System
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kgFulfilment System
• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co
3 Conclusions
Part 3: Ecommerce: A few market trends
Part
4Outsourcing Fulfilment
• When to consider outsourcing• Pros• Cons• What to look for • Common pitfalls
When to Consider OutsourcingO
rder
s
Time
Self Fulfilment House Own Warehouse
Garage/Spare room
Self Fulfilment
Sales growth
Investment in core business rather than
fulfilment
Big enough Money to have own
investment
Pros to Outsourcing
• Reduced overhead• Reduced carrier cost• Saves time• Increased flexibility• Access to IT systems (+reports)• Eradicates seasonality issues• Import/Export advice• Returns• Scaleable
Pros
Disa
Disadvantages to Outsourcing
• Control • Costs• Low volumes• Personalisation
• Existing facilities (e.g showroom)• Not applicable for highly technical products
“Maybe”
“Certainly”
Couriers
Hauliers
Warehouse
Amazon
MultichannelStorage Pick & Pack
Rework
Cloud
System integration Pa
llet
Parc
el
Post Real-Time
reports Stock
management
Fulfilment co
Fulfilment Systems Multi
Gen
erali
stSp
ecial
ist £
Fulfilment Houses: What to Look for
• System• Integration• Management information, Reporting• Contracts• Minimum order/monthly management/software licences fees• Ecommerce fulfilment specialists: Yes or No?• Do you own your own centre
• Implementation Plan…
Look
Moving to a Fulfilment House
• Implementation period• Integration• Packaging, new products not suitable just to be sent on• Barcoding
Mov
ing
Common Pitfalls
• High storage footprint• Have got into bad habits• Low orders, low margin• Keeping out of date stock• Stock records being incorrect
Pitf
alls
Incr
ease
sales
How can Fulfilment increase sales
How can Fulfilment increase sales
• Feedback• Packaging • Increased Sales (time)• Management reports• Product innovation• Offering best services
Incr
ease
sales
Part 4: Outsource fulfilment: When, Why, Who
• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible
4 Conclusions
1 2
3 4
Part 1: My experience as an ecommerce seller
• Ecommerce: Time & Commitment
Part 2: Fulfilment Challenges
• Many• Various• Different by product or market
Part 3: Ecommerce: A few market trends
• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co
Part 4: Outsource fulfilment: When, Why, Who
• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible
Conclusions
