Modern Retail Guide to Fulfilment October 2018 by Modern Retail

GUIDE TO FULFILMENT

OCT 2018

GUIDE TO FULFILMENT - OCT’18 CONTENTS 4 ways AR & VR are transforming ecommerce logistics

5 steps to creating a profitable & efficient ecommerce warehouse

3 ways ecommerce retailers can make packaging & shipping more efficient

Brexit & stockpiling: what’s the answer?

Click & collect - the crucial components for success

How augmented reality is transforming ecommerce order fulfilment

Learning from big business: WMS for business expansion

Managing increasing customer demand proving difficult for online retailers Considerations for mail & parcel delivery to the USA

CREDITS Editor: Rob Gamage - rob@modernretail.co.uk Advertising: Emma Mjekiqi - emma@modernretail.co.uk Advertising: Ash Patel - ash@modernretail.co.uk Client Services: Beki Rodrigo - beki@modernretail.co.uk

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THANKS Many thanks to all those who provided editorial content or images for helping us put together what we hope is a useful and informative read! Please send any comments or suggestions to rob@modernretail.co.uk.

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4 WAYS AR AND VR ARE TRANSFORMING E-COMMERCE LOGISTICS

Augmented reality (AR) and virtual reality (VR) are being employed with increasing frequency by e-commerce firms to drive efficiencies in the area of logistics. While the set-up costs associated with AR and VR are relatively high, many firms are reporting significant cost-savings and operational improvements after implementing systems to manage logistics processes. While these emerging technologies are similar, there are some key differences. Augmented reality uses the real world as a backdrop for providing useful information and services. Virtual reality, however, involves the creation of an alternative world. But make no mistake: both technologies can be beneficial to e-commerce companies in a number of ways — here are four of the most striking. 1. Smoother Freight Handling Particularly if you’re shipping goods to different countries or jurisdictions, freight handling can be laborious and time-consuming. But a worker using AR technology is able to verify that the shipment complies with all of the relevant regulations in a matter of seconds — simply by scanning it. In addition, an AR system is capable of providing information regarding the contents, addressee and handling requirements. All the worker needs to do to access this information is to look at shipment through a handheld tablet or a set of AR glasses. One specific problem that affects international shipments is the language barrier. The latest AR systems automatically convert foreign text to the native language, which speeds up the administrative process and reduces errors. 2. More Effective Warehouse Planning Both AR and VR systems can now be employed to design warehouse layouts in advance —

ensuring processes are efficient and practical before changes are made. For example, management and key warehouse staff would be able to “walk” around the premises in its virtual form, looking for bottlenecks and operational issues along the way. An AR device could make the maximum use of the available warehouse space by overlaying tentative design plans over the actual warehouse. This could become a crucial part of planning — ensuring e-commerce businesses aren’t paying more than they need to for warehouse space. 3. More Efficient Freight Loading Freight loading is fraught with unpredictable variables and potential for waste. Workers have to take a range of factors into consideration when packing shipments and loading vehicles. The wrong process or a slight miscalculation can lead to under-utilised vans, lorries and cargo vehicles — resulting in inflated shipping costs. But an AR device would scan each item before the loading process begins. Based on issues such as weight, dimensions and destination, the system would tell workers which vehicle or shipping service to use. And when company vehicles are being used, an AR system could even tell workers where on each vehicle a shipment should be positioned. 4. More Effective Employee Training All employees working in e-commerce logistics need comprehensive and accurate training — otherwise costly mistakes can end up damaging the company’s bottom line. But training new employees using abstract concepts or fictional scenarios isn’t always ideal. AR and VR can now both be used to train workers using real-world scenarios and without affecting your current operations. For example, a virtual warehouse could guide a worker through every step of the order picking process. The user would be asked to complete a number of tasks in the virtual world. Tasks performed incorrectly would be restarted, following a demonstration of the correct method. This takes training out of the textbook, and into a working environment where mistakes don’t really matter. Both of these exciting technologies are helping e-commerce businesses to slash costs, improve customer satisfaction levels and grow sales. And in such a competitive trading environment, missing out on these benefits could give your competitors a commercial advantage. Author: Rob Gamage Rob Gamage is Managing Editor of Modern Retail. Combining many years of experience in publishing with a keen interest in small business and entrepreneurialism, Rob is passionate about sharing interesting and inspiring content with retailers to help them grow. You can subscribe to Modern Retail, for free, here.

5 STEPS TO CREATING A PROFITABLE AND EFFICIENT E-COMMERCE WAREHOUSE

An organized, streamlined and efficient warehouse is often the key to e-commerce success. You could be achieving sales beyond your wildest dreams, but if your warehouse can’t cope with order fulfilment, a healthy top line is almost irrelevant. Get your warehouse running smoothly, and you should be able to minimise costs, improve customer satisfaction and actually grow sales. Whether you’re building your e-commerce warehouse for the first time or looking to make changes to an existing one, follow these relatively straightforward steps to maximise the chances of success. 1. Consult with Your Team Too many e-commerce entrepreneurs only begin asking their workforce for feedback about warehouse operations after things go wrong. Before you do anything, it’s a good idea to ask your workers and colleagues for their input. They may be able to use their skill and experience to make suggestions about your warehouse set-up — saving you money and the time it takes to implement these changes further down the line. Issues that should be discussed include flow, picking procedures, layout and administration. But this list isn’t exhaustive. By discussing the real-world problems and solutions your team members have experienced in the past, you can avoid repeating common mistakes. 2. Take Time to Plan the Use of Warehouse Space Warehouses aren’t cheap these days, so you have to be sure that you’re utilising every square inch of floor space. If you’re looking for premises, planning what your warehouse is going to look like will ensure you don’t pay for space you simply don’t need. Or if you’re planning in an existing warehouse, you can ascertain whether a move to a new location can provide operational and financial benefits. Think about what you need to store, and how much of it there is. Then, analyse how stock is picked. Do certain purchases have complementary products that tend to be found in the same shopping carts? Where should your most frequently purchased items be stored? Create a rough plan, but don’t be afraid to make changes based on results and feedback.

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3. Create and Document Robust Warehouse Processes An e-commerce warehouse without processes and procedures is often chaotic and inefficient — leading to lost sales, customer dissatisfaction and increased costs. There should be a written process for every task that must be carried out in your warehouse. For example, what is the procedure for picking products? What does the packing process involve? How is the stocktaking process managed? Creating a process for every task ensures everyone in your business is singing from the same hymn sheet. Detailed and documented warehouse processes make life easier for new staff members, and they make rookie errors far less likely. 4. Implement a Quality Control System Quality isn’t just about the actual product being sold via an e-commerce website; it’s about the accuracy of picking and the speed of fulfilment. Some would say quality in relation to e-commerce is defined by overall customer satisfaction levels. While others would argue that quality is a combination of all these things. In simple terms, you need to measure these variables constantly, otherwise, you may never know if the quality your warehouse is delivering in meeting the expectations of your customers. Once you have written processes in place for all of the main tasks in your warehouse, you can begin to measure them. For example, how do you know orders are being fulfilled on time? What percentage of orders have been picked incorrectly? Create systems that measure critical areas of your warehouse operations, and make sure they’re reviewed on an ongoing basis. 5. Embrace Technology Even the smallest of e-commerce businesses can benefit hugely from the latest software and hardware. The use of virtual and augmented reality is on the rise within the sector, thanks to the efficiencies it can deliver. ERP software and dedicated warehousing systems manage everything from product scanning to inventory management, cutting labour costs and reducing waste. While these solutions are often expensive, they often pay for themselves quickly — in the form of cost-savings and the sales increases that result from improved customer satisfaction levels. An e-commerce warehouse needs to be tightly organised, efficient and practical in order to fulfil orders within the industry-standard 48-hour lead time. With the right planning and execution, your warehouse should be able to deliver on that expectation — and on your business’ financial goals.

Author: Rob Gamage Rob Gamage is Managing Editor of Modern Retail. Combining many years of experience in publishing with a keen interest in small business and entrepreneurialism, Rob is passionate about sharing interesting and inspiring content with retailers to help them grow. You can subscribe to Modern Retail, for free, here.

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3 WAYS E-COMMERCE RETAILERS CAN MAKE PACKAGING AND SHIPPING MORE EFFICIENT

It has become a norm for businesses to offer free shipping for online purchases, often with a turnaround time of a day or two. This sets a really high expectation for businesses, especially e-commerce retailers. Adopting smart shipping and packaging tips for e-commerce stores has become necessary. Let’s look at three ways you can make shipping cost-effective and the packaging ideas that you can implement successfully: 1) Choose the Right Shipping Supplies Weight - The shipping carriers charge you based on the package’s weight, size and destination. It would be economical to use smaller and lighter packaging. Protection - Use packaging that offers proper protection for the product being shipped to ensure that it doesn’t get damaged, like water-resistant poly mailer. Aesthetics - Creative packaging helps you stand apart from your competitors and gives a unique experience to your customers. Focus on aesthetic packaging and make even the opening of the product a memorable occasion for the customers. Price - Don’t try to cut costs by using small boxes or insufficient cushioning material. Doing this will damage the product, thus hurting the brand’s reputation in the end. 2) Be creative in packaging Boxes - Choose the ideal box size for shipping the product. You can choose from various sizes, weights and materials. Ensure that you leave about two inches on each side of the product for the cushioning material. Bubble Mailers - They come in poly exterior or Kraft paper. Bubble mailers are a really good

option for products that need a moderate degree of protection. Poly Mailers - Poly mailers are perfect for non-breakable items as they are lightweight, and moisture and tear resistant. Cushioning - Cushioning ensures that your product doesn’t get damaged during transit and that it arrives safely. You can use foam rolls, bubble wrap, peanuts, air pillows or a combination of all of them. 3) Storing supplies and inventory Numerous e-commerce retailers invest time and resources into managing the product inventory; however, it is critical to manage the supply inventory as well. Track quantities - Use an inventory management system that helps you keep a track of the number of boxes, cushioning supplies, bubble mailers, etc that you have in the warehouse. Tracking the supplies help in maintaining the necessary quantities, so you can get your orders out as quickly as possible. Track locations - You can maximize the warehouse space by tracking the locations of where the products and shipping supplies are being kept. This helps in easily finding the individual items when needed. Bundling - You can use an inventory management system that allows you to bundle product and supplies. Bundling is a feature that allows you to sell both a bundle (like selling a headset, a controller, and a charging cable as a video game accessory “kit”) and that bundle’s individual components, simultaneously. Re-ordering - An inventory management system helps in overseeing the supplies which further helps in setting re-order points. Once the quantity goes below the predetermined quantity, you will be automatically notified to order more. Good packaging ideas for e-Commerce retailers will not only help in cutting down costs but also achieve higher customer satisfaction and profits. It’s clear that most consumers prefer shopping where payments are processed faster. Retailers need to adapt to newer payment options by educating their customers and staff, and streamlining their services. Contributor: Abhijeet Shah Abhijeet Shah is the head of digital marketing for Packing Supply, a leading name in the packaging supply industry. He believes that it’s not only what’s on the inside that matters, but how products are packaged is just as important. Abhijeet stays updated with the latest trends and innovations in the industry and is quick to share them with his readers. He loves travelling and is often tempted to buy products that he comes across with unique packaging from all over the world, which he then adds to his ever-expanding collection of “bags and boxes”.

BREXIT AND STOCKPILING: WHAT’S THE ANSWER?

Brexit is dominating conversations once again and creating waves of uncertainty in almost every industry. But the big questions everyone is asking right now is: do we have to start stockpiling our imported goods to prepare for a no deal Brexit? What happens to our food if it’s held up at customs? Will there be shortages? It might sound apocalyptic, but if the UK leaves the EU without a deal – which is a distinct possibility – we could find ourselves in a situation where food, pharmaceuticals and even car parts are not readily available. Despite Airbus announcing they were going to stockpile goods in preparation of increased tariffs, supermarkets asking their suppliers to provide a breakdown of any ingredients and packaging materials sourced from the EU, and the NHS working to make sure medical supplies don’t run out for the next six months, the UK government insists that retailers won’t need to resort to stockpiling. Yet, there have been whispers about measures already being prepared for this eventuality, such as the Ministry of Defence looking into how the armed forces could be deployed to carry out various civil functions, including using RAF jets to transport food supplies across the country. It looks like Brexit secretary, Dominic Raab, isn’t going to provide much advice on what retailers need to do to protect themselves and their stock either. So what’s the plan? An uncertain future? The reality is that no one knows exactly what is going to happen when the UK leaves the EU, not to mention if we leave without a deal. But one thing is clear – retailers need to take matters

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into their own hands and have contingency plans in place in order to ride out the period of uncertainty they face. The media will have us believe that the UK simply doesn’t have enough warehouse space to accommodate emergency stockpiling of goods. But this is simply not the case – the space is there, but it is just tied up in warehouses that are already in use, yet are not full. The problem is that people just don’t know where it is nor have to access it. Warehouses are typically let out on long-term leases. It takes a long time to find a negotiate a warehouse lease so organisations always take more space than they need just so they have room to grow if required and do not have to go out looking for another warehouse any time soon. What we have seen over the last few years is that organisations have over-estimated their needs, not grown as expected and as a result, their warehouses are not full. On average, each warehouse in the UK is only 75% full, so that is tens of thousands of square metres of space that is not being utilised. Business must get better at using space that is already built instead of investing thousands in building new warehouses to accommodate short-term uncertainty. On-demand warehousing is the solution to the stockpiling problem and for retailers who need a contingency plan. Stowga brings the sharing economy model to warehouse space. Its marketplace allows organisations to list their available warehouse space, be it 10 or 10,000 pallet spaces, and makes it available to businesses who need the space. It can be rented for as little as a month at a time, on a pay-as-you-go basis, so it is extremely flexible to be scaled up and down when required. The spaces available aren’t just ambient either – temperature controlled, frozen, and specialised warehouses are also available, which means every type of business can prepare for all eventualities. It’s unlikely that the government is going to give much advice or guidance for retailers or businesses when it comes to their supply chain post-Brexit. No one should risk failure, so they must take their contingency plans into their own hands and consider new ways to adapt. Contributor: Charlie Pool Charlie Pool began his career in finance. He started in the City at Cazenove then at JPMorgan investing in listed companies, private companies, project finance and derivatives. He then began investing in Startups before actually starting one himself. Charlie is now the CEO of Stowga, the on-demand marketplace for buying and selling warehousing and logistics services.

CLICK & COLLECT – THE CRUCIAL COMPONENTS FOR SUCCESS

Retail supply chains are being transformed by the digital revolution. At the heart of this is e-commerce, driven by the digitally savvy consumer seeking a transparent, low cost and customised service. As consumers increasingly hold the power, retailers all over the globe are having to rethink what they can actively do to be fit for today’s purpose while future-proofing their business for tomorrow. Those that don’t, face an uncertain future and potentially following the recent casualties that are disappearing from our high streets. So, what can retailers do? The very simplistic answer is clearly to offer more convenient services. However, these need to be captivating, in line with expectations and at the same time, affordable. They must be built on a collaborative business model while underpinned by robust processes and appropriately technology-enabled. A pivotal service that most retailers are focusing on is a first-class Click & Collect offering. Long hailed as revolutionary but nice to have, Click & Collect can be more cost-effective than home delivery, providing greater engagement with the consumer, increased store footfall and sales potential re-energising the store estate. However, for the consumer, the reality must live up to the expectation. Failure in execution, especially if repeated, is potentially fatal for the brand. Today’s consumer is more savvy and transient than ever before and if you are lucky, you have one chance to get it right! So, what are the underlying fundamentals of getting Click & Collect right? Aoife Oconnell, Retail Business Consultant at Zetes, explores some of the key considerations for a competitive and consistent Click & Collect offer. A frictionless and transparent service Consumers expect a seamless and frictionless experience across all channels, whether that’s in-store, home delivery or Click & Collect. Inventory accuracy and visibility are crucial – retailers must know with full confidence the location of their products in real-time – whether

in the distribution centre, the back of the store, the shop floor or even in-transit. They must also provide their customers with the transparency they need to fulfil a purchase and track its progress with ease and crucially mitigating potential risks of losing the sale. As it stands, 92% of consumers believe it is important to receive status updates, yet less than a third of retailers are able to achieve this information. End-to-End Visibility Visibility is king when it comes to supply chain success. So, it’s somewhat surprising to see that 62% of retailers don’t have access to real-time information regarding product availability, and 72% lack appropriate capability to alert customers about an order fulfilment issue or delivery[1]. When a home delivery or Click & Collect order is fulfilled from the store, for example, there is a very real chance the product apparently in stock could be sold by the time a Store Assistant attempts to fulfil the order – resulting in one seriously unhappy customer. Full visibility of the product, people and locations are pivotal when it comes to addressing these retail challenges. With the right information, a retailer can implement processes that deliver the right customer experience – from giving shoppers the ability to collect from a variety of stores to checking stock availabilities within a specific geographical range. Accurate inventory management is equally important. Equipped with real-time, end-to-end visibility, a retailer can make proactive and fully-informed decisions. With accurate knowledge of where a product is, from the initial order to delivery, retailers can manage inventory effectively and efficiently and fulfil orders from the most appropriate place, whether that’s from the store or a distribution centre. Additional benefits come in the form of increased stock availability and reduced waste. Brand experience Using third-party carriers will also continue to play an important role in responding to consumer demand to collect orders from evermore convenient locations. However, a retailer needs to understand the importance of being transparent about who is accountable for what and when. A carrier not only plays a role in delivering the order it is also an extension of the retailers’ brand experience and promise. An efficient operation requires an integrated and collaborative approach. A carrier’s capacity, the ability to inform and meet performance expectations are fundamental. If a customer feels let down by a poor experience, on just one occasion, it directly affects brand perception and future loyalty. Conclusion Unless the underlying fundamentals of retail are in working order, a retailer will always be in danger of disappointing customers when it comes to implementing the latest sales and delivery offerings. And that’s not limited to just Click & Collect. Retailers need to ensure that the basic principles of the retail model are upheld.

As current research has shown, despite the increasing popularity of online shopping, many consumers still like to visit a store and Click & Collect gives retailers the opportunity to present an option that fits with the way people want and like to shop, increasing and sustaining footfall in-store, opening opportunities to further engage a customer and upsell. The important thing to remember is that consumers want choice but they also value relevant, accurate and timely information. Rather than a blanket ‘out of stock’ response, a retailer should aim to be able to inform the customer of alternative fulfilment options to close the sale in the “buying moment” and meet their time window. Those retailers that take a step back to get the basics right will be the ones who successfully secure the sale, time and time again. [1]“Turning lost sales into opportunities during peak trading”, Zetes, 2018 Contributor: Aoife Oconnell, Retail Business Consultant at supply chain technology specialists, Zetes

HOW AUGMENTED REALITY IS TRANSFORMING E-COMMERCE ORDER FULFILMENT

Augmented reality is an emerging and evolving technology that superimposes images and graphics on the user’s real-world view. This changed view of the world around us can make a range of everyday tasks easier, faster and more successful. And right at the forefront of efforts to implement AR technology is the e-commerce sector. According to the Centre for Retail Research, e-commerce is Europe’s fastest growing area of the retail market. And it’s this fast growth that often causes small and medium-sized businesses serious operational headaches. Order fulfilment in the e-commerce sector is a tricky process to get right, and failing to do so can have serious effects on a firm’s bottom line. But as the following benefits demonstrate, augmented reality is changing the way e-commerce companies process, package and ship orders to their customers. Immersive Staff Training Training often works best when it’s immersive and interactive. When new recruits in e-commerce warehouses put on a set of AR glasses, the environment around them can be seen with instructions. For people not familiar with SKUs, barcodes, stocktaking and product picking, this always-on technology makes training and development a much more straightforward process. Improved Picking Accuracy One of the big problems facing e-commerce businesses is the issue of picking accuracy. For firms selling hundreds of different products, human error during the picking process can lead to refunds, lost business, a diminished reputation and waste. But more and more e-commerce retailers are now utilising pick-assist technology, which is almost eliminating human error

completely. Simply looking at a box on a shelf is enough to initiate the AR system — providing an in-vision product description the user can’t confuse with anything else. Increased Staff Productivity When it comes to fulfilling e-commerce orders in a warehouse setting, time is money. Stated simply: the longer it takes to find, package and ship products, the less profitable the entire operation is. But AR technology helps staff to find items faster and more accurately. With a constant visual assistant in their field of view, fulfilment workers can execute more orders every hour — and that cuts costs and improves customer experience. Automated Product Scanning Imagine being able to scan the contents of a huge warehouse without ever touching anything. E-commerce workers with AR glasses don’t need to imagine, as they can simply look at the label on a box to count, accept or process it. Inventory levels are automatically adjusted, and orders are placed by the complementary software if required. Voice Commands E-commerce warehouses are notoriously complex, and finding new ways to streamline operations within them is difficult. But companies using voice-command software in conjunction with AR technology can drive efficiencies during the entire order fulfilment process. For example, a worker with a headset, microphone and AR glasses can receive picking instructions from a manager. The AR glasses tell the worker where to look for the item, and then scan it to update the inventory. The worker can then tell the system that picking is complete, and request that the next stage of fulfilment commences. Voice command software reduces labour requirements and lead times, and it gets orders shipped more quickly than ever before. More Efficient Packing Warehouse packers are usually under intense pressure to keep up with a constant flow of orders. As a result, packaging can be wasted — either through packing mistakes or choosing the wrong type of packaging. But with AR, packers get help choosing the type and volume of packaging that is most appropriate for the product. It’s even possible to provide workers with in-vision instructions for assembling the more complex packaging solutions. Author: Rob Gamage Rob Gamage is Managing Editor of Modern Retail. Combining many years of experience in publishing with a keen interest in small business and entrepreneurialism, Rob is passionate about sharing interesting and inspiring content with retailers to help them grow. You can subscribe to Modern Retail, for free, here.

LEARNING FROM BIG BUSINESS: WMS THE SUREST WAY TO MANAGE STOCK FOR BUSINESS EXPANSION

If you're running a growing e-retail business your main focus is on marketing your products, attracting customers and satisfying their orders. Until order volumes reach a certain level, to an extent you can overlook some of the physical issues related to managing and handling stock. By deploying dedication and hard work you can ensure that your orders are picked, packed and despatched on time. But as you grow, the effort involved in this increases, and practices you previously relied on can become creaky. Excess dependence on manual processes, frequent, avoidable stock handling issues and over-reliance on specific staff knowledge can start to impair efficiency and productivity. And growth itself brings further logistical problems like the need for extra storage space, equipment and infrastructure, and more people to handle rising volumes. So the fact is that hard work and dedication alone can only take you so far. There comes a point where you need to seek a solution to handle growth. The most obvious one, employing more people, is something you can't always avoid. But it brings extra costs and responsibilities which as a smaller business you might prefer to avoid. The answer may be to look at your existing IT provision to decide whether the systems you now need to support your business are in place. Most probably you already use a system that captures your web-placed orders, whether from your own site or from key marketplaces. Separately or as a part of this, you may also integrate with some form of carrier management software. Both these are key to taking and satisfying customer orders. But which system do you use to manage the physical side of stock handling? Why would you not deploy an appropriate solution to handle this business-critical area, as you would when managing orders? In a large e-retail concern it would be unthinkable to manage a warehouse without a specific best-of-breed warehouse management system (WMS). In fact, the difference between smaller and larger e-retail businesses is only really one of scale. The need to maximise space efficiently, rotate stock correctly, locate goods for picking and verify them accurately pre-despatch is no different. Nor is the need to integrate with other applications to manage orders and transportation requirements. Not long ago, the chance of finding a WMS to meet smaller e-retailers' needs was remote. The cost and timescale involved in implementing one of the mainstream products made them a generally unfeasible option. The picture is very different now. Cloud-based software-as-a-service, and products which focus on e-retail operation mean that smaller e-retailers can start to emulate larger ones. At costs more

manageable to a smaller business they can start to deal professionally with issues around managing physical stock common to any business while working effectively and assisting faster business growth. Whether your business is large enough to justify this is a question you still need to answer. Size is a relative term as we know and it is possible that some businesses won't derive benefit from such a system, even at modest cost. But the question for a business that maintains any size of stockholding must be: “Do we have problems managing physical stock, and could things be done better?” Consider, for example, the following questions: -Are you able to process incoming stock receipts quickly and capture relevant information without errors? -Can you quickly determine and allocate space to store goods in your facility, taking into account any storage preferences? -Are putaway locations accurately verified and recorded on a system for picking and reporting purposes? -Can you direct your staff to the right pick locations taking account of things like stock rotation, status and batch control? -Can this be done efficiently to achieve the best utilisation of space and labour time? -Do you have a secure despatch process to prevent incorrect orders being sent to your customers? -Can you successfully manage and audit all changes to your stock so that the picture is always correct? -Can you generate a selective count of your physical stock to verify it against your system figures? -Can you get accurate real-time location-based stock figures for all the products you store? If none of these questions signifies problems within your business then possibly it's not of a size to derive much benefit from a WMS system. Either that or you already have good systems to cope with such events without a problem. On the other hand, if some of these issues are familiar ones and you are experiencing problems because of the way you currently work it's probably time to look at what's available to help you. Any problems that remain unresolved are costing you money, whether because of inefficient processes, poor productivity, wasted time, errors leading to a fail in terms of delivery, product returns or unnecessary corrective actions. Calculated properly, the cost will almost certainly be higher than you think. So logically, if there is something you can use to eliminate these operational problems, and the cost to use it is less than you could potentially save, the result is a net gain. One way to look at this is when compared with the cost of additional labour. You can recruit any number of extra people but it won't guarantee that your operation runs with efficiency, accuracy and discipline. But for less than the cost of one person, you can deploy a system that ensures any extra staff you recruit will work efficiently, productively and error-free to fully justify their costs. But that's only one facet of using a WMS and by no means the only justification for doing so. In general, new WMS users ultimately realise many more benefits than expected, rendering the monthly system cost largely irrelevant. From thereon a WMS system is rarely something people feel they can do without. It becomes a platform for stable and efficient growth and an indispensable tool for managing costs in a key area of your business.

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MANAGING INCREASING CUSTOMER DEMAND PROVING DIFFICULT FOR ONLINE RETAILERS

Online retailers need greater automation in the warehouse to help meet delivery schedules during peak periods and to improve customer service, shows independent market research from Conveyor Networks. Surveying the views of 100+ mid-tier online retailers, Conveyor Networks, a leading provider of warehouse automation and software solutions, found that 83% believe that automation will drive future online retail growth. 76% claim to be handling up to 50,000 orders per day, with this rising to 75,000 orders per day for some during peak periods, putting pressure on warehousing and delivery and increasing the likelihood of errors. Online retailers admit they’re facing big challenges and are feeling the pressure to deliver on time. And almost half blame a lack of staff to fulfil orders (45%) and order errors (42%) as hurdles to meeting delivery schedules. However, in spite of these common obstacles almost three-quarters (74%) of respondents have less than half of their warehouse management processes currently automated, and almost half (49%) are planning to further reduce manual warehouse processes before their next peak spell. The majority of online retailers claimed that customer expectations on delivery have risen significantly over the last five years, with 59% admitting that meeting these expectations is the biggest challenge they face. And with the UK, leading the way when it comes to online spend per household, retailers are keen to ensure that the customer ordering experience is seamless. Almost three-quarters of online retailers believe that increased warehouse automation will help them improve their customer service capabilities. Just under half are planning to change

their order fulfilment processes in the future with 49% believing that increased automation will enable them to handle orders more quickly and efficiently during peak periods. In addition, 41% said it would help them to respond to orders more quickly; while 38% said it would help reduce picking and packing errors. The survey also shows that online retailers believe that customers are more concerned about the ability to track their order online than they are about next day delivery, with just over half planning to offer tracking service capabilities to their customers in the future. Commenting on the research, David Carroll, managing director, Conveyor Networks said: “Today’s savvy online shoppers have high expectations when it comes to deliveries. They want to receive their goods quickly and conveniently and if they don’t want to keep them, return them just as easily. “As a result, online retailers can no longer suffer order delays or errors, or difficult ordering and returns processes because shoppers will take their business elsewhere. “Many are also concerned about the impact of customers leaving negative comments on their social media channels if they’ve received bad service, so many are working hard to ensure all parts of the order and delivery process are as seamless as possible. “By increasing automation – from mobile devices such as handheld scanners to help the pick process, to using a fully automated bagging line in packing –a range of slow, laborious and error-prone manual processes in the warehouse can be made much more efficient. Retailers can meet delivery promises more effectively, process orders more efficiently during peak periods, and reduce the number of returns due to incorrect orders.” Conveyor Networks works with many leading retailers to help them address their warehousing challenges including, QVC, Debenhams, WHSmith, GameSeek, The Bookpeople, Specsavers and Pets at Home. *This research was conducted by Sapio Research in February 2018, surveying 100+ online retailers, employing more than 250 people across a variety of retail sectors. Contributor: David Carroll David is MD of Warrington-based Conveyor Networks, a systems integrator and solutions provider founded in 2009. Working from design and build through to serving and maintenance, it offers retail and e-commerce businesses of all sizes best-in-class warehouse software and automation solutions. It engineers imio software, its own modular warehouse management system and can run everything from conveyors and sortation to packing lines, fully automated processes and carrier integration.

INTERNATIONAL MAIL AND PARCEL DELIVERY COMPANY SPECIALISING IN SOLUTIONS TO THE USA

UKP Worldwide (UKPW) is an international mail and parcel delivery company specialising in solutions to the USA. We have our own US office and direct relationship with the United States Post Office, USPS, which means we can inject mail and parcels directly, providing excellent delivery times and shipping rates for our clients. In addition to our relationship with USPS, we have access to some of the biggest and most reliable logistics networks in the USA. We ensure that our clients whatever their size – receive an inexpensive quality service usually only accessed by some of the larger e-commerce retailers. Over 20 years’ experience in post and parcels and expert knowledge of the US market makes us well placed to handle all your outbound and return requirements for post and parcels through our bespoke IT platform. Would you like tracked shipping to the US at an affordable price? Cross-border shipping can be cost prohibitive especially for lower value products and has always caused concerns for both retailers and their consumer, as tracked via courier is expensive and savvy consumers would prefer not to pay high shipping costs. Our service closes the gap in the market, allowing retailers to offer their consumers a tracked shipping service to the US at an affordable price and more importantly securely – an assurance for both retailer and customer! With full tracking through delivery and the availability of final mile USPS tracking labels for greater efficiency, you and your customers will have complete transparency of your packets and parcels from door-to-door, all delivered within 5-10 working days. You don't even have to sort the parcels before passing them to us, just send us a manifest and we will scan and produce the appropriate labels from the data we receive for each and every parcel.

Looking for fully tracked returns? Our own US fully managed returns service was the natural step to accompany our outbound service. Using our bespoke Returns Portal allows our clients to provide their customers with an easy way to arrange a return, using a local US address, a pre-requisite for Amazon sellers. By being able to offer a fully tracked merchant or consignee paid returns we are able to satisfy customer and consumer needs for a seamless customer journey. Have you heard about the de minimis value? International e-commerce has been growing at a phenomenal rate and shows no sign of stopping! The US Government recognised the importance of international trade in March 2016 when they increased the de minimis value from $200 to $800 – the first time in over 20 years! This was not only a great change for online retail but also for US consumers, meaning no collection of duties, subject to legal requirements but also faster delivery without custom and border delays. We are proud to be an AEO UKPW were granted Authorised Economic Operator (AEO) status in November 2016. AEO status is an internationally recognised supply chain accreditation awarded by HMRC to particular organisations of merit. The accreditation contributes towards the first-class service we provide to our clients. It adds to our service offering and it also instils trust in our clients, having undergone rigorous HMRC audits of our systems and processes to achieve it. It allows our clients to access and comply with UK export legislation ensuring their products are not unnecessarily delayed through custom and border controls. We appreciate that dealing with export compliance can seem quite daunting, but our team of experts make it as simple as possible. Every packet and parcel handled and processed by UKPW, whether to the US or worldwide, is done so securely with the utmost importance and priority, whether for our new or long-standing customer base incorporating those just shipping a few parcels a week to those shipping thousands…we want to ensure all of our customers know they are important and receive the first-class treatment they deserve no matter what the size! That commitment exists with our US service and our worldwide parcel delivery service with its broad suite of cross-border delivery options including, Express Tracked, Standard Tracked, Untracked and email notifications with tracking information, all complemented by an e-commerce returns options for many worldwide destinations. What do your customers think of your current USA shipping service? How reliable is your returns service? Why not review and see if our competitive services would be a good replacement? We really understand the delivery requirements of your US customers and the marketplace and can help you select the best service for you. Contributer: https://www.ukpworldwide.com/