Modern Retail: Guide to Fulfilment November 2019 by Modern Retail

Guide to...

NOVEMBER 2019

FULFILMENT

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Contents Top tips for sustainable fulfilment

A good management system at the centre of successful fulfilment operation

Amazon Prime benefits for shoppers and profit opportunities for businesses

The 3 vital factors of delivery

Delivery: communication is key

Inside Amazon’s robotic warehouse

4 ways specialist lifting equipment will improve your ecommerce warehouse

How to plan your fulfilment strategy

Tarlu third-party fulfilment services

Returns - an opportunity to increase sales

Smart shelving: the future of smart warehouses?

Scale up your ecommerce business with professional order fulfilment

The changing world of fulfilment

Streamlining the packaging and shipping process

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Contributors

Credits

Thanks

Managing Editor

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

Rob Gamage - rob@modernretail.co.uk Content Editor Holly Worthington - holly@modernretail.co.uk Sales Director Jamie Ezekiel - jamie@modernretail.co.uk Business Development Manager Holly Worthington Holly brings a wealth of experience in both print and digital publishing. As Modern Retail’s Content Editor, Holly is passionate about helping independent retailers to thrive in today’s ever-changing market.

Emma Mjekiqi - emma@modernretail.co.uk

Modern Retail is published by Ricochet Media Services Ltd (Registered Company: 6043446). 1st Floor, Building 2, Croxley Park, Watford, WD18 8YA.

Sales Executive Debs Harbron debs@modernretail.co.uk Client Services Executive Beki Rodrigo - beki@modernretail.co.uk

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Top tips for sustainable fulfilment

Contributor: Holly Worthington

Sustainability is an issue which is impacting retailers more than ever before, with increasingly aware customers becoming more conscious of their impact on the environment. But how can retailers tackle sustainability in the supply chain?

While customers may focus predominantly on the sustainability of products’ packaging, there are numerous touch points before products are seen by customers, all of which also play a part in products’ environmental impact. The supply chain is being placed under increasing scrutiny, meaning retailers are being asked to explain the entire journey of products to customers.

potential, by weight and volume to reduce the number of journeys required.

Here are some of the ways you can work to create a more sustainable fulfilment process:

• C ould a reduction in packaging or weight of pallets reduce transportation emissions?

Sustainable packaging

Communicate with your suppliers

One of the major areas retailers can become more environmentally friendly is through packaging choices. In the dream scenario, packaging would not be used, however, in order to protect and prolong the life of products, in most cases, packaging is a necessity.

Get in contact with your suppliers and challenge them on their sustainability efforts. Question their choices of materials and processes, and pass on any feedback or requests from your customers.

With countless options for recyclable and biodegradable packaging, protecting products throughout shipping does not have to use singleuse plastic.

Points to consider: • W hich sustainable packaging options will be able to protect stock effectively? • W ill this increase the cost of packaging? • H ow can you educate your customers to recycle packaging?

More effective loading To reduce the amount of pollution created by vehicles in shipping, loads can be organised more effectively to help make delivery more sustainable. To do this, shipping and logistics companies can maximise load

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Points to consider: • D oes the manufacturer make pallet loads of different sizes? • C ould you be packing items more efficiently into vehicles and warehouses?

Suppliers compete to keep your business, and realistically, if they’re not looking to source affordable sustainable packaging options or more eco-friendly fulfilment solutions, their competitors may be. Having an open and transparent relationship with your suppliers will help to weigh up the pros and cons of more sustainable alternatives from their perspective, as well as your own. Often, suppliers will have the ability to implement more sustainable processes, however, unless the retailer makes them aware of their desire to do this, there will be no action. Communicate everything in regards to handling, fulfilment and storage, working to understand the best processes for suppliers to follow, which will also benefit your operations and sustainability.

A good management system at the centre of successful fulfilment operation E-commerce fulfilment as a service has grown significantly in recent years, matching the exponential growth of the e-commerce sector itself. This is easily understood because although there are e-retail companies, both small and large who retain control of their own stock, picking and despatch activity many others see a greater benefit in handing this over to an experienced third-party provider.

And there are good reasons for doing so. Traditional ‘contracting out’ has been a popular model for many years in the major retail and manufacturing sectors. This is clearly driven in part by the need to realise cost savings, but also often because of a lack of available in-house expertise, and the need to focus resources on core specialisms and away from the ‘nuts and bolts’ of logistics. In terms of the e-retail sector, the ‘point of sale goods’ fulfilment specialists who have existed for many years seem to be the natural forerunner of the current e-commerce fulfilment practitioner. Unlike large scale supermarket distribution operators or traditional mail-order houses, these companies have been used to dealing with a smaller and often unique order profile, frequently involving the provision of value-added bespoke services to meet individual client needs. This kind of experience is more closely aligned to providing a modern fulfilment service, in which working for a multiplicity of clients and handling diverse products requires

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knowledge of different skill sets. Lack of previous experience has not, of course, prevented expansion of players in the fulfilment sector, with new entrants appearing from many sources including parcel and courier companies, mailing houses and increasingly, established third-party warehousing operators. Many in this latter category have seen big changes to their businesses profile, driven by e-commerce expansion. Where previously they might have processed orders to move 20 pallets at a time, they have now become conversant with the skills needed for multi-item order picking and home delivery. But whatever their origins, becoming a successful fulfilment specialist involves the acquisition of a range of skills and tools. One such tool is the system to manage the operation. The process, in essence, is simple: an order arrives from your thirdparty client and is picked, packed, despatched and received by the client’s happy customer a day or two later. But this is less simple when orders number in the thousands

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and your customer base expands to dozens of clients. Meeting such varied requirements, not just between clients, but between different products for the same client, different value added services, different delivery services and so on is a real challenge. The system you need to manage all of this must be one that can excel on several fronts. At the core of such a system should be the means to exercise tight control of your physical storage space, as this is the basis for running any successful fulfilment operation. This should not be limited to ‘one location per product’, a common failing of many order management systems. Rather it should offer complete control of multiple (including mixed) products over multiple locations, logging and tracking every single physical movement of goods into, out of or between locations.

Then first and foremost your system needs to receive orders from your clients’ customers directly from their source. This could be via a client website, web marketplace or any one of a number of multichannel e-commerce offerings. This means your system must offer a comprehensive open API, capable of integration with any of these order sources, not just for receipt of orders but also to advise amended stock levels and convey customer tracking information. Secondly, you need a system that allows you to flexibly manage and sub-divide your workload. The most basic requirement here is the means to manipulate your order well to determine when and how orders will be processed. At a more advanced level, you could be looking at systems that can automatically filter and schedule orders according to a range of criteria including client, source, order type, item quantity, delivery dates, times and carrier. In this way, you can automate a large amount of routine supervisory work to create greater efficiencies. You then require the means to execute that workload using a range of picking options, including picking by wave, cluster and bulk with sort. Ideally, you should be able to determine these at a system level, rather than have operatives on the ground select them on each occasion. These functions should be available via a real time App in which operatives receive orders automatically based on eligibility criteria, and which supports extensive use of barcode verification to validate movements of stock for maximum accuracy.

Once picking is completed your system must allow secure predespatch checking of orders. This ‘packing desk’ process should allow verification of orders collated by media, for example when bulk picking, as well as individual orders, and should include product ID scanning where applicable. Generation of delivery paperwork is essential, as is full API integration to carrier system or aggregated carrier management software to produce essential despatch labels, retaining all-important tracking information for onward transmission to the client and their customer. From the perspective of the thirdparty fulfilment specialist, none of this is a charitable exercise, so one of the most important system elements is the means to record and consolidate all client charges at the end of the billing period. Maximum flexibility is required in terms of the way charges can be made, including by client, product and activity type, along with the facility to apply charges when performing specific activities, e.g. at receipt or despatch. Invoices in either electronic or paper form should be available along with a comprehensive charge summary for client information. Third-party fulfilment is an extremely competitive area, and those who succeed in the field may not always be the ones who’ve been around the longest. They will be the ones who have acquired the operational and managerial skillsets, and who are able to use tools like the best systems in order to meet the diverse demands of an expanding customer base.

Contributor: ProSKU https://www.prosku.com

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Amazon Prime benefits for shoppers and profit opportunities for businesses

According to Jeff Bezos, the number of Amazon Prime members has already passed the 100-million mark, and the massive switch shows no signs of stopping. People love having exclusive perks, which makes the programme so coveted. It’s like a private yet accessible club that opens new doors for shoppers. But how do you benefit from it as a business owner? Let’s get a bead on what is so special about Amazon Prime.

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On average, US shoppers who use the Prime programme spend twice as much as regular buyers. The reason why they lash out such a great portion of money while shopping is that they get access to a range of Amazon Prime advantages, such as: • Two-day or same-day delivery at no charge. With Amazon Prime, shoppers can order stuff and rest assured they’ll get it without hidden shipping fees. As of now, millions of listings are eligible for free delivery in a matter of days or even hours in some areas. • Capturing Lightning Deals. As they are time-sensitive, these offerings are pretty hard to grab. Not for those who use Amazon Prime services, though. The programme allows access to all the items under the Lightning Deals section 30 minutes earlier than regular buyers can see them.

• Keeping piggy banks unbroken. If you are a shopper who is wondering what you can get with Amazon Prime, substantial savings are definitely among the benefits that spring to mind right off the bat. You can avail yourself of discounts on household items, baby food, diapers and more. • Having a lovely time. Members have access to an ever-increasing collection of movies, TV shows, ad-free songs, bonus games, and books. In fact, there are much more entertainment options the programme has to offer. So, you may want to get familiar with complete Amazon Prime details right on the marketplace’s website in your country.

What comes with Amazon Prime for your business? It is estimated that Prime members shell out $1,400 annually. Do simple calculations, and you’ll realise the profit opportunity this creates for your business. If you are looking to increase your sales, you’ll want to make sure Prime shoppers can easily find your products when browsing around. The requirements are the following: • 1. To get your listings in front of over 100 million Prime members, you need to switch to FBA. This is the way Amazon uses to ensure peace of mind of those who subscribe to the programme.

• But what if you only start selling on Amazon, and your metrics are undefined? No, you don’t necessarily have to wait years until your credibility is established. With Minatus and our fulfilment solutions, you can benefit from expert assistance in order management, shipping, and customer service for a bargain price. We are dedicated to helping online sellers grow their businesses and boosting their metrics no matter whether they’ve started 10 years ago or yesterday!

• 2. If your online metrics leave a lot to be desired, it’s unlikely that your products will be offered to Prime buyers. It’s a prerequisite to prove that your brand, as well as items, can be relied on before you can qualify for Prime display.

Contributor: Minatus Minatus is a B2B company offering e-commerce fulfilment services at affordable rates. What we do is help you save valuable time so you can focus on developing your business. Our specialists will handle everything that has to do with order fulfilment for you – store, pick, pack, and ship. Our warehouse management system easily integrates with any platform you use. It is also not a problem if you use multiple channels. As soon as a customer places an order for one of your products, we receive a notification and immediately begin the process of packing and shipping. www.minatus.co.uk/fulfilment-services/# info@minatus.co.uk + 44 (0)1924 368841

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The 3 vital factors of delivery Experience is everything nowadays for the digitally empowered customer. The physical aspect of getting a delivery in your hand is one of the most important parts of online deliveries. Those who put the effort in to make the delivery excellent, reap the benefits.

Contributor: Holly Worthington

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To create loyal customers who regularly come back, retailers must understand their customers’ preferences, creating options which suit these people in order to secure their business.

point or locker, while others will opt for flexible delivery times, or specific time slots, making it possible for them to receive their delivery out of work hours, or at a convenient time.

These are the three main aspects of delivery which should be considered:

Price plays a large part in consumers’ decision to make a purchase, meaning retailers must offer competitive pricing, as well as a reasonable service on a budget.

Speed Retailers should take customers’ preferences into account, offering various, wide-ranging delivery options. Where possible, having the ability to do same-day delivery, next-day, two day, or even longer time-scale delivery can facilitate most customers’ needs.

Convenience Customers look for convenience when booking delivery services. For some people, this will be the ability to collect their items from a pick up

Price

The most successful retailers will offer options for each of these, however consumers typically look for at least two of the three. Should two of these fit their demands, they are often willing to trade off, or lose the third. As an example, somebody who forgot to purchase a birthday present and has a party in the evening may place an order for same-day delivery. Because there is urgency, this person

“By facilitating customers’ varying preferences, retailers can overtake competitors and create returning customers through industry-leading delivery.”

would not mind paying a premium to ensure it arrives to their desired location in time. They receive speed and convenience, but not the best price. On the other hand, somebody looking to buy a gift for a birthday the following month would not be in a rush. This person would most likely look for convenience and price, ensuring the delivery is hassle-free, but they would not be happy to pay a premium for fast delivery, instead, shopping around and comparing

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prices. In fact, 74% of shoppers feel more confident ordering online when they are able to track. With every customer having their individual delivery necessities and requests, retailers should be able to service all customers and contexts, looking to offer a range when it comes to speed, convenience and price. By facilitating customers’ varying preferences, retailers can overtake competitors and create returning customers through industry-leading delivery which leaves an impression.

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Delivery: communication is key Contributor: Holly Worthington

Delivery is one of the most important parts of a customer’s purchase, shaping their overall experience and leaving a lasting impression. While successful delivery is vital in the fulfilment of ecommerce orders, effective communication can grow brand reputation, consumer trust and save resources.

Amazon are known and trusted for their hassle-free service, with 60% of people having bought from the platform in the last three months. Consumers have grown accustomed to their communication and delivery updates, but there is no reason independent retailers aren’t able to replicate this, and even offer a more personalised service, creating loyal customers.

This process can also flag potential errors, for example, incorrect addresses. By including the delivery address in communications and providing a customer service contact number, customers have the opportunity to change this before it is sent. 20% of all failed deliveries are due to inaccurate delivery addresses being provided, costing retailers money and disappointing customers.

Understand shoppers’ preferences

Reduce customer service enquiries

The first step to creating fantastic communication is understanding the platforms your customers use. Consider email updates, text messages, WhatsApp messages or even phone calls, depending on your objectives and users’ preferences.

As well as building brand loyalty and trust, communication throughout the shipping process can also reduce the demand on your customer service team. ‘Where is my order?’ enquiries make up 30% of overall customer support contact, creating an opportunity for communication and automated updates to reduce the amount of customer service calls, and in turn, improve efficiency and reduce associated costs.

Communicating next steps An enormous 74% of shoppers feel more confident ordering online when they are able to track their product’s journey. Tell your customers where their package is, whether it’s being created, packaged, shipped, or is ready for delivery. Letting the customer know what to expect will not only create excitement, but it will let them know when to expect deliveries.

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Secure future business Customers’ delivery experience plays a large role in turning one-off customers into returning business. With 77% of negative online reviews being about post-purchase services

“67% of consumers check the returns policy before checking out, and 85% of shoppers say they won’t repeat buy if returns are complicated or inconvenient.”

such as items not arriving on time, failed deliveries or a lack of tracking updates, this can easily damage reputation. Contrastingly, 96% of shoppers say a positive delivery experience would encourage them to purchase from a retailer in the future.

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Simply put, communication is key in the delivery process, with 90% of people agreeing that receiving information about the delivery of a purchase is important. Creating a more seamless experience works to retain and impress customers, with communication throughout various delivery stages working to keep retailers ahead of their competition.

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Inside Amazonâ&#x20AC;&#x2122;s robotic warehouse PUBLICATION BROUGHT TO YOU BY

Contributor: Holly Worthington

Robotic warehouses were once something people only dreamed of, however they are quickly becoming a reality, as operations reach new levels of efficiency. It is thought that in the coming years, more retail businesses will be able to utilise robots in their fulfilment processes, reaping the benefits.

In Amazon’s sorting center, robots work alongside humans to deliver their industry-leading fulfilment processes. Once a person has scanned a product’s barcode, it is placed onto one of the hundreds of small, flat, orange robots, which have a conveyor belt on top of them. When the human presses the ‘send’ button, these robots will take themselves to the correct sorting zone for the item’s postcode, activating their conveyor belts to slide the package down the chute to the floor below, ready for loading onto delivery trucks. Once their “mission” is complete, each robot queues around the edge of the warehouse, waiting until a human scans a new package, before returning to be loaded and repeating the same process.

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A cloud-based system determines the robots’ actions, deciding the most efficient path to follow to a chute, as well as ensuring robots do not crash. It also calls robots back to the docking station for charging when required, and decides when they are ready to go back to work. These revelations in the world of logistics have enabled Amazon to deliver in the way that they do. The differences are obvious when compared to using people to pick parcels up, take them to the correct delivery chutes and place them on delivery pallets. Humans are however, still required, and when used in collaboration, humans and robots are proving incredibly successful. Humans have unique attributes which robots do

not, and visa versa. As an example, the robots’ conveyor belts engage if they sense a package slipping off the side, pulling it back on, however they may not notice if liquid from a leaking bottle has made the packaging soggy. This is where humans are able to quality control check to ensure a seamless process. Robotic warehouses are used to speed up warehouse operations, reducing labour costs, the likelihood of injury and the risk of human error. As robots’ capabilities continue to advance, there is no doubt these processes will become even more streamlined and be implemented more commonly throughout retail fulfilment and warehousing processes.

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4 ways specialist lifting equipment will improve your ecommerce warehouse The ecommerce arena is very competitive, which means companies should always be looking to improve their processes and, in turn, their productivity levels. Using specialist lifting equipment to create warehouse improvements, can help your operation to run much more smoothly, and should give you the capacity to take on more work.

Here, Penny Hydraulics outline some of the biggest benefits to integrating specialist lifting equipment into the way you work...

Your staff will be able to work more efficiently Improving your processes should be all about efficiency. The smoother your business runs, the more work your staff will be able to do, and the more money you’ll be able to make. To ensure that the day–to–day processes of your company run as efficiently as possible, you need to provide your staff with the most suitable equipment for the work that they do. Therefore, as an ecommerce business, putting plenty of effort into choosing the most appropriate lifting equipment for your warehouse is very important. In order to invest in the equipment that will benefit your employees and business best, it’s vital that you assess your needs. For example, if particularly strenuous jobs are currently being carried out using manpower, consider whether lifting equipment is likely to improve the speed and safety of these tasks. The right machinery will help to increase the accuracy of your staff’s

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work, too. This is because they’ll be able to move large loads much more quickly and easily. As a result, less mistakes should be made and, if you regularly struggle to complete orders on time, this should become much less of a problem. If you think that your business could run much more smoothly, improving your efficiency with specialist lifting equipment is a great place to start.

Warehouse improvements to create a safer space Handling, lifting, and carrying accounted for 20% of all workplace injuries in 2015/16, according to the Health and Safety Executive. Investing in specialist equipment will take a lot of strain off your employees, and should reduce the risk of injury as a result. So, if you’re looking for a way to make your warehouse much safer, installing new lifting equipment is likely to help. Not only will your employees appreciate the effort you’re putting into making their jobs less physically demanding, but your business is likely to benefit from a drop in sick days, too. Therefore, by providing your employees with new equipment,

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“If you think that your business could run much more smoothly, improving your efficiency with specialist lifting equipment is a great place to start.”

you could improve staff morale, keep your workforce safe, and reduce the amount of time that people take off as a result of injury.

Your stock will be at less risk of damage If your stock is consistently dropped, crushed, or damaged in any other way, it’s time to look at how you could improve your processes. Investing in specialist equipment is a great way to do this, as it will leave less room for human error and will ensure all of your products are picked up and transported in the most appropriate way. To truly reduce the risk of your stock getting damaged in your warehouse, you need to make sure you choose

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the most suitable lifting equipment for the job. You should consider the size and weight of the products you typically move, as well as the layout of your warehouse. This will help you to narrow the search down, eventually leading you to the equipment that will assist your workforce best.

It could make you more money in the long run New equipment can seem like a large expense, to begin with, but it’s likely to pay for itself in the long run. This is because investing in specialist lifting equipment will benefit your business in a variety of money-saving ways, from improving the efficiency of your processes to reducing the number of sick days your staff have to take.

It’s likely you’ll also be able to take on more work after investing in specialist equipment, as your staff will be able to complete tasks much more quickly. So, if you’ve found yourself turning work away, updating your lifting equipment could be the solution.

your efficiency, boost staff morale, and even give you the opportunity to make more money. If you’re interested in experiencing these benefits, consider equipment to aid in your warehouse improvements today.

In addition to this, you could increase customer satisfaction by reducing your delivery times and making fewer mistakes. Customers will then be more likely to come back to you time and time again which, in turn, will make you even more money. If you feel like your business’ processes could be improved, consider investing in some specialist lifting equipment for your warehouse. It could increase

Contributor: Penny Hydraulics Penny Hydraulics is an award-winning UK manufacturer of lifting equipment which can simplify retail warehousing

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How to plan your fulfilment strategy To fulfil orders efficiently and successfully, a well-planned fulfilment strategy is vital. Whether you are starting out, fully established or looking to scale your business, designing an infrastructure and having processes which work is essential to reliable and cost-effective deliveries.

Contributor: Holly Worthington

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To fulfil orders efficiently and successfully, a well-planned fulfilment strategy is vital. Whether you are starting out, fully established or looking to scale your business, designing an infrastructure and having processes which work is essential to reliable and cost-effective deliveries. While some of these considerations may cost more to set up initially, each of them will optimise your fulfilment processes, and in turn, benefit business. Here are some of the main areas to consider when planning your fulfilment strategy:

Location Whether you operate solely online, or have a brick-and-mortar store, location is important in ecommerce. Carefully choosing the location you fulfil orders from, will enable you to meet expected delivery times, reduce the costs of shipping and help to reduce retailersâ&#x20AC;&#x2122; carbon footprint. First, you should consider where the majority of your orders are delivered to. Having your fulfilment centre located near these areas will not only reduce the time spent transporting customersâ&#x20AC;&#x2122; orders, but also reduce the associated costs. By keeping costs

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low, customers are more likely to feel they have received value for money. Some retailers may find that a fulfilment centre in the countryside is more cost-effective, particularly if they need to store large quantities of products and their customers live in this area. On the other hand, if a retailer’s main customer-base is in London, it could be beneficial to consider an urban fulfilment centre, getting deliveries to customers quickly and investing the money which would be spent on long-distance transport, on higher value property instead. It may also be worth looking into having numerous fulfilment centres, distributing inventory to be near popular shipping locations.

Use of technology Implementing technology in fulfilment operations can simplify processes and remove the risk of human error. Systems can be integrated into ecommerce platforms or marketplaces, meaning that the fulfilment team are notified to pick

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and pack items as soon as an order is placed. By doing this, there is no need for manual data entry, removing the risk of duplicates or typing errors. Uses of technology can be adapted to suit retailers’ requirements, for example, sending customers an email when a product has been shipped, or providing parcel tracking information. Having customers sign for deliveries with electronic signatures can also be fed back to businesses quickly, helping to know when a delivery has been successfully made. It can also be used to communicate information across various teams, regardless of employees’ locations. A perfect example of this is automatic updates showing the available inventory in fulfilment centres. By doing this, processes can run more smoothly with orders being placed to avoid selling out of specific products, or running out in specific warehouses.

Shipping A pivotal part of any fulfilment strategy falls on the shipping time retailers set and the cost of achieving

this. While there is an increasing demand for one-day and two-day delivery, customers also look for competitive pricing, meaning retailers have to balance speed and price. Well-planned ecommerce order fulfilment can convert higher numbers of customers, without the need to impact margins. ‘Free shipping’ can quickly increase the likelihood of customers progressing to a checkout page, reducing the cart abandonment rate. To achieve this without reducing your margins, consider adding the average cost of shipping into the product price, or state a minimum purchase value to qualify for free shipping. Bear in mind that you must remain competitive, so overpricing your products to compensate for delivery costs may deter customers. Base your shipping options on customers’ preferences and average spend, creating cost-effective methods of incentivising higher purchases in return for fast or free shipping if suitable.

“While there is an increasing demand for one-day and two-day delivery, customers also look for competitive pricing, meaning retailers have to balance speed and price.”

Choice of order fulfilment model Self-fulfilment model

Third-party fulfilment model

Dropshipping model

Taking care of order fulfilment inhouse means retailers complete their processes without the need of any third-party logistics partner or dropshipper. Typically used on smaller quantities of inventory, or when businesses begin, this DIY approach helps retailers to keep full control of the fulfilment process.

Third-party fulfilment is a solution often used by retailers who do not have the resources to handle it themselves. From time commitments to a lack of space or disinterest in their distribution, retailers can benefit from handing their fulfilment over to thirdparty experts for a number of reasons.

When dropshipping, products are produced, sourced and shipped directly from the manufacturer, with systems being put in place for orders to be automatically picked up by the manufacturer. From here, they take care of the entire process, taking the pressure off the retailer.

Pros

- Third-party fulfilment companies can take care of the whole process, from taking inventory from manufacturers, to picking, packing, labelling and managing returns

The dropshipper will take care of all manufacturing and shipping processes, giving you time to focus on selling more

You are given access to the dropshipper’s network, saving time without the need for sourcing, networking and negotiating costs

- Keeps manufacturing, inventory and warehousing in one place - All you need is storage space, address labels and packaging resources - It can be cost-effective for smaller businesses - You can individually negotiate shipping rates with providers for large volumes of products

Cons -

It can require warehouse space, equipment, staff and fulfilment software, making it a big commitment for a smaller business to set up

Packing all deliveries yourself can become time-consuming, particularly when the number of orders increases

- Because of their capacity, they can often facilitate rapid growth and you can purchase inventory in bulk -

Third-party fulfilment companies can negotiate fantastic business and shipping rates as they do this in bulk for numerous companies

Cons -

Quality can be compromised, meaning you must choose your third-party fulfilment partner carefully to avoid disappointing your customers

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- Low overheads and the ability to test markets before committing

Cons - Less control over processes, placing your brand’s reputation in the trust of the dropshipper - Little potential to customise products or orders, making it hard to establish brand identity - Can become more challenging when working with multiple dropshippers

Tarlu third-party fulfilment services Contributor: Luis Johnson Tarlu Managing Director

Luis Johnson, Managing Director of Tarlu – a multi-faceted UK 3PL, talks about Mintsoft, his warehouse management system of choice.

“My company Tarlu is a UK based 3PL providing international fulfilment services for companies from UK and all around the world. We assist fast-growing multichannel retailers in servicing UK, European and all international markets – both B2B and B2C. When we first looked for a warehouse management system we knew Tarlu’s complex operational requirements would demand state-of-the-art inhouse technology. A two year search led us to Mintsoft.

There were key requirements: Downloading sales orders needed to be as automated as possible. Our system would need to integrate with a growing range of sales channels. Obviously we needed pick and pack and shipping services to be streamlined, efficient and costeffective. Mintsoft facilitated these key functions better than any alternative we tested. Carrier integrations work without issue. As importantly we wanted a warehouse management system where we could communicate with our clients. When you have clients in locations ranging from Australia to California direct human interaction

is just not appropriate. We wanted our clients to work with us using one central system. With password-controlled access to their data clients can: • advise us of forthcoming deliveries • s ee our report when we book the goods in • check inventory levels • be warned about low stock levels • s ee the live status of any sales order • access tracking information These basic requirements are supplemented by so many more client benefits - scheduled reporting, email notifications, audit trails, returns management, built in customer support ticketing system, etc Mintsoft are continuously building more into the system and where possible add in new requirements which we raise. This is what we find really useful in a provider. To summarise Mintsoft gives us the structure to provide a great range of 3PL services to our growing list of clients worldwide.”

+44 (0)330 223 2218 enquiries@tarlu.com www.tarlu.com

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Tarlu specialises in third-party fulfilment services Amazon Seller Fulfilled Prime available to all clients

Outsource your pick and pack today with Tarlu

Multichannel Fulfilment Tarlu provides third-party fulfilment services to customers of all types and sizes from different countries across a variety of industries. Through its cloud based Warehouse Management System Tarlu supports customers selling via a range of UK and international trade and online sales channels. With 24/7 online access, customers benefit from 100% live visibility of inventory levels and order progress. Tarlu trades with many parts of the world and aims to increase its presence by opening up new markets for itself and its clients.

Supporting Growing Businesses Tarlu is committed to helping businesses grow through the provision of its services.

T: +44 (0)330 223 2218 enquiries@tarlu.com www.tarlu.com

In support of its commitment, Tarlu offers tailored price plans to help all its clients develop in a competitive climate. It doesnâ&#x20AC;&#x2122;t matter whether you presently have one sale a week or a thousand, we are all about the journey ahead!

Always Improving Gaining buy-in from the major retailers is a tremendous achievement for clients but with it comes a wealth of delivery requirements. To the benefit of its customers, Tarlu has successfully streamlined delivery processes into major retailers such as; Tesco, Sainsburyâ&#x20AC;&#x2122;s, Holland and Barrett, TK Max, Amazon, SPACENK, Fenwicks and Goldsmiths. Trusted by multinationals such as TATA and Pepsico our standards are already high but Tarlu is always looking to go that one step furtherâ&#x20AC;Ś

Returns - an opportunity to increase sales

Research from UPS Pulse of the Online Shopper has provided significant insight into the impact of the consumer’s return experience on sales.

67% of consumers check the returns policy before checking out, and 85% of shoppers say they won’t repeat buy if returns are complicated or inconvenient. It is very clear: A poor returns experience for the consumer equals lower sales. This is nowhere more true than in cross-border trading where reverse logistics has been identified as one of the main barriers to cross-border expansion for many companies. The conclusion, for any company, however, is very straightforward. If you want to increase your sales; make your returns policy consumer-friendly. We firmly believe that dealt with correctly, returns can, in fact, be the key to your ecommerce success in cross-border trading. So, ‘to deal with it correctly’ we firstly need to identify what the potential problems are. We have identified three issues that buyers face when returning an item.

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1. It is more complicated for your buyer. Most customers are unfamiliar with posting items to other countries. This makes the whole process more difficult and inconvenient for them. This will lead to abandoned baskets and/or less likelihood of customers buying again. 2. It is more expensive for you or the buyer. Consumers may select the most expensive method of posting things back to you from overseas. If you offer free returns, this has a significant impact on your profitability. If you do not offer free returns, it is a massive deterrent for consumers to buy again. 3. It takes longer to refund your buyer. Consumers want to be reimbursed or have their items exchanged as soon as possible. When items are bought from overseas, there is a longer time lag between the customer sending the item back and receiving a refund or an exchange.

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“67% of consumers check the returns policy before checking out, and 85% of shoppers say they won’t repeat buy if returns are complicated or inconvenient.”

You do not need to be a rocket scientist or even a savvy businessman to understand these 3 factors will have a significant negative impact on your sales. However, conversely, you do not need to be a rocket scientist or even a savvy businessman to understand if these 3 factors are addressed, it will have a significant positive impact on your sales. Plus, if you are one of the forerunners in addressing this problem, then the effect is exponential as your store will stand out from the others, giving you the competitive edge. Returns are not a problem. They are a distinct opportunity, especially in cross-border trading. We cannot, of course, talk about ecommerce sales without mentioning the big elephant in the room, the giant that many companies’ sales, business goals, bottom line profitability and ultimate survival may depend on Amazon.

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Amazon has, in recent years targeted and encouraged businesses to dive headlong into cross-border selling. They have also looked at and acted upon the feedback from the end consumer. Amazon’s international returns policy dictates that sellers must either provide a local returns address in the country where the item was purchased, provide a free return postage label or let the customer keep the goods. Thankfully, snapping at the heels of the cross-border expansion of ecommerce sellers are companies who have evolved to provide a service that allows these policies to be adhered to. Good news indeed for the ecommerce sellers involved in crossborder trading. Most are logistics companies who have opened their minds and businesses to the reverse logistics problems. They predominantly use their expertise in offering label

solutions to all. The problem of issuing a speedy refund is, still, however, an issue. The most comprehensive option is companies who themselves have a background in ecommerce and consequently know EXACTLY what the issues and pressures are. They effectively remove every aspect of the ‘problems’ in one fell sweep. 1. They provide a local returns address in the countries that you are selling. Returning the item is simple for the end buyer - BIG TICK 2. They consolidate your returns, sending them back to you on a monthly or box full basis therefore significantly reducing yours and your buyers’ shipping costs - BIG TICK

The feedback from retailers using these services is that the overall costs go down and the sales go up. It is simply a no brainer. Retail’s fixation on moving a product from the shopper’s basket to their front door has led to brands so focused on competing for conversions, that a major part of the customer journey is neglected - returns.

improving returns by having other priorities. What other priority can there be if not to improve sales? So do not bury your head in the sand regarding your returns. Use the services that are now at your disposal. Relax, sit back and watch your returns problems disappear and your crossborder sales rocket.

However, getting your returns right and increasing your sales are intrinsically linked, there is absolutely no doubt. According to a study by Internet Retailing, more than a third of retailers say they are held back from

3. They receive the items and register the item on your own online dedicated portal. You can refund or provide an exchange for your customers quicker - BIG TICK

Contributor: Ezi Returns Ezi Returns are industry experts who have developed a tailor-made returns solution for the modern day ecommerce seller.

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HERCULES Pick Pack Despatch 29

Smart shelving: the future of smart warehouses? The evolution of the warehouse continues to be influenced heavily by Internet of Things (IoT), helping to streamline fulfilment processes and simplify more complex requirements. As the need for more varied and faster delivery grows, the number of smart warehouses in the UK is expected to skyrocket.

To remain competitive in a continuously evolving market, the world of retail fulfilment is using more automation, increasing efficiency, reducing costs and helping to collect data. This use of technology is being widely supported, with 75% of decision makers aiming to implement more technology and have a smart warehouse system by 2020. Combining smart warehouses and IoT, the challenges often associated with ecommerce can be overcome, helping to track productsâ&#x20AC;&#x2122; whereabouts throughout the supply chain. Smart shelving is one of the leading technologies which is capturing peopleâ&#x20AC;&#x2122;s attention in the world of retail and fulfilment.

What is smart shelving? Smart shelving senses weight and pressure placed on the surface of shelves, sharing this information with software and warehouse management systems. This can easily be combined with radio-frequency identification (RFID) or barcodes, meaning inventory is kept up to date, with systems keeping track of when they are received, stored, picked, or shipped.

Integrating smart shelving

Contributor: Holly Worthington

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Creating a transparent fulfilment chain, smart shelving can work alongside existing processes. Smart shelving can be integrated with wearable devices which tell staff the location of products to be picked, or even share this information with picking robots.

Smart shelving can also flag potential errors. As an example, a notification could be sent to a picker who may have taken the wrong item. This can be measured using RFID tagging, or by it being highlighted that the correct shelf did not record a reduced weight load. By having this extra level of error checking, mistakes, and the costs associated with them, can be avoided. Smart shelving is also able to track stock levels, notifying teams when they are running low, or even automatically re-ordering products if programmed to do so. In addition to this, they can weigh items on shelving, estimating shipping costs and sending this information to customers and retailers. Being able to track the removal of products and link to warehouse management systems, smart shelving can collect data, highlighting trends, patterns and consumer purchasing behaviours. This can then be fed back to retail decision makers, working to facilitate data-led choices which benefit both retailers and suppliers. As the capability for automation continues to grow, integration plays a vital part in recording data and acting on this information. Smart shelving is proving to be one of the pioneering technologies in smart warehouses, working to keep track of inventory, reduce the likelihood of human error, save time and streamline processes.

“75% of decision makers aim to implement more technology and have a smart warehouse system by 2020.”

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Scale up your ecommerce business with professional order fulfilment Finding the right fulfilment partner

Cost of Scaling

is paramount to any ecommerce

It can be a difficult process moving away from self-fulfilment, especially when you see the overall cost of paying someone to do it for you. However, when you compare this cost to a possible revenue stream you can get from scaling up and the time it will free up for you, you’ll see that it really is worth considering!

business that is looking to scale up and there are many factors to consider…

No matter how small or big you are, Whitehouse Solutions take great pride in understanding your business and are able to provide a cost-effective fulfilment process which is tailored to best suit your needs.

Trust & Quality Assurance Along with the cost element, there is the trust – can you really trust another company to care for your product the way that you do? And on top of that, will they take as much pride in delivering it the way that you do? Well, with self-fulfilment you are already relying on a third-party company to deliver your product to customers and you trust them because of their reputation.

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Choosing a fulfilment company is no different, and there are lots of established and reputable companies out there for you to select. With many years of experience in business to consumer and wholesale, Whitehouse Solutions are specialists in supplying major and well-known retailers such as John Lewis, Amazon and Lakeland – giving them great credibility. As a family run business with customer service and attention to detail embedded in the heart of their culture, Whitehouse Solutions pride themselves in offering a first-class service. John Sayers, director of Cute Nutrition quotes “As our business has grown in terms of range, size and geography then Whitehouse have evolved with us making these transitions painless. They are keen to regularly review the business and look for ways of increased efficiency in areas such as postage and transit…Whitehouse is an integral part of the Cute team.”

TAKE YOUR BUSINESS TO THE NEXT LEVEL Whitehouse Solutions can help your eCommerce business save time and money with professional order fulfilment

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Call 01787 471487 today and find out how easily and quickly we can help with your distribution  hello@whitehouse-solutions.co.uk

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Fully integrated with major eCommerce platforms…

Location Location is an important factor to consider when up-scaling. Although it’s handy to have your fulfilment partner close by, it’s far more crucial that the company you choose is able to collect or receive your product efficiently and have access to distribution links nationally and possibly even internationally. Based in North Essex, Whitehouse Solutions are conveniently located for the ports of Harwich, Felixstowe, Tilbury and Thurrock and situated close to the M11 for good access to London and Stanstead Airport. Along with their trusted logistic partners, Whitehouse Solutions offer

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full load, pallet, parcel and letter distribution within the UK covering business and consumer addresses. They also provide pallet and parcel services throughout Europe and the rest of the world.

Pick, Pack & Dispatch “Pick, Pack & Dispatch” is the common term used by fulfilment companies for the main process of fulfilment, and here there is no room for error. You need your products picked accurately, packed safely and dispatched promptly, to ensure customer satisfaction. If you are currently using self-fulfilment, then passing this task over can be a daunting decision to make and you need a fulfilment company with a team you can trust.

With a dedicated and committed team, Whitehouse Solutions make this decision easy by offering a 100% pick accuracy guarantee. This means, that on the very rare occasion that things go wrong they will take responsibility, pay for the items return and send out a replacement order absolutely free of charge. Where this cannot be done, they’ll even cover the cost of a replacement item. Whitehouse Solutions do not insist that you make minimum sales quotas and the price you agree with them is the price you pay. They also offer a same day despatch and can provide you with inventory levels in realtime.

Warehousing

Technology

With scaling, comes the need for warehousing and storage of your products and there certainly comes a time where that spare room could be put to better use!

When technologies and ecommerce platforms are constantly developing it is vital to find a fulfilment provider that is adaptive to change and has a foolproof system for you to use. A system that will allow you to track orders and stock, keeping you and your customers in the loop.

Not all fulfilment partners have warehousing facilities, but Whitehouse Solutions offer short term and long term warehousing for small to medium-sized businesses. Their large warehouse is secure, alarmed and has 24 hour CCTV surveillance, along with security patrols by Oakpark Security, reassuring you that your valuable products will be stored in safe hands. If cost is a concern, Whitehouse Solutions make sure that you only pay for the space you are using, and as your stock reduces, you use less space and pay less accordingly. They also provide dedicated returns management.

To find out more about how a professional fulfilment service can help you scale up your ecommerce business, please call Whitehouse Solutions on 01787 471487 or visit their website www.whitehousesolutions.co.uk

Whitehouse Solutions have a cloud-based system that makes ecommerce integration simple. Working across multiple channels (including Opencart, Shopify, Amazon, WooCommerce, eBay and Magento), their system allows you to monitor stock levels in real-time as well as order status and returns. Which is all accessed through an easy to use dashboard. Their system can notify you and your clients when the goods are dispatched and everything can be branded up as if you did the job yourself.

Further warehousing services include consolidation, palletisation, labelling, shrink wrapping, deliveries and collections.

Contributor: Whitehouse Solutions www.whitehouse-solutions.co.uk hello@whitehouse-solutions.co.uk 01787 471487

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The changing world of fulfilment Modern Retail had the pleasure of speaking with CEO and Founder of Scurri, Rory O’Connor, about the rapid rate at which the fulfilment journey is evolving.

Scurri connects and optimises online ordering, shipping and delivery to be simple, effective and adaptable to companies’ needs. Taking the effort out of ecommerce, the Scurri team specialise in creating seamless interactions at multiple touch-points. Here’s what Rory had to say about the changing world of fulfilment:

MR: How has the world of fulfilment changed since Scurri began in 2010? RO: It’s changed a lot. There is more complexity, more options and things change faster than they used to, driven by the widespread uptake and application of technology. People are looking for more information. They want status updates and tracking information. When you have leaders like Amazon making this information easily available, people expect it and customers don’t care that it’s technologically hard to get… they want it.

MR: What are your ecommerce customers’ pain points? RO: Often, scalability is a challenge, particularly with the rise of ecommerce. Retailers and companies can be highly ambitious and find that operations which worked for them

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when they were smaller are creaking at the seams and are not sustainable. Also, the speed at which you can grow and develop on the internet means that brands can see such fast and sudden growth, that it can get out of hand quickly. International business also proves difficult for many. For example, if a retailer sees opportunities outside of the UK and looks to ship internationally, this can become a lot more complicated. Competition and changing trends mean every company needs to keep up, with some being followers and others being leaders.

MR: How is voice search influencing retail? RO: The uptake of voice search and Amazon’s Alexa has been phenomenal, but the use of it for shopping has been small in comparison to what it could become. We’re going through the stage of learning and this always takes time, but I believe in the next five years, it could become very influential. In the industrial application, voice activated picking and packaging is becoming more standard in warehouses, so this will help retailers and benefit customers.

“When you have leaders like Amazon making information easily available, people expect it and customers don’t care that it’s technologically hard to get… they want it.”

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MR: What should retailers focus on when deciding on delivery processes?

MR: What advice would you give to a retailer looking to simplify their fulfilment?

RO: The way you fulfil orders should depend on what your overall offering is. For instance, if you have a huge focus on experiences, these must be done right. For other companies, it may be speed that is most important. The first thing you need to do is map out your process from the customer’s point of view, so no matter what your focus and purpose, you move towards these objectives. If you’re looking to grow your reputation and attract new business, work on improving your Trustpilot score.

RO: If you’re looking for a partner in solving any fulfilment challenge, make sure there are case studies and they have the experience of doing it. Assess whether they’re the right solution for you, and whether you could advance your operations further by working with someone smaller, or more niche. Look at their portfolios and understand who they have worked with.

We are seeing the post-purchase experience being more important than ever before. Brands need to keep customers updated after the goods have left the building until the time it’s in their hands and this is key, so we see more demand for our product to build this part.

You will sometimes have A players and very niche, individual tech suppliers or smaller companies… yet you will get far better service from the smaller companies because it’s often in their best interest to serve you well. Consider what you need them to do. Do they have experience in doing it? What is your excitement of working with this partner? Sometimes you meet a team and they know the subject inside and out. In situations like this, you know you’re talking to experts and you know this tech can help you to leapfrog ahead.

Contributor: Rory O’Connor - CEO and Founder at Scurri Scurri creates software that connects and optimises the ecommerce ordering, shipping and delivery process.

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Streamlining the packing and shipping process Implementing a packaging and shipping process which is both effective and efficient works to create a fantastic customer experience, as well as cutting costs down.

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Speaking exclusively at ecommerce Live, Matt Simmons of Fulfilmentcrowd spoke about the ways in which retailers can streamline their processes to cope with large volumes of sales and deliver a consistently impressive service all year round.

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“Retailers need to think about how items can be shipped cheaper, packaged differently or scaled up.”

Navigating spikes in sales Spikes in traffic can happen at any time, sometimes with no warning. The perfect example of this is an item which suddenly gets publicity, whether it’s a dress worn by a celebrity which makes the news, or fidget spinners becoming a craze. An overload of purchases can result in selling out, or even websites crashing, making it vital to act quickly and stop customers leaving… after all, it’s much easier to keep a customer’s attention than to recruit a new customer. While these peaks in sales can be unpredictable, there are ways to be as prepared as possible. Matt said: “If your infrastructure isn’t organised and you suddenly get an order of 5,000, you can’t handle this, which is why it isn’t worth most retailers having their own warehouse. You need to make sure you have the infrastructure for any large spikes. Retailers need to think about how items can be shipped cheaper, packaged differently or scaled up, streamlining the process.”

Communicating with fulfilment partners

Making the most of innovation and tech

For a fulfilment process to work successfully, there cannot be misunderstandings or gaps in communication. Planning ahead and having close communication with fulfilment partners enables collaborative planning to take place, making sure you don’t struggle to fulfil orders at busy times.

Advancements in technology have enabled fulfilment processes to be made more simple. Some forms of technology enable customers to make more informed purchase decisions, or choose from a list of options when returning a product. This takes a lot of strain off retailers and their fulfilment processes.

Matt explained: “We view ourselves as an extension to the operations team, whichever business we’re working with. It’s important to have that close relationship and communicate effectively. For example, we work with retail businesses’ marketing teams and understand what they’ve got planned, from campaigns to sales, helping us to predict busy times around this.”

Matt added: “To avoid the cost of returns, a lot of this comes down to customers’ expectations of an item. Augmented reality is being used to see what products will look like, and some clothing retailers are now featuring different sized models so customers can better judge purchases they make. There are also drop-off points for returns, for example, at ASDA, helping to reduce the CO2 emissions produced.”

Contributor: Matt Simmons, Business Development Manager of Fulfilmentcrowd Fulfilmentcrowd is a cloud-based ecommerce order fulfilment and 3PL logistics management system that accelerates sales and profitable growth.

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Thanks for reading. For more retail advice & inspiration, please visit modernretail.co.uk