9 October 2021 Expectations of e-commerce customers are being redefined. With major market players offering increasingly faster deliveries (same day or next day), consumers have started to include agility in receiving products at home in their list of requirements. This means that other e-commerce companies must hurry to adapt to this new context. It is not enough to offer good prices and quality products. It is necessary to have excellent logistics management that applies speed in order fulfillment. Meeting existing expectations is already a challenge for many e-commerce companies, and with the adoption of increasingly shorter delivery times, it is inevitable to make investments in facilities, technology, and people. This creates a major dilemma for organizations. The time to make changes is short, and some companies refuse to spend on the necessary acquisitions. But it is certain that those who do not adapt may not survive in this competitive market. To delve deeper into this topic, we present the challenges faced by e-commerce companies to ensure the high performance of their operations and, consequently, the improvement of the services offered to their customers: Service Network Design E-commerce has rapidly emerged as a powerful force for business that many companies have not had the opportunity to design a specific service network. Many have had to adapt processes in their distribution centers to include online order processing, but now they are limited in capacity and speed, especially when using manual processes. Meanwhile, third-party logistics operators that have supported e-commerce since its early days, many of which were created specifically for this type of operation (fulfillment centers), continue to expand and refine their operations to keep up with market expectations. These warehouses provide what companies need in terms of storage capacity, agility, and reduced delivery costs. Another advantage of these logistics operators is their strategic location, usually within the city, thus allowing the reduction of transportation routes. Therefore, many companies have sought to outsource their logistics services or even create their own urban distribution centers, which operate in connection with distribution centers located in more distant regions. This interconnection occurs thanks to the use of technologies that allow the exchange of information and inventory management, coordinating the shipment of goods from the DC (which has greater storage capacity) to the FC (which has a smaller inventory and a high product turnover). Optimized Process for E-commerce E-commerce call centers can no longer afford to fulfill orders after several days. To meet current demands, orders must be shipped the same day they are received: the faster, the better. Otherwise, shipping costs may increase, as expedited shipping is used to maintain high customer satisfaction. It is worth adding that the faster a DC processes orders internally, the greater its potential to increase sales. In this sense, optimizing processes for e-commerce service requires not only experience in this type of activity but also a deep knowledge of specialized logistics for this segment. Specific Technology for the Supply Chain Another key to speeding up the order cycle is the intelligent use of specific technologies to improve supply chain operations. Among these, we can mention the WMS (Warehouse Management System), warehouse management software, and the use of robots. WMS handles all stock management, in addition to being integrated with e-commerce sites, ERP, automatic systems, and carriers, offering total operation monitoring. With the software, processes are automated, reducing the occurrence of human errors and providing a high-productivity environment. The use of robots, on the other hand, ensures greater safety in the warehouse, as well as increasing speed and assertiveness in order picking and shipping. Workforce Management Generally, at certain times of the year, e-commerce demand peaks, requiring the hiring of new employees to work at the DC. In many cases, positions cannot be filled, which ultimately leads to reduced service levels and extended shifts for permanent operators, making errors more likely. Hence the importance of having good workforce management. To obtain a qualified workforce, a sophisticated approach to recruitment, training, and retention is necessary, which few organizations are able to implement. For example, digitizing recruitment and onboarding processes can increase the number of candidates received for open positions. Digital technologies are also employed to provide DC employees with greater scheduling flexibility and more training opportunities. These efforts simplify processes and improve retention. Another solution used to minimize labor dependency is the use of technologies that automate activities, whether they are WMS and/or robots. But even if these innovations are implemented, it is important to emphasize that your company will continue to need highly trained professionals, albeit in smaller numbers. Therefore, investment in workforce qualification cannot be overlooked. Finally, it is worth noting that e-commerce needs in terms of speed, capacity, and complexity will require significant investments in facilities and technologies, supported by deep expertise in the Supply Chain, extensive knowledge of e-commerce, and a clear vision of the future. Those who work today with an eye on the future and leverage innovations to their advantage have all the tools to stand out in the competitive e-commerce market, staying ahead of the competition. How to Accelerate Logistics Operations in E-commerce Deagor WMS per ecommerce può aiutarti!