Online Seller Bristol Meetup - Vdepot 29th Jul, 2015

How to fulfil ecommerce orders effectively

Hamilton House, Bristol29th July 2015

Agenda - 4 Parts

1. My experience as an ecommerce seller

3. Ecommerce: A few market trends

4. Outsourcing fulfilment: When, Why, Who?

2. Fulfilment challenges

2015201420122011201020062003

My Experience

Part 1: My experience as an ecommerce seller

•Ecommerce: Time & Commitment1: Conclusion

Fulfilment Challenges

Part

2

Expe

rienc

e

Your Fulfilment Experience?

1. Not quite started yet2. I do it all myself (from home)3. I do it all myself with (additional storage)4. I own a warehouse and have a team5. I outsource my fulfilment

What is your biggest fulfilment challenge?

Seasonality Space Stock Locations

Staff/HR Flexibility Packaging

Courier Reliability Ugly Freight Returns

1m

30kg

1m

30kg

Staff/HR Flexibility Packaging

Courier Reliability Ugly Freight Returns

Seasonality Space Stock Locations• Plan ahead• Multi skill staff• Delivery options• additional resource• pickable stock• 3PL

• Sku location• Logical layout• Workable space• Appropriate needs

• Risk assessments• Fork lift truck• Holiday/Sickness• Motivated staff

• Time management• Post office • Cut-off time• Customer service

• Packaging• Backup plan• Product compatibility• Damages• Service levels• Communication

• Over 1m• Over 30kg• Supply & demand• additional surcharges• Historically subsidised

• 3% Average return• Return policy• Return envelope• Attract customers• Order qualifier

• Cost• Branding• Packaging rules• Add ons/up sell

• Space is final• Restricts growth• Paying not using• Increases overheads• Shelving/Racking

Part 2: Fulfilment Challenges

• Many• Various• Different by product or market

2 Conclusions

Ecommerce: A few Market trends

Part

3

Ecommerce

Lockers3rd Party Shop

Carriers

Outsourced warehouse

Suppliers / Shops / Manufacturers

Own warehouse

Own Haulage

Shop

Fulfilment

Outsourced Haulage

Business

Retail

£107 Billion

/ Fulfilment

Ecommerce

Outsourced warehouse

Outsourced Haulage

Duplication, Duplication, Duplication, The importance of integration

Ecommerce Multichannelsoftware

CRMsystem

Courier system

Accountspackage

Fulfilment System

Seasonality Space Stock Locations

Staff/HR Flexibility Packaging

Courier Reliability Ugly Freight Returns

1m

30kgFulfilment System

• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co

3 Conclusions

Part 3: Ecommerce: A few market trends

Part

4Outsourcing Fulfilment

• When to consider outsourcing• Pros• Cons• What to look for • Common pitfalls

When to Consider OutsourcingO

rder

s

Time

Self Fulfilment House Own Warehouse

Garage/Spare room

Self Fulfilment

Sales growth

Investment in core business rather than

fulfilment

Big enough Money to have own

investment

Pros to Outsourcing

• Reduced overhead• Reduced carrier cost• Saves time• Increased flexibility• Access to IT systems (+reports)• Eradicates seasonality issues• Import/Export advice• Returns• Scaleable

Pros

Disa

Disadvantages to Outsourcing

• Control • Costs• Low volumes• Personalisation

• Existing facilities (e.g showroom)• Not applicable for highly technical products

“Maybe”

“Certainly”

Couriers

Hauliers

Warehouse

Amazon

MultichannelStorage Pick & Pack

Rework

Cloud

System integration Pa

llet

Parc

el

Post Real-Time

reports Stock

management

Fulfilment co

Fulfilment Systems Multi

Gen

erali

stSp

ecial

ist £

Fulfilment Houses: What to Look for

• System• Integration• Management information, Reporting• Contracts• Minimum order/monthly management/software licences fees• Ecommerce fulfilment specialists: Yes or No?• Do you own your own centre

• Implementation Plan…

Look

Moving to a Fulfilment House

• Implementation period• Integration• Packaging, new products not suitable just to be sent on• Barcoding

Mov

ing

Common Pitfalls

• High storage footprint• Have got into bad habits• Low orders, low margin• Keeping out of date stock• Stock records being incorrect

Pitf

alls

Incr

ease

sales

How can Fulfilment increase sales

How can Fulfilment increase sales

• Feedback• Packaging • Increased Sales (time)• Management reports• Product innovation• Offering best services

Incr

ease

sales

Part 4: Outsource fulfilment: When, Why, Who

• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible

4 Conclusions

1 2

3 4

Part 1: My experience as an ecommerce seller

• Ecommerce: Time & Commitment

Part 2: Fulfilment Challenges

• Many• Various• Different by product or market

Part 3: Ecommerce: A few market trends

• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co

Part 4: Outsource fulfilment: When, Why, Who

• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible

Conclusions

Thank you!Any Questions?

Contact info?Iain Hill

Email: [email protected]: 01603 881 700