If you are reading this article, it is because your company may have experienced a sudden change in order demand. For example, an unprecedented increase in demand for an item or, on the contrary, an unforeseen decrease. This is a direct consequence of the impact of e-commerce on the logistics sector, which will only increase in the coming years.
According to the recent study published by ReportLinker, e-commerce is expected to experience an annual growth in sales of up to 20% by 2023. Likewise, we must treat this fact as a trend that has been established as a daily consumption habit in our days. In fact, Spain is positioned on the podium as the third European country with the highest turnover thanks to e-commerce.
Therefore, the current paradigm leads us to speak of a logistics strategy that focuses all its efforts on the preparation of orders that present a complex demand, this is where the known Flexible Fulfillment is born. Its main objective is to guarantee the delivery of orders by overcoming all the obstacles and particularities that the new logistics of an entity presents. For this strategy to be effective, it will be crucial to have flexible logistics capable of adapting to an increasingly volatile demand.
Characteristics of Fulfillment:
- Quality of service: It is essential to pay attention to delivery services. Offering a personalized and close service will guarantee the highest quality.
- Immediacy: Immediacy is a requirement, and customers want to receive their orders in an increasingly shorter period of time, so having agile and flexible processes will solve this need.
- Cost reduction: The automation of processes and their improvement to become more agile leads to cost reduction.
- Happier and recurring customers: Generating a fast, dynamic and simple shopping experience for users will result in increased sales. Therefore, these agile and simple processes will generate recurring purchases from happy users.
- Improved brand image: Meeting customer expectations in terms of service quality and immediacy has a positive and direct impact on a company’s reputation, as it indirectly reinforces users’ trust and credibility in the organization.
It’s important to note that, in the wake of the e-commerce boom, returns management has become an aspect that needs to be taken into account, and one that offers added value for companies that do it right.
Agile and efficient management of refunds and returns has an impact on the user’s shopping experience and, consequently, on their satisfaction and trust in the company. So, if you’re considering implementing a Flexible Fulfillment strategy, we advise you not to neglect this aspect.
So …. What do I need to make my logistics flexible?
A Warehouse Management System (WMS) is essential for a Flexible Fulfillment strategy, which, as we have seen, requires greater preparation due to the volume of products required.
The warehouse management software will allow a company to digitally connect with its distribution centers and be able to track all the processes that go from the preparation of a product to its delivery to the customer. Therefore, more and more companies have a Flexible Fulfillment logistics strategy to mitigate the loss of sales due to the difficulties caused by the rise of e-commerce, such as stock breakage and/or the optimization of the location of products within the warehouse to reduce time and/or errors.
