We are thrilled to share that 6 River Systems (6RS) has embarked on an exciting journey by becoming part of Ocado Group, a pioneer in intelligent automation solutions with 20+ years of experience in developing and operating its own platform for grocery retailers around the world. In just a handful of weeks since this partnership was announced, we have achieved impressive results by securing contracts with four new clients and expanding programs with two existing customers, including a global family entertainment company. These accomplishments exemplify our unwavering commitment to delivering top-notch fulfillment solutions across various industries.

“Becoming part of Ocado’s new Ocado Intelligent Automation (OIA) business unit enables us to broaden our capabilities and further our dedication to providing innovative, wall-to-wall automation technology that delivers immediate value to our clients, both present and future,” said Royanna Chappell, VP of Sales and Customer Success at 6 River Systems. “It represents a remarkable milestone, promising a future characterized by unparalleled opportunities to further growth with fulfillment providers in their automation journey.”

Immediate growth and expansion

As a testament to our ongoing growth and customer success, we added four new customers and two major customer expansions since May. Among the four new customer additions to 6RS’ growing warehouse fulfillment portfolio:

• Giftcraft, a home décor wholesaler offering a wide range of home décor, home accents, and more. Giftcraft is an industry-leader in the areas of design, manufacturing and distribution of a comprehensive assortment of lifestyle, fashion, decor, giftware, health, wellness and gourmet products. Offering best-in-class sales and service, Giftcraft supports the product needs of a diverse network of more than 25,000 independent, specialty, and marque retailers throughout North America.
• Answers in Genesis (AiG), a non-profit organization delivering religion-based products. The company specializes in producing and disseminating religious education media and merchandise while also organizing a range of events held at its centers across the United States.

With the addition of these four new customers, we continue to expand the breadth of applications and industries who benefit from our cutting-edge, flexible automation technology, which streamlines operations and maximizes efficiency. These additions showcase our company’s dedication to providing best-in-class fulfillment solutions and reinforce our reputation as a trusted partner for businesses seeking excellence in logistics.

The two major customer expansions underscore the immense value that our team brings to existing warehouse operators. By providing pragmatic, cost-effective solutions for companies handling high volumes of items daily, we have become an indispensable asset in our customers’ growth strategies. The expansions speak volumes about the exceptional service and support that 6RS delivers, fostering strong and enduring partnerships.

As we continue to expand our client base, the future looks exceptionally promising. With the momentum gained from these recent achievements and the continued support and expertise from our partners, we are well-positioned to lead the way in revolutionizing the world of collaborative warehouse fulfillment solutions. Our customers can expect continued innovation, unparalleled service, and seamless integration of cutting-edge technology as we strive to stay at the forefront of the industry.

Our commitment to innovation

Integration with Ocado Intelligent Automation provides additional resources and industry expertise honed by Ocado Group’s 20+ years of operational experience. This integration streamlines processes, enhances efficiency, and ultimately elevates overall satisfaction for our customers. Leveraging OIA’s diverse range of point and end-to-end automation solutions will help to propel customers forward on their automation journey. Undeniably positioned as a leading provider, OIA now offers a wider breadth of automation solutions to the fulfillment industry.

Among the impressive lineup of automation tools now offered is our autonomous mobile robot (AMR) called “Chuck,” along with system-directed algorithms for collaborative automation of putaway, pick, sort, packout, and returns. This powerful combination ensures rapid deployment and significant time-to-value for warehouse operators around the world.

Additionally, Ocado Intelligent Automation provides AI-powered piece-picking robotic automation through its prior acquisition of Kindred for e-commerce and order fulfillment. This advanced system revolutionizes the pick-and-sort process, optimizing efficiency and accuracy.

To cater to large-scale fulfillment needs, our customers will also have access to Automated Storage and Retrieval (ASRS) solutions through the Ocado Intelligent Automation ASRS. Unlike many other ASRS systems, this one stands out as a refined combination of algorithms and automation honed over 20+ years of operational experience. This autonomous, concurrent bot-and-grid design reduces the surface area and level of human oversight needed in both greenfield and brownfield sites. Flexible tote storage handles products from a wide range of industries, allowing businesses to increase order throughput with greater speed and accuracy, while reinforcement learning software orchestrates and optimizes processes.

A progressive next chapter

“We’re thrilled to officially be part of Ocado Intelligent Automation, a group renowned for their exceptional, innovative fulfillment solutions,” said Jerome Dubois, co-founder of 6 River Systems. “This partnership opens new doors for our team, enabling us to continue assisting customers in their fulfillment journey in even more exciting ways.”

Over the last few months, Jerome has had the opportunity to speak with 6RS’ existing customers and one thing is clear: they are equally as excited about the breadth of automation solutions now available to them with OIA.

“We are entering this exciting new chapter in the company’s history stronger than ever having recently secured expansion contracts and unveiled four new logos, a clear signal that our customers are unwavering in their recognition of the value 6RS provides them, “Dubois continued. “Together, we maintain our commitment to offering pragmatic, best-in-class cost-per-unit-shipped automation solutions for fulfillment providers, regardless of whether they handle hundreds or millions of items daily.”

Looking ahead 

Mark Richardson, CEO of Ocado Intelligent Automation, shared his optimistic outlook for what lies ahead. “The addition of 6 River Systems enables us to truly meet warehouse operators in their automation journey and provide growth enablement like no other automation provider. We can now leverage a wider breadth of powerful automation products for brands in any industry.”

He also highlights the company’s focus on bringing the best of innovative robotics solutions to warehouse fulfillment:

“Ocado Intelligent Automation represents a significant milestone for our company as we extend our ultra-high density Automated Storage and Retrieval System (ASRS) and robotics operations experience to customers outside the grocery industry for the first time. Adding 6 River Systems to the OIA solutions portfolio provides our teams the opportunity to deploy the best of automation solutions to any industry vertical in warehouse fulfillment, at any scale. We are truly excited to bring our expertise and solutions to a wider audience, empowering brands to achieve unprecedented productivity, efficiency, and operational excellence.”

This cutting-edge warehouse automation solution aligns with our unwavering dedication to leveraging advanced technology for unparalleled results. By harnessing the power of Ocado Intelligent Automation, businesses across any sector can now experience the transformative benefits of state-of-the-art robotics and efficient fulfillment systems.

Our partnership with OIA marks a significant milestone in our company’s journey toward revolutionizing warehouse fulfillment. Our company’s unwavering commitment to innovation and customer satisfaction, combined with the expertise and technology of OIA, sets the stage for the next generation of warehouse fulfillment automation.

Learn how our industry-leading warehouse automation solution can help you exceed your customers’ expectations, grow profits, and reduce risk.

The post Revolutionizing Fulfillment Solutions – 6 River Systems Expands Customer Portfolio and Redefines Warehouse Automation with Ocado Intelligent Automation appeared first on 6 River Systems.

1. Question: With all of the automation that’s out there, how do you determine what automation is right for my warehouse?

Mark Engleman, Senior Solutions Executive

Mark Engleman: For us at 6 River Systems, it’s a collaborative effort. It starts with seeking to understand. We need to truly understand what your current state is and what are the negative consequences. From there, we can talk about your goals and if they align to the capabilities of our technology. Then we go into building out a solution. Through the whole process we keep an eye on the return on investment.

If you’re just looking at automation in general, take a similar approach. Again, figure out what problem you’re trying to solve. Are you trying to solve a problem within the packaging space? Are you trying to solve it within fulfillment? I would encourage you to look at solving both if you have them. I think what’s really important, especially today, is that there are a lot of automation companies and startups out there. Automaton is a hot topic and rightfully so.

Implementing automation enables you to increase labor productivity and is a way to de-risk your business. Make sure when you’re talking to companies whose technology is fully developed to find references who you can talk to and go and see the product in the wild. There are a lot of companies trying to get into this space but may not have the backing — that can be a major waste of time.

2. Question: What if no automation is working for my operation, why would I change?

Mark Engleman: I’d encourage you to consider the best practices of companies who continue to hit their goals and grow exponentially.

Also, look ahead to what you envision for your operation. What’s your 5-year projected growth goal? And then with that what potential risks do you see? That’s part of this conversation too. Bring up these insights that other people are experiencing. Here are some suggested questions to ask:

• Is attracting and retaining labor a challenge or will it become one?
• Are you looking to get into new channels?
• Do you want to expand the way you fulfill products?
• Is customer retention important to you?
• How are your customer satisfaction scores?

Look at it from an eyes wide open perspective.

3. Question: What advantage do autonomous mobile robots (AMRs) have over a goods-to-person system?

Chuck, 6 River Systems’ AMR guiding an associate along the most efficient picking route.

Mark Engleman: Both technologies have their place. I would go back to what are you trying to solve and what are you trying to accomplish? Do you have a full understanding of what your problem is and the environment in which you’re trying to solve that problem? AMRs have much faster time-to-value. You’re going to get 80% of the productivity of goods-to-person at 20% of the cost. The flexibility and time-to-value with AMRs is unmatched.

4. Question: How have you seen companies address mispicks and improve overall customer experience? It seems like companies don’t have a great process in place to address customer complaints or address mispicks altogether.

Mark Engleman: Complementary technologies can help your labor force reduce those errors. When you can automate the process with visual displays, picking and putaway is directed by LED lights, which is helpful. This is measurable and we see increases in order accuracy as a result. We look at it in two ways, internal accuracy and external accuracy as well. A lot of companies will over engineer their internal process to make sure when it goes out the door it’s right. But time and dollars are tied up by doing that. Again, automation, isn’t taking the humans out of it entirely, but giving the humans a system – something to follow to the pick location. This approach has been very helpful!

Learn more about warehouse automation solutions.

The post 4 questions (and answers) about choosing the right automation solution appeared first on 6 River Systems.

However, some logistics providers may encounter constraints when exploring the implementation of AMRs for picking that are related to product attributes (size or weight) or the operating environment (aisle widths and height of pick location).

The problem with non-AMR compatible orders

If products are too large for the AMR platform, stored in high bay locations out of reach of standard ladders, or there is a significant percentage of narrow/dead-end aisles, the customer needs to separate their order pool into AMR and non-AMR compatible orders. Fulfilling orders from two different pools means using multiple systems which presents the following challenges:

• Procuring additional IT resources to implement and maintain multi-system integrations and order allocation rulesets.
• Adding operations management overhead to track orders across multiple systems.
• Continuing to train new and existing associates across multiple systems.
• Maintaining the systems themselves (annual licenses, hardware maintenance and more).
• Constant operations management load balancing of staffing across multiple systems based on the real-time dynamics of inbound orders, which is especially critical now with ever-increasing customer delivery expectations.

Introducing the Mobile Fulfillment app

The Mobile Fulfillment app helps operations overcome those hurdles associated with AMR picking. Picks incompatible with your AMR (Chuck), either due to product size, weight, or warehouse location, can be fulfilled with the Mobile Fulfillment app in conjunction with any third-party equipment ranging from simple bakers racks and u-boat carts, to walkie riders, forklifts, and man-ups.

Mobile Fulfillment app benefits 

The Mobile Fulfillment app enables logistics providers to:

• Take advantage of our rich allocation, batching and prioritization algorithms for AMR compatible and non-compatible products to maximize efficiency while also ensuring SLAs are met.
• Reduce your upfront and recurring burden on IT resources through integration into a single picking system. All orders are waved to the 6RS system which determines optimal equipment to fulfill orders with rules maintained in the system – such as product size and warehouse location rules.
• Track all orders in a single management console, work with a single vendor’s customer support team, and stop load balancing staffing across multiple pick operations.
• Train associates to use one simple system to perform multiple fulfillment tasks (including putaway, pick, sort, and packout). 6RS provides one modern, intuitive, and common user experience across Chuck, Mobile Fulfillment app, and our Universal Terminal for sortation and packout.

Multiple beta sites are expected to be live by early second quarter. General availability for all customers is expected in late summer 2023.

Learn more about the Mobile Fulfillment app.

The post Pick outside the reach of AMRs with Mobile Fulfillment app appeared first on 6 River Systems.

In addition to finding labor, retaining labor is also a challenge. Warehouse jobs are often physically demanding with long hours and overtime shifts. Many warehouse tasks are dirty, dull and potentially dangerous. It’s hard work and with less available labor, current employees are feeling overworked and under-appreciated. In addition, the workforce is changing. The aging labor force and a younger generation joining the labor pool will have a major impact on businesses going forward.

Challenges Impacting Labor Availability

Retirement

The aging workforce has caused a gap in available labor. Aside from many baby-boomers retiring during the pandemic in 2020, the trend will continue to go up for a few more years because the post-WWII baby boom peaked in 1960. Since most people leave the labor force at age 65, when they can collect full social security benefits, the number of people retiring will continue to rise through 2025, when the numbers start to decline.

Millennials Are On the Rise

Born between 1981 and 1996, millennials are rising into leadership positions in warehouses as  the previous generation retires. Millennials have grown up with the internet and smartphones, and they have different expectations than their predecessors. Millennials want an employer that cares about their well-being, more work-life balance and job stability. This new generation of leaders wants more purposeful work. 

High Quit Rates

In 2022, 50.5 million people quit their jobs. People didn’t just resign and leave the workforce – they quit their job because they found another opportunity with better pay, work flexibility, benefits, or corporate culture. Warehouse associates are on their feet all day, walking up and down aisles. It isn’t an easy job, which causes many warehouse associates to rethink their career path.

Retaining Labor
With employees leaving their jobs and transitioning to more appealing or fulfilling work, attracting warehouse employees is challenging. Companies are using incentives such as hiring bonuses or increased wages to draw people in. Oftentimes, warehouses have to scale up for seasonal spikes as well. With this in mind, incentivizing your most productive seasonal hires with a permanent position after peak can help retain skilled labor for the future.

Many of the top logistics companies offer benefits that include:

• Competitive wages – increasing hourly wages to accommodate cost of living and inflation as well as differentials for overtime 
• Healthcare – insurance coverage gives employees peace of mind when it comes to seeking medical care when needed
• Flexible working hours – swapping shifts to accommodate sicknesses, to attend a training, and working remotely (as appropriate for the role) are all aspects of flexible working arrangements 
• High-quality cafeterias – lower cost or free meals for associates
• Tuition reimbursement for college classes or training courses
• Company events to boost morale

Using Autonomous Mobile Robots to Retain Labor

In addition to the benefits listed above, many operations are looking to innovate their operations to make a warehousing career more attractive. Implementing flexible warehouse automation, such as autonomous mobile robots (AMRs) can take manual picking operations from mundane and labor intensive to more engaging and more productive for your warehouse associates. 

With system-directed workflows, 6 River Systems AMRs travel autonomously throughout a facility directing an associate to a precise pick location. Once all orders have been picked, the AMR travels to a shipping area.

Learn more about Autonomous Mobile Robots

Here are 5 ways AMRs improve labor efficiency:

1. Increased Productivity
   Order pick rates with AMRs can improve by double or triple over manual methods. By reducing extra walks throughout the warehouse, associates spend more time picking and less time searching for products. Increasing throughput today supports growth for future demand.
2. Ability to Better Manage Peaks
   Instead of hiring more labor during peak, consider supporting the associates you already have by increasing their productivity. AMRs provide more flexibility in dealing with fluctuating demand. Additional AMRs can be deployed to reduce manual work and get more orders out the door.
3. Better Accuracy
   Customer satisfaction is enormously impacted by accuracy. To avoid mispicks and improve order accuracy, AMRs can be integrated with barcode scanners and pick lights for confirming picks. This ensures customer orders will be fulfilled correctly, the first time, to reduce errors and the risk of a return.
4. Real Time Data Visibility
   When implementing warehouse automation, find a solution that offers a software component with real-time performance data. Insight into inventory availability, warehouse throughput and even how an individual or team is performing is valuable information. This data can pinpoint areas for improvement as well as associate engagement during the day.
5. Reduce Training Time
   Manual picking with a cart and paper pick list can take a couple of weeks to learn and a month or two to reach full time-to-productivity. This is partly due to the complexity of the role and tasks, but also the walking and searching associated with manual picking operations.Warehouses using automation, such as AMRs, only need a couple of hours for training associates to pick and only a few days to reach full productivity. Order picking is more straightforward with AMRs which show the item to be picked on screen with a picture, simultaneously displaying the pick location and using put-to-light to show where to place the chosen item. Given the high turnover in warehouse jobs, reducing training time is vital for addressing labor shortages.

Overcoming the Labor Shortage

As labor becomes more and more difficult to find, focus first on existing employees. Implementing AMRs can support an existing workforce by optimizing processes throughout the warehouse. Making warehouse associates’ jobs easier will aid in retention and can attract labor as well.

Learn more by downloading the white paper: Addressing the Labor Shortage.

The post 5 ways to drive labor efficiency appeared first on 6 River Systems.

When you outsource one or more parts of your logistics process, such as warehousing, inventory management or order fulfillment, you’re utilizing a third-party logistics (3PL) provider. It’s an increasingly popular option for retailers and e-commerce businesses, making it possible to focus on your company’s core competencies while taking advantage of the efficiencies and expertise of a third-party company that specializes in logistics. In this article, we’ll review what third-party logistics is, the various types of outsourced logistics and what to look for in a 3PL.

What is third-party logistics?

Third-party logistics is an arrangement where you contract out one, some or all of your logistics operations to independent entities otherwise unaffiliated with your business.

Why enter into such an agreement? For one thing, logistics isn’t easy, particularly in today’s omnichannel environment. Depending on the size, scope and niche of your business, essential logistical operations like trucking and warehousing can cost serious money for not only the initial setup but also the day-to-day expense. By using a third-party provider, you avoid the headaches and expenses of running a truck fleet, maintaining staffing and operating commercial warehouses. Done right, 3PLs can improve customer service for both purchases and returns, streamline logistics management and reduce operating costs.

Before determining whether a 3PL solution is right for your business, you’ll want to know more about what exactly the term encompasses.

What is outsourced logistics?

Outsourcing logistics is simply working with other businesses to fulfill your company’s delivery, storage or transportation needs. The concept has been around for decades, but it has been dramatically advanced during the internet and e-commerce age. Warehouse automation solutions and integrated online platforms have now made it effortless to share real-time fulfillment data — information that’s necessary for 3PLs to work seamlessly in today’s era of next-day shipping.

To put some context on just how effective and widespread 3PLs have become, consider that 80 percent of Fortune 500 companies rely on it in some form or another. That statistic rises to 96 percent when you look only at Fortune 100 companies.

What are the types of outsourced logistics?

It’s important to note that 3PLs aren’t the only solution available when it comes to outsourcing your logistics; there are actually several options that can be leveraged depending on the level of integration you’re looking to have with external suppliers. These solutions are known as 1PL to 5PL. Here’s a quick look at each of them:

• 1PL, or first-party logistics, are in-house transportation services. A great example would be a florist who uses their own delivery van to drop off purchases to local buyers. In this scenario, there is no additional party involved – just the florist and the customer.
• 2PL introduces a courier of some sort. In the 2PL vs. 3PL debate, 2PL solutions aren’t integrated with your company when you contract their services. Shipping products directly from your facility through USPS, FedEx or UPS are all examples of 2PL solutions.
• 3PL creates an integrated system that allows for data sharing between your company and the 3PL. A 3PL provider doesn’t just receive customer fulfillment or transportation information like a 2PL business might — they are fed data in real-time. This allows the 3PL to create a streamlined, efficient solution that is reliable, long-term and in complete synchronicity with your business.
• 4PL is similar to 3PL, but the relationship between the third-party logistics firm and your business is brokered by a middleman.
• Lastly, 5PL introduces logistics consulting services.

Of all the above options, it’s not surprising to see why 3PL has become the preferred option for manufacturers and retailers looking for an ideal solution in today’s e-commerce marketplace. Because a 3PL provider can fully integrate with your company’s inventory and fulfillment software, you’ll enjoy seamless real-time data transfer between the home office and the outsourced warehouse, helping to ensure correct picking and timely shipping.

Services to look for in a 3PL provider

A third-party logistics provider is most easily visualized as a warehouse — and indeed, product storage is one of the most popular 3PL offerings — but there are more options available to you if you’re looking to outsource other elements of your operation or want additional capabilities beyond the basic storage and transport expectations. Here’s a rundown of the most important 3PL services you should look for in a provider:

Intermodal transportation & expedited freight

Intermodal shipping, or the use of mixed transportation methods to move goods from A to B, is a common 3PL specialty. Companies well-versed in this niche of logistics are responsible for all the paperwork, compliance and guesswork involved with intermodal shipping, and they can typically facilitate expedited freight requests as well — a must-have in today’s environment.

Warehouse storage & inventory management

Some shippers rely on 3PLs for warehouse storage, and nearly all logistics providers will offer some form of warehouse support. The key is to find a firm that uses today’s most innovative technologies to manage inventory levels, automate ordering and process returns.

We recommend finding a 3PL that incorporates cutting-edge solutions like our autonomous mobile robot (AMR), Chuck, which can help create a wall-to-wall fulfillment solution. The innate flexibility and system configurability of Chuck can result in dramatically improved operational efficiency, making this robot a smart investment for both a 3PL and its clients.

Partnering with a 3PL with these kinds of technological capabilities will save you money and improve your insight into just how efficient and effective your outsourcing strategy really is.

B2B & B2C fulfillment capability

Some 3PLs specialize in B2B logistics fulfillment, while others focus on B2C. Some might offer both services. When you’re shopping around for a 3PL, consider what kind of fulfillment options you’re looking for and ensure any potential partner will be able to deliver — literally.

Value-added services

A more recent phenomenon in the 3PL world is the support of value-added options, which are customized product features such as personalized notes, stickers or even custom packaging. The successful implementation of a value-added strategy at scale adds another layer of complexity to 3PL pick and pack order fulfillment but is well within the purview of a qualified provider.

Benefits of partnering with a 3PL

Without deep pockets, setting up and operating your own in-house logistics operation is likely not a feasible or realistic solution. That’s where a 3PL comes in. Thanks to their economies of scale, they can help you realize the benefits of a complete warehousing and transportation ecosystem at a price that will look more and more like a bargain as you compare it against alternative long-term options.

For a sixty-second take on why partnering with a 3PL can be so advantageous, consider the following:

• The cost savings associated with using a 3PL can be significant, as it eliminates the need for any overheads relating to warehouse facilities, fleet management and additional staffing.
• Your customers will benefit from a better-connected and more expedient shipping and return center that enables fast deliveries and easy returns.
• Your team can stop worrying about intermodal compliance, IFTA and other common logistics concerns.
• You can continue to scale the manufacturing and sales sides of your business without worrying about running out of warehouse capacity or overtaxing your logistics operation.

The bottom line? There’s a reason so many top companies choose to work with 3PLs. When you take advantage of their services, you can focus on your business’s core competencies while leaving the complex logistics processes to a third-party that specializes in them. Contracting with a 3PL can lead to a long term, strategic partnership.

The post What is third-party logistics (3PL), and how does it work? appeared first on 6 River Systems.

Warehousing can be a challenge for manufacturers and retailers of all sizes. Finding the right space, running an effective order fulfillment system and sourcing great talent are just some of the many challenges facing operations managers. And besides, how many growing companies have the deep pockets to fund these expenditures or even the in-house expertise to get a warehouse up and running?

That’s where third-party logistics providers come in. Commonly known as 3PLs, these are businesses that specialize in providing outsourced logistical support. Used effectively, a 3PL provider can be an invaluable asset, allowing you to focus on scaling up production (for manufacturers), procurement (for retailers) and streamlining your overall operations rather than get bogged down in warehousing hangups. By taking over the day-to-day management of your logistics needs, 3PLs let you focus on what you do best — growing your business.

3PLs offer a wide array of logistics services, but warehousing remains far and away one of their most centralized offerings. If you’ve been wondering how 3PL warehouses work, let’s take a closer look at their operations.

How does a 3PL warehouse work?

A 3PL warehouse is owned and managed by a third-party company. Once your goods arrive, the 3PL team will document the inbound delivery and then stock the fresh inventory. When orders come in, the entire physical fulfillment process — from picking an item off the shelf to readying and releasing it for shipment — will also be completed by the third-party provider.

If you observe these operations firsthand, it looks much like any other modern commercial warehouse. The biggest difference is behind the scenes: the 3PL is running the show, not you and your team. You’re ultimately entrusting the 3PL with the responsibility of handling your inventory and order fulfillment needs.

Benefits of using a 3PL warehouse provider

Why would retailers or manufacturers relinquish control of their warehousing needs? There’s a long list of compelling reasons, from affordability to scalability to efficiency. Here’s a review of some of the primary motives driving companies to consider a 3PL service:

Value

Warehousing is an expensive endeavor. For starters, there’s the acquisition cost of an adequate facility, which can run well into the millions of dollars even for a modestly sized space. There’s also staffing to contend with, not to mention ancillary expenses such as equipment purchases and building upkeep. These unavoidable costs can make it prohibitively expensive to run a warehouse, especially for smaller retailers or manufacturing companies.

3PLs, however, already have the necessary physical assets and personnel in place. Though it costs money to partner with these firms, they’re offering an essentially turn-key operation that’s tested, proven and optimized. Once a contract is established, a 3PL can quickly begin providing complete logistics support. Not only is this hit-the-ground-running approach faster than setting up internal warehouse operations from scratch, but it can also cost less upfront.

Ease of scalability

For small and midsize retailers or manufacturers — or any business, really — scaling up production is difficult. Along with expanding manufacturing capacity or expanding to new retail product lines or markets, companies should expect to need more of everything, from marketing support to raw materials to storage space for the increased output.

That last need is where a 3PL can come in. These firms typically offer a wide range of solutions for their clientele, the goal being to offer growing businesses a chance to capitalize on their success without being hamstrung by inadequate logistics. You’ll likely be able to work with your 3PL to increase your warehousing capacity as your inventory and storage needs grow.

This kind of flexibility would be difficult to match with an in-house operation, which would require more time, money and energy to secure additional facilities or space beyond what’s already available. These internal roadblocks could hinder scalability, particularly for smaller businesses with limited resources.

Improved efficiencies

3PLs are the experts. These companies live and breathe warehousing, fulfillment and shipping, and they’ve long ago put into practice effective tools and processes to promote efficiency. The best 3PL companies also boast the latest technologies and digital innovations to further maximize productivity and reduce warehousing costs.

Independent companies like retailers and manufacturers trying to self-manage their warehousing needs likely won’t match these efficiencies. Why? Because logistics is one aspect of their business, not the entire focus of it. It fits in like a puzzle piece within their larger supply chain, which itself fits into a larger operational matrix. But logistics operations are the bread and butter of 3PL providers. It’s why 3PLs put serious effort into developing best practices, leveraging technology and streamlining warehouse operations.

For example, innovations developed by 6 River Systems, such as system-directed picking and case replenishment optimization, have quickly become commonplace among the leading 3PLs in the industry. In fact, 70 percent of the top 3PLs are 6 River Systems customers. These segment leaders know that advanced technology is the key to improved order fulfillment, better warehousing techniques and happier customers.

Drawbacks of 3PL warehouse providers

Like anything else, there can be drawbacks to working with a 3PL, and you’ll have to decide whether these are outweighed by the potential benefits. Here’s what we’d keep in mind before signing on with an independent logistics provider.

Lack of control

When you contract with a 3PL, you’re willingly ceding control of the logistics and inventory management of your business. And while your ability to have certain inputs and insight might not completely disappear, it is somewhat limited. The relationship hinges on trust and communication.

That’s fine for many businesses, which are typically more than happy to free themselves from the responsibilities of managing a complex warehousing environment. But other manufacturing companies and retailers might not like the prospect of handing over their inventory management to a third party. Maybe that’s because they’ve incorporated certain processes that they want to remain in charge of, or it’s due to the nature of their personalized products (though the best 3PLs can accommodate customization needs through various value-added service options). For companies not yet ready to entrust logistics to a third party, keeping things in-house is worth the added complexities and responsibilities.

3PL service costs

While it’s costly to acquire, staff, and run a warehouse, you’ll also have to pay for 3PL services. The higher-priced options often include additional perks like larger trucking and distribution networks or more advanced automation and software solutions, but the monthly service costs can be high.

Businesses will have to consider whether the higher upfront costs of setting up an internally operated warehousing facility outweigh the monthly service fees charged by many 3PL providers. This is a particularly relevant concern for smaller retailers or manufacturers that may not have sufficient order quantities or inventory levels to justify recurring 3PL service fees.

What businesses should use a 3PL warehousing service?

Most types of manufacturing and retail businesses could benefit from a 3PL service. If your business is making goods at scale, the finished product needs to be stored somewhere. Paying a specialized logistics provider to handle inventory receiving, storage and delivery is an investment that buys access to state-of-the-art warehousing strategies and techniques while also helping your team gain back precious corporate bandwidth. By finding the right 3PL partner for your company’s needs, you can unlock savings, efficiencies, and potential you may not have even realized were possible.

The post What is a 3PL warehouse, and how does it work? appeared first on 6 River Systems.

Efficient, streamlined logistics operations play a critical role in meeting consumer demand, increasing customer satisfaction and ultimately, reducing operational costs. In today’s competitive retail sector, optimizing logistics processes enables retailers to gain an advantage. In this article, we’ll discuss four ways to improve retail logistics to reduce operational savings, including:

• Implement resilient strategies
• Outsource to trusted third-party providers
• Leverage the right tools and technology
• Using predictive analytics

We’ll discuss these ideas in more detail later in this article, but first, let’s take a look at the challenges faced by retailers.

Retailers must adapt to changing conditions

Retailers must be flexible in order to handle consumer’s evolving shopping behaviors changing trade policies, inventory shortages, supply and demand disruptions and unpredictable delays in last mile deliveries. All of these challenges negatively impact bottom lines, credibility, long-term viability and market reach of affected brands.

To resolve these challenges, retain their competitive edge, grow their consumer base and operational savings, business owners are rethinking logistics processes and leveraging innovative solutions to bring their e-commerce and retail operations into the digital age. However, this is no walk in the park.

A viable solution pathway involves a reassessment of inefficient supply chains, existing legacy systems, traditional inventory management and fulfillment processes. More importantly, it requires retailers to review their retail logistics processes and take proactive measures to improve and streamline existing operational workflows.

Global marketplaces are dominated by brands that are proactive about driving operational efficiencies within their retail logistics workflows. Let’s discuss four ways to improve retail logistics and reduce operational costs.

1. Implement resilient strategies

The ripple effect of global bottlenecks, labor shortages and geopolitical conflict is driving the current climate of persistent unpredictability. It is the time for retailers to build flexibility and resilience into their retail logistics strategies and supply chains. Retail logistics resilience goes beyond the ability to wait out and survive disruptions. It entails having a logistics strategy that can pivot when necessary to handle unpredictable challenges.

Such a strategy focuses on risk diversification, increased consistency and the surplus availability of high-priority SKUs. It also includes the ability to quickly change fulfillment workflows when one or more bottlenecks surface. However, such resilience can only be achieved by collecting and analyzing real-time logistics data to facilitate end-to-end visibility and streamline retail logistics activities.

2. Outsource to trusted third-party providers

Outsourcing to providers with current retail logistics expertise can reduce costs, increase productivity and deliver a competitive edge to retail outlets and e-commerce stores. Top providers have the technology, domain expertise, infrastructure and time-tested strategies to design, implement and maintain a robust retail logistics framework for a retailer’s unique use case. This is advantageous for brands that have grown to the point where in-house fulfillment has become costly, time-consuming and inefficient.

Outsourcing frees up retailers to focus on strategic initiatives that drive revenue, customer satisfaction, business growth, product development and service differentiation. The best 3PLs enable businesses to easily expand into global markets by providing regional expertise (such as applicable laws and regulations in other countries), infrastructure (such as distribution centers) and established global shipping resources (such as air freight and sea freight). They also negotiate bulk carrier discounts to reduce delivery costs and time, enabling retailers to offer faster, affordable shipping to customers.

3. Leverage the right tools and technology

Aligning frontend customer journey touchpoints with inventory/warehousing backend operations is key to building a robust retail logistics strategy. Optimizing all inbound and outbound retail logistics activities to meet shoppers’ expectations around speedy, affordable delivery and easy returns processes requires investment in supply chain technology, infrastructure and employees who understand retail logistics best practices.

Leveraging robotics, automation solutions, demand planning systems, inventory management, logistics management and ERP software can help automate warehouse/fulfillment operations and gain a 360-degree view of all fulfillment activities. These tools can also help companies adapt their retail logistics strategy and optimize retail supply chains for omnichannel fulfillment and hybrid markets.

For example, Crocs’ ecommerce volume grew substantially in 2020. After implementing a new pop-up warehouse specifically for ecommerce fulfillment to meet demand, Crocs brought 83 Chucks (32 of which were for the holiday peak) into its operation.

The new warehouse ramped up from the first pick to full volume in just two days. Within the fourth quarter of 2020, Crocs’ warehouse associates:

• Picked about 3 million units
• Increased throughput by 182%
• Exceeded designed rates by 25%

Because associates no longer had to operate manual carts, their walking time was reduced by half. Training time was also decreased from one week to just one day, saving the company 32 hours of training time for every new associate.

4. Use predictive analytics

Predictive analytics help operations anticipate shifts in demand and supply, consumer trends, and potential risks. They can also provide insights around bottlenecks in the logistics process and make intelligent sales forecasts by analyzing historical and real-time logistics data. With this insight and forecasts, online retailers can better address supply and demand miscalculations and anticipate how factors (such as weather) may disrupt shipping schedules.

Predictive analytics can inform sales forecasting by using logistics data to understand consumer demands, identify turnover during different seasons and promotional periods, and track sales patterns/trends.

Other ways to improve retail logistics

The strategies above aren’t the only ways to improve retail logistics. Other improvements include:

• Adopting sustainable practices for last mile delivery and reverse logistics
• Investing in inventory and warehouse management solutions
• Strengthening backend admin management for retail logistics
• Reviewing, measuring, and analyzing retail KPIs
• Incorporate newer AI and automation technologies
• Reorganize procurement, fulfillment and shipping activities for omnichannel sales

Looking ahead

Regardless of your niche, consumer demographics or sales channels, these four strategies can help you reduce operating costs, improve efficiency and meet customer expectations. Retailers and logistics companies should leverage AMRs, data analytics, automation solutions, embedded integration technology and current trends impacting retail logistics to improve processes, boost performance and increase their competitive edge.

The post 4 ways to improve retail logistics and reduce operational costs appeared first on 6 River Systems.

If your business is going to keep pace with its competitors in such a rapidly changing world, it’s going to need to embrace and integrate as much technological innovation as it can.

In e-commerce, fulfillment is the bridge between your product and your customers. Without it, your inventory stays on the shelf, and your customers look elsewhere to get what they need. In a lot of ways, your fulfillment strategy, and the way you execute that strategy, is the sum total of your customer experience.

Therefore, fulfillment is a vital part of a business’s operations.

But just as there are many different businesses and products, each situation requires a different fulfillment strategy. You need proven solutions that can scale, and you need them to be efficient, accurate and reliable.

In this expert’s guide to e-commerce fulfillment, we’ll cover:

• What is e-commerce fulfillment?
• The three main types of fulfillment
• Inventory management techniques
• How automation can help
• The future of e-commerce fulfillment

This guide will primarily look at fulfillment through the e-commerce lens and deal mostly with third-party logistics (3PL) fulfillment methodologies.

What is e-commerce fulfillment?

E-commerce fulfillment has several layers to it. It all centers on customer service — you have a customer online who decided to buy something your business makes or sells. The ecommerce fulfillment process is how it gets from you to your customer. It involves:

• Inventory management
• Receiving
• Warehousing
• Pick and pack
• Shipping
• Returns

Those first three steps involve how the various components of your products — and your customers’ orders — are assembled and readied for picking and shipping.

Picking and packing is the process in which a customer’s order is put together. If they have one item, it’s easy. If they have many items, these will need to be selected from different zones of the warehouse and placed together in a shipping box.

Shipping isn’t as easy as it might sound. Some items can and should be sent through parcel delivery services (typically for B2C shipments, but not always). Other items that are heavy or bulky must be shipped via freight, and that requires access to a whole different network of specialists.

The last step, returns, is not often well-enough integrated into many small businesses’ fulfillment strategies. If products are damaged, whether in transit or not, or if the wrong item was shipped, you need to have a way to deal with the discrepancy properly. That means implementing a returns putaway process as well as a process for disposing of, recycling, or refurbishing products that can’t be resold in their current state.

This capacity isn’t just about customer service, either — it’s about inventory management. You need a process that focuses on returns for inspections, confirmations and restocking because any inventory that’s unaccounted for can’t serve your business. With a documented returns process in place, you can recover the value of returns quickly.

When you sell your goods online, it’s not the same as a location-based, brick-and-mortar customer experience. By doing away with a physical location, you’ve given up the possibility of providing a face-to-face customer experience. The customer experience now hinges entirely on how flawlessly your e-commerce fulfillment strategy works.

The three main types of e-commerce fulfillment

There are three primary strategies in the fulfillment business:

• In-house
• Drop shipping
• 3PL

1. In-House Fulfillment

In-house fulfillment or self-fulfillment is the strategy that requires you to keep all fulfillment tasks and responsibilities under your own company’s roof (or under your company’s direct management and control). It’s great for startups and small businesses, but it can be difficult to scale.

2. Drop Shipping

If you decide to build your fulfillment strategy around drop shipping, you won’t stock products in a warehouse. Instead, you will effectively sell another company’s products to your customers via your e-commerce store, while the drop shipping company manages both warehousing and shipping for you.

The upside is that you don’t need to fret about order fulfillment. This approach may be a good option for small businesses or entrepreneurs first getting into the e-commerce space. It can also be a viable strategy for growing e-commerce businesses that want to expand their product lines to offer more SKUs but don’t have the capacity to keep fulfillment tasks in-house.

3. 3PL

The 3PL model involves outsourcing your fulfillment to a third-party logistics specialist. This company will manage your warehousing, packaging and shipping. With a 3PL strategy, you can provide your customers with a fully integrated experience from checkout to delivery (and returns).

Inventory management techniques

Inventory management covers everything from ordering and storing materials, parts, and products to how you move your inventory throughout your warehouse, how you track it, and how efficient the whole process is. Naturally, this procedure invites all manner of disciplines as companies strive to find the best solution for their own challenges.

It used to be perfectly adequate to use a written ledger and a pencil to track warehouse inventories. Then again, it also used to be just fine to spend way too much time picking and packing orders manually. If you want to compete with e-commerce’s movers and shakers, you need a better way to get things done.

And these days, there isn’t just one way to get the job done. What’s right for one operation could be dead wrong for another. This introduces the need for customized solutions. Let’s delve into some of the most common inventory management techniques.

Bulk management

Conventional wisdom says that it’s least expensive to work in bulk, whether you’re talking about purchasing or shipping. And for the most part, this is true — although not always.

If you’re dealing in high-demand commodities like copper, building materials, minerals (such as salt), or consumables, the bulk technique of inventory management is best. Bulk management can also be used to provide zones within your warehouse for staging large quantities of non-commodity items, whether inbound or outbound.

The point is that bulk management isn’t just for commodities; it’s better thought of as a management technique for large quantities of inventory. The petroleum, building and food industries effectively put this principle to work. The biggest and best have scaled it to a global level, and their practices are worth studying for insights.

Know before you commit, though, that going bulk will require a lot of warehouse space, and the longer your inventory sits, the more it will cost you.

ABC inventory management

The ABC inventory management technique involves assigning a priority to a particular item or class of items so that they can be expedited. Usually, the criteria are threefold:

• Annual units sold
• Inventory value
• Cost significance

With this method, it’s possible to forecast, to a certain point, how items in your inventory are performing relative to others. It’s also possible to adjust pricing based on these performance indicators.

However, this method often misses the first indications when an item or class of items begins to trend upward, which could lead to understocking and missed opportunities.

Backordering

This technique can be risky. If you enable backordering, you don’t have physical products on hand, yet you’re still taking payment for it. You’re leveraging the time value of money, among other things, in order to bank revenues so that you can shift production when possible.

Fulfilling all backorders at once could have certain efficiency advantages, but you’re taking customers’ money and goodwill in exchange for a promise. Don’t keep them waiting long.

JIT (Just in Time)

Pioneered most notably in the automotive industry in the turbulent 1970s, the just-in time-inventory technique is extremely efficient because of its inherent leanness, but it tends to create completely unforeseen problems.

If all of your necessary raw materials are unloaded one truck at a time every couple of hours — and one shows up late because of a traffic snarl — you may not be able to process customer orders due to something as seemingly insignificant as a random motorist’s flat tire.

JIT can also fail when it comes up against global supply chain disruptions. For instance, the pandemic of 2020 left many parts of the supply chain reeling from unprecedented shortages caused by either total or rolling shutdowns, depending on the industry. The automotive computer chip shortage is a well-known example of how disruptive it can be when one piece of the JIT chain fails.

Consignment

With consignment, you’re basically using a retailer’s floor space as warehousing. The benefit to the retailer comes from not having to tie up cash flow in inventory. It’s a great way for producers to test new products. But the downside is that your products enter a kind of limbo. If they’re returned unsold, you’re paying for shipping twice.

Cross-docking

A close relative of the JIT technique, cross-docking means all you’re doing is sorting the cargo of one truck into another. Even on the dock, the freight is never not in transit.

The best example of this technique in action can be seen in firms like UPS and FedEx. An inbound trailer bumps the dock and is unloaded and sorted on the dock into three or four disparate outbound trailers, which are loaded and released immediately.

Inventory cycle counting

This technique works best when implemented in conjunction with other methods. The idea behind it is to increase efficiency and decrease downtime by not performing a full inventory reconciliation (or stock check) unless you absolutely must. Inventory cycle counting is a random sample of stock taken on a random basis. There are three primary ways it can be used:

• The control group technique counts the same items often in a short timeframe.
• The random sample technique attempts to spread count activities throughout the inventory in the warehouse so that disruptions are minimized.
• The ABC cycle count technique counts high-priority items more often than those with lower priorities.

In reality, the best inventory management technique for your eCommerce business will likely blend all these techniques to some extent, and could even integrate others, such as a year-end audit.

How automation helps

Given the various wrinkles in the space between you and your customers, it can be difficult to know how to best unravel everything into something that works well for you. After all, one of your primary goals is to ensure customer satisfaction and reduce risk. Because without customers, your bottom line suffers, and you don’t really have a business.

The dream is to find a solution that allows you to do the job better than your competitors and, if possible, anticipate what’s required of you in every aspect of the transaction. Little efficiencies gained here and there add up to huge advantages.

Warehouse automation can help, especially when it’s enhanced with AI. Here are just a few ways autonomous mobile robots are taking warehouse logistics to the next level:

• They’re flexible, optimized and easily scalable.
• They offer improved productivity in the warehouse.
• Onboarding and training can be streamlined.
• Data analysis gives a much better picture of inventory and efficiency metrics.
• Decisions are systematically directed by intelligence, not guesswork.
• Exponential improvements over unaided workflows lead to rapid ROI.

Let’s take a closer look at these advantages.

Optimization and scalability

When AMRs (Autonomous Mobile Robots) are deployed into the warehouse, all kinds of hidden efficiencies can be realized. Since the software that guides each AMR is able to “see” every order as well as the position of every other AMR, it is possible to gain greater efficiencies through system directed workflows.

For instance, instead of picking an individual order until it’s filled, AMRs can direct an associate efficiently, fulfilling multiple orders at once. Instead of pushing a cart through every aisle on the hunt for items, associates can now stay in a zone, picking onto AMRs as directed. This means less walking for people and more efficiency for picking.

Additionally, these solutions are easily scalable. If you need more capacity, simply add more AMRs to the mix. And since the whole process is guided by the AMRs as they move through each zone, it’s quick and easy to train new staff.

Improved productivity

When people spend less time figuring out each customer order, trying to remember where each given item is, and roving the entire warehouse trying to pick one order, it results in a significant increase in productivity and efficiency.

Improved productivity means you’re getting a whole lot more for your money. By employing AMRs, you let the AI choose the most efficient way to pick customer orders. Not only are your employees more efficient because they’re following the system, but your system responds in real-time as orders stack up. This is crucial when high throughput needs to be maximized, such as during peak seasons or make-or-break moments like Black Friday and Cyber Monday (BFCM).

Streamlined employee training processes

If the worker’s tasks are simplified, onboarding is easier too. Imagine how much time it would take a new hire to get their feet under them if they had to memorize, even roughly, your entire warehouse. Then imagine how easy it would be to simply allow an AMR to guide them to their next pick.

The hefty average cost for onboarding one new hire in 2022 is $4,125. Therefore, anything that can be done to streamline employee training is a boon to your bottom line. AMRs enable huge gains in onboarding efficiencies just by performing their everyday functions.

Data analysis

With automation comes data, but you have to know how to use it for it to actually mean anything. Data integration is crucial. It’s not that you have the data; it’s what you can do with those data. A great deal of anxiety and busy work in management strategies will disappear when you have proper data integration.

You won’t have to worry about whether cross-docking will work or if an ABC inventory cycle count will be adequate when you have good, hard data. Mispicks and inaccurate inventory counts will be reduced if the whole process is automated.

Plus, since AMRs are guided by AI, you’ll get real-time, actionable feedback about areas in the warehouse that suffer congestion, and you can proactively troubleshoot ways that you can alleviate the problem.

Decisions guided by intelligence

Instead of guesswork, your decisions will be highly data-driven. You won’t need to wonder which item is selling best right now or has for the last six months or year-to-date — you’ll know. No longer will you need to worry about whether you have a clear picture of your inventory, either, or hope that you have enough stock to cover a trending item.

Since every move made in your warehouse can be tracked and analyzed by your WMS (warehouse management software), and since every component of every order shows up in the system, you can easily track what’s selling and what’s not. And that means you can pivot to what matters when it makes the most difference.

Fast ROI

Since warehouse automation adds efficiency to your entire operation — from inventory accuracy to staffing to picking errors and everything in between — it won’t be long before automation pays for itself.

Your return on investment probably won’t just come in the form of efficiencies gained but also in the form of growth enabled. And if anything, that means you’ll have an edge on your competition.

The future of e-commerce fulfillment

Fulfillment logistics technologies in e-commerce tend to move quickly. It’s those who fail to capitalize on today’s potential advantages who will be left behind, and sooner than later.

The e-commerce landscape is dotted with the wreckage of those who tried but failed to innovate in time and were eliminated.

What are you missing that could make a difference in fulfillment efficiency? Have you considered how AMRs and the automation they bring could increase margins, decrease loss from mismanagement, and bring more market share to your corporation by increasing your agility in the marketplace?

In the end, there’s really only one conclusion: fulfillment is a primary example of a business task that’s begging to be automated. When your warehouse is automated, it is:

• More efficient
• Highly accurate
• Data-rich
• Easily scalable

In the end, automation gives you an edge over your competition. And that’s priceless.

The post The expert’s guide to e-commerce fulfillment appeared first on 6 River Systems.

E-commerce is here to stay and continues to impact consumer expectations and buying behavior. As the number of buying channels, online shoppers and customer orders continue to rise, companies need to deploy solutions, strategies and innovations to better manage their fulfillment process.

While still adapting to the reverberating effects of the pandemic on global supply chains, brands need to meet customer expectations. Otherwise, they risk losing their customers to more agile competitors. A great way to achieve this while remaining profitable is by improving fulfillment management operations so that the fulfillment process flows seamlessly from start to finish.

Why is fulfillment management important?

Order fulfillment has a significant impact on the customer experience. Effective order fulfillment promotes customer satisfaction and loyalty, bolsters your brand reputation and cultivates customer advocates. When done right, fulfillment management facilitates seamless execution of order picking, packing and other inbound/outbound logistics activities. It also ensures inventory is kept at optimal levels to satisfactorily fill customers’ orders without incurring high storage costs or overstocking inventory with low turnover.

Since supply chain disruptions (due to COVID) severely impacted the ability of suppliers to get inventory as needed, many businesses coped by realigning their fulfillment management strategy with current realities. They began to shift from Just in Time (JIT) lean inventory to Just in Case inventory (JIC) — to minimize the chances of falling behind production schedules or running low on goods required to fulfill orders on time.

Delivering on your brand promise with an efficient, transparent order fulfillment process not only impacts customer satisfaction, but it also affects the company’s bottom line: You’ll reduce unnecessary expenses (such as long-term storage costs for slow-moving inventory) while also earning repeat business from customers who appreciate prompt, seamless order fulfillment.

To help you achieve and surpass these objectives, let’s take a look at six ways to improve fulfillment management.

1. Identify inefficient processes

Identifying inefficient and redundant fulfillment activities is a great way to kickstart your improvement efforts. Outdated technology, siloed operations, slow restocking, inaccurate inventory and the use of the wrong picking methods can result in lost sales, high operating costs and a steep decline in customer satisfaction metrics.

Of all these, inaccurate inventory can do the most damage to your fulfillment operations. It negatively impacts your ability to store, pick, package and ship out customers’ orders accurately and on time. A lack of accurate, real-time inventory monitoring could also cause stockouts, deadstock and backorders. One way to resolve this is to consolidate inventory across all channels by deploying warehouse and inventory management software. These solutions can help facilitate efficient inventory replenishment processes and real-time data integration from every aspect of your fulfillment operations.

Optimizing picking operations also improves fulfillment management. Even the smallest inefficiencies during each phase of a picking process can significantly impact the speed, accuracy and successful outcome of your entire fulfillment operation. Review your processes, warehouse layout and available technology before choosing a picking method. Identifying and organizing top-selling SKUs in the most accessible locations (and collating similar product orders into a single pick list) can improve order processing times and efficiency.

2. Automate manual processes

Allowing workers to make decisions during fulfillment activities slows down the entire process. Lack of automation and coordination during picking activities could also increase physical strain on workers, the possibility of errors, damage to products and equipment and even accidents.

Deploying inventory management solutions, order tracking software, forecasting systems and the latest trends in warehouse automation goes a long way in resolving many of these challenges. These systems, in addition to autonomous mobile robots (AMRs) and automated pick/pack systems, can help streamline the order fulfillment process, making it easier for you to achieve fulfillment management goals with minimum hassle.

Download this white paper to learn more about why autonomous mobile robots are the future of fulfillment and deliver a bigger bang for your buck than traditional automation.

3. Outsource to competent 3PL operators

One way to avoid dealing with the hassle of fulfillment management is outsourcing your supply chain to a 3PL. A lack of industry/technical know-how, strategic partnerships, experienced personnel and infrastructure will hamper your ability to efficiently manage fulfillment operations.

Without these resources, your customers may likely experience late deliveries, damaged products and incorrect orders. This will negatively impact bottom lines and increase your workload due to the need for reverse logistics operations to correct mistakes, handle customer complaints and reabsorb returned products into inventory or dispose of products that can’t be resold. Working with an experienced 3PL is a great way to easily improve fulfillment management and gain cost/process efficiencies with minimal effort.

4. Leverage omnichannel fulfillment

Although consumers order products in small quantities, they typically order a more diverse range of SKUs than enterprise customers. This makes it more challenging to manage and collate customers’ orders, especially across several sales channels. Using omnichannel fulfillment strategies to facilitate an integrated approach to inventory management can help businesses better handle customers’ orders and improve fulfillment management workflows. Learn more about “omnichannel fulfillment.”

5. Optimize last-mile logistics

Last-mile delivery is the final and most expensive part of the fulfillment chain, accounting for nearly 40% of the entire supply chain costs. Previously seen as a necessary evil, last-mile logistics is now considered a valuable tool with the potential to enhance the customer experience.

Last-mile delivery poses several challenges: staff shortages, shipping complexities and the higher delivery costs associated with faster shipments. With more customers expecting same-day delivery (for free), retailers and e-commerce businesses must learn to work around these challenges to meet customer demands and drive positive fulfillment management outcomes. This can be done by bringing distribution/fulfillment centers closer to major customers’ markets and automating/optimizing route planning by leveraging the right route management software.

6. Improve reverse logistic operations

Fulfillment operations don’t truly end until customers have received and are satisfied with their orders. As the number of product returns continues to rise (especially during the holiday season), returns management is quickly becoming an indispensable part of fulfillment operations. Although this presents brands and 3PLs with some challenges, companies that do it right can leverage returns management to drive sales and service differentiation.

Optimizing this aspect of your operations will drive positive outcomes for other fulfillment management activities. Working with resourceful 3PL partners with returns handling expertise can help you turn returns management into a success factor for your fulfillment operations. Such partners have reliable procedures for receiving, inspecting, tracking and reallocating returned products to inventory for resale.

Achieve fulfillment management success

In today’s consumer-driven marketplace and economic landscape, e-commerce and retail stores are expending considerable resources to ensure that order fulfillment and last-mile shipment activities flow seamlessly. Silos and inefficiencies in fulfillment management can negatively impact these vital processes, thus slowing business growth, reducing profits and negatively impacting customer satisfaction.

The above steps can help you achieve fulfillment management success by reducing the time, effort, and resources spent on fulfillment activities. This leaves you free to focus on other important aspects of your business, such as reviewing operational blind spots in marketing/sales strategies and identifying opportunities for process improvement, integration and cost efficiencies.

The post 6 steps to improving fulfillment management appeared first on 6 River Systems.

Savvy business owners and logistics providers are adjusting their processes and testing out various fulfillment processes, workflows and strategies (including omnichannel fulfillment) to accommodate and effectively meet the demands of an informed consumer base.

To help you scale, stay ahead of the competition and cope with growing consumer expectations, let’s explore what omnichannel fulfillment is and why it is important.

What is omnichannel fulfillment?

Omnichannel fulfillment is a centralized strategy that enables businesses to streamline and seamlessly execute the order fulfillment process (receive, warehouse, process, pick, package and ship customers’ orders) across multiple channels. This strategy allows logistics providers to remain agile, optimize their fulfillment workflows and efficiently handle/dispatch orders received from multiple selling channels within a single facility.

Essentially, omnichannel fulfillment enables you to automate, simplify and speed up order fulfillment activities to increase customer satisfaction and boost your bottom lines in today’s incredibly competitive marketplace.

A centralized approach to inventory management is a core tenet of omnichannel fulfillment. An integrated inventory tracking system allows businesses to redistribute and reallocate inventory to multiple channels, enabling customers to easily find, order and receive items via their preferred channel. As such, businesses don’t have to set up separate order fulfillment infrastructures for individual sales channels.

The importance of omnichannel order fulfillment

As e-commerce sales volume continues to grow, a lot of online stores now struggle to handle the growing number of customer orders they receive from multiple buying channels. The proliferation of consumerism is also making it difficult for e-commerce stores to enhance the customer experience while keeping bottom lines healthy. This is where an omnichannel fulfillment approach comes in. Let’s take a look at a few of the biggest benefits of leveraging omnichannel fulfillment.

Reduces the cost of exploring alternative sales channels

At its core, omnichannel fulfillment uses an integrated process to optimize logistics and supply chain operations to efficiently fulfill orders across multiple channels. This approach enables brands to reduce shipping time and enhance the customer experience by leveraging a hybrid delivery approach (for example, using physical stores as fulfillment centers). As such, brick-and-mortar retailers can expand into e-commerce without having set up a new network of physical fulfillment centers and warehouses. They can use their already existing physical infrastructure to increase their online reach.

Boosts the customer experience

An omnichannel logistics strategy allows businesses to combine their inventories for online and offline sales channels and integrate the entire process into a unified entity. With this, you can provide customers with unrivaled access to inventory across all channels, real-time tracking options and quick order fulfillment, thus creating a streamlined shopping experience. Improved customer experience leads to higher customer satisfaction, which translates into customer loyalty and increased sales.

Enables flexible fulfillment options

Omnichannel order fulfillment avoids a linear fulfillment process (warehouse – store – end customer) in favor of a more agile and flexible workflow. Omnichannel fulfillment enables businesses to process and deliver orders via a combination of various channels, including:

• Store-to-customer
• Customer-to-store
• Warehouse-to-store
• Warehouse-to-alternative pick-up location
• Customer-to-warehouse
• Warehouse-to-customer
• Store-to-store

Allows businesses to explore new sales channels

A unified fulfillment process and integrated sales channels (both hallmarks of omnichannel fulfillment) make it easier for businesses to remain agile and optimally manage their supply chains for better cost and process efficiencies. Using a real-time warehouse management system and a holistic approach to fulfillment operations enable brands to explore new sales channels with ease.

Frees up time and resources

Order fulfillment is one of the most crucial components of an e-commerce operation. As online shopping becomes the norm and orders continue to increase, businesses need to properly manage inventory to ensure that customers’ orders are filled accurately. They also need to ensure timely delivery of customers’ orders, as well as handle marketing, sales, HR and other essential business activities.

Tracking your inventory in real-time can quickly become a hassle, especially if your sales channels have several touchpoints that require independent inventories. The omnichannel fulfillment approach solves this problem by integrating inventory for both online and offline channels.

Combining this approach with warehouse automation solutions helps reduce the time, cost, and hassle of executing core fulfillment activities and managing your inventory. For instance, 6 River Systems’ autonomous robotics solution streamlines fulfillment processes by guiding warehouse associates through work zones to minimize walking and directing associates through each task to improve efficiency and accuracy.

One leading fitness retailer leveraged 6 River Systems’ solution to manage 100% of its order volume across its U.S. distribution network, realizing performance gains including a 135% improvement in pick rate and a 50% reduction in in-aisle walking. Training time for new associates to reach target performance goals shrunk from three to four weeks to just one day, and the retailer also realized a reduction in worker fatigue and improved employee retention.

Looking ahead

Inventory management is an essential part of every retail/e-commerce business operation. Omnichannel order fulfillment combines a holistic approach to inventory management, fulfillment operations, marketing and sales channels to help brands improve accuracy, delivery speed and the overall shopping experience.

Learn how to jump-start your retail fulfillment operations and support next-gen fulfillment by downloading our white paper, How to Jump-Start Flexible Retail Fulfillment for Today’s Multi-Channel World.

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