How an e-commerce fulfillment company can prepare for delays

Studies establish that E-Commerce spending grew by 62.1% over the years. It is proof enough that E-Commerce has no intention of slowing down in 2021 either. This growing demand naturally exerts pressure on the entire supply chain and creates a domino effect of demand, beginning with raw materials to imports to shipping container availability. It may not be entirely unexpected, but the unexpected spike in demand has stretched the supply chain thin and has made way for massive backlogs worsened by limited air freight capacity.

Unpredictable days ahead

The massive influx of imports has been setting new records throughout the first half of 2021 based on consumer data. It may become common for delayed deliveries with shipping container shortages and unexpected dwell times in the coming months. The best practice for E-Commerce order fulfillment companies in such cases is to have a plan for handling inventory spikes through automated dock scheduling to avoid the risk of running into labor shortage to receive and put away inventory.

Having stock in hand

Supply chains have become more unpredictable and retailers depending on B2B fulfillment have to consider alternative solutions. Some retailers are ordering products two to three quarters in advance to ensure consistent supply. Some are resorting to adding suppliers for high-demand products, and some sellers expect their e-commerce fulfillment company to carry more inventory to avoid running out of stock situations and building relationships with other 3PLs.

 Know your warehouse data

Ensure that your WMS provides real-time inventory management and keeps your customers updated with their product status. Help customers forecast their inventory needs with consistent reporting of minimum and maximum inventory levels. Your 3PL warehouse may need to track and manage the stock data and keep your customer informed all the while. Warehouses need to keep a close eye on daily inventory levels, communicate transparently, and provide customers with updates for better procurement decisions.

 

With greater unpredictability in the supply chain, 3PLs can gain a loyal customer base by offering visibility, flexibility and consistent communication.