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.
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.