Introduction
eCommerce Warehouse Management System (WMS) is the catalyst that has transformed many traditional warehouses from B2B to B2C, resulting in 3PLs serving individual consumers, managing large volumes of orders with smaller quantities of products.
How Can an eCommerce Warehouse Management System (WMS) Optimise Your eCommerce Operation?
Divesting from B2B distribution chains may seem like a big strategy risk, but you can transform your challenges into core competencies and reap the opportunities of the eCommerce logistics market when you partner the right eCommerce Warehouse Management System (WMS).
By implementing the Best Warehouse Management System (WMS) for eCommerce your business can appropriately design and adapt your operations for eCommerce and fulfil the special requirements of online shopping.
What Are the Common Challenges that a good eCommerce Warehouse Management System (WMS) Can Solve?
1. Higher Order Volumes
eCommerce warehouses process higher order volumes with small order lines compared to B2B distribution chains. Operations usually performs waving of orders, for example batching cutting-off times by wave based on SLA of order.
Additional waving strategies may be deployed to fulfil the increasing complexity of consumers demands. These strategies include one or a combination of the following:
- Orders with the same item (E.g., for promotions)
- Orders for a particular owner (with strict SLA)
- Orders with high priority delivery, etc.
- Orders going into a particular delivery zone
- Orders belonging to certain picking zones only (reduce footprint)
2. Higher Levels of Service Level Agreement
Consumer’s expectations are always increasing and serving this segment requires warehouses to adopt a higher level of Service Level Agreement. eCommerce operations typically require a same day, next day or within x days SLA that warehouse companies have to commit to.
To overcome this and achieve customer satisfaction, eCommerce Warehouses can implement: –
- Dynamic pick face strategy for easier access to lose items of products and will be replenished from pallet locations once fall below a certain level
- Sequential handling based on delivery SLA (handle same day first, then next day, etc)
- Strategized Picking in optimized flow (depending on layout, some companies will have pickers looking after certain aisles)
- Dashboards, Alerts and Notifications to ensure you do not miss any orders
3. Packing Materials Usage
Generally, packers handle lighter shipments that are easier to pack and deliver. A system suggested strategy based on cartons dimensions and weight can be used to optimise the packing process, reduce carbon footprint, eliminating the decision process for packers and add the efficiency of the last mile delivery.
4. Labelling of Tracking Number
Track number labelling is a requirement during the eCommerce packing process. The tracking number is typically assigned to the order. The eCommerce Warehouse Management System (WMS) can enable you to pre-allocated orders (E.g., Getting x numbers of tracking numbers from the courier and then assigning to the order and then lodge to courier) or even to assign by real-time lodgement (E.g., After packing and input dimension/weight, an interface will be done to the courier to lodge the order and retrieve the tracking number and label). After the tracking number is received, the label can be printed and pasted on the parcel itself.
5. Packaging Inserts
Some brands may require inserts to be included in the packed item such as invoice or shipment note. Some eCommerce warehouse operators may practice printing this insert to be used as the picking slip if they pick order by order and the other practice is that this insert would be printed during the packing stage.
If the brand allows the warehouse to define the layout of the insert, a common template would be used and the only change would be the brand name and logo. Otherwise, such inserts would either be sent by the brand itself or customized and printed by the system.
6. Customer Returns
The inspection process for return orders is critical to verify if really damaged. Upon inspection, if the item is still sellable, revert back to issuable stock. A inspection checklist may be provided by the brand only or the warehouse staff will be taught how to perform the initial simple inspection.
7. Updates and Visibility
Operations normally adopt a real-time mobile scanning solution so that any operations are automatically updated back into the system. Accuracy of operations is catered by the system asking the user to scan/select the product and scan the physical barcode of the location (to ensure it is placed or taken from that location). This can be further enhanced by using check digits in the location barcode to increase the complexity of memorising for malice.
Real-time dashboard of operations. E.g., how many orders are left to pick, pack, ship. We have customers who ask us to design dashboards that have smiley faces for each order and they flash this on a monitor in the warehouse. Customer service will have access to the system to see the overview of orders and inventory so they can answer queries from customers quicker. E.g., order status, quantity level, etc
8. Servicing Multiple Marketplaces
You can have an option to synchronize your inventory to enable a single view of real-time inventory. Optimising your physical asset to serve multiple marketplaces. By leveraging a good Ecommerce Warehouse Management System, you gain the flexibility to customized inventory controls specific to marketplaces and monitor real-time view of orders from multiple marketplaces.
Conclusion
By implementing the Best Warehouse Management System (WMS) for eCommerce, you can design and adapt your operations for eCommerce today and reap the rewards of the eCommerce logistics market tomorrow.
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