Even the most established DTC businesses are prone to issues in the end-to-end supply chain. The following are some of the most prevalent problems:
There is no way for the user to see what’s going on beneath the surface.
According to Statista, the most difficult issue for supply chain executives is visibility, especially when it comes to inventory.
It’s impossible to achieve even the tiniest operations with out a reliable inventory management system. It makes room for real-time inventory management and an agile supply chain. Even for the smallest businesses, however, visibility is difficult to obtain.
Many businesses overorder goods because of a lack of visibility. Many companies order more inventory than they need or don’t order enough to meet demand due to incorrect inventory administration. Higher costs and lowered client happiness are possible as a result of poor inventory management.
There are numerous procedures that must be followed to improve supply chain visibility, but utilizing technology and automation might assist.
For example, Launch Fulfilment’s fulfillment technology records real-time inventory movements. As a result, you may gather data and performance that offer vital supply chain analytics for everything from inventory flow to shipping success.
Overall operational expenses
One of the most expensive aspects of running a company is purchasing items from manufacturers and suppliers, storing, transporting, warehousing, and delivering them to your clients. Throughout the supply chain, your logistics operations use a variety of third-party vendors that charge operational fees.
If you don’t keep an eye on supply chain operational costs, you might lose out on ideal profit margins.
Launch Fulfilment is a 3PL that makes it simple to manage logistics costs, from storage to fulfillment expenses and delivery. Launch Fulfilment also gives insight into how expenditures are being dispersed, in addition to providing clear billing.
The Launch Fulfilment dashboard allows you to access a wealth of information, including but not limited to:
- Average storage cost per unit
- Fulfillment cost per order
- Total number of bins/shelves/pallets that you’re being charged for
- Average order value and shipping cost by shipping method and order
- How much you can save by optimizing inventory allocation
At this point, the product has a poor rate for accuracy.
Have you ever had to make inventory write-offs to balance your records and reconcile the inventory in stock?
You’ll frequently encounter low inventory accuracy rates when you store your own goods or rely on a subpar inventory management system. This can also affect your order fulfillment process, resulting in bad order accuracy rates.
For instance, if orders come in and you can’t fill them, it’s possible that backorders or split shipments will occur, delaying the process and increasing expenses.
However, investing in the correct inventory automation software and/or partnering with a 3PL can often offset low accuracy rates. Launch Fulfilment, for example, offers real-time inventory monitoring to ensure that all items are accounted for. This enhances visibility and minimizes inventory shrinkage by providing greater insight into your stocks.
Launch Fulfilment’s technology is also intended to minimize fulfillment errors in order to maintain a high order accuracy rate. In addition, the Launch Fulfilment staff carefully tracks “support cases per order,” which is an indication of how well we’re performing as your logistics partner (i.e., how often you need to contact us when there are difficulties).
Poor customer service
Customers are notorious for spreading negative comments about your company. When it comes to customer service, 100 percent of customers will badmouth you to their friends and family. Customer care is fails when you fail to provide fast remedies or respond on time.
Tracking numbers must be generated and sent to customers as soon on-time deliveries have been completed. This way, you may keep clients informed and decrease the number of customer service inquiries regarding in-process orders.
This allows your customer service staff to prioritize providing the finest experience feasible, including a simple ecommerce return and exchange procedure to enhance brand loyalty.
For example, Launch Fulfilment’s fulfillment solution allows you to set up an effective returns management system by allowing our staff to handle returns on your behalf or allowing you to take better control of your return processes by connecting our technology with a top returns platforms like Happy Returns.
Tips for improving your supply chain – from end-to-end
After you’ve understood the key end-to-end supply chain problems, you can start working on them. Here are some suggestions for improving your supply chain from beginning to end.
Leverage modern technology solutions for greater visibility
Supply chain solutions have come a long way since their inception, giving merchants even more insight than previously. You may use the proper technology and link it with third-party supplier systems to keep track of every aspect of your supply chain.
Today’s lean supply chain technology not only tracks and reports, but it also uses algorithms to spot changes, patterns, and gaps in your supply chain. This allows you to have the insight you need to optimize and streamline your supply chain management.
Launch Fulfilment, for example, provides real-time inventory data that can tell you when particular SKUs are running out so you can plan your replenishment. This might help prevent stockouts and maintain optimal inventory levels throughout the supply chain.
Automate as much as possible
Using artificial intelligence (AI) and machine learning to optimize the supply chain is one of the many benefits of logistics automation. It can save your end-to-end supply chain by making things more efficient and reducing the opportunity for human error.
You can also optimize your supply chain by using automatic reorder reminders, which will ensure that you don’t run out of goods. A more advanced logistics solution, such as an ERP inventory system, may even go so far as to place the order for you.
You may automate a significant portion of your supply chain by using a supply chain as a service provider like Launch Fulfilment. With Launch Fulfilment, you can completely automate your fulfillment process, allowing you to focus on growing sales even more.
Improve data accuracy for better planning
While it may seem like a simple thing, obtaining accurate data insights is essential for successful end-to-end supply chain management. You need sound data knowledge to create long-term solutions that make sense. Accurate information might help you enhance supply chain prediction and prepare for the future.
Invest in a supply chain analytics solution that can link data from several internal and external sources to provide you with the information you need. When you have a decentralized supply chain, having access to data from numerous warehouses and fulfillment centers is crucial.
Machine learning may be used to aggregate data from multiple sources and improve real-time information in order to make accurate forecasts about demand.
Purchasing consolidation reduces space and resource waste by allowing you to plan your procurement ahead of time. You can also make sure that the most popular items are always in stock for fast delivery.
Outsource to supply chain & logistics experts
It’s difficult to grow a business while managing an e-commerce supply chain.
If you’re ready to improve your brand, consider outsourcing your supply chain management to a 3PL so you can delegate time-consuming and complicated activities like inventory storage and warehouse management to specialists.
You may spend more of your time on product development, customer support, and marketing by working with a 3PL.
Outsourcing logistics also allows you to fulfill orders and ship them more quickly at a lower cost. Instead of having to invest in your own warehouse and fulfillment operation, you may use Launch Fulfilment’s excellent infrastructure and leading fulfillment software without having to.
Improve your supply chain visibility
Launch Fulfilment solves one of the most pressing problems in supply chain visibility by combining cutting-edge technology and years of expertise.
Launch Fulfilment’s worldwide fulfillment network is run by a best-in-class, proprietary warehouse management system (WMS). Our technology-enabled network gives complete insight into fulfillment operations, from receiving new stock to processing returns. Check out the video below to see Launch Fulfilment’s end-to-end fulfillment process in action.
Launch Fulfilment merchants have access to extensive data and analytics reporting that gives real-time operational insights. You may use the Launch Fulfilment dashboard to:
- View, track, and manage inventory across our network in real time.
- Manage SKUs and product bundles.
- Monitor SKU velocity, inventory days on hand, and more.
- Forecast demand by viewing historical trends.
- Filter all orders by status.
- And much more!
By doing less, you’ll have more control and visibility over your supply chain.