2. Customer Plan Source Manufacturing Deliver Return Others
Customer service
overhead
Customer value learn
costs
Order management
overhead
Business unit and
factory planning
overhead
Materials and capital
acquisition planning
overhead
Sourcing,
procurement and
accounts payable
overhead
Raw materials
carrying and
obsolescence costs
COGS internal
conversion costs or
outsourced
manufacturing costs
Finished goods and
WIP inventory
carrying and
obsolescence costs
Internal warehouse
costs (space,
equipment, people)
Tax, licensing and
customs
Inbound and
outbound carrier costs
Product returns costs
Repair costs
Supply chain
management
overhead (admin and
center of excellence)
Supply chain IT &
Finance overhead
Lambenia Skincare Company
Leading skincare brand in India
Ambition to become No 1 brand the world
Uses natural ingredients
Established in 2005
1st manufacturing location in India in Sanand, Gujarat in 2015
Portfolio-All Purpose Cream, Body Lotion, Face Wash, Shower
Gel, Deodorant, Roll-ons, Lip, Men’s Grooming, Soap, Talc etc.
3. Long-term strategies for warehousing & logistics for Ecommerce
Managing
Returns
Controllin
g shipping
costs
Scaling
logistics
Internatio
nal
shipping
Free
Shipping
Shipping
Errors
Delivery
security
• OTP-based deliveries: This ensures that
the packages are delivered to the right
person, and it also acts as delivery
confirmation.
Label fragile items appropriately & Pay
special care to packaging because
preventing damage is better than dealing
with losses in a business.
• Parcel lockers at designated delivery
points & notifications that alert customers
when their packages have been dropped
off are good options
• Design system to receive returns in
batches, separate from other incoming
shipments.
• Add return labels to the original
packaging
• Implement TMS & WMS
• Use Multiple Courier Partners-Backup When
One Unavailable, Increased Reach, Helpful
During Festivals, Competitive Price
• Consider Logistics Aggregator-Multiple
Carrier Partners, Shorter Remittance Cycle
• Prepaid Shipping-availing shipping rate
discounts
• Use flat rate & table rate shipping
• Establish a Marketing Strategy-Paid Marketing,
SEO, Retargeting
• Invest in Automation-repricing, gathering
feedback, and customer support.
• Provide Excellent Customer Support
• Outsource Fulfilment-partner with local
shipping carriers
• Have collaborations with international
logistics companies so that it will help
you attain international markets.
• Proactive approach for clearing customs
to import fees and taxes, & ease
paperwork by digitization
• Investing in postal software and technology
to curb human errors through automation
• Outsourcing the shipping process entirely to
a trusted and reliable 3PL
• Use RFIDs for better Identification
• Successfully offer free shipping and still
turn a profit
• Minimum order amount before free
shipping kicks in
• Only applying free shipping to specific
products
