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How 3PL’s are changing the retail landscape
General Manager
Vdepot
@vdepotfulfil
#OSUKBirmingham
Iain Hill
Experience
Your Fulfilment Experience?
What is a 3PL?
What is your fulfilment experience?
Expectations
Customer’s Changing Expectations?
How can we compete?
Sharing Knowledge
Export
Export
Sharing Knowledge Export
Internet usage
0
175
350
525
700
China India US Japan Germany
Export
0
150
300
450
600
UK US China
$Bn
Biggest eCommerce Spender
Export
Sharing Knowledge Export
Research, Research, Research Base Strategy on research
Payment plans
Focus on Fulfilment
Sharing Knowledge Export
Export
System is key
Sharing Knowledge
Packaging
Packaging
• Branding/Premium packaging
Packaging
• Customer recommendations
• Social sharing
Sharing Knowledge Packaging
• Packaging Rules
• Cost
• Add ons/Up sell
Packaging
Sharing Knowledge Packaging
Sharing Knowledge
Labelling
Labelling
6. Ensure Correct Labelling
• Essential for market places
• Transparency for customer
• Accurate dispatch
• Increased sales
• FBA Labelling
Labelling
Sharing Resource
Fulfilment
Fulfilment
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kg
1m
30kg
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
Seasonality Space Stock Locations
• Plan ahead
• Multi skill staff
• Delivery options
• additional resource
• pickable stock
• 3PL
• Sku location
• Logical layout
• Workable space
• Appropriate needs
• Risk assessments
• Fork lift truck
• Holiday/Sickness
• Motivated staff
• Time management
• Post office
• Cut-off time
• Customer service
• Packaging
• Backup plan
• Product compatibility
• Damages
• Service levels
• Communication
• Over 1m
• Over 30kg
• Supply & demand
• additional surcharges
• Historically subsidised
• 3% Average return
• Return policy
• Return envelope
• Attract customers
• Order qualifier
• Cost
• Branding
• Packaging rules
• Add ons/up sell
• Space is final
• Restricts growth
• Paying not using
• Increases overheads
• Shelving/Racking
Sharing Resource
System
System
Ecommerce
Lockers3rd Party Shop
Carriers
Outsourced warehouse
Suppliers / Shops / Manufacturers
Own warehouse
Own Haulage
Shop
Fulfilment
Outsourced Haulage
Business
Retail
£94 Billion
/ Fulfilment
Ecommerce
Outsourced warehouse
Outsourced Haulage
Ecommerce Multichannel
software
CRM
system
Courier
system
Accounts
package
Fulfilment System
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kgFulfilment System
Sharing Resource
Scalability
Scalability
Sharing Resource Scalability
Orders
Time
Self Fulfilment House Own Warehouse
Garage/Spare room
Self Fulfilment
Sales growth
Investment in core
business rather than
fulfilment
Big enough
Money to have own
investment
Sharing Knowledge
• Export
• Packaging
• Labelling
Summary
Summary
Sharing Resource
• System
• Scalability
Not all 3PL’s are the same!
Thank you!
Any Questions?
Contact info?
Iain Hill
Email: iain.hill@vdepot.co.uk
Tel: 01603 881 700

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