5 inventory reduction strategies for a more profitable businessSalesBabuCRM
A cloud-based inventory management system like SalesBabuCRM is the best fit for any inventory tracking tool. It can help you to know your reorder timelines, streamline your stock intake, reduce your lead time, and deliver accurate metrics for better demand forecasting.
ICS Retail Suite covers everything from POS to Back Office to Head Office operations; automating the entire operations, virtually eliminating paper work.It allows the management team at the Head Office to have complete control over data at the stores
Our retail setup can scale up to a complex multi-store environment with complete integration with your day to day business operations.
Get to know more about Retail Suite here: http://www.ics.com.ph/retailsuite/
=============================================
For more information about Retail Suite:
Integrated Computer Systems, Inc.
3/F Limketkai Bldg., ortigas Ave., Greenhills, San Juan City 1502 Philippines
Tel: (+63 2) 744 3000 • 727 3801
Fax: (+63 2) 721 4502 • 621 9464
Email: info@ics.com.ph
Website: http://www.ics.com.ph
5 inventory reduction strategies for a more profitable businessSalesBabuCRM
A cloud-based inventory management system like SalesBabuCRM is the best fit for any inventory tracking tool. It can help you to know your reorder timelines, streamline your stock intake, reduce your lead time, and deliver accurate metrics for better demand forecasting.
ICS Retail Suite covers everything from POS to Back Office to Head Office operations; automating the entire operations, virtually eliminating paper work.It allows the management team at the Head Office to have complete control over data at the stores
Our retail setup can scale up to a complex multi-store environment with complete integration with your day to day business operations.
Get to know more about Retail Suite here: http://www.ics.com.ph/retailsuite/
=============================================
For more information about Retail Suite:
Integrated Computer Systems, Inc.
3/F Limketkai Bldg., ortigas Ave., Greenhills, San Juan City 1502 Philippines
Tel: (+63 2) 744 3000 • 727 3801
Fax: (+63 2) 721 4502 • 621 9464
Email: info@ics.com.ph
Website: http://www.ics.com.ph
Key Challenges and Quick Fixes in Order Management Processsakshitrl
Order Management is the spine of any company. It needs to be handled at the topmost priority. Understand & learn how to quick fix challenges faced in the order management process.
In recent times, When brands are moving to the D2C (Direct to customer) method of selling over traditional long supply chain method, and sooner they started understanding that running an eCommerce business is a quite challenging job as there is tough competition in the market as well as there are different management methods needed to be implemented to succeed. Every online retailer is trying to serve the customer as fast as possible.
New Reality Omnichannel new selling new supply chainTom Craig
Read about the new selling reality and what you must do to compete in this world of customer power, order delivery velocity, and the Perfect Order--all driven by strategic and weaponized Supply Chain Management. It will be about leaders and laggards.
Strategic Inventory Planning for the Holiday Shopping RushTinuiti
In order to help better prepare professional Amazon sellers, we’ve brought in the inventory management gurus over at Webgility and SkuVault to help sellers strategize their products, campaigns, prices & profits for Q4.
The research includes:
1. Description of basic and additional order fulfillment services
2. Pros and cons of a third-party order fulfillment
3. Description of the consumer of order fulfillment services - who they are and what they want
4. Market Dynamics - incentives and disincentives, trends
5. The structure of the market, the players classification
6. Profiles of the order fulfillment operators
7. Cases with market participants
The main results
- The market is young, unformed and has no universal IT-systems, billing, work rules and interaction with customers. Competition is weak, just beginning to grow.
- New order fulfillment market players come from neighboring niches. Among them are the courier companies, 3PL-operators, online stores.
- While there are 40 000 online-shops in RuNet the market has only 30+ companies order fulfillment operators.
- Key customers of order fulfillment services: online shops (current and upcoming online) and retail suppliers without online foreign companies who want to the Russian market ecommerce.
Key Challenges and Quick Fixes in Order Management Processsakshitrl
Order Management is the spine of any company. It needs to be handled at the topmost priority. Understand & learn how to quick fix challenges faced in the order management process.
In recent times, When brands are moving to the D2C (Direct to customer) method of selling over traditional long supply chain method, and sooner they started understanding that running an eCommerce business is a quite challenging job as there is tough competition in the market as well as there are different management methods needed to be implemented to succeed. Every online retailer is trying to serve the customer as fast as possible.
New Reality Omnichannel new selling new supply chainTom Craig
Read about the new selling reality and what you must do to compete in this world of customer power, order delivery velocity, and the Perfect Order--all driven by strategic and weaponized Supply Chain Management. It will be about leaders and laggards.
Strategic Inventory Planning for the Holiday Shopping RushTinuiti
In order to help better prepare professional Amazon sellers, we’ve brought in the inventory management gurus over at Webgility and SkuVault to help sellers strategize their products, campaigns, prices & profits for Q4.
The research includes:
1. Description of basic and additional order fulfillment services
2. Pros and cons of a third-party order fulfillment
3. Description of the consumer of order fulfillment services - who they are and what they want
4. Market Dynamics - incentives and disincentives, trends
5. The structure of the market, the players classification
6. Profiles of the order fulfillment operators
7. Cases with market participants
The main results
- The market is young, unformed and has no universal IT-systems, billing, work rules and interaction with customers. Competition is weak, just beginning to grow.
- New order fulfillment market players come from neighboring niches. Among them are the courier companies, 3PL-operators, online stores.
- While there are 40 000 online-shops in RuNet the market has only 30+ companies order fulfillment operators.
- Key customers of order fulfillment services: online shops (current and upcoming online) and retail suppliers without online foreign companies who want to the Russian market ecommerce.
GLOBAL E-TAILING 2025 A STUDY BY DEUTSCHE POST DHLCCN
PUBLISHER
Deutsche Post DHL, Headquarters
represented by
Professor Dr. Christof E. Ehrhart,
Executive Vice President Corporate
Communications and Sustainability
53250 Bonn, Germany
Special Report: Business Model Innovation in China’s Logistics Market
1. Singles’ Day Report:
Key messages
from warehouse operators
40-hour observation report of
a famous apparel logistics company in China
November 2017
Special Report: Business Model Innovation in China’s Logistics Market
Management Theories and Business Models
Winnie Lo
E-commerce.BusinessModels.Innovations
2. 2
Key takeaways
Logistician
• Preparation for Singles’ Day normally
takes longer than a month.
• To secure excellent logistics reviews from
online shoppers with reasonable logistics
costs, brand owners should prepare the
mega sale campaigns together with
warehouse operators and other
partnered logisticians by sharing their
sale data and plans
• Brand owners should join pre-sale
campaigns run by e-commerce platforms.
The campaigns help the warehouse
operators to reserve enough warehouse
resources for Singles’ Day and pre-pack a
certain amount of parcels in advance
• Sophisticated IT support is an important
factor for smooth warehouse operation
during Singles’ Day period.
• The mega sale campaigns caused sudden
influx of B2C order information to the
system, which often led to system crash.
To prevent B2C system crashes from
crashing the entire IT system, B2C and
B2B information systems are advised to
be separated.
• Shortage of skilled workers is obviously
one of the greatest challenges. Traditional
HR agencies are capable of sourcing for
enough temporary workers, but they
make no guarantee on the quality and
skillfulness of the workers.
• The development of labour-sharing
platforms and warehouse automation
solutions may resolve the labour shortage
issue in long-term
3. 3
• Preparation for Singles’ Day normally takes longer than a month.
• To secure excellent logistics reviews from online shoppers within reasonable logistics
budgets, brand owners can start with sharing their data and sale plans with warehouse
operators.
• Warehouse operators can then prepare for the big day accordingly, for instance, by
reserving additional warehouse spaces for inventory, packing boxes and pre-packed
parcels, hiring extra workers, sourcing for packing supplies, etc.
Any tips on preparing for Singles’ Day?
Packing boxes are ready Briefing to temporary labours Logistician
Picture source: Fung Business Intelligence
4. 4
Any tips for new comers?
Logistician
• Brand owners should join pre-sale campaigns run by e-commerce platforms. During the
pre-sale period, online shoppers have already put the goods into their virtual shopping
carts. Some brands require the shoppers to pay a deposit as a guarantee.
• From the business perspective, the campaigns help brand owners to forecast the
demand and minimize the risks of over-stocking or under-stocking
• From the logistics perspective, the campaigns help the warehouse operators:
• To reserve enough resources for Singles’ Day
• To pre-pack a certain amount of
parcels in advance for shipping out
on Singles’ Day, once the order
confirmations are received
• Again, brand owners should share their
pre-sale plans and data forecast with
logisticians
Preparation
Picture source: Fung Business Intelligence
5. 5
• Sophisticated IT support is definitely one of the most important factors for smooth
warehouse operation during Singles’ Day period
• Online shoppers could place orders within 24 hours starting from 00:00am, 11 November.
They fought for the goods offered by their favourite brands. Servers of all stakeholders,
including e-commerce companies, e-commerce solution companies, warehouse operators
and delivery companies, were extremely busy
• If any server is not up-to-date or if the IT support team cannot fix all technical problems in
a timely manner, massive order information cannot be properly transmitted among all
stakeholders
• In addition, the mega sale campaigns caused
sudden influx of B2C order information to
the system, which often led to system crash.
To prevent B2C system crash from crashing
the entire IT system, B2C and B2B systems
are advised to be separated
What is the most important factor in ensuring smooth
warehouse operation on Singles’ Day?
Logistician
Discussion in war-room
Picture source: Fung Business Intelligence
6. 6
What is the most important factor in ensuring smooth
warehouse operation on Singles’ Day? (cont’d)
Logistician
Warehouse
Management
System (WMS)
Order
Management
System (OMS)
E-commerce
platform
Online
shopper
Here is a brief explanation of the information flow in B2C e-commerce:
1. An online shopper places an order to a brand owner via an
e-commerce platform
2. The e-commerce platform sends the order information to
an order management system (OMS) operated by
an e-commerce solution company on behalf of the brand owner
3. The OMS would transmit the order information to the warehouse
management system (WMS) of the corresponding logistics
company assigned by the brand owner
4. Once the logistics company receives the order, warehouse
workers will sort, pick and pack the goods. The packed parcel is
sent to the shopper by an express courier. The information of the
parcel status will be synchronized real-time on the WMS, the OMS
and the e-commerce platform
5. When the shopper receives the parcel, he/she will confirm the
receipt via the e-commerce platform. Brand owner will receive the
payment
7. 7
• Malfunction of WMS will severely affect the operation in a warehouse and the entire
information chain
• The longer the time lag, the higher the costs incurred
• Poor warehouse information system will definitely ruin the reputation of the logistics
operator. In the worst case scenario, clients will terminate or not renew the contract with
the logistics operator
• Besides, due to the malfunction of warehouse information system, frontline resources are
being idled and the morale of operating staff is getting lower.
What is the most important factor in ensuring smooth
warehouse operation on Singles’ Day? (cont’d)
Logistician
Time lag in receiving inbound order
information from OMS to WMS
• If WMS do not receive any confirmed
order information in time, warehouse
workers cannot kick start the operation.
Labour resources are idled
• Thanks to pre-sale campaigns, some
orders can be pre-packed. If there is no
timely inbound order confirmation,
warehouse operator cannot confirm
whether the pre-packed orders are
ready to go. The packed parcels would
consume a lot of warehouse spaces
Time lag in synchronizing
information between WMS & OMS
• Even when a parcel is ready for delivery,
OMS has not received any confirmation
from WMS and cannot update the
information on the e-commerce
platform
• Shoppers cannot track their parcels and
give bad reviews on the logistics
performance to the brand owner
• Some shoppers may tend to cancel
orders, because of the uncertainty of
parcel status
Time lag in receiving cancelled order
information from OMS to WMS
• Warehouse workers have no idea of the
order cancellation and keep on their
work, wasting efforts unnecessarily
• If the goods has been delivered to the
shopper, return shipment and handling
incur extra costs
8. 8
Definitely!
I believe a modern logistics company should be equipped with a sophisticated WMS, which is
capable of handling the massive traffic influx on Singles’ Day or other mega online sale
campaigns. This is a basic requirement nowadays. Besides, the IT team of the logistics service
provider should:
• Quickly respond to any emergency situations and proactively inform the clients if anything
is going wrong
• Have a good market sense and online shopping experience in China, instead of simply
having back-end technical supporting skills
• Have up-to-date IT knowledge, and align the logistics systems with the changes of
e-commerce platforms in a timely manner
As a client, is it necessary that your logistics service provider
comes with a reliable information system?
Brand Owner
9. 9
• Shortage of skilled labour is obviously one of the greatest challenges.
• We hired thousands of temporary workers through human resources agencies. The
workers come from various provinces, including Anhui, Henan, Hebei, and even Xinjiang.
• Most of them have no working experience in a warehouse and need to have on-site
training, e.g. sorting, picking, packing, etc. Some started training two weeks before 11
November.
• Generally speaking, productivity of the temporary labours for Singles’ Day is lower than
that of the temporary workers during normal periods by roughly 30%. However, the cost
of the additional temporary labours for Singles’ Day is 50% higher.
What is the greatest challenge you faced on Singles’ Day?
Logistician
10. 10
• Common problems of the temporary workers:
• They are not familiar with the warehouse environment and frequently make
mistakes, e.g. time wasted on finding their way in a huge warehouse, pressing
wrong buttons on the system, holding up order information, etc.
• Case: Here shows the standard procedures for one of our clients’ parcel packing.
It takes time for the temporary workers to accurately follow standard procedures.
What is the greatest challenge you faced on Singles’ Day? (cont’d)
Logistician
Packing desk
Step 1 Step 2 Step 3
Remove security lock
(with RFID)
Print and put a new
price tag in Chinese
on the clothes
Put a tissue inside a
packing box, properly
fold the clothes on
the tissue
Step 4
Fold the tissue, and
seal the edges of the
tissue with the
brand’s sticker
Step 5 Step 6
Insert the packed box
into a plastic bag
Print and attach the
recipient’s delivery
information on the bag
Picture source: Fung Business Intelligence
11. 11
How can logistics companies improve the productivity of
temporary workers?
Logistician
• We installed dashboards on the major aisles,
showing the best workers of the day. The ranking
effectively increases the workers’ morale and
working incentive.
• By the end of the Singles’ Day project, the best
workers will receive a reward.
• We provide a good working
environment for workers
The mat helps reducing
the tiredness of packers
Clean water corner
Dashboard
Picture source: Fung Business Intelligence
12. 12
• Traditional HR agencies are capable of sourcing for enough temporary workers, but they
make no guarantee on the quality and skillfulness of the workers. It was difficult to track
the performance of temporary workers in the past.
• Thanks to technological breakthrough, WMS captures all the
data along the production line, including the accuracy, speed
and completion rate of individual workers.
• If logistics companies and HR agencies cooperate and fully
analyse the data, idle labour resources can be uberized
for warehouse operations via labour-sharing platform.
Any long-term solutions for resolving the labour shortage issue?
Do you think labour-sharing platforms would help?
Logistician
Workers wearing colourful vests come from different provinces and speak in different dialects
A barcode was assigned to each worker
for measuring task completion rate
Picture source: Fung Business Intelligence
13. 13
Many e-commerce companies use AGV to reduce labour costs and
increase efficiency. Do you think AGV also suit the warehouse operation
of third-party logistics companies?
Logistician
Picture source: Quicktron, http://mp.weixin.qq.com/s/HR4QzSdUvqbszTo3-U0WnQ
• Indeed, automatic guided vehicle (AGV)
increases the productivity of the picking
process, reduces picking errors and lowers
labour costs. AGVs are useful tools for handling
B2C e-commerce logistics
• However, AGVs do not fit all business models.
For instance, the picking process of B2B
business is less time-demanding than that of
B2C business. Also, B2B business involves a lot
of non-repetitive processes and requires
flexible handling
• If a warehouse handles both B2B and B2C
businesses, the operator has to determine
whether the initial investment on AGV is
justified in terms of B2C order volume handled.
Also, costs of warehouse space reallocation for
B2B and B2C has to be taken into account
Automatic guided vehicles
14. A lot of wrapping papers and plastic bags were
consumed on Singles’ Day. To be environmentally friendly,
brand owners and logisticians should keep refining the
processes to reduce waste,
consider using other
alternatives and plan
for proper recycling
schemes
14
Other observations
To do list of logisticians:
handling emergencies, e.g.
malfunction of information
system
managing order fulfillment
answering mid-night calls
from clients and colleagues
training temporary workers
managing thousands of
workers
…
Other than competent IT support and
sufficient labour supply, the presence of
experienced logisticians is a valuable asset in
warehouse operations, especially during
mega online sale events.
The completion rate of order handling
and the complexity of packing process
are correlated. In general, packing
shoes is faster than packing clothes
Picture source: Fung Business Intelligence
15. Eve of Singles’ Day: A warehouse “parade” with over 1,000 workers
15
Happy moments on Singles’ Day
A nap at midnightThe most productive period is the hour
right before meal break
“This is my first time folding clothes in
my live,” a temporary packer told
Fung Business Intelligence
Over 1,000 workers are having dinner in a
temporary tent
Picture source: Fung Business Intelligence
Clients’ GMV has been rolling fast since
00:00:00, 11 November
16. 16
Happy moments on Singles’ Day (cont’d)
Mission complete
Ready to go
Empty shelves
Client A
Client B
Picture source: Fung Business Intelligence
18. Appendix: Fast fact of Singles’ Day in 2017
Record-breaking order number of the largest two e-commerce platforms in China
18
RMB 168.3 billion RMB 127.1 billion
812 million orders 735 million pieces
Delivery lead time for
the first order on Singles’ Day
Icon source: Internet
Source: Tmall.com, JD.com
12 minutes 13 minutes
Number of orders/ pieces
Gross merchandize value