WITH Christmas spending and holiday sales just around the corner, an e-commerce solutions provider said online retailers need to have an efficient and technology-backed logistics system to handle the upcoming surge of orders.
Anchanto Pte. Ltd. Founder and CEO Vaibhav Dabhade, in an interview with the BusinessMirror, said that order volumes are expected to increase in the fourth quarter as online shipping has become the norm.
“Obviously, all the brands, retailers and eDistributors are expecting their logistics providers to focus on improving lead timelines, delivery frequency,” Dabhade said.
He explained that a surge in order volumes will test the “efficiency, speed and accuracy” of the logistics of the e-commerce firms, in addition to keeping a sizable buffer stock.
“Another challenge faced by seller businesses is the demand for continuous updates or communications from customers,” Dabhade said. “Today, once they shop for a product, they like to keep a track of the entire delivery process.”
The Anchanto official said that among the systems an e-commerce seller should have must include inventory management, accounting tool and last-mile carriers.
As such, a unified full suite eWarehouse Management System (WMS) is helpful because it does not only address the logistics needs of the retailers, but it also connects them to multiple industry systems, he explained.
“Having a WMS helps manage orders, inventory and warehouse processes with clear visibility,” Dabhade said. “With real-time customizable reports, eCommerce actors can inspect function-specific data for orders, shipment carriers, manage return order processing all the while enabling customized reports as per user preference.”
Inefficiency in logistics for the e-commerce industry may translate to revenue losses, he warned.
“While delays or errors in order fulfillment directly impact the image of the brand, inefficiencies lead to issues like overselling and underselling causing revenue losses,” he explained.
In addition, Dabhade said that lack of constant updates or communication with customers can affect customer experience and satisfaction.
Seamless platforms
THE Anchanto founder said the customers no longer differentiate between online and offline channels when shopping.
Dabhade explained that the consuming public wants to to have all the information, all the perks, and benefits available to them uniformly across all sales channels.
“This makes it imperative for the brands and retailers to take the omnichannel approach and establish processes that allow sync and manage all their operations in one place,” Dabhade said. “And such high experience demands also mean that the brands must leverage technology at every single touch point of their entire supply chain.”
Having the right technology that can unify the processes and operations in one system will allow the online retailers to access crucial customer data and understand shopping behaviors across channels.
“Equipped with this data, brands can make better decisions about which promotions to run and where, their top-selling products, the reasons for returns, and so on,” he explained.
The Department of Trade and Industry said that it aims to increase the contribution of the e-commerce industry to P1.2 trillion by 2022, which is equivalent to 5.5 percent of the country’s gross domestic product.