Mastering high-volume DTC fulfillment in the shifting ecommerce landscape
The unstoppable rise of ecommerce has produced a seismic shift reshaping retail. As thousands of brick-and-mortar stores shut their doors, new reports project an even greater wave of closures ahead.
Amidst this transformation, retailers, brands, and 3PLs are facing competition for a slice of the thriving ecommerce market.
The pressure to excel in high-volume direct-to-consumer (DTC) fulfillment is higher than ever before. To thrive in this evolving landscape, developing a robust ecommerce growth strategy is no longer an option but a necessity.
In this edition of Fulfillment Advantage, we dive into three essential steps to secure success in the face of these challenges.
Don't miss out on these industry insights, where we explore the world of ecommerce growth strategy, as well as the debate between SaaS and Open-Source ecommerce solutions, and more.
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3 Steps to a Successful Ecommerce Growth Strategy
Ecommerce operations need to employ multiple strategies to succeed in modern high-volume DTC order fulfillment. This includes adopting flexible warehouse approaches and competitive technologies.
Consider the following three steps to maximize the results of your ecommerce growth strategy.
#1 Invest in a DTC Fulfillment System
The first step to ensure success is adopting the right software. Unlike the on-premise WMS database systems of the 2000’s and misleading “cloud” upgrades of the 2010’s, today’s cloud-based fulfillment solutions are designed to handle the complexities of modern ecommerce: from order consolidation to carrier rate shopping.
A DTC fulfillment system is able to optimize receiving, inventory management, and order distribution with maximum efficiency. It can oversee vast fulfillment networks with cloud-based accessibility; accurately process thousands of orders; and pick, pack and ship orders directly to consumers with ease.
To win the fulfillment race, make sure your solution is able to:
#2 Add Automation to Your Order Fulfillment Strategies
The second step in managing a winning ecommerce growth strategy is automating as many fulfillment processes as you can. Warehouse automation makes the biggest impact on operational margins and can help you scale your business without breaking the bank.
An example of this would be integrating your ecommerce and shipping systems with your DTC fulfillment system, which allows your fulfillment teams the maximum time possible to assemble orders and get them out the door as quickly as possible.
That said, automation goes beyond integrations. Modern fulfillment systems can automate everything from daily inbound and outbound operations, replenishment processes, and order routing to the best fulfillment center option. It can also guide picking, packing and shipping processes within an individual center to keep workflows as efficient as possible – especially if you choose to employ robotics technology.
For insights on using robotics to enhance your order fulfillment strategies, check out Logiwa’s blog, “Where to Start With WMS Robotics.”
#3 Build a Distributed Fulfillment Network
Since smart fulfillment systems are able to dynamically route orders to micro-fulfillment centers (based on proximity to the customer and available inventory), the next step in maximizing your ecommerce growth strategy is growing your network and decentralizing your fulfillment operations. Investing in a network of micro-fulfillment centers can reduce shipping costs and increase the likelihood of meeting customers’ expectations and delivery dates.
Smart order routing takes into account inventory levels, shipping times, and operational costs all at the same time. In turn, it helps reduce shipping time and overall shipping costs to boost profits and help your operation grow.
Learn more about the state of ecommerce and the criteria for competitive fulfillment logistics in the full article.
SaaS vs. Open-Source Ecommerce: Why SaaS Is the Best Choice
Software is critical for streamlining operations within your business. However, as technology advances, so do your choices. Should you choose a software-as-a-service (SaaS) ecommerce platform? Or would an open-source ecommerce platform be a better fit?
Whether you’re a B2C, DTC, or 3PL provider, SaaS platforms are a great option for you. SaaS platforms provide a wide range of benefits, from worry-free maintenance to flexibility.
B2C Ecommerce
B2C ecommerce organizations have unique needs. For example, B2C companies must have access to a variety of integrations since they often sell products through a variety of channels.
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At the same time, they need a platform that’s simple and efficient so they can continue to deliver excellent service to consumers. SaaS platforms provide all of this functionality as well as customer support to keep things moving if problems arise.
DTC Ecommerce
DTC companies have needs similar to those of B2C companies. However, they’re slightly different. DTC companies must have a platform that enables them to control all steps of order fulfillment since no third parties are involved.
This control requires a platform that’s flexible with many integrations to choose from. SaaS platforms fit the bill well by providing integrations with everything from warehouse management systems to payment processors.
Hybrid B2C/DTC Ecommerce
The rise of DTC fulfillment has led many B2B companies to move from traditional B2B order management to hybrid B2B/DTC fulfillment models. The benefits of B2B/DTC hybrid operations include dual market exposure, increased profits, and expanded fulfillment capabilities, but it also requires a platform that can effectively handle both.
SaaS platforms help hybrid operations by promoting scalability, visibility, and flexibility for evolving organizations. They seamlessly unite different resource management tools to streamline and maximize all B2B/DTC hybrid warehouse processes, and can be configured to optimize multi-client management, hybrid inventory management and complex order fulfillment accurately.
3PL Operations
Third-party logistics providers must manage a lot of moving parts. For example, they must keep operations running smoothly for their clients so, in turn, those clients can deliver on their promises to end consumers.
This means 3PLs need a platform that’s easy to maintain and reliable. 3PLs can’t afford for their platform to be down for long periods of time. Downtime not only hurts their operations but also those of their clients.
A SaaS platform comes with the customer support and regular maintenance that 3PLs need to deliver.
To learn more about the advantages of SaaS platforms and the common myths about SaaS, read the full article.
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ASCM Connect 2023: Sept. 11 - 13 | Louisville, KY
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