Online fulfilment services

The continued growth in online sales is a reflection of structural changes in buying behaviour by both consumers and businesses. Fulfilling direct sales orders successfully and cost effectively is one of the biggest challenges in the logistics industry.

Logistics UK Supply Chain Consultancy has experience of helping some of the bigger online retailers as well as many SMEs and start-up businesses

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Typical challenges in e-fulfilment operations include:

• The need to accommodate multiple order profiles.
• Increased complexity from managing multiple channels simultaneously.
• Progressive service level expectations.
• Capacity is generally scaled up in significant steps.

Fulfilment operations follow a maturation process, characterised by physical operations and their support systems:

1. Fulfil orders from a physical store – no systems.
2. Operate online as “store” in warehouse – adapted systems.
3. Dedicated e-commerce operations – specific systems.
4. Integrated operations: mixed fulfilment routes – integrated systems.
5. Physical or systems integration between supplier and retailer.

A mixture of these options can develop simultaneously, increasing levels of complexity.  A structured approach is required to develop solutions that meet performance requirements whilst being cost effective.

Our supply chain consultants generally take the following approach:

• Create a detailed profile of current orders and develop alternative growth scenarios.
• Create a base model of the current capability to benchmark alternative designs against.
• Develop multiple fulfilment options.
• Evaluate each option against the base case using quantitative models and a qualitative review process.
• Develop the business case.
• Review and finetune the preferred option.

We use a number of proprietary modelling tools to support the design and evaluation process.  Their scope includes warehouse and transport operations, and supports the decision making process with realistic numbers.

Our experience in warehouse processes and layouts, combined with our knowledge of efficient pick and pack stations will support effective operations from day one. In addition our automation and robotics experience ensures that a comprehensive number of operational models is considered.

Our industry and analytical experience helps you to develop a clear route to your preferred e-fulfilment operations. All solutions are quantified allowing for migration planning to include capacity levels and budgets.

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