4 min read

A Closer Look At Commercial Shipping

August 18, 2022 by Srishti Arora - 4 min read

Regardless of domestic or international shipping, eCommerce businesses always have to worry about the cost. Shipping can be a problematic categorization when it comes to speed and cost. When this is the case, you can be assured that you are not alone in your search. If your business is distributing to individual customers, you need to consider shipping speed, but the risk is lessened if you’re shipping bulk to companies. You can save on shipping a bulk order to businesses because quantities often outweigh speed. Businesses can take advantage of commercial shipping, which is one solution if some or all of your customers are businesses. This article gives you a deeper insight into commercial shipping, what it entails, and the best practices.

Commercial shipping

What is Commercial Shipping?

Commercial shipping refers to transporting goods for commercial purposes, which is cheaper because it’s less complex than residential shipping. It is the process of transporting goods for business transactions.  

How Does Commercial Shipping Work?

Commercial shipping is a solution to send items to businesses, often associated with larger shipments at discounted rates. To conserve the costs of regional shipping, a business will send out large volumes of things in one shipment. The low cost makes this shipping form eco-friendly because the high volume reduces the cost per unit. Most commercial shipping involves the transportation of goods in large containers. Many different modes of transportation can do this. There are many ways to get a shipment of goods to someone, and sometimes it will use more than one method.

Best Practices For Commercial Shipping

Best Practices for Commercial Shipping

In order to get the most out of commercial shipping, it’s essential to follow a few best practices. The following are some of the best practices for commercial shipping.

Avoid Packaging Mistakes

You need to pay attention to packing process mistakes when packing for business. These mistakes cost the company money, so adding care to your packaging processes is essential. It’s important to package the products correctly so they don’t get damaged on the way to their destination, and you can save money with minimum shipping costs.

Ship With Multiple Carriers

Different shipping carriers have different prices depending on the package type, weight, and delivery destination. In commercial shipping, a small price differential can make a difference. When you are planning free shipping, predictability is essential. You can calculate total shipping charges by choosing a plan with flat rate shipping costs.

Attempt To Reduce Shipping Costs

Shipping costs are necessary to look at and work on if you are in a position to deal with large orders. This can be achieved through continual re-evaluation and strategic planning. It’s best to use optimal dimensions for the package and strong but lightweight materials. To reduce shipping costs, you can store your inventory close to your customers by strategically distributing inventory across locations. This can be done by reducing costs and ensuring faster delivery timelines. For example, a 3PL partner like Shiprocket Fulfillment can help you decentralize inventory and save on shipping costs. 

Partner With a 3PL Fulfillment Provider – Shiprocket Fulfillment

Shiprocket Fulfillment has logistics operations that are efficient and effective. Shiprocket Fulfillment operates in multiple fulfillment centers across India, which are close to the customers they serve. It provides the latest logistics solutions in each fulfillment center to help you quickly meet customer demand. Shiprocket Fulfillment can help you decrease shipping costs, improve delivery speed and efficiency, offer next-day and same-day delivery to customers, and simplify your order fulfillment operations. With this quick and easy way to fulfill orders, you can save money on fulfillment costs by 20% or more. You can also ship 3x faster, lower weight discrepancy issues, and reduce RTO by 60%.

Final Thoughts

We hope this article has given you some information to make the best decision for your business’s commercial shipping. There is a lot to know about commercial shipping, so if you have further questions or think we missed something in this article, feel free to leave a comment, and we will do our best to answer any issues you may have.

Aug 18, 2022 by Srishti Arora

6 min read

Optimizing Your Inventory With Warehouse Putaway

August 16, 2022 by Srishti Arora - 6 min read

It’s become increasingly crucial for brands to provide consumers with a seamless, personalized shipping experience. Warehousing and logistics are essential because they provide the foundation for any successful ecommerce business; it’s where inbound and outbound materials need to be stored until processed by your store. This means that warehousing and inventory management is key to any online business because it impacts shipping times, inventory accuracy, shipping costs, and more. Warehouse putaway strategies are one of the first ways that you can maximize and optimize your warehouse inventory. The best part about these putaway strategies is their flexibility, as each can be used together for more significant results. Optimizing your warehouse inventory with putaway software helps drive efficiency and accuracy in your inbound and outbound logistics. Warehouse putaway is a manual task that could be streamlined to remove errors, increase speed and optimize the picking process. To ensure a more accurate workflow and more efficient distribution, warehouse putaway will significantly impact the efficiency of your operation.  

In this article, let’s look at warehouse putaway, its types, advantages, and best practices for success. 

What is Warehouse Putaway?

When running a warehouse, putaway is one of the most crucial aspects of warehouse management. Putaway involves several processes, from receiving inventory to ensuring that inventory is stored in the correct warehouse locations

Instituting a strategic warehouse putaway system can lead to a more efficient, tidy, and well-organized place for your inventory. This leads to better customer service as it becomes easier to locate the proper SKU. 

Types of Warehouse Putaway

Warehouse putaway is an integral process of warehousing, especially considering the many factors that must be regarded to run successfully. There are three types of warehouse putaway, based on what you need.

Dynamic Putaway

If your products are similar in size, weight, and other characteristics, then you should use dynamic putaway to make retrieval and storage easier. This involves real-time decisions about where to store the inventory and prioritize demand management.

Incoming inventory is placed in the most convenient location for fast pickup, increasing demand management. In contrast, goods are stored in different areas each time, making it more challenging to manage without robust ERP software.

Fixed-Location Putaway

This storage process is ideal for retailers with many goods that must be stocked in their warehouses. Each h category is assigned a specific warehouse space for storing goods. When stocking the warehouse, depending on the size or content. For example, frozen food is always held in temperature-controlled areas, and heavier goods are stored on the lower shelves.

​​Direct putaway

The moment goods reach the warehouse, items are put away and sent off to their final destination. With direct putaway, goods should be ready and not need transitory storage. This improves efficiency by reducing unnecessary delivery handling and movement.

Advantages of Warehouse Putaway

Proper Use of Storage Space

With a warehouse putaway and slotting strategy, you can save space and stock by ensuring they are stored safely in the appropriate location. You can reduce the stress of keeping material by using your design to save space. It also enables improved productivity as well as efficiency within the warehouse. Knowing where each good goes, the warehouse employees can store them safely. In addition, this dramatically reduces the chances of any goods being stolen or misplaced.

Reduce Lost or Misplaced Items

A stringent process for restoring restocked inventory can improve your ability to know where each SKU is. By being able to see the position of your inventory, you are also able to better track and avoid instances of misplaced or pilferage SKUs. Warehouse workers who use the putaway process can quickly account for what is there, making it easier to identify if an item has gone missing.

Efficient Picking

To improve productivity and delivery, stock your best products in easy-to-access locations. It will also help to know where each item is located. This speeds up the process and ensures faster deliveries, guaranteeing customer delight.

Best Practices For Warehouse Putaway

Reduce Traveling Time

Accuracy and convenience is the key to a successful picking system. To make the picking process fast, place popular items near pickers and know where they are. This guarantees a shorter order cycle time. 

Create End-to-End Timeline

Warehouses are buzzing with activity. Once goods are replenished, they must be put away as soon as possible. The faster customer orders can be fulfilled, the better chance to get what they want. Clear directions and timelines for the warehouse putaway process must be communicated to employees to distribute their workload across the floor evenly.

Track Items Efficiently

Warehouses need to use the best-practice technologies to keep track of each product. This is so that the workers can be focused on other tasks and know where everything is at all times. When products are received, barcode scanned, and put away, you will get real-time updates of the SKU count, condition, and location. This makes it easy to find and dispatch the right items whenever customers place an order.

How Can Shiprocket Fulfillment Help?

3PL providers can help to delegate operations and reduce costs with a significant degree of efficiency. It’s easy to find fulfillment services. Shiprocket Fulfillment gives you the best rates and the closest service to your buyers. You can ship your inventory for quick pick and pack, saving time and money. This technique will reduce your costs and efficiency, increase shipping speeds by 3X, decrease shipping weight discrepancy issues, and reduce Return To Origin (RTO) time. With less time spent on shipping, you can complete more orders in a shorter period. This improves your business and allows you to expand.

Final Thoughts

There are, of course, a few other things to improve your warehouse putaway and increase inventory organization. However, the steps outlined above are probably the most important ones to keep in mind as you look to optimize your inventory storage. The more organized a warehouse can be, and the quicker a picker can find what they’re looking for, the better your overall fulfillment process will run.

Aug 16, 2022 by Srishti Arora

6 min read

Ultimate Guide To Delivery Route Planning

August 12, 2022 by Srishti Arora - 6 min read

When running an ecommerce business, fast and efficient delivery is critical. It is imperative for improving the customer experience, but it also minimizes delivery costs and increases delivery efficiency. This is why delivery route planning must be a significant part of your eCommerce fulfillment process. Delivery route planning is a new concept, but it’s catching on quickly. eCommerce companies of all sizes can be crucial.

Delivery route planning is not easy for ecommerce businesses, especially for companies with multiple warehouses and delivery routes. You might think your delivery management process is simple as an online retailer. You send a box to a delivery service, and they get it to the customer on time. However, a lot goes behind the scenes to ensure timely delivery at the best rates. Otherwise, you might end up spending more. 

Let’s look at delivery route planning and how you can utilize it more effectively for your eCommerce business

What is Delivery Route Planning?

Delivery route planning is a process that involves choosing an optimal delivery route to ensure customers’ orders are delivered quickly and in the most cost-effective way possible.

It’s an essential part of logistics operations and can be challenging. Businesses invest heavily in delivery route planning to make it easy to plan deliveries efficiently.

Importance of Delivery Route Planning

Delivery route planning is a critical factor in the success of your business.

As you expand and improve your company, you must ensure timely and accurate deliveries. By utilizing delivery route planning software, companies can conveniently track delivery personnel in real-time and access data that can help them with future planning and optimization. This allows you to increase productivity, optimize routes on demand, and scale operations.  

Last-mile delivery is the most expensive part of your eCommerce fulfillment supply chain. Business owners need to optimize this process to minimize costs and maximize customer satisfaction. Delivery route planning is essential because it allows you to meet customer expectations and calculate shipping costs accordingly.

Courier companies with fulfillment providers like Shiprocket Fulfillment regularly utilize delivery route optimization software to make informed decisions about every shipment they deliver. That is how they prioritize different deliveries and successfully have a high success rate in record time. 

Shiprocket Fulfillment

How Can You Plan Delivery Routes?

Plan for Ahead

Regarding delivery route planning software, you need to be able to plan. This is important because it will give you ample time to plan your deliveries while accounting for each customer’s preferred delivery option. 

Your business may have many delivery options for customers, but only one of them will be the most efficient way to get your products from point A to point B. Before you start planning your deliveries, be sure to consider all of your options. You might have several different ways of delivering packages, including same-day and next-day delivery. You’ll also need to consider whether or not there are any restrictions on where you can have packages. These factors will affect how long it takes to get a package from one place to another and how much money it costs.

Communicate With the Driver

Although we all love technology and automation, it’s important to remember that humans are still involved in the process. This means that when you have a system in place, there should be seamless communication between you and the delivery driver. If the driver has any doubts about the journey, you’ll be able to address them immediately. It also means that if there are potential delays or unexpected setbacks in the delivery process, you’ll be notified immediately, and you can provide solutions and suggestions for rerouting deliveries around those issues.

Use Optimization Strategies

Delivery route planning software is a must-have for any company that relies on delivery services. Planning your delivery routes manually is time-consuming and inefficient. With route optimization software, you can automate your delivery planning process and save time and money. Using route optimization software will help you save time and resources while reducing delivery costs by reducing fuel use. It also optimizes routes based on real-time information, such as sudden changes in weather or unexpected setbacks. Ensuring your deliveries are handled efficiently is vital to maintaining customer satisfaction—saving money in the long run!

Things to Look For in a Delivery Route Planning Software

Budget Friendly

One of the most important factors to consider when choosing a delivery route planning software is its cost. If you’re trying to cut down expenses, the last thing you want is a complicated system that puts your drivers in the middle of their routes with no way out. 

The app should be able to handle your company’s unique needs, whether it’s just one driver or multiple drivers per route. In addition, the program should allow you to manage courses and quickly create new ones as needed.

Efficient Features

When looking for delivery route planning software, you want to ensure it has all the features you need.

It’s essential to consider the features offered by the app to find one that will work for your business.

Some essential features are optimized route planning, real-time tracking, smart work allocation, dynamic rerouting, and electronic proof of delivery.

Good Track Record

When choosing a delivery route planning software, there are many things to consider. A good track record is one of them. Here are some questions to consider – 

  • Are your contemporaries using this product?
  • Do they have satisfied customers?
  • What do their customers think?

You want to ensure that the company has a proven track record of satisfied customers and that other businesses in your industry are utilizing it. It’s also essential to see what people say about the product and any case studies available.

Final Thoughts

Planning your delivery routes can be challenging and time-consuming, which is why using route optimization apps can help streamline the process and save time and money. While several expenses come with using delivery apps, such as installation training and the cost of the app itself, it’s important to weigh those costs against the app’s advantages. Some companies will see savings immediately, while others may need to conduct a complete cost analysis to determine if they are getting their money’s worth.

Shiprocket Fulfillment
Aug 12, 2022 by Srishti Arora

5 min read

Types of Shipment Notifications for Enhancing Customer Engagement

August 10, 2022 by Srishti Arora - 5 min read

Providing your customers with a superior purchase and delivery experience is essential for the growth of your business. You must ensure they receive the maximum support and have a seamless experience on your website. But the wheel doesn’t stop there. Customers need to be kept in the loop around the clock about the whereabouts of their eCommerce orders. You’ll probably lose customers faster than ever if you don’t follow that. Sending out proactive and transparent shipment notifications can help you make the customer experience more engaging and delightful for your customers. 

Shipment notifications are not restricted to just one notification you may send. They are a series of notifications you need to send customers so they can stay updated with the status of their orders. Let’s look at shipment notifications, their importance, and the different types of notifications you must send. 

What are Shipment Notifications?

Shipment notifications are real-time notifications that inform customers about the status and position of their eCommerce order. 

These notifications are also known as delivery notifications. Usually, these notifications are sent via email, but today, businesses use several different communication platforms, such as WhatsApp, SMS, and IVR. 

The different types of notifications direct-to-consumer businesses can send are order processing, label created, order shipped, and reached courier hub. 

However, whatever type of notification you choose, its main goal should be to engage with the buyer and keep them informed about their shipment. 

Different Types of Shipment Notifications

Shipment Creation

The first type of shipment notification is the ‘shipment creation’ notification. This includes information about the order being created on your panel, and you will begin processing it soon. 

For example, when we receive your order at Shiprocket Fulfillment, we send out an order-created notification to the customer once the label is generated. All notifications about processing, shipping, etc., must follow after this notification to keep the customer informed and engaged with their incoming order. 

Shipment Exception

Sometimes, shipments are delayed due to unforeseen circumstances. What do you do in these situations? The best way to avoid confusion and a negative impact on the customer experience is to communicate with the customer and keep them in the loop about the shipment. 

A shipment exception notification tells the customer that the original delivery date cannot be achieved and gives a rescheduled delivery date. You can expect greater understanding and a stronger seller-customer relationship by providing the customer with realistic expectations and keeping them informed throughout the journey. 

Delivery Notification

Finally, once the shipping courier drops off the shipment, a delivery notification must be sent to the customer. Why is this important? Sometimes, customers are not home to receive an order, and you must deliver at a security desk, lobby, etc. In these situations, the customer must know that the shipment is delivered so they can pick it up in time. Also, if there is a fake delivery attempt, the customer will be able to inform you sooner, so you take the right action and ensure successful delivery. 

Importance of Shipment Notifications

Transparency

The foremost importance of shipment notifications is transparency. Maintaining a transparent communication channel with the customer can help simplify your customer experience. When they have information, their doubts and questions will reduce, and their trust will increase. To make their journey delightful, shipment notifications can aid transparency. 

Improve Brand Connect

You must have heard the saying – out of sight, out of mind. With the customer dealing with thousands of different things daily, they tend to forget they have an incoming order or that they even shopped with you. Shipment notifications can help you stay on the customer’s minds by constantly popping on the communication channels they are most active on. They remember your brand, associate positively, and the chances of repeatedly shopping increase drastically.  

Keep Buyers Informed

Finally, shipment notifications help inform the buyer about their order’s whereabouts. The correct information makes the buyers less susceptible to doubt and keeps their delivery anxiety under check. Whenever a customer places an eCommerce order, they have a minute doubt that it might not be delivered. Shipment notifications are like reassurances to the customer, making their shopping experience pleasant. 

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Improve Customer Satisfaction With Shiprocket Fulfillment

Shiprocket Fulfillment’s fulfillment centers are staffed by industry experts and are equipped with scalable and flexible technology to meet the changing needs of businesses of different sizes. With dedicated space to store products, automated processes, and knowledgeable staff to assist you, it’s easy to realize the advantages of choosing Shiprocket Fulfillment as your fulfillment partner.

Shiprocket Fulfillment fulfills customers’ orders quickly, professionally, and at a low price. The brand offers several other services like online order tracking, easy returns, inventory management, and shipping tools. Shiprocket Fulfillment is an end-to-end solution provider with fulfillment centers in more than 35 countries. These fulfillment centers are equipped with the latest technology to ensure that your orders are processed smoothly. 

eCommerce is booming, and more and more businesses are participating in this growth. However, only a handful of these businesses are profitable. That’s because there’s a lot that goes into managing an eCommerce business that not everyone realizes. Proper inventory management, competitive pricing, low fulfillment costs, and fast shipping speeds add up to keep your customers happy, retain repeat customers, and grow your business. The right fulfillment service can help with every aspect of this. Hopefully, you now have some insight into how to optimize your eCommerce business using Shiprocket Fulfillment as your fulfillment service.

Final Thoughts

Shipment notifications are an integral aspect of your business’s supply chain process. Without them, the link between your brand and customer breaks, leaving the customer in the dark about their order. Utilize your communication channels and reach customers with the right shipment notifications at the right time.

Shiprocket Fulfillment
Aug 10, 2022 by Srishti Arora

5 min read

The Benefits and Challenges of Direct Store Delivery

August 5, 2022 by Srishti Arora - 5 min read

eCommerce fulfillment is of different kinds. You can either have your warehouse and conduct operations from there, or if your business is picking up slowly, you can even ship your products from your home or office. If you are a retail seller and want to move your business online, you need to figure out a fulfillment solution to help you run both aspects smoothly. However, your fulfillment method must evolve with your business. Mistakes are inevitable if you ship your products from your home, even when you are receiving a heavy demand. Direct store delivery is one of the many fulfillment models available for businesses in India. Let’s look at immediate store delivery, its advantages and disadvantages, and the best practices if you want to follow it for your business. 

What is Direct Store Delivery?

Direct store delivery refers to delivering goods directly to a retail store or location rather than a centralized warehouse or fulfillment center

Advantages of Direct Store Delivery

Lower Costs

The first advantage of direct store delivery is the lower costs. It can be a cost-effective option for businesses that want to simplify the supply chain and streamline operations. It can help you reduce logistics costs by eliminating the process of shipping, warehousing, and several other operations. 

Improved Delivery Speed

It can help you improve the delivery speed of orders since customers can pick up their products directly from retail stores rather than waiting for their orders. It is particularly suitable for consumer packaged goods as it ensures better product availability and higher inventory turnover. 

Beneficial For Fragile and Perishable Goods

When you sell fragile and perishable goods, it is difficult to maintain an end-to-end supply chain with utmost accuracy. Direct store delivery gives you an even opportunity to reduce damage and ensure that they move faster. Therefore many companies in the grocery industry opt for the direct store delivery model. 

Challenges of Direct Store Delivery

Difficult for D2C Fulfillment

Even though direct-to-store delivery might be a suitable option for retail businesses, it can make direct-to-consumer fulfillment very hard. Utilizing your retail stores as micro fulfillment centers needs careful monitoring of inventory, and it is usually more expensive. Direct-to-consumer businesses thrive on shipping from multiple distribution centers. 

Tendency to be Expensive

For businesses that do not have an offline presence or retail stores, the direct store delivery model can be expensive as inventory stocking needs to be more precise, and the opportunity cost of lost sales is high. 

Direct to Store Delivery vs. Traditional Order Fulfillment

How is direct store delivery different from traditional order fulfillment? This is a question most eCommerce sellers have.

The critical difference is that the direct store delivery model is an alternative to centralized distribution. Centralized distribution involves the inventory stored in a warehouse or fulfillment center wherein the suppliers or manufacturers send their goods to a retailer‘s warehouse or fulfillment center. 

The goods are stored in this warehouse or fulfillment center until they are picked and packed for a customer, saved for safety stock, or delivered to a retail location. 

Delivery directions are a type of decentralized fulfillment and distribution. This means the inventory is stored in multiple fulfillment centers and shipped whenever a new order is received. 

For direct consumers or D2C businesses, decentralized fulfillment and distribution are more beneficial as they do not need to invest in maintaining retail centers that can act as micro fulfillment centers. 

Shiprocket Fulfillment

Best Practices for Direct Store Delivery

Record Data Actively

The first and foremost best practice for direct store delivery is recording data. Accurately registering data on all steps can mitigate miscommunication and mistakes between the supplier and retail store. Sharing the correct information with all stakeholders can eliminate errors and improve your inventory management as well. 

Strengthen Customer Service

Next, it is essential to create a feedback loop with customers so that the customers pick up the right products. Improving customer service can also enhance demand forecasting as you will understand trends, demands, requirements, etc.

Establish Omnichannel Sales

Direct delivery also allows you to establish omnichannel sales as your products are not just available online but also in retail stores. This improves brand visibility, and you can connect with customers on multiple channels. It also allows you to centralize your inventory data, and you can keep a check across channels about the average sales, inventory turnover, etc. 

How Can Shiprocket Fulfillment Help?

Shiprocket Fulfillment can provide you with a network of fulfillment centers located more than 35 across the country. All these fulfillment centers are WMS enabled and have the latest logistics and warehouse tech to ensure that your products reach customers in record time. With Shiprocket Fulfillment, you can provide your customers with one-day and two-day delivery options as you can store inventory nearest their location. This will considerably reduce the shipping time and help you save on logistics costs. You can also create a network to manage inventory from a centralized location and stock it in different areas. By delivering orders on time and with past tags, you can also reduce RTO for your business. It is an optimal solution for direct to consumers businesses as they can utilize the decentralized inventory management system while not investing in micro-fulfillment centers like retail stores. 

Final Thoughts

Direct delivery can be a suitable option for your business if you are moving into the online space or have just started creating your online presence. By creating an omnichannel sales experience for your customers, you can deliver more than they expect and provide them with a uniform and enhanced shopping experience across channels. With a direct store delivery model, you can also offer buy-online-pickup-in-store services, which can benefit your business

Shiprocket Fulfillment
Aug 5, 2022 by Srishti Arora

5 min read

Benefits of Expanding Your Product Range

August 3, 2022 by Srishti Arora - 5 min read

As your business grows, the demand by customers will increase. You can entice customers with your product if you are embedded in a niche. Eventually, you may find people desire something new. This crossroad is where expanding your product range will be the next intelligent step. Expanding your product range might seem lucrative. However, it means adding more SKUs to your inventory. Additional SKUs represent additional processing and steps added to your fulfillment chain. Let’s learn more about the benefits and disadvantages of expanding your product range and what to do to fulfill the new SKUs you introduce efficiently. 

What is a Product Range?

A product range is a variation of a product category that a brand may offer for people with different needs and requirements. The products are closely related and have similar characteristics. They are different from each other and usually complementary. 

For example, if you sell makeup, the different products of the category would include a foundation, concealer, make-up brushes, blush, highlighters, etc.

Difference Between Product Range and Product Line

Even though product range and product line are used interchangeably, they have different meanings. The terms are closely related, but product line means variations of one specific product, but a product range is more comprehensive and can include complementary products. 

Usually, a product line is a subset of the product range. Considering the previous example, a product range of makeup may include a product line of lipsticks for different skin tones.

Advantages of Expanding Product Range

Target a Wider Demographic

Expanding your product range can help you target a broader demographic that might not have been using your products earlier. For example, if you only created products for people with a bright skin tone, increasing your product range to include makeup products for a wheatish to dark skin tone can help you target a broader demographic. Or including makeup products to target people with skin allergies can help you expand your product range and have a wider audience and your target. 

Increase Loyalty

Once you increase your product range, you can give your customers a wide range of options. This compels them to stay with your brand, increasing repeat purchases from your website. This will help build a loyal customer base and increase your customer lifetime value. 

Improve Average Order Value

The most significant advantage of expanding your product range is the increase in your Average Order Value. After expanding your product range, you can expect customers to buy more products at a time that suits their needs. You can recommend complementary products to your customers and create bundles that push them to purchase more products from your store. 

Disadvantages of Expanding Product Range

Complexity in Order Fulfillment

The first disadvantage of expanding a product range is its complexity for order fulfillment. Since there are more SKUs to manage after product range expansion, it will add to storage costs, increase picking errors, and impact the order accuracy. However, you can minimize these issues by utilizing SKU tracking systems and barcode scanning to reduce picking errors and improve order accuracy. 

Unequal Sales

Once you expand your product range, you might also face the setback of unequal sales as all the SKUs might not perform adequately. A few SKUs might pick up faster than the others and impact your flagship products that previously made a lot of sales. You need to prioritize which SKUs sell the best and promote them accordingly. 

Increased Cost of Development

Also, a product expansion means an increased cost of development. If you produce new SKUs in-house, it will mean an increase in the price of raw materials and production resources like designing, labor, etc. if you source the products from a third-party seller, it will mean additional costs in acquiring the products and shipping them to your fulfillment center or warehouse. 

Simplify Fulfillment of Your Product Range With Shiprocket Fulfillment

Shiprocket Fulfillment helps fulfill your products without a load of capital investment and constant intervention in the supply chain. We have fulfillment centers across 35+ locations in the country, and you can send your inventory to us for fulfillment. Our team at these fulfillment centers will take care of all operations like inventory management, warehousing, order processing, shipping, and returns. 

If you want to expand your product range at any point in your business, you do not have a minimum or maximum order quantity limit with Shiprocket Fulfillment. You can send in as much inventory as you like and leave the rest of our team.

The most significant advantage is storing these products closer to your customers and shipping them 3X faster. When you expand your product range, you can forecast sales depending on the region and decentralize inventory accordingly. This will help you mitigate the risks and deliver the products on time with utmost accuracy without spending a fortune on shipping. 

Final Thoughts

Expanding your product range is required in your e-commerce business as it grows. Make sure that it is a calculated approach that helps you deliver maximum value to your customers. 

Aug 3, 2022 by Srishti Arora

5 min read

Understanding The Concept of Production Forecasting

July 28, 2022 by Srishti Arora - 5 min read

When running a direct-to-consumer eCommerce business, you must pay attention to every minute detail of your business. From the start of production up till the final delivery, every process must be in sync to avoid delays and errors in processing. The products you produce and the amount you sell must be well in tandem, so you don’t spend more on storage or in a situation where you run out of inventory while the product is still listed on the website. That is why it is essential to forecast demand and production to maintain a decent stock-to-sales ratio at the end of your sales cycle. Demand forecasting and production forecasting are both vital for conducting your business thoroughly. Let’s look at production forecasting and how you can run it for maximum yield. 

What is Production Forecasting?

Production forecasting estimates the future demand for the product to sell and the resources required to manufacture these products. 

It is a technique that helps you maintain optimal inventory levels to keep the overall profitability high and boost customer satisfaction. 

Production forecasting gives you an estimate of the future demand through which you can order your raw material, resources, etc., in advance to avoid the situations of under or overstocking

Importance of Production Forecasting

Production forecasting is essential for your supply chain because it helps improve efficiency at every stage. Also, it helps prevent situations that lead to lesser sales and reduced profitability. Furthermore, it allows you to get a consistent cash flow and offer your customers compatible products. 

Types of Production Forecasting

There are three main types of production forecasting. These include qualitative forecasting, time series analysis, and causal modeling. Let’s have a look at what they are – 

Qualitative forecasting

Qualitative forecasting is done when you do not have many historical data. This can be suitable when launching a new product or brand.

In this type of forecasting, the production managers need to consider the best judgment. Also, they can take inputs from qualitative data from the customers and in-house sales teams. This data can be obtained via surveys, polls, and similar research methods.

By serving your customers, you can understand their satisfaction, brand connections, etc. Doing your sales teams can provide you with an understanding of how well a new product will sell. You can utilize these two insights to create a production forecast to meet demand. It is entirely subjective based on opinions and judgments. 

Time series analysis

The time series analysis lets you make forecasts based on time-stamped data. This means regularly collecting data at specific intervals can help you deduct a time series analysis to forecast future demand.

Once you have this data, you can analyze it to understand why there were bumps in the inventory outcomes in different periods. 

In the time series analysis, you need a large set of data points; otherwise, it will not give you an accurate forecast, or it will not account for variables.

Causal modeling

Causal modeling is a type of production forecasting where brands forecast future events in a retail marketplace.

The production is done keeping the variables that influence the product movement and market. These variables include inventory availability and consumer preferences.

So casual modeling takes into account the position of your brand or product compared to competitors, and from there, it identifies variables that can influence the future of the product in the market. This includes factors like buyer behavior, the flow of the supply chain, availability of products and materials, etc. 

Shiprocket Fulfillment

The Top Forecasting Methods

There is not one production forecasting that works for all retailers; there are several forecasting methods that a brand can choose depending on its needs, product types, data availability, etc. 

Therefore, it is essential to determine your needs and choose your forecasting method. You are a few standard forecasting methods that brands use – 

The Regression Model Method

In the regression model method, you examine independent and dependent variables that affect your sales performance. 

These independent and dependent variables include sales performance, marketing strategies, campaigns, marketplaces where you sell, etc.

You can gain an insight into what the future might look like depending on the previous sales and production performance. 

To carry out a regression model method forecasting, you will need several years of sales history to obtain meaningful trends. 

The Trend Projection Method

The trend projection forecasting method is straightforward as it considers past sales data and helps predict future production. 

Direct-to-consumer brands use it to get intermediate or long-term forecasts for popular inventory items. 

The trend projection method requires a few years of annual sales data to get the most accurate results. 

The Historical Analogy Method

The analogy method considers a quantitative approach to forecasting in which the past sales of a similar product are used to predict the sales of a new SKU. It is a comparative analysis done during the introduction of identical inventory items.

Final Thoughts

Production forecasting is essential for your e-commerce fulfillment supply chain as it helps you optimize your sales and sync them with demand. It can help you be prepared for different outcomes and give you an edge over the competition regarding sales.

Shiprocket Fulfillment
Jul 28, 2022 by Srishti Arora

1 min read

[Infographic] Demand Forecasting In Supply Chain

July 26, 2022 by Srishti Arora - 1 min read

To ensure your eCommerce supply chain runs smoothly, you must ensure that all operations work efficiently. This means you must be on top of your inventory management to stock items regularly to ensure you never run out and face difficult situations. But, how can you know how much stock to order without knowing your sales? This is where the concept of demand forecasting comes into the picture.

Demand forecasting refers to understanding the customer demand in the future and how it will affect your supply chain. For example, if you had a great sale last month and understand that particular SKUs are working great for your business, you can estimate the demand shortly. Demand forecasting helps you analyze future demand based on historical sales data and current market trends so you can mold your business accordingly. Demand forecasting is an upcoming phenomenon that companies are deploying to enhance and optimize their supply chain. Let’s look at demand forecasting, the techniques to carry it out, and how it can help grow your business.

Shiprocket Fulfillment
Jul 26, 2022 by Srishti Arora

4 min read

Eshopbox VS Shiprocket Fulfillment – Brief Comparison of Features

July 21, 2022 by Srishti Arora - 4 min read

Order fulfillment is an integral aspect of your eCommerce supply chain. Customers today are very mindful about how they receive the product and whether they receive it on time. Suppose your brand fails to deliver to the customer’s expectations. In that case, you can expect a backlash on social media and several negative reviews that can negatively impact your business. 

To ensure that your product reaches the warehouse to your customer on time and in perfect shape, you need to ensure that your operations are running smoothly and working efficiently to deliver the order on time. Therefore, choosing a reliable 3PL fulfillment provider for your business is necessary to avoid mistakes, deliver efficiently, reduce costs, and optimize operations. 

Let’s briefly compare the services Eshopbox and Shiprocket Fulfillment offer so you can decide on the most suitable 3PL fulfillment provider for your eCommerce business.

Shiprocket Fulfillment

Shiprocket Fulfillment is a third-party fulfillment provider for e-commerce businesses across India. We have fulfillment centers located across 35+ locations in India. We help you with end-to-end order fulfillment and take care of water management, inventory management, warehousing, packaging, shipping, and returns management.

Eshopbox

Eshopbox box is a fulfillment solution that helps you distribute and deliver goods across India. 

Service Comparison

FeatureShiprocket FulfillmentEshopbox
Integrated PlatformYesYes
Fulfillment Centers35+6
Warehouse Management SystemYesYes
Logistics TechnologyYes (With Shiprocket)Yes
Daily DispatchYes Yes
1-Day and 2-Day ShippingYesNo
Returns ManagementYesYes
Quality Check for ReturnsYesYes
Dedicated Account ManagementYesYes
Prime-like Shipping BadgesYesYes
Order Tracking UpdatesYesYes
Data-Driven InsightsYesYes
RTO risk predictionYes (With Shiprocket Engage)No
Automated WhatsApp CommYes (With Shiprocket Engage)No

Integrations

FeatureShiprocket FulfillmentEshopbox
Channel IntegrationsYes. Amazon, Shopify, Magento, etc.Yes
Carrier Integrations14+ carrier integrationsNone

Why Choose Shiprocket Fulfillment?

Store Inventory Closer to Customers

Shiprocket Fulfillment has more than 35 WMS-enabled fulfillment centers across India. All you need to do is send your inventory to our fulfillment centers. We will handle fulfillment operations like order management, inventory storage, warehousing, shipping, and reverse logistics. You can store your inventory closer to customers and reduce the transit time. This way, you can deliver 3X faster and offer customers one-day and two-day shipping for express delivery. 

Reduce Fulfillment Costs

When you store inventory closer to customers in thoroughly equipped fulfillment centers, you can reduce your fulfillment cost by up to 50%. The order processing costs reduce, storage and inventory management costs increase, and you can ship the proper orders by improving efficiency across your business. 

Upgraded Logistics and Fulfillment Technologies

Shiprocket Fulfillment has the latest warehousing, fulfillment, and logistics technologies. With warehouse management systems across the spectrum, you can ensure top-level order processing in each fulfillment center. You can also integrate your websites into the marketplaces with Shiprocket Fulfillment to ensure that no orders are missed when processing shipments.

We have top-notch logistics in a place where the first mile, last mile, and B2B shipments are handled with ease. 

Fulfill Website and Marketplace Orders Conveniently

You can synchronize your website and marketplaces like Amazon, Shopify, Magento, etc. And import orders without any interference. Also, you can meet the stringent marketplace requirements by processing orders in thoroughly equipped fulfillment centers with a skilled team that can help you reduce the order-to-ship time. 

Fast-Shipping Tags

You can also add fast shipping tags to your shipments as you can offer benefits of express shipping like one-day and two-day delivery to your customers. This can help reassure your customers about exceptional shipping service without paying any premium. 

Decrease RTO and Improve Delivery

When you store inventory closer to customers and deliver orders on time, you can reduce RTO and improve delivery for your business. This will help you ship faster, increase repeat purchases, and ensure a pleasant shipping experience for your customer. 

Final Thoughts

Eshopbox and Shiprocket Fulfillment are reliable fulfillment solutions for your business. However, you must thoroughly compare their services to ensure which service can help your business flourish. Giving importance to e-commerce fulfillment and choosing the proper fulfillment solution for your business has never been more critical. We hope this comparison enables you to decide what features you are looking for in your 3PL fulfillment providers and which one is more beneficial for you. 

Jul 21, 2022 by Srishti Arora

5 min read

The Correct Way For Calculating Stock to Sales Ratio

July 19, 2022 by Srishti Arora - 5 min read

The eCommerce market today is constantly evolving. This means that the stock purchase for one month might either be sold too early, or some of it might be left for you to carry forward in the next month. However, if it is sold entirely by the end of the month, it is a win-win situation for you. This is the stock-to-sales ratio, and eCommerce sellers worldwide aim to achieve a perfect stock-to-sales ratio for their eCommerce sales.

The stock-to-sales ratio is a vital inventory management matrix that helps you optimize your supply chain operations and gives you an idea about how much you need to stock up so that you don’t have a very high expenditure on holding costs or you don’t run into embarrassing situations like stockouts. 

Let’s look at what stock to sales ratio is and how you can calculate it in the correct format. 

What is Stock to Sales Ratio?

The stock to sales ratio, also known as an inventory to sales ratio, calculates the value of your inventory concerning the sales value in a particular period. 

It is an essential inventory management KPI that helps you understand how soon your stock is selling and how much money you have invested in your inventory on average. 

A low ratio is better when discussing the inventory to sales ratio or stock to sales ratio. 

Importance of Stock to Sales Ratio

Inventory management is a critical but diligent operation. As an eCommerce seller, you don’t want much of your capital to be spent on purchasing and holding inventory. However, you also don’t want situations where you do not have enough inventory or a stockout. This constant need to balance out a dead stock and stock out the situation and maintain a positive stock level demands you to increase KPIs that can help you determine the right action for your business. 

When you track your stock-to-sales ratio regularly, you can gain insights into your stock levels and sales and decide on the right approach towards selling, purchasing new stock, and determining trends that can help you make the right decisions.

Calculating the stock-to-sales ratio and tracking it regularly can also help you with demand forecasting as it gives you an idea about how your sales are doing concerning the inventory you purchase.

The Formula for Calculating Stock to Sales Ratio

Stock to sales ratio is calculated as – 

Stock to sales ratio = Average stock value / Net sales value

Average stock value

To calculate your average stock value, you can add the beginning inventory value with the ending inventory value and divide the sum by two. 

Average stock value = (Beginning inventory + Ending inventory) / 2

Net sales

is calculated by subtracting the gross sales from the total returned sales. 

Net sales = Gross sales – Sales returns. 

Let’s understand this formula with an example – 

Let’s assume that you sell Tote bags. The bags are Rs.500, and you sell them for Rs.1000. When you start sales at the beginning of October, you purchase 1000 pieces as your inventory, and by the end of October, you have only 100 pieces left. Out of the 900 sales, 50 were returned.

With this, we can calculate the average stock value as we have the beginning and ending inventory. 

Average Stock Value = ([500*1000]+[100*500]) / 2

Average Stock Value = (5,00,000 + 50,000)/2

Average Stock Value = 2,75,000

Next, we need to calculate the net sales 

Net Sales = [(900*1000) – (50*1000)]

Net Sales = 9,00,000 – 50,000

Net Sales = 8,50,000

Stock to Sales Ratio = Average stock value / Net sales value

Stock to Sales Ratio = 2,75,000/8,50,000

Stock to Sales Ratio = 0.3235 or 32.35%

Comparing Stock to Sales Ratio and Inventory Turnover Ratio

By the name of it, stock to sales ratio and inventory turnover ratio may seem like the same thing. More often than not, sellers tend to use them interchangeably. However, they have slightly different meanings.

Let’s have a look at the few differences between the two metrics

Stock to Sales RatioInventory Turnover Ratio
Talks about the value/price of the inventory soldTalks about the units /quantity of the goods sold
Compares the value of inventory wrt to the cost of the goods soldCompares the number of units sold to the units bought
Deals with the capital involved in moving inventoryDeals with the goods and quantity involved with moving inventory

How Can Shiprocket Fulfillment Help?

When you self-manage order fulfillment operations, managing inventory becomes a critical aspect of it. You need always to be aware of the units that have moved, how many are remaining, and how much you need to re-order. When you outsource these operations to a 3PL fulfillment provider like Shiprocket Fulfillment, we manage all the critical aspects of your order fulfillment supply chain.

Shiprocket Fulfillment has more than 35 WMS-enabled fulfillment centers across India. This means that all you need to do is send your inventory to offer payment centers, and we will handle operations like inventory management, warehouse management, order shipping, returns, etc. You can store inventory closer to customers and reduce the transit time considerably. This does not only help you maintain a suitable stock-to-sales ratio, but it also puts you out of the situation of managing it actively. 

Final Thoughts

The stock to sales ratio is a vital inventory management KPI that you must track for your eCommerce business. It helps you determine how much cost you are putting into your inventory concerning the amount you are selling. Keep an eye out for it to ensure that your capital is in place and you are not overspending or underspending. 

Jul 19, 2022 by Srishti Arora