You Should Know to Play Safe in 2022
COVID19 has revealed the flexibility and resilience of many big supply chains. However, using the word “unprecedented” for any such event would be overused at this stage. COVID exposed how our supply networks are stretched and vulnerable to disruption. During the initial days of the pandemic, 70% of the firms were tracing their suppliers and their availability to fulfill supply chain needs [1].
Post pandemic impact has changed the buying behavior of consumers. According to the report, e-commerce revenue has increased by 19.3% year-on-year from $US 516.5 billion to $US 875.2 and is expected to increase to $US 1.33 trillion by 2025 [2]. Firms have started to extend their services to e-commerce and outsource their logistics to prevent being trapped in locked-down areas again.
Figure 1Retail e-commerce revenue in the United States from 2017 to 2025: Source Statista
E-commerce leads the firms to integrate the whole network increasing visibility across the channel. The supply chain is a critical source in achieving a competitive advantage in e-commerce. Leading e-commerce has outsourced its fulfillment operations to some extent, and some large firms plan to outsource their supply chain within five years. Outsourcing fulfillment shifts responsibility to the third party to play safe during similar incidents. It will increase flexibility and resilience and reduce supply chain risks by outsourcing fulfillment.
5 Tips to Fulfill Orders Safely Against the Disruptive Covid-19
- Location
As we have discussed, many firms were grappling with tracking their suppliers even at the end of March 2020. Thus, strategic location plays a vital role in fulfillment, specifically e-commerce orders. Outsourced logistics solutions with a fully integrated system will be one of the viable options to reduce lead time in orders. Here are five tips you should know to fulfill orders safely during any disruptive event such as Covid-19.
- Warehouse Capacity
Another key solution is warehouse capacity and its utilization. Both capacity and commodity must be considered to utilize the warehouse properly. Those suppliers who foresighted the situation, mapped their network, and knew their suppliers and capacity with alternate sites could perform more efficiently.
- Workforce
During COVID, firms faced a shortage in the workforce due to lockdowns and restricted public movements. Moreover, a rich experienced workforce is also the backbone of warehouse fulfillment in the supply chain. Consequently, delivering orders today requires more workforce than ever before. If you are doing cross-border business, you may want to consider the 3PL fulfillment companies located in areas whose warehouse rent and labor costs are reasonable, both to enjoy the abundant workforce, and to get your expenditure under control.
- Flexibility
Flexibility is another key component of the successful supply network, in which firms are able to respond to queries of clients for fulfillment immediately. Cross-border e-commerce fulfillment requires flexible strategies to deal with overstock/surplus stock, which happens when stores purchase more products than they sell. These unsold goods are unable to produce the interests as expected, thereby hurting profitability, and they also continue to generate more rents to pay.
Fortunately, this annoyance can be avoided, should you know how to re-formulate the selling strategies. By storing the goods in warehouse near their manufacturing regions, you can immediately send these poorly sold goods everywhere; and the loss was just the goods themselves, excluding import taxes and fees.
- Transparency
A transparent supply network, in essence, means vibrant visibility of factual information in supply chain operations at all levels. It can create opportunities and enhances the ability to track fulfillment orders throughout the chain. It also helps the clients to reduce the bullwhip effect and stock out situations, especially during COVID-like situations.
About YunFulfillment:
YunFulfillment is a one-stop service ranging from global deliveries to e-commerce fulfillment. It provides various order fulfillment solutions worldwide, reducing sellers’ burden. Moreover, its API integration of the Order Management System increases visibility and efficiency of fulfillment. With YunFulfillment Warehouse strategically located in China, services covering more than 220 countries, YunFulfillmemt provides better consumer E-fulfilment experience. It operates across the globe with the cooperation of local logistics partners. Thus, it helps the firms to decide to outsource their logistics to Yun Fulfillment. The fulfillment with its premium parcel deliveries around the globe provides a flexible third-party service to its clients.
Conclusion
YunFulfillment is integrated with its whole chain to respond to the queries received from around the globe. It fulfills the e-commerce demands of firms that have outsourced their logistics. Its services include but are not limited to the marketplace sellers, drop shippers including Shopify, and crowdfunding. It offers storage, pick and pack global shipping to its clients. Therefore, YunFulfillment has the competitive edge due to its global expansion within years of pioneering its operations. Lastly, the firm offers customized services as a customer-oriented and professional organization providing e-commerce fulfillment solutions.
