3 Things to consider for 3PL who are transforming to eCom Fulfillment Services

3PL nowadays cannot stand away from the challenges of eCommerce trends any more. When transform from traditional distribution and warehousing services to eCom Fulfillment Services, and to provide a service that matches modern "eCom Speed and Standard", it needs to at least consider below 3 critical points:

1) Getting Order from eCommerce places - which means a robust IT setup and capability to, automatically, fetch confirmed orders from customers' online shops, online marketplaces, shopping cart software ... etc. This setup relies on a reliable and static API linkage.

However, every single marketplace / eShop software has its own unique API and standards; while some may be changing from time to time. Maintaining such a facility and be capable to keep the API linkage up-to-date are the most important daily work one needs to invest with IT resource.

2) Automating courier selection and booking - How long it takes an operator to perform courier preparation on one single order? When it involves, not only, courier selection according to its commodity, destination, value, weight, customer preference ... etc.; And then make the booking, get waybill number, prepare document and probably courier label.

The mathematics - 100 orders a day means average 4.8 min. processing time per order, including all physical handling, from picking to packaging, and courier preparations; 500 daily orders means 58 sec / order; 1,000 orders 28.8 sec / order ... and so on.

automated courier selection and booking become critical. Most couriers nowadays have already opened their API for this purpose. Similar to above however, they are different from each other, and subject to change from time to time. A similar IT resource input at both the setup and daily maintenance is hence important too. Obviously

3) Physical Processes of eCom Order - It is completely different from handling traditional B2B orders.

In the first example in (2), after automation of courier preparation, it leaves about 280 sec for physical handling; Which includes travel and search out the right SKU and pcs from storage rack, bring it back and put into right box, together with necessary dressing (VAS) and seal it properly with everything it needs to get on the way to end-user. Not mentioned that few more effort is required to update inventory and order status by some way, either on a paper form or by a data entry in excel file.

For an experienced warehousing professional, there could be immediately many ways to improve above operation procedures, such as consolidated picking, using picking carts and doing order sorting with totes ... etc. However, many of these processes could only be achieved with backup from a real-time and paperless WMS. For example:

- Automated Order Consolidation in Picking Waves, by different pre-set criteria;

- System guided Wave Picking plus Order Sorting

- Packing Process plus automated Courier Labeling

For more advanced and heavy load situation, Sort-to-Light or Put-Wall (so-called

Pigeon Hole Rack) setup and procedures should be employed.

Besides many other considerations, above three forms the decisive essentials for one eCommerce Fulfillment Center to be running successfully and at the best cost-effectivenss.

Our newly launched " eCom Essential" package in logi-Cloud enables customers, who are subscribing the WMS module, with an immediate transformation from traditional B2B distribution into eCom fulfillment services, with a full range coverage like above. For detail, please directly contact us or check for few more detail here.

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