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MINIMIZING R ISK THROUGH E-COMMERCE FULFILLMENT

The importance of e-commerce capabilities is nothing new for companies across numerous industries. Before the coronavirus (COVID-19) pandemic, e-commerce fulfillment offered companies an avenue for growth as consumer purchasing behavior evolved.

As the pandemic forced many businesses to close, traditional retailers that didn’t have an e-commerce solution could not take advantage of consumers who picked up their devices to shop and expected their orders shipped directly to them or in-store for pick-up.

According to the Adobe Digital Economy Index, e-commerce orders tracked higher during June 2020 than the 2019 holiday season, and have had a 77% increase year-over-year. And, with an unpredictable holiday season on the horizon, the expansion of e-commerce shows no signs of relenting.

As a result, right now, the imperative for e-commerce fulfillment capabilities has never been stronger. It’s also an essential strategy to keep sales moving as consumers remain apprehensive about shopping in brick-and-mortar stores.

E-commerce Fulfillment Success

One of the strengths of a comprehensive e-commerce fulfillment solution is found in the warehouse. The evolution of consumer shopping behaviors and its effects to shift companies to multi-channel operations, concentrates more on a seamless approach to the consumer experience through all available shopping channels. Because of this, omni-channel fulfillment is changing the function of warehouse operations and capabilities. To meet consumers’ desire for immediate access to a retailer’s complete inventory and rapid fulfillment, warehouses now need the capabilities to provide around-the-clock responsiveness and be purposefully located near delivery points.

This includes re-engineering the facility for smoother product flow to accurately and efficiently fulfill orders. And, adding new strategies that go from typical case picks and pallets to individual item picking, kitting, and bundling within the warehouse. This allows facilities to perform direct to consumer deliveries, and more frequent direct to store deliveries.

But e-commerce fulfillment doesn’t end inside the warehouse. Due in large part to the influence of online retailers that are continually raising the bar, the entire transportation management system of a modern omni-channel retailer now operates on a 24/7 delivery basis.

The top game-changers often include a new or updated warehouse management and transportation management system. By contracting with a third party provider, companies can benefit from the industry’s best technology. Additionally, companies must also be sure their team members have both the experience and cultural capability to meet constant rigors of fulfilling omni-channel consumer demand. And lastly, retailers need to become extremely agile with their warehouse management systems and practices.

A successful e-commerce fulfillment operation must also provide total transparency so that all providers win. You need a glass pipeline with access to the whole supply chain from the source to the manufacturer through the ‘last mile’ to the consumer.

This necessitates both internal culture changes as well as a change in how the transportation network is laid out. Additionally, it requires multiple transportation services from traditional fleets to parcel carriers and last mile delivery.

Companies also need to determine if they are spending too much on shipping parcels. While capitalizing on e-commerce fulfillment meets demand, companies may be paying extra when it comes to shipping. In order to lower costs, companies can work with providers to leverage procurement capabilities and spending power, the transportation network, and the ability to place inventory where it should be to meet demands quicker.

Because of these unprecedented times and a multitude of shopping options available, there isn’t a lot of time to reorganize your strategy around these changes. Making changes rapidly is crucial for retailers who experience these phenomena. It’s a new game.

At outbound, companies can leverage our procurement power and relationships across a carrier agnostic network, as well as our ability to find the most cost-effective shipping method to minimize shipping costs. This allows us to ship inventory all inventories at the lowest cost and best service available. Also, whether direct to consumer or direct to store for pick-up, we select the optimal location product will be shipped from to optimize costs and service. We determine package size, pick product and print labels.

This network design includes API integration with all shopping cart platforms. You also benefit from real-time monitoring and reporting of inventory and orders, notifications when you need to replenish inventory, and tracking information for outgoing packages.

By outsourcing your e-commerce fulfillment, you can be better prepared for changes in consumer needs surges in business, challenges such as quarantines and labor shortages, and leverage procurement power. As a result, you’re able to have the right product, in the right place, and at the right time to minimize cost and the order cycle.

Network Design

With the need to create a resilient omni-channel operation that includes e-commerce capabilities, and to overcome disruption, companies are turning to third-party logistics providers that understand the changing environment, and have the technology and talent required for simplified success. This includes providing a network design that mitigates risk and improves service levels, which provides a heightened commerce experience for consumers.

At Ryder, our approach to e-commerce network design covers all three phases of an operation – inbound, inventory management, and outbound. It also allows companies to continue to fulfill through a third party, or to continue to fulfillment by merchant.

Through our solution, at inbound, product is transported to the facility – which can be managed by Ryder. Inventory is then processed through system validation, unloaded and palletized, or placed in floor-loaded cases. The product is finally staged on dock by load, or sorted by case for put-away.

Through inventory management, product is stored by case, pallet, or forward pick in cycle counts ranging for 30 days up to one year. The difference in what Ryder does in its operation comes down to smaller steps that aren’t offered in dedicated warehousing. For example, this includes specialized value-added services like, personalization, engraving and gift wrapping, all of which get done on site by Ryder.

Discover how Ryder E-commerce Fulfillment Solutions can make your operation Ever better™.

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About RyderRyder System, Inc. (NYSE: R) is a leading transportation and logistics company. It provides supply chain, dedicated transportation, and commercial fleet management solutions, including full service leasing, rental, and maintenance, used vehicle sales, professional drivers, transportation services, freight brokerage, warehousing and distribution, e-commerce fulfillment, and last mile delivery services, to some of the world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, Canada, and the United Kingdom. In addition, Ryder manages more than 290,000 commercial vehicles and operates more than 300 warehouses encompassing approximately 55 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmentally friendly solutions, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. ryder.com.