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Markus Kaikkonen: The core of customer-friendly e-commerce is a functioning logistics system

Markus KaikkonenThe share of e-commerce in consumer sales is growing steadily. In many industries, online shopping has become the main sales channel. According to the Kaupan liitto, online shopping has grown by 8% between 2016 and 2017 in Finland. (Source: Kaupan liitto: Mobiiliostaminen ja ulkomainen verkkokauppa vahvistavat otettaan) Studies show that e-commerce growth will triple over the next decade. In times of rapid growth, product availability, price and delivery speed are becoming increasingly important competitive factors.

The role of e-commerce and the range of products available are constantly growing. The shopping experience has digitalized and become multi-channel. Multi-channel shopping experience requirements are not supported by darkstore stores that only serve e-commerce orders. The collection and delivery of orders is transferred to the store network, where the products are already available. Collecting directly from the store also reduces the need for large stocks. In order to ensure fast delivery and competitive prices, it is important to optimize the collection process on store terms.

More and more consumers are choosing to shop online. Brick-and-mortar stores are used to getting the product purchased immediately and the same assumption applies to online stores. In the midst of growing order volumes and an abundance of products, many e-commerce traders are wondering how to get their orders processed, picked and packed as efficiently and correctly as possible. Customers want online stores to have fast delivery times, low prices and low shipping costs, so these online stores must respond to get the customer to order and return to the online store. Where and how should online store order picking, sorting and packaging be managed so that the entire process can be tracked in real time?

Common indicators of e-commerce logistics are delivery accuracy, how quickly an order was collected and shipped to the customer, and whether the products arrive on time with the desired delivery method. The optimization of e-commerce logistics processes plays a very important role in the profitability of e-commerce. To minimize costs, you need to consider the efficiency and speed of collection and order processing. Minimizing collection errors is an essential part of efficiency. Customers get the products they order properly packaged, which increases customer satisfaction and makes it easier for customers to re-order and recommend the company and e-commerce ahead. E-commerce has increased customer returns due to ease of return. For this reason, the recovery process must be efficient and systematic.

Here are 5 key business needs that an e-commerce company could solve by choosing the right system to support e-commerce logistics.

  • Small E-commerce Orders. Collecting small orders should be efficient. Order picking needs to be carefully optimized, as order picking individually leads to long walking distances in the store. The solution to this is to divide orders into departmental collection tasks. The collector collects order lines in just one department, which makes the process efficient.

  • Picking errors. Collection errors cause huge costs and dissatisfaction for customers when deliveries are returned. Only an experienced collector knows all the departments when collecting entire orders, so many will get picking errors due to a lack of knowledge of the different departments. The solution to this is to carry out the collection so that the collectors work in departments for which they are already experts.

  • Collection time per order. This should be minimized so that prices can be considered competitive and profitable. Whole orders are collected by moving from one department to another while customers are in the store, which makes moving a cart very challenging and only a small number of orders can be collected in one round. This results in high labor costs per order. The solution to this challenge is a separate sorting process that gathers customer orders from collected rows from different departments. This allows a large number of order lines to be collected per department in a single collection round and significantly reduces the cost per order of labor.
  • Flawless collection. Switching to a mobile terminal significantly reduces errors during the collection phase. The e-commerce collection system directs you to the correct collection point, displays the image of the product to be collected and, if necessary, verifies the correctness of the product with a bar code. Performing a system task is accurate and efficient.
  • Adding orders to an order before leaving the web store. In many cases, you may end up with multiple customer orders being collected and shipped separately. In the E-commerce Collection System, you can add new orders to a pending customer delivery as long as the delivery is closed. This speeds up additional sales and reduces transportation costs.

AbakusInStore Solution


AbakusInStore is a system solution for collecting, combining and shipping online orders. The system improves collection efficiency by taking into account the long distances between large department stores and eliminating common collection errors in the shop environment.

AbakusInStore is a scalable and efficient solution for retailers looking for a high quality e-commerce collection system.

AbakusInStore's real-time functionality provides transparency in order processing, which facilitates management work. The system controls in-store collection, sorting after collection, packaging and, if necessary, return processing. Workflow interface provides detailed information on tasks, which facilitates tracking of activities and improves communication between users and management.

Want to learn more about the benefits of the AbakusInStore solution? Contact us here and we'll be happy to tell you more.

 

27.2.2020

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