Tag Archives: fulfilment

Appointments, News

Shipping and fulfilment firm champions internal promotion with Head of Business Development hire

Gareth Thomas has been appointed as Head of Business Development at the global order fulfilment company Systemise Fulfilment.

Gareth was formerly Head of Operations at the firm’s warehouse in Brigg and has worked at the company for 4 years. In his new role, Gareth will lead the full suite of customer support, sales and marketing activity at Systemise Fulfilment. He brings with him a wealth of industry experience, having built his own successful business and warehouse.

Gareth Thomas, commenting on his promotion, explained: “After launching and growing the Brigg warehouse successfully over the past 4 years, with the support of Kevin and Kylie – I was ready for a new challenge where I can help the wider business to grow too – so taking on this role seemed like the natural next step in my career. I’m happy to say the Brigg warehouse has also been left in the capable hands of Rachel Dunn.”

Keen to nurture a great workplace culture for employees, Kevin Blackburn and Kylie Thomas, the co-directors of Systemise Fulfilment, are prioritising internal promotions and ensuring that employees have a pathway to grow and develop in their roles.

The company has recently introduced a new reward and recognition programme for employees called the ‘Systemise Fulfilment Blueprint’ – to clearly state their commitment to employees. The programme aims to recognise employees for their achievements, provide tailored progression routes and offer extensive employee benefits, including discounted products and an employee profit-sharing scheme.

Systemise Fulfilment also recently appointed Nikki Thomas as Head of Global Human Resources, promoted Rachel Dunn to Head of Partner Operations at their Brigg warehouse, Rebecca Phillips to Head of Partner Operations at their Scunthorpe warehouse and Siobhan Riley to Head of Quality Assurance across the organisation.

Kevin Blackburn, Director at Systemise Fulfilment, commented: “As the business has grown significantly over the last 12 months, we’ve been reviewing our team structure and making changes that will allow every aspect of the business to run more efficiently. Gareth has extensive experience in the industry with over 7 years of experience. He has built and run his own warehouse and knows the business inside and out, so promoting him from warehouse operations to this key leadership role to support me was a no-brainer, and the transition has been seamless.

“Internally promoting Gareth and adjusting the team structure has also opened up new opportunities for other deserving team members to be promoted, including Rachel, Rebecca, Shaun, Owen and Siobahn, as well as opening up opportunities to bring in additional expertise to the team, which we have seen with the appointment of our brilliant Head of Global Human Resources, Nikki Thomas earlier this year.”

Systemise Fulfilment provides a one-stop solution for prep and order fulfilment needs – handling the receipt, inspection, preparation, quality control, storage, shipping, and order process for Amazon FBA and eCommerce businesses. To date, Systemise Fulfilment has shipped over 4 million units for partners and customers worldwide, expanding its operations in the UK, Europe, and the USA.

Healthcare, News, North of England

Kays Medical expands 3rd Party Logistics operations with a new warehouse and fulfilment centre due to open in September 2022

Kays Medical are one of the UK’s largest and most trusted suppliers of first aid, medical supplies, Ofqual regulated training and occupational health provision with nearly 50 years of experience protecting employees’ health and wellbeing and is now able to offer a full 3rd party logistics solution.

Kays Logistics’ has experienced significant growth over recent years to serve an array of industries such as manufacturing, retail, aerospace, food production, engineering, offshore, leisure and education. The Liverpool-based company is set to further expand its Logistics operation with a new 35,000 sq. ft. high-volume warehouse and fulfilment centre due to open in September 2022. The project will allow Kays to expand its capacity and meet the increasingly sophisticated logistics demands of customers.

Based in Speke, close to Liverpool John Lennon Airport, the fulfilment centre is set to bring new jobs and business to the area. The expansion will enable Kays Logistics to offer 3PL services including full pick-pack functions, reworking and kitting services along with storage and distribution.

For Kays, customer service will remain at the forefront of the project as customers will be provided with a portfolio of technology, services and support by their experienced team.

Kays CEO Ben Ludzker said “It’s exciting to see the new building going up. It is a tangible example of the company’s growth ambitions and our continued diversification. We see great potential in this new logistics division and are already looking to add new sites across the country.”

For more information on the project contact Kays Medical directly on 0151 268 6801 or email info@kayslogistics.co.uk

 

News

What enterprise brands can learn from start-ups about agility and personalisation

From clothing and accessories to tech and homeware, you’ve probably purchased an item from a start-up over the past few years – whether it be a digitally native brand, or an individual selling to a global audience from their living room. Thanks to a variety of SaaS solutions and market platforms taking the stress and price away from building a bespoke digital sales platform, start-ups and their success have taken a huge leap forward. In fact, 770,000 new businesses were established in 2020 around the UK, a 30% jump compared to 2019.

The success of start-ups have come from their ability to offer flexible, personalised, and seamless experiences for customers – something that enterprise brands strive for but can fall short on due to their larger, more complex operations. With disposable incomes stretched and consumers being more conscious of their spending than ever before, larger brands need to learn from the agility and mindset of these smaller players to keep customers coming back even with an increasingly competitive retail landscape.

Here are three learnings enterprise brands can take from start-ups to bring back the ‘human touch’ within their own organisations, whilst remaining flexible against future demands.

‘Instagrammable’ packaging

With global eCommerce sales forecast to grow by 50% over the next four years, the pressure is on for big brands to recreate the rush of excitement you get when buying products in-store. This is something start-ups are already 10 steps ahead on.

Unboxing videos, for example, have grown from an internet fad to a powerful eCommerce marketing tool. As a staple of YouTube and TikTok, this unboxing phenomenon makes it plain that people’s first moments with a new online purchase are a heightened experience. A positive customer unboxing experience can help your brand tell its story – the inclusion of inserts, proper product presentation and free samples are just a few ways brands can accomplish this. This is something that start-ups know well and are investing effort into nailing. A plain box with bubble wrap will no longer cut it for customers seeking a personalised experience.

One idea that enterprise brands can adopt is a QR (quick response) code included with an online order delivery – the first hands-on experience with the item and brand the customer will experience. With the recent reliance on QR codes during the pandemic as a “touchless” way to exchange information, anyone with a smartphone knows how to engage with the code when they see it. Balancing boxes that include enough incentivisation without giving the whole story away and encouraging customers to want to discover more is the ideal ratio, with driving customers back to your main website being the primary goal.

First-class customer service

When dealing with a start-up you are often communicating with someone who has ‘skin in the game’ and is invested in the success of the business. They are motivated to give you great customer service and because of the size of their operation, they will likely have all the answers and information at their fingertips to deal with any queries you might have.

Unfortunately, customers have received a more personalised approach through start-ups, and their standards are ever-increasing. Customer care should therefore be at the forefront of building any successful brand. A top priority for larger retailers and brands should be responding to customer feedback, queries and needs. Enterprise brands can ensure they are doing this effectively by making sure they put in place an effective customer service team, look to adopt the latest time-saving technologies including chatbots and SMS services, and make use of automated processes to provide more efficient and personalised care.

Social media management should also be considered, especially in the case of celebrity-owned and celebrity-endorsed brands. Unhappy customers will often go directly to a celebrity’s social media page to make a complaint. To ensure that issues are promptly resolved, brands must effectively track mentions across all platforms, be responsive to complaints and provide the appropriate aftercare to customers. These techniques should act as a seamless extension of the brand and will ensure that a company is catering to an individual’s needs.

The finer details

The third and final area of learning for enterprise brands should be around customisation and personalisation. The agility shown by start-ups means they are well equipped to personalise your product and brand experience to you and your needs. From engraving, embroidery, and monogramming to labelling, embossing and gift bundling, consumers are increasingly looking for these value-added services from brands of all sizes.

Another layer of this is ownership of the packaging process for the consumer. As trends around sustainability continue to grow, given the option, most consumers would rather have simpler, recycled packaging in an effort to be more environmentally conscious, and reduce waste.

In an era where authenticity is of the highest value, placing ‘the human touch’ as the key component of the eCommerce experience, enables brands to adjust to the constant changes in demands from consumers. With a variety of different outsourcing solutions available to retailers, it needn’t be prohibitive, costly or time-consuming to implement. Larger brands have the opportunity to keep up with growing customer expectations that start-ups are meeting and exceeding, whilst taking strides ahead and setting their own.

E-Commerce, News

How online brands can use big data to deliver a small business experience

With eCommerce now the dominant channel for retail, consumer expectations surrounding cost, choice and convenience are at an all-time high. 2022 research from PFS showed over half (56%) of consumers are most likely to purchase leisure/non-essential items online, and this is not changing. Consumers of all generations have become very digitally-savvy, and marketplaces such as Amazon – with the availability of one-click and same-day delivery offerings – are setting the stakes higher than before. In fact, PFS findings has also revealed that 54% of consumers today prefer to have a variety of delivery options, with free delivery/shipping making up the ultimate shopping experience for 66% of consumers. Never has the retail landscape been so competitive, with many shoppers turning their backs on retailers if their ideal online experience isn’t fulfilled.

By operating online, brands are already on the right track for keeping customers satisfied. 42% of respondents agree they receive a more personalised experience online than in stores, as they receive benefits such as personalised recommendations, sizing predictions – which continues to be a key differentiator.

Here we explore how retailers can use big data and the areas it can be leveraged to drive growth online.

Big data and real-time inventory management

One of the most impactful cases for big data is its ability to transform inventory management – reducing costs and improving efficiency whilst increasing customer satisfaction. With industry shortages taking their toll on the retail supply chain and effective stock management, being able to anticipate customer needs and forecast demand has never been more important. With customers growing increasingly fickle, an out-of-stock item can be enough to not only miss out on a sale to a competitor now, but potentially lose out on a future customer.

Real-time inventory management systems work in conjunction with big data to provide retailers with the ability to not only track but notify retailers of stock volumes – something that is crucial when maintaining customer loyalty. Monitoring stock levels in this way and ensuring that new product is ordered accordingly, not only avoids the risk of disappointing customers and losing sales, but also creates the opportunity to spot purchasing trends. This is particularly important during periods of peak trading and seasonal holidays such as Christmas, Valentine’s Day, and the summer (especially when it comes to sportswear), to ensure adequate preparation and inform decisions made around promotions.

By combining data gathered from purchases and searches made on the site, retailers can create a clearer picture of what items are in high demand, and therefore which items and stock-keeping units (SKUs) they should reorder. Insights into sizes and other variations of the products can be particularly helpful and provides retailers with the opportunity to maximise sales and profit margins by cutting their losses on any items that aren’t performing well and ensuring ample stock of those that are. Operating this way can reduce costs regarding warehouse and logistics costs, reducing the amount of stock held and possibly reducing returns.

Digging deeper into the supply chain, big data can also provide brands with transparency around where product shipments may be lagging, and potential bottlenecks occurring. Such information, when passed on to the customer can be extremely effective. Customers appreciate being kept informed, and the more detail and personalisation brands can provide, the better.

Leveraging data to inform and transform business processes

By using these insights, retailers can improve their current operation, including which delivery options to provide, subscription, free delivery, as well as return processes.

There is a wealth of information that can be gathered from returns forms and other feedback streams, including contact centre engagements and even social media posts – the fulfilment operation can even inform the customer service function, if under one roof. Doing this will create a subliminal message with customers that their needs are being acknowledged, and efforts made to meet these.

Using big data, online brands can also add a layer of protection against payment fraud and strengthen other cybersecurity practices – protecting themselves and customers. By enabling real-time detection, analysis and collecting information based on previous purchases, retailers can trace repeat patterns to discern between legitimate and suspicious transactions.

A data-driven future

There is no denying that consumers expect more from brands than ever before. With 20% of customers admitting to not feeling any emotional connection to any retailer at all, those operating in the eCommerce space should be placing loyalty and the strategies needed to harness it at the forefront of everything they do – using real-time big data to establish better relationships with their customers. With multiple delivery options and offering sophisticated personalisation services named as top priorities for today’s convenience-craving customer, implementation of these is essential to ensure loyalty is maintained.

Business & Property News, Logistics, News, North of England

UK fulfilment company expands operations with North East warehouse

Order preparation and fulfilment company, Systemise Fulfilment have expanded their UK operations once again with the launch of a new warehouse facility in the North East, creating a number of new jobs in the region. This follows a period of fast growth for the company, which has seen them open six warehouse facilities in the UK, US and Europe over the last two years.

The latest facility which opened on 1st April 2022 is managed by Marc Dady founder and director of successful North East based company, 365 Fulfilment Ltd. Marc and his team have joined Systemise Fulfilment as a Licensee Partner to support other eCommerce and Amazon Marketplace businesses with all their prep and order fulfilment needs. 

Marc Dady speaking about the opening of the new warehouse shared: “I’ve seen the journey Systemise Fulfilment has gone through since starting out in 2016. They’ve grown rapidly and established not only a UK but globally recognised brand thanks to the exceptional service they deliver. When the opportunity came up to work alongside the team at Systemise Fulfilment, to establish their presence in the North East, it was a no-brainer. 

“We’re excited to be working alongside Kev and Kylie, founders and directors and their team at the HQ in Scunthorpe to assist and support more UK based eCommerce companies to scale up and optimise their businesses. 

“The amount of support and training the team in Scunthorpe has already provided has been absolutely top-notch. They’ve gone above and beyond, even outside of office hours to help us get everything set up, so we were prepared for partner shipments straight away. 

“We’ve already gained a highly experienced warehouse team, who are backed by the Systemise Fulfilment unique processing streams system, focused on speed of shipping, quality control and excellent communication. Since launching, we’ve begun shipping our first pallets for great new partners who’ve already commented how they are loving the clear communication and speed of processing. We are looking forward to onboarding multiple more partners throughout the year and assisting them in growing their individual businesses.” 

The new warehouse facility has created a number of new jobs in the region and is set to continue to offer more opportunities as the business grows. Currently, the company is looking for new team members of all abilities including, apprentices and graduates in both their North East and Scunthorpe locations. 

Kevin Blackburn, Co-founder and director of Systemise Fulfilment added: “We’re so happy to have Marc and his team join us on our mission to help support and fuel the growth of eCommerce businesses across the globe. We believe in building a strong network of prep services and order fulfilment warehouses, that are managed by passionate, experienced, proven and knowledgeable teams that give our partners the platform to grow and achieve their goals. Building our global network allows our customers to expand internationally, throughout the UK, USA and Europe to help meet the increasing demand in the eCommerce industry.

“The continued growth in Scunthorpe and now opening the warehouse in the North East means we’re hiring for roles across multiple disciplines including warehouse operations, business development, sales and marketing, customer support, human resources, technical support, software engineers to continue to evolve our technologies and systems.”

To find out more about the open roles and future opportunities at Systemise Fulfilment, visit their careers page here: www.systemisefulfilment.co.uk/careers 

News, North of England

How one couple started a side hustle with just £10 and both quit their jobs

One day when watching BBC’s The Apprentice with their family, an entrepreneurial young couple from Scunthorpe, Kevin Blackburn and Kylie Thomas, then 25, decided they wanted to have some fun doing their own family apprenticeship game. Little did they know at the time, this would transform their lives. 

The couple, who’ve been together since they were 17, took what they learnt from the success of the challenge and set up a side business alongside their hairdressing and engineering careers. Within 12 months, they’d turned it in to a six-figure business and decided to quit their jobs to manage and grow their business, which later became known as Systemise Fulfilment. 

The duo – now both 33 years old – have grown the business significantly, to the point where they now operate internationally and employ 21 members of staff. They also run a training programme which has helped over 4,000 people follow in their footsteps and build their own businesses.

The family challenge, which ultimately led to their success, was similar to the BBC shows’ challenge where candidates are tasked with making money by buying and selling. 

Kevin Blackburn, Director at Systemise Fulfilment explained: “We made a family challenge to spend £10 and turn it into profit. We headed to our local charity shop and bought around eight second-hand porcelain birds for 75p each and sold them on eBay for £8-12 each. This quickly turned our initial £10 investment into £60-70. It was like a lightbulb moment going off for us when we realised – if we could source hundreds or thousands of these birds, we could make a huge profit”. 

Initially, the couple began selling on eBay but soon found having to queue up at the Post Office every day wasn’t an efficient way to work. So they found a solution to their problems in the form of Fulfilment by Amazon. 

In their first year, the savvy entrepreneurs also began purchasing popular Monsters Inc teddy bears from Tesco for £12.50 each and re-selling them online for £28.00. In their second month of buying and selling, they made £15,000 and by Christmas that year had made £130,000. 

Explaining how they achieved continued success, Kevin added: “We used insights from Amazon to analyse the volume of specific products being sold, their sales rank and other information available for each product listing. This allowed us to make strategic decisions based on information already out in the public domain.

“We always talk about our core values, one of which is ‘massive action’ which means we focus on the here and now. We’re committed to being open and transparent in all aspects of our business with our team and customers, we want to help our team build long, rewarding careers with us. We’re always looking to optimise our services so they’re the best they can be, from improving efficiencies to quality control and ensuring our pricing is as simplified as possible, so there are no confusing pricing tiers for customers.

“The ultimate key to our success though has been our belief in what we’re trying to achieve. We’re doing this for our family, we wanted a better life, a better work-life balance than we had in our previous careers, we wanted to be at home more with our young children, not working overtime and weekends and this really has changed ours and our families lives for the better – that goes way beyond just financial benefits”. 

Now, the couple ship a wide range of items including beauty, food, toys and seasonal products and work with over 250 businesses to support their fulfilment needs. Kevin also started a YouTube channel in 2016, documenting their business success story and how they’ve got to where they are now, which now has over 9,000 subscribers.

News

EU VAT changes – is your eCommerce business ready?

Doing business with Europe has become so expensive and onerous since Brexit that a vast number of UK eCommerce businesses have simply turned off all EU activities. Managing the different VAT thresholds and rates across each EU country has certainly added to the admin burden and cost of doing business – so how much difference will the new Import One Stop Shop (IOSS) make? James Hyde, CEO of James and James Fulfilment explains why businesses need to take urgent steps to ensure they can still trade after July 1st.

Harmonising VAT

As the European Union pushes forward with its plan to change the way VAT is accounted for on cross-border B2C supplies, UK eCommerce businesses need to be aware of the sweeping reforms being introduced on 1 July 2021 by the 27 member states. Designed to make it easier to account for local VAT in the consumer’s country, the new rules are also targeted at cutting loop holes and reducing the substantial value of VAT fraud. 

For UK eCommerce businesses that have wrestled with the need for different VAT numbers – as well as VAT thresholds and rates – in different member states, the creation of the Import One Stop Shop (IOSS) single EU VAT return is broadly welcomed. Allowing businesses shipping goods from their home country to customers across the EU to report all pan-EU sales in one place, the IOSS is an extension of the 2015 Mini One-Stop-Shop (MOSS), which successfully trialled a single EU return for B2C sales of digital, telecoms and broadcast services.

The process is relatively simple – a business simply needs to go online and register for an IOSS number. However, to do so requires an existing VAT number – and if a business does not already have that in place, it will require fiscal representation to acquire the number and currently, this process is taking up to eight weeks.

Reducing Thresholds

The other significant change is the withdrawal of the €22 import VAT exemption on small parcels – something that has been used – intentionally or mistakenly – by companies to avoid VAT in the past.  From July 1st VAT must be charged at the point-of-sale for consignments not exceeding €150.  Companies using the IOSS simply need to ensure VAT is calculated at the point of sale and goods will be automatically passed through customs. However, any company that has overlooked this change and continues to send lower value items into Europe will face a nasty surprise because both VAT and an admin fee will be applied, and the cost will be presented to the end customer.

For those that register in time, the use of the IOSS will create a more efficient process for quick and easy customs clearance – which should reduce delays and avoid unexpected admin fees from both customs and carriers. However, to ensure goods pass smoothly through this new ‘green channel’ UK eCommerce businesses must ensure all commercial invoices include the correct IOSS number. 

Furthermore, much of the burden of compliance to the new EU VAT regulation has been passed on to the carriers, who have only just released their technical specifications, which include electronic invoice formats. Therefore, in addition to ensuring the correct IOSS number has been attained, companies will need to determine how to create invoices in the correct format with the right information to avoid expensive customs delays.

Get Ready

Getting this process right will remove a huge component of the additional costs that have made trade with the EU far less profitable since Brexit. It will avoid the customer experience disaster that occurs when €10 admin fees and unexpected VAT liabilities are imposed on each transaction. The onus is therefore on UK eCommerce businesses to get this right – whether that is attempting to determine the technical expectations of carriers and amending IT solutions in time, or finding a fulfilment partner that can automate the process, ensuring all commercial invoices are created in the correct format, with the correct data.

And time is against UK business. With just a matter of weeks before the changes are made – it is those companies ready on July 1st that will be best placed to exploit the lower cost of sale, rapidly reinvigorating EU expansion plans that have been side-lined since January, to steal a march on the competition.

 

News

DC Thomson selects James and James for eCommerce fulfilment

James and James enables D2C eCommerce for DC Thomson Media, Aceville, and Puzzler

DC Thomson – the media company behind brands like Aceville, Beano, Puzzler and Stylist – has awarded James and James Fulfilment a contract to provide a fully outsourced eCommerce fulfilment service and access to its award-winning, cloud-based order management system, ControlPort. This strategic move provides DC Thomson access to modern outsourced fulfilment, increased visibility of its supply chain and supports the firm’s desire to modernise fulfilment, while driving direct-to-consumer sales.

Working with James and James sets DC Thomson up operationally for further eCommerce growth and enables it to offer customers a better service. DC Thomson’s customer service team now has greater visibility of customer purchases and can provide them with real-time updates about their orders. Well-known publications that James and James will deliver and fulfil include Beano and Dandy Summer Specials, The Dennis Collection, This England Annual 2022 and calendar, Oor Wullie My Book Of Riddles & Trivia Book; and issues of Premium Crosswords, Codewords,Wordsearch and Sudoku.

Craig Houston, Head of eCommerce and Partnerships at DC Thomson Media says: “Our customers increasingly want to buy directly from our brands online. This need was amplified through the pandemic as we saw eCommerce grow substantially across our websites. This encouraged us to consider how we could improve our customer journey and involved reviewing our eCommerce processes and how we would modernise them to meet customer needs. Part of that exercise involved an overhaul of our eCommerce fulfilment. We really wanted to work with a modern fulfilment provider that offered us efficient and accurate picking, packing and delivery times as well as strong access to cloud-based technologies that would provide us with an accurate view of our supply chain.”

James and James has worked with DC Thomson since December 2020 with fulfilment carried out by James and James’s Northampton based fulfilment centre.

“DC Thomson is such a well-known British brand with icons like Beano and Puzzler under its banner. It’s fantastic to be a part of its eCommerce journey and to help it deliver a great customer experience during fulfilment and delivery to customers,” says James Hyde, CEO of James and James Fulfilment. “We set up James and James to provide eCommerce brands, like DC Thomson, with a modern, digital eCommerce fulfilment experience. Many of the firms we represent come to us to take the pain away from them to deliver their products to customers. This frees up time within their businesses to focus on what they do best: building their brands, building customer relationships and selling their products whilst trusting us with fulfilment.”

About James and James Fulfilment

James and James Fulfilment provides outsourced fulfilment services to online retailers. It stores their products, picks, packs and ships their orders, and handles any returns. The company was founded by University of Cambridge graduates, James Hyde and James Strachan, in 2010, when they could not find a modern fulfilment solution for an eCommerce business they worked for. Since then, its proprietary software has won a Queen’s Award for Enterprise in the field of Innovation and it has joined the Fast Track 100 and FT1000 lists of high-growth companies. Headquartered in Northampton, UK, with an additional fulfilment centre in Ohio, USA, the company secured an £11m investment from private equity investor, LDC, in March 2020. It won a second Queen’s Award – for International Trade – in April 2020. https://www.ecommercefulfilment.com/

About DC Thomson

DC Thomson is a private company and one of the leading media organisations in the UK, with a wide portfolio of news, magazine and radio brands. It is headquartered in Dundee, Scotland, with a London base in the world-famous Fleet Street. The DC Thomson Group includes DC Thomson Media, global genealogy company Findmypast, leading IT business services provider Brightsolid, multimedia studio Beano Studios and magazine businesses Puzzler Media and The Stylist Group.

News

Outsourced fulfilment: more than delivering the goods

Online demand is soaring but too many retailers are missing out on great opportunities for one simple reason: fulfilment. In an ecommerce retail model, the quality of the fulfilment process – from the timeliness of delivery to the look and feel of the packaging – defines a customer’s experience. And that process has to be consistently perfect whether a retailer is shipping one product or one thousand. 

If retailers are to maximise the opportunity presented by a captive consumer base, existing fulfilment operations need an overhaul – and fast.  James Hyde, CEO of James and James Fulfilment, explores how offering a solution that goes above and beyond the role of a traditional fulfilment provider, and providing a fully integrated value-added service, gives ecommerce retailers the opportunity to scale and succeed in 2021.

First Impressions Count

Too many retailers underestimate the impact of fulfilment on customer experience. Spending a fortune on carefully curated websites and great delivery promises is a wasted investment if the product turns up late, damaged or swathed in acres of unnecessary packaging.  A pretty website is key to enticing someone to buy – but unpacking the product is the customer’s first real experience of any retailer, and that impression will last.

Ensuring the right product arrives when promised is just the start – although many retailers are still not getting that right. Good fulfilment is so much more. The way the product is presented, from the neatly folded packing slip to the personalised message to the carefully considered low-impact packaging, should be a reflection of the brand that reinforces the customer experience. 

Presentation is just one part of the experience. Communication is another. Can the customer track the product from the moment they press buy, around the warehouse, onto a courier’s van and into their hands? Is there a simple returns process, where customers can use a returns portal, select a reason for return and track the product back? And is that customer experience the same every day – whether a retailer is selling 1,000 items or 20,000; to the UK or across the world?

Selling the Business Short

A fulfilment process that doesn’t reflect the brand values and customer experience is selling the retail business short. But it is also not a surprise. Direct to Consumer (D2C) fulfilment is challenging – especially for companies looking to compete with the big names in the business, with next day delivery and a range of courier options.  Scaling up to cover peak sales – such as Black Friday and Christmas – can be a major headache. The issue is not just recruiting the staff but also ensuring consistent quality – from picking accuracy to packaging.

And that is for expected peak sales. How can a retailer scale up in response to an unexpected plug from an Insta-influencer or a mention in a magazine? This might be a business-changing opportunity to capture new customers, a time when every aspect of that first customer impression should be perfect. But how can that opportunity be grasped without a robust, scalable and repeatable fulfilment model?

The problem is, of course, that few individuals become retailers because they are excited about the fulfilment process – yet great fulfilment skills can make or break an online business. This is an absolutely critical component of the customer experience – and, as such, companies need to put some serious thought into it.

Tap into fulfilment expertise

Outsourced fulfilment is an obvious solution. It offers economies of scale and ensures a retailer can respond to any spikes in demand without affecting the quality of customer experience. But this is not just about efficiently getting a product into a box and onto a van. A tailored service will ensure the retailer’s brand is on every box; while the product tracking service is also customised to the retailer’s brand, to create a true extension of the customer experience. 

If a retailer is to achieve that essential match of fulfilment experience to the core brand value, there are many issues to consider up front. An absolute fundamental is to be realistic about the delivery promise – and that means having a clear understanding of the cost model. What does it cost to ship to the UK and internationally? What is the variance between next day and longer shipping times – and how much do courier prices vary? 

This is where the insight collected by a fulfilment partner can make a real difference for a retailer looking to scale up the ecommerce operation. With a deep understanding of the complete cost model, a retailer can match delivery options to the required level of customer experience. Is free shipping essential to reinforce the brand’s luxury feel, or does the retailer need to set a minimum spend threshold to make free shipping viable? 

Simplifying Fulfilment Complexity

Such delivery policies will not be set in stone – and for retailers with a diverse product portfolio and customer base are likely to vary. A £250 pair of trainers may justify expensive packaging and free shipping; a £40 pair from the same retailer may come in a boring box with standard shipping costs.  Without continuously updated information about fulfilment costs, such decisions can only be based on gut feel – and that is where too many retailers have caught a cold and ended up selling at a loss.

In an ecommerce dominated retail market, fulfilment is now both art and science: it needs to look great and generate profit. A good, outsourced fulfilment partner can help retailers to develop packaging that reflects brand image. They can provide insight into the pros and cons of recycled materials – from the additional weight that has to be taken into account for any air freight to balancing the cost of recycled packaging against the value of customer perception and approval.

More efficient fulfilment processes can recoup significant costs – especially in the area of inventory management. Despite the cost of storage, far too many retailers have dire stock management processes. A fulfilment partner should share continuous insight regarding both stock levels and age of stock. They should be working with retailers to show where costs could be recouped – such as the opportunity costs associated with retaining a warehouse full of unsold items. What else could be in that space that would be delivering revenue? What could be sold at a small discount today to avoid a mass offload in a few months as a product gets closer to its end date? Proactive inventory management can transform the retail cost model.

Conclusion

Fulfilment is about so much more than the cost of getting a product from warehouse to customer. It is an extension of the customer experience and one that will define a customer’s brand perception. But it is also about efficient retail operations and proactive management of both inbound stock and outbound product to maximise revenue.

Retailers that fail to embed the perfect fulfilment model within the customer experience are not just missing an important part of the process, they are fundamentally misunderstanding the way consumers and ecommerce fit together.

Brexit, Logistics, News, Retail

Rethinking retail fulfilment: the key to post-brexit supply chain

Written by Christophe Pecoraro, Managing Director, PFS Europe

December 31st marked the end of the Brexit transition period and whilst many took a sigh of relief, in reality, the Brexit effect had only just begun. The shockwaves presented by Brexit are now imminent. Many retailers are already experiencing increased tariffs and supply chain snags putting customer satisfaction at jeopardy. In fact, M&S has been named as the latest brand affected by Brexit red tape – with the shelves of its French stores recently left empty.

To overcome supply chain disruptions, many online retailers are already making changes to their existing fulfilment operations. Over a third (37%) are assessing and implementing new technologies solutions to increase supply chain efficiency, whilst 33% are splitting inventory to base fulfilment in existing UK and European facilities. Traditional fulfilment models, with limited flexibility, are no longer going to be effective. Now is the time to rethink fulfilment and adopt more flexible models, such as multi-node distribution, to ensure business continuity and customer satisfaction.

Removing the Brexit red tape

Whilst news of a trade deal came as a huge relief, consumer rights when shopping online have not come out unscathed at the hands of Brexit. For example, as of January 1st, EU consumers buying a product from a UK-based retailer now have to pay charges including import duties and courier or postal handling fees following Britain’s exit from the Customs Union and Single Market. Some of these costs and additional paperwork are also applicable to British customers buying products that have been shipped from the EU. For many purchases, this is adding a third to the cost of online orders and adding significant delays due to extra border checks. Whilst there are some brands who are avoiding this cost being transferred onto the customer, this is certainly not the case for all. Many brands will not have anticipated these costs meaning ultimately the responsibility falls with the individual receiving the goods.

To avoid damaging customer relationships and putting hard-earned customer loyalty at risk during this time, brands must act fast. Online retailers and brands must start by reviewing existing data to determine where their customers are located and determine how inventory should be effectively dispersed across the UK and EU. Making inventory provisions, such as splitting inventory across both regions will be crucial over the coming months. This solution, known as multi-node fulfilment, enables brands to provide in-region fulfilment in both locales, bypassing custom requirements at the border.

Avoiding reverse logistics chaos

Unsurprisingly, customers facing unexpected charges upon delivery are often refusing to accept deliveries of products and this is causing 30% of orders to be returned, according to Statista data. Reverse logistics can be costly and labour intensive for retailers at the best of times, let alone with the added complexities of border delays, VAT, import duties and associated paperwork. In addition, it can also negatively impact a brand’s sustainability initiatives and efforts to reduce carbon emissions. To avoid this, recent news reveals that high street retailers are threatening to burn products returned by EU shoppers, rather than bringing them back to the UK, comes as no surprise as brands desperately attempt to avoid the costs and red tape associated with Brexit.

By looking to a multi-node fulfilment model, and dispersing inventory across the UK and mainland Europe through multiple distribution points, brands can easily overcome this. An advanced Distributed Order Management (DOM) system will ensure your order management system (OMS) can divert orders to the appropriate inventory pool, depending on a number of factors, from delivery address to product type.

Alleviating pressure beyond Brexit

Although a key benefit to alleviate Brexit pain points, multi-node fulfilment offers additional benefits outside of this. For example, during periods of peak season volume, additional fulfilment and distribution points with an effective DOM system to route orders can help to alleviate pressure and spread resource. In addition, what and where inventory is placed will have a significant impact on your ability to keep orders moving to meet consumer demand. After all, it’s not just about capacity, the key is business continuity, during and beyond the pandemic.

As an alternative to setting up multiple distribution centres across regions, brands could also opt to utilise pop-up distribution centres (pop-up DCs) or micro-fulfilment centres, something often implemented for higher volume periods, such as a pre-Christmas peak or planned promotions throughout the year. Pop-up DCs can also be utilised to test new markets, which may prove beneficial in overcoming initial Brexit-related pressures. These temporary operations are often much cheaper to set up and operate, while providing relief to your primary distribution centre. An effective DOM system will ensure orders are directed to the appropriate fulfilment point. For one major alcohol brand with customers in both the UK and Europe, the use of a UK pop-up DC meant that it was able to become fully operational in just two weeks, just in time for Black Friday and the Christmas peak season.

Supporting an omnichannel future

If there has been one retail trend that has proliferated over the past year, it has been the surge in online shopping. PFS’ own research found that 53% of consumers had shopped more online since lockdown began. In fact, more than three quarters (77%) of these went on to say that they expect they will continue to purchase online more once the lockdown has lifted. As the UK continues to battle against the ongoing ramifications of the pandemic, many UK retailers have been forced to temporarily close their doors to the public, relying purely on online sales in order to survive. Even as physical stores begin to open, retailers are increasingly recognising the importance of an omnichannel approach and considering a variety of fulfilment options to support this will be an essential next step for retailers. Through combining pop-up distribution centres and brick-and-mortar stores (utilised as ‘dark stores’), brands and retailers can effectively spread-out inventory and get product closer to consumers for faster, cheaper and more sustainable delivery options with minimal investment.

As with the COVID response, navigating through the ‘Brexit effect’ will require brands to react with agility and flexibility in order to keep businesses going and customers satisfied. Keeping customers front and centre will be pivotal during this time, and brands can do this by ensuring they are not only aware of any potential kinks in the fulfilment chain but agile and responsive enough to handle the challenges with precision. Recent events have forced brands to think creatively about how best to reach the customer and with further turbulence ahead, multi-node fulfilment and other, alternative fulfilment options will be vital for success.