With Christmas spending and holiday sales just around the corner, an e-commerce solutions provider said online retailers need to have an efficient and technology-backed logistics system to handle the upcoming surge of orders.
Anchanto Pte. Ltd. Founder and CEO Vaibhav Dabhade, in an interview with the BusinessMirror, said that order volumes are expected to increase in the fourth quarter as online shipping has become the norm.
“Obviously, all the brands, retailers and eDistributors are expecting their logistics providers to focus on improving lead timelines, delivery frequency,” Dabhade said.
He explained that a surge in order volumes will test the “efficiency, speed and accuracy” of the logistics of the e-commerce firms, in addition to keeping a sizable buffer stock.
“Another challenge faced by seller businesses is the demand for continuous updates or communications from customers,” Dabhade said. “Today, once they shop for a product, they like to keep a track of the entire delivery process.”
The Anchanto official said that among the systems an e-commerce seller should have must include inventory management, accounting tool and last-mile carriers.
As such, a unified full suite eWarehouse Management System (WMS) is helpful because it does not only address the logistics needs of the retailers, but it also connects them to multiple industry systems, he explained.
“Having a WMS helps manage orders, inventory and warehouse processes with clear visibility,” Dabhade said. “With real-time customizable reports, eCommerce actors can inspect function-specific data for orders, shipment carriers, manage return order processing all the while enabling customized reports as per user preference.”
Inefficiency in logistics for the e-commerce industry may translate to revenue losses, he warned.
“While delays or errors in order fulfillment directly impact the image of the brand, inefficiencies lead to issues like overselling and underselling causing revenue losses,” he explained.
In addition, Dabhade said that lack of constant updates or communication with customers can affect customer experience and satisfaction.