When you consider that today’s consumer is looking for an always-on, always-opens shopping experience, it follows that fulfillment options need to be robust. Ship-to-Home is becoming more and more popular with consumers shopping on-line from the comforts of their own home. Many companies are using third parties to expand their assortments as well as pick, pack and ship their orders. This can drive up volume, but can also add a layer of complexity as you try to track items and maintain one face to the omni-channel customer. Do you use a Third Party Logistics (3PL) provider to fulfill your orders? If so, there are several considerations you need to think about.
- Can they provide delivery to the home?
- How will they know the details such as the customer name and home address?
- What error rate is permitted?
- If they do 10,000 shipments with 1% error (100 incorrect shipments), who bears the cost?
For vendors using 3PL the EDI challenge is extended if a 3PL is used. Specifically, the 3PL needs the P.O. information and then must add it to the Shipment Notice, Bill of Lading, and Shipping Label. Just as important are the Inventory Available Reports (allocation of hot items) which are needed if the merchant is a Dot.Com. You need an inventory positioning strategy, leveraging your total network to position the product close to the customer. Fast, flexible and accurate fulfillment is the expectation of the customer and inventory management will be the key to success and profitability. Packing changes may be a new service your 3PL offers and requires some programing and training. Our DCS EDI specialists can assist you in ensuring that your 3PL meets your shipping requirements. Additional information can also be found at GS1us.org regarding Omni-Channel.