If November comes, can Thanksgiving Day, Black Friday, Cyber Monday, Christmas Eve and Christmas be far behind? Of course, not far. As the peak season is coming, the increase in orders also brings difficulties for warehousing management. Hence, whether the sellers can overcome the difficulties in warehousing management is of great importance.
Mr. Chen, a seller, established a fashion brand on Amazon. He mainly deals in clothing with more than 2000 SKUs. In the last Prime Day, his sales volume reached 10000 within 2 days, which broke the history record. So he shared his success with us, and emphasized the importance of warehousing & distribution in supply chain management.
He said: “Due to the previous misstep in warehousing management, I timely optimized the warehousing management process before Prime Day, so I can store numerous products and deliver them at a high delivery rate.”
Challenges in Warehousing & Distribution Management
As to his misstep in warehousing management, Mr. Chen classified the chaotic warehousing and distribution management as following:
I. Low utilization rate and high error rate
- Disorder arrangement of the products. Due to the large amount of products, staffs place the products at random, causing a low utilization rate for the warehouse. At the meanwhile, the pickup and pack are affected since the products can not be found easily.
- Too many SKUs. Since there are too many SKUs, the warehouse cannot be lean managed, causing orders mismatching, wrong delivery and less delivery.
- No efficient system and SOP management process. Since there are no efficient system and SOP management process, the inventory information is inaccurate and the products can’t be prepared on time.
- Unable to monitor. The logistics are over-reliant on freight forwarders, and the process cannot be tracked, causing abnormal situations where customers do not receive but the products showed proper delivery.
II. Understaffed warehousing management and loose management
- Low manpower efficiency. The booming order can not meet the delivery needs.
- The products cannot be delivered in a timely manner.
- The packaging is abnormal, resulting in product damage during transportation and foam freight surged.
III. No SOP process management and system support
- Inaccurate inventory of products and consumables affects product preparation and display of inventory information on the platform.
- Unable to process the order on time.
- The qualities are uneven, and the customer complaint rate is high.
SFC’s Guide to Warehousing Solutions and Logistics
There were so many difficulties, but how can Mr. Chen overcome them so quickly? The answer was that Mr. Chen contacted SFC and entrusted SFC to deal with these problems. And the reason why Mr. Chen chose SFC were as following:
I. 12-year experience in warehousing, and processes orders through fully automated equipment
SFC has 12-year experience in warehouse management, owns fully automated equipment with the maximum daily processing amount of 500,000 packages, and 99% orders can be packed, labelled and delivered on the same day.
II. Lean warehousing management and real-time update
- The inventory accuracy rate is 99% : SFC’s warehouse implements product bar code management, achieving no error delivery.
- Real-time update: SFC’s warehousing system can alert the abnormalities, and sync the inventory quantity to the shop in real time.
- Professional SUK management process: manual spot check and quality inspection before entering into the warehouse to guarantee no damage to stock products.
III. Safe and efficient warehousing services and value-added services
- The error rate is lower than 0.3: SFC conducts bar code control, achieving zero error distribution. The order is intelligently equipped with pick-up routes.
- 24 hours delivery, the system integration issued after the real tracking number.
- Support SKU combination and dismantle, customized packaging scheme, reducing the damage rate during transportation.
Mr. Chen stored more than 500 SKUs in our warehouse, and at the same time used the customized packing and assembly scheme and logistics scheme recommended by SFC. Last year, the sales volume on Black Friday reached more than 1 million, and all parcels were delivered on the same day, which effectively optimized the cost and time-effectiveness.
For warehouse sellers, SFC has no limitations. SFC provides 30 days free for warehouse rent and SKU management fees. For more information about warehousing and distribution, you can log in SFC’s official website. If you have any problem, SFC’s professional team will try their best to help you out!