Posts written by

Aman Sandilya

Aman Sandilya is a Product Marketing Manager at WareIQ, with over 5 years of experience across Product Marketing, Brand Marketing, Marketing Communications, Event Marketing, etc. He has previously worked with Cognizant, Capgemini, and Merilytics focusing on marketing initiatives for clients from eCommerce, CPG, Retail, Logistics, and Operations domains.

How multi-piece-shipment (MPS) can potentially reduce your logistics cost by half?

How multi-piece-shipment (MPS) can potentially reduce your logistics cost by half?

In e-commerce, a multi-piece shipment refers to a single order that is fulfilled using more than one package. This can occur when an order is too large to fit in a single shipment. E-commerce companies from various categories may use multi-piece shipments, but it is most commonly used in the following categories: Fashion and apparel: Ship multiple items, such as clothing and accessories, in one package to customers.Home goods and furniture: Large items such as furniture and appliances are processed as Multi-piece ShipmentsElectronics and technology: Ship multiple items, such as cell phones and computers, in one package to customers.Beauty and personal care: Makeup and skincare products are put into one package and shipped to customers.Grocery and household items: Food and household supplies are delivered in one package to customers.Books and media: Multiple items such as books, movies, and music, are shipped in one package to customers.Toys and games: Usually ship multiple items, such as toys and games, in one package to customers. However, not all e-commerce companies from the aforementioned categories use multi-piece shipments. Ultimately, it depends on their specific business needs. Cost-Saving Potential of Multi-Piece Shipments (MPS) Multi-piece shipments, or consolidated shipments, have the potential to save costs in several ways. Reduced shipping costs: By consolidating multiple items into one shipment, the overall shipping cost per item may be reduced.Reduced risk of damage or loss: Consolidation of multiple items leads to lesser exchanges at hubs and thus lesser risk of damage or lossReduced inventory holding costs: Consolidating multiple items into one shipment allows for more efficient use of warehouse space, which can reduce inventory holding costs.Reduced handling costs: Elimination of multiple pick-ups and deliveries leads to a reduction of handling costs associated with each individual package.Reduced packaging costs: The need for multiple packages and their associated costs (e.g. boxes, packaging materials, etc.) is eliminated due to the consolidation of multiple items. Here is an example to illustrate how multi-piece shipments can save logistics costs, and significantly improve the consumer experience. "Imagine a mattress brand receiving an order of a mattress, a pillow, and a comforter from a customer setting up his new house.  If the brand’s fulfillment company divided it into three packages - one for the mattress, one for the pillow, and one for the soft furnishing - the shipping cost would be INR 900. On the other hand, if the entire order was shipped in a single multi-piece package, the total shipping cost would be roughly INR 390. This is a logistics cost saving of INR 490 per order!"- Harsh Vaidya, CEO, WareIQ Illustrative example to showcase the cost-saving potential of Mult-piece Shipments (MPS) What happens in absence of Multi-piece Shipment (MPS) capability? In absence of MPS, customers, generally, receive a broken brand experience. Different ETAs for potentially complementary productsDifficulty in tracking all orders in a single placeHigher cost of deliveriesDelay in deliveries of different items from the same order This leads to overall negative customer sentiment toward the brand and higher levels of customer dissatisfaction What is required to process Multi-piece Shipments (MPS)? A confluence of smart technology to efficiently manage orders and inventory and skilled people and operations are what make Multi-piece Shipments (MPS) possible. WareIQ's smart fulfillment capabilities combine the above in the following form to enable MPS for brands and sellers across categories and channels: Order Management system with the ability to add more packages to shipment detailsFulfillment tech in the warehouse provides staff visibility on the Order IDs, and SKUs to be clubbed together, and scan-based operations to make it error-freeUnified tracking engine with the ability to club multiple AWBs into oneTraining of the FC staff on the nuances of this use-case Here's a look at how WareIQ helps sellers in creating Multi-Piece Shipments (MPS) easily in just a few clicks: https://youtu.be/msaJVAtlCvU Enabling Multi-piece Shipment (MPS) using WareIQ

January 23, 2023

Stranded Inventory: Impact, Causes & Solution

Stranded Inventory: Impact, Causes & Solution

While it may not receive as much spotlight, Stranded Inventory is an essential KPI to track by Consumer brands. Last year, sellers lost $1.5 BN of sales on Amazon due to stranded inventory. While they lost sales, they continued to pay fulfillment providers with heavy storage costs. Double Whammy! Source With stranded inventory, your seller ratings go down on Amazon thereby impacting your future sales potential. What is Stranded Inventory? Stranded inventory is the sellable inventory in the fulfillment center that does not have a buy option on your website or marketplaces like Amazon. Stranded inventory can have a negative impact on a business's financial performance, as it ties up valuable capital that could be used elsewhere. It can also lead to operational inefficiencies and can negatively impact customer satisfaction. Examples of Stranded Inventory Seasonal items that do not sell well during the off-season, such as Christmas decorations in the summer.Obsolete technology products, such as outdated smartphones or computers.Slow-moving items that have been on the shelves for an extended period of time, such as fashion items that are out of style.Products that are no longer in demand due to changes in consumer preferences or market trends, such as CDs in the age of streaming music.Overstocked items that were purchased in bulk but did not sell as well as expected.Items that have been discontinued by the manufacturer and are no longer available for purchase.Raw materials that are no longer needed because the production process has been changed.Items that are perishable, such as food items that have reached their expiration date. Why Does Inventory Get Stranded? Low Demand for SKUs or quality issues leading to low ratingAmazon policy violations: Product safety concerns, IP violationsSeller initiated stranded: Closed/Deleted listings, System error due to listings missing critical details How Can You Reduce Stranded Inventory (using AI)? Smart Demand Forecasting: AI algorithms can use past sales data and trends to make more accurate demand forecasts and reduce stranded inventory riskInventory optimization: Optimizing inventory levels through consideration of lead times, demand patterns, and carrying costs can help reduce stranded inventoryChose Fulfillment provider with faster stock inward SLAsPrice optimization: Analyze data on past sales and market conditions to optimize prices and reduce the risk of stranded inventory due to unsold products.

January 11, 2023

When and Why Should Zone Skipping Be a Part of Your Logistics and Fulfillment Strategy?

When and Why Should Zone Skipping Be a Part of Your Logistics and Fulfillment Strategy?

Zone skipping has become an increasingly popular logistics strategy for businesses looking to reduce shipping costs and improve delivery times. According to a study by the National Retail Federation, nearly 60% of retailers surveyed used zone skipping in their shipping operations. One reason for the popularity of zone skipping is the increasing complexity of global supply chains. With more and more businesses sourcing materials and products from around the world, shipping costs can quickly add up. By bypassing certain shipping zones or regions, businesses can often find more direct and efficient routes, resulting in significant cost savings. For example, a business that ships products from Asia to the United States might traditionally use ground transportation to move the goods across the Pacific Ocean. However, by using air or ocean shipping instead, the business could potentially save thousands of dollars in shipping costs and reduce transit times by several days. Definition of Zone Skipping in Logistics Zone skipping in logistics refers to the practice of bypassing certain shipping zones or regions in order to reduce shipping costs or transit times. This can be done by using a more direct or efficient routing, such as by utilizing air or ocean shipping rather than ground transportation, or by using a third-party logistics provider that has established relationships and negotiated rates with carriers in specific regions. Zone skipping can effectively reduce shipping costs and improve delivery times, especially for businesses that ship large volumes of goods over long distances or to multiple countries. However, it can also involve additional logistical challenges, such as coordinating with multiple carriers and customs agencies, and may not be feasible for all shipments. "Large marketplaces like Amazon & Flipkart efficiently do Zone Skipping to lower their net logistics cost while delivering parcels at fast speed with low returns. Zone skipping refers to a shipping method in which a package is shipped to a location in a different zone from the intended destination, with the intention of reducing shipping cost and improving speed.Last-mile comprises 60-80% of the total logistics cost for most of the brands. So efforts to reduce this cost component derives maximum savings in the value-chain. In India logistics, Zone categorization works as follows: Zone A & B are local and regional zones while Zone C & D are metros & national shipping zones respectively. There is a huge difference in cost & speed between the zones, and RTO (returns) %."- Harsh Vaidya, CEO & Co-Founder, WareIQ Impact of Zone Skipping Zone skipping can have several impacts on businesses and their supply chains, both positive and negative. Some potential impacts include: Cost Savings One of the primary benefits of zone skipping is the potential for cost savings. By bypassing certain shipping zones or regions and utilizing more direct or efficient routing, businesses can save thousands of dollars in shipping costs. Improved Delivery Times Zone skipping can also lead to faster delivery times, allowing businesses to bypass congested or slower-moving shipping lanes and utilize more efficient routing. This can be especially important for businesses that rely on the timely delivery of goods to meet customer demand or production schedules. Increased Complexity However, implementing a zone skipping strategy can also add complexity to a business's supply chain. Coordinating with multiple carriers and customs agencies can be time-consuming and may require additional resources. In addition, businesses must carefully evaluate the reliability and reputation of carriers to minimize the risk of damage or loss during transit. Environmental Impact Another potential impact of zone skipping is its potential environmental impact. By using more efficient or direct routing, businesses may be able to reduce their carbon emissions and other environmental impacts. However, air or ocean shipping may also have a larger environmental impact than ground transportation. "To illustrate this with math, consider the following for a parcel to be shipped to Bangalore:➡️Shipping from NCR to Bangalore (Zone C Shipment), would typically cost, say INR 50/shipment (500 gms) by Air and would take 48 hours➡️Shipping this locally within Bangalore (Zone A Shipment) would cost INR 30/shipment and would take 24 hoursThis brings a savings of INR 20/shipment in last-mile delivery. Assuming fulfillment costs (storage, pick & pack) being the same in both the locations, the incremental cost would be first-mile cost & excess inventory holding cost. In our experience, this would blend to ~ INR 8/shipment This would lead to a saving of INR 12/shipment overall with an improvement in speed by 1 day. For a business with 3,000 orders/month, this translates to savings of INR 36,000 per month or INR 4,32,000 per year.Zone skipping also help in reducing returns. When an order is shipped directly to the customer, there is less opportunity for the item to be damaged or lost in transit. Additionally, by reducing the distance that orders have to travel, businesses can reduce the risk of delays or other issues that can lead to customer dissatisfaction and returns.As per our data, Zone D RTOs are 3 times of Zone A, and 2 times of Zone B. This not only adds to your cost, but dramatically impacts your future repeat purchases in the Zone.It's important to note that zone skipping may not always result in a cost benefit, as the cost of inventory holding & first-mile may overshoot the savings if not done right. In this case, a brand would be buying the fast-shipping experience without the savings. As an intelligent fulfillment network, WareIQ helps brands with real-time insights on Zone Skipping, and create inventory plans to lower holding costs. Further, we have daily stock replenishments running between our FCs across the zones leading to efficient transfers at low cost. All done seamlessly through a centralized platform."- Harsh Vaidya, CEO & Co-Founder, WareIQ When to consider Zone Skipping? An eCommerce company should consider zone skipping when: High Shipping Costs: Zone skipping involves shipping products directly from the manufacturer or supplier to the customer, bypassing the company's warehouse or distribution center. This can result in lower shipping costs as the products are not being shipped twice.Demand concentrated in certain zones: If there is high demand for products in certain regions, zone skipping can eCommerce players meet demand more efficiently by shipping products directly to those regions.Long lead times: In case of long lead times, zone skipping can help to reduce the lead time by shipping products directly from the manufacturer or supplier.Limited warehouse capacity: Zone skipping can help brands to manage inventory more efficiently in case of limited warehousing capacity by shipping products directly to customers.Improving customer experience: Zone skipping can improve the customer experience and increase customer satisfaction by reducing shipping time and costs. Conclusion Zone skipping can help modern Indian eCommerce by placing inventory closest to customers, thus lowering shipping costs and boosting delivery times. This can also help companies manage their inventory more efficiently and meet high demand in certain regions. However, it's important to note that zone skipping comes with its own complexities, such as compliance with laws and regulations, communication with suppliers and manufacturers, managing inventory and forecasting demand. Therefore, it is important to put this into action with a trusted 3PL that possesses the aforementioned capabilities of generating sharp data insights regarding your supply chain, has a smart fulfillment platform for easily placing your inventory at the right location, and has designed a refined people and process approach is well-aligned with your business goals and objects and makes zone skipping as a strategy seamlessly possible. [signup]

December 23, 2022

WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #5

WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #5

We are back again with a host of new releases, features, and updates, all geared towards simplifying logistics by enabling smart fulfillment operations for D2C and Marketplace sellers alike. New Releases WareIQ Seller Panel: End-to-end logistics management platform for Marketplaces and House of Brands WareIQ seller panel provides a centralized plug & play platform for Marketplaces/House of brands to onboard/manage 100s of sellers on varied WMS systems. With WareIQ Seller Panel, Marketplaces/House of Brands will get access to: Aggregated business performance across the sellers to understand order performance, inventory management, compliance, and invoicing is availableGenerate automated invoices for corresponding sub-brands based on apportioned order valueInventory fetching and synching back across a network of WMS accounts (Unicommerce, Easyecom, Vinculum, Shopify)Support for complete/partial returns as well as complete/partial cancellation is availableInventory management featureShipping engine integrated with 30+ top courier partners to optimize cost and speedProductivity applications: Trust badges, Branded Tracking, Customer Feedback, Whatsapp notificationWareIQ RUSH to accelerate online sales through same-day delivery Visit this page to read more about our smart fulfillment platform: WareIQ Smart Fulfillment Platform WareIQ Fulfillment Platform interoperable across Vinculum, Unicommerce, Easyecom and Shopify Inventory Management WareIQ smart fulfillment platform is now interoperable across: VINCULUMUNICOMMERCEEASYECOMSHOPIFY Inventory Management  Manage all your D2C platforms' or marketplaces' inventory from a single platform through one-click integration with leading ERPs and WMS. Customers using any of the 4 platforms can easily move to WareIQ platform, making change management much simpler. Get a detailed look at our integrations here: WareIQ Integrations New Features Bulk COD Verification for all your orders Now verify all COD orders easily. Select all your orders in bulk and complete COD verification with just one click. This is also applicable for Multi-parcel Shipment (MPS) COD orders. Verify the parent order and the child orders get automatically verified. Simplifying flash sales for brands/sellers SKU management can get really complex during flash sales, requiring SKU cloning and fulfillment for each of these clones.  Our smart platform simplifies SKU management by allowing sellers to fulfill orders against the original SKU itself, eliminating the need to clone SKUs in bulk. Show accurate delivery timelines WareIQ Shipping Badges allows you to boost your online sales by displaying fast delivery timelines on your website. Our updated AI algorithm allows the app to learn from historical data for order pin codes and couriers to display the appropriate timeline automatically with more accuracy Access the app on WareIQ fulfillment platform and Shopify WareIQ Up to Speed Up to Speed is WareIQ’s monthly product newsletter, encompassing all product releases, updates and feature launches. Subscribe to the newsletter to get stay ‘up to speed’ with the latest happenings and offerings from WareIQ. You can also subscribe to the same on our LinkedIn handle: WareIQ Up to Speed

December 13, 2022

WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #4

WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #4

With the objective of providing users with a unified logistics experience through our smart fulfillment platform, we have recently released a number of features and new updates that allow users to have better visibility into their operations and perform critical tasks directly from the platform. With the objective of providing users with a unified logistics experience through our SaaS Merchant platform, we have recently released a number of features and new updates that allow users to have better visibility into their operations and perform critical tasks directly from the platform. New Releases Initiate Inventory Transfers and track transfer progress directly from the WareIQ Platform through the new PO Creation feature A lot of our clients shared how complex inventory transfer from one warehouse to another is for their operations team. They lacked: An easy and automated PO creation processReal-time visibility into the transfer processAlerts to immediately communicate issues for quick remedial action To simplify inventory transfer, we have launched a new PO Creation feature that allows you to create POs and track the inventory transfer process in real-time directly from our smart fulfillment platform. https://www.slideshare.net/AmanSandilya/wareiq-po-creation-and-tracking Watch the following video to know more https://www.youtube.com/watch?v=cvTFz1GxfY4&t=1s Proactively manage logistical escalations and streamline business processes through WareIQ Control Tower With our new feature - WareIQ Control Tower - you can unlock: Enhanced visibility by tracking NDRs, Order Delays, and Pickups in real-timeIntelligent insights to enable quick action against issues and concernsOrder-level data to know your operations in-depth, at a grassroots level https://www.slideshare.net/AmanSandilya/wareiq-control-tower-253644419 Latest Feature Updates Easy tracking of forward and reverse-leg logistics from a single panel on the WareIQ Smart Fulfillment Platform Track and get visibility into both forward and reverse logistics from a single window! Click on forward or reverse AWBs in the Order panel and track your forward and reverse shipments easily. Branded Tracking App now allows you to know when your shipment is PACKED and ready for pickup Now with our Branded Tracking App you can even track when your shipments get PACKED! Use this feature to gauge your dispatch and delivery turnaround and understand warehouse and shipping performance better. WareIQ Up to Speed Up to Speed is WareIQ’s monthly product newsletter, encompassing all product releases, updates and feature launches. Subscribe to the newsletter to get stay ‘up to speed’ with the latest happenings and offerings from WareIQ. You can also subscribe to the same on our LinkedIn handle: WareIQ Up to Speed

October 17, 2022