Detailed Guide on Micro Fulfillment Center: Meaning, Top Benefits & Challenges with Micro Fulfillment Centers and How Can They Enhance Retail Efficiency in 2023
In this day and age, where consumers are used to ordering most of their requirements online, a delay in them receiving that order could have dire consequences for the seller. With so much competition in every sector, businesses are pining for getting their products to their customers at a faster rate than their competitors. To accomplish this goal, businesses and online retailers have had to adopt new strategies to ensure that they don’t fall behind. This is why micro fulfillment centers are important as they can bridge the gap between where the order is being shipped from and the customer's doorstep. Read further to understand all the nuances of micro fulfillment, in more detail. What is Micro Fulfillment? Micro fulfillment is a strategy adopted by companies/eCommerce sellers where the fulfillment cycle is made more efficient by setting up small-scale ecommerce warehouses or storage facilities near densely populated areas, thus reducing the time taken from placing the order to delivering it. In this age of consumerism, where same-day delivery has become a norm in some locations, companies such as Amazon, Flipkart, Big Basket, and other eCommerce/retail companies are finding solutions on how to uphold customer expectations, while at the same time, figuring out how to maximize on their own profit margins. This is where micro fulfillment is the solution. Last-mile delivery incurs the most costs among the different stages of delivery, and is estimated to be between 40-50% of the entire supply chain cost. With the inclusion of micro fulfillment, this cost can be minimised as it reduces the shipping costs from regional/central distribution centers to the local distribution center. [contactus_uth] What is a Micro Fulfillment Center? Micro fulfillment centers are small, fully or semi-automated fulfillment centers situated in close proximity to the end customer and generally covers an area between 3,000 to 10,000 sq. ft. They center can be part of a larger warehouse or can exist as a standalone unit as well. They are also known as dark stores, where the order processing and packing is fully automated with minimal human interaction. A micro fulfillment center usually has limited inventory, lasting for 24-72 hours, and acts as a base for express delivery for products within a certain pin code or geographical location. To state an example, Flipkart may have a large warehouse in Binola, Haryana of 13 lakh sq. ft., but in order to fulfil express delivery for Saket, it can set up a micro fulfillment center in Saket of just 500 sq. ft., and thus cut down on the 1.5 hours of travel time. This will ensure that same-day delivery can be easily met for those end-users in South Delhi and offers an enhanced customer experience for the end-user. How can Micro Fulfillment Centers Boost Retail Efficiency in 2023? With the advent of hyperlocal delivery ecosystems, the aim is to increase efficiency to match the needs and expectations of the end customer. Still, despite automated warehouses and large fulfillment centers, with the latest implementations of picking and sorting technologies, the required efficiency is difficult to achieve. This is where micro fulfillment centers step in. eCommerce companies will find a boost in retail efficiency post the implementation of micro fulfilment centers due to the following reasons: Improved analytics Companies will gain deeper insights into the purchase patterns of customers within a pin code or a smaller geographical location. Thus, the inventory stored will be more precisely suited to the user's needs and will involve faster order pickups as well as cost-saving from unused inventory. Faster fulfillment Even in a semi-automated state, they help reduce the fulfillment cycle duration because the orders have to be picked from a smaller area and can be done with higher accuracy. The order pick up process reduces from 60 minutes in regional distribution centers to just 6 minutes in micro fulfillment centers. Faster delivery With last-mile delivery carving out a significant portion of an eCommerce company’s revenue, they reduce the delivery time and thus aid in cost-saving. Ease of integration They are much smaller in size, aid in the company’s expansion as they can help reach a larger area and are also much easier to integrate into the existing system of the company’s supply chain. 5 Benefits of Micro Fulfillment Centers vs. Traditional Fulfillment Centers As per the real estate firm CBRE, it was seen that for an eCommerce player to earn $1 billion in sales, it requires 1.25 million sq. ft. of storage space. This added to the fact that the majority of players are aiming for a faster fulfillment cycle, shows that micro fulfillment centers provide a solution to the needs of eCommerce players. Micro fulfillment centers prove how useful they are as compared to traditional fulfillment centers in the following ways: Highly responsive to changes in customer demands When the lockdown struck and customers’ demands changed from clothing to groceries, micro fulfillment centers could have adapted to the change in the demands much faster by making space for grocery items and replacing other products. This rapid deployment and shift in resources cannot be matched by a traditional fulfillment center. More customizable products With better insights into the customers’ demands in a certain area, micro fulfillment can stock up on the required inventory that the customers in that area need, and this leads to an optimised, faster and more efficient fulfillment cycle. Improved quality control With a lower order density, it is much easier to ensure that the products being shipped are of the quality demanded and to the correct addresses. Faster delivery time It is common to see commercial vehicles waiting to enter the city limits and ending up in long traffic jams at the city borders. This hassle is saved by micro fulfillment centers being set up close to the end-user, thus reducing the distance and ensuring extremely fast deliveries. Lower operational and set-up costs Micro fulfillment centers take much less time to be set up and the operational costs are lower than traditional fulfillment centers, thus increasing the company’s profits. What are the Best Practices in Micro Fulfillment? Micro fulfillment is a relatively new practice. Thus, eCommerce and other fulfillment companies are striving to ensure that they can fine-tune this to the best of their abilities. The following are some of the best practices that are being followed universally by most, if not all, eCommerce companies: Inventory: Establishing an inventory management system based on the business model, and thus ensuring that the micro fulfillment center is not under or overstocked is essential. Inventory issues can cause a bullwhip effect going back up to the main distribution center as well.Integration with existing systems: Ensuring the software system for handling the micro fulfillment center can be integrated with that of the distribution center’s Warehouse Management Software and/or the Order Management System and e-commerce platforms, to improve visibility and control over operations.Property Selection: Whether it is building a new store or renovating an existing property, the geographical location and ease of approach must be considered. A cheaper location but with an interrupted power supply will, in the long run, prove to be costlier than a location that might be more expensive but with better civic amenities available. 5 Main Challenges with Micro Fulfillment Centers Micro fulfillment is a solution that can revolutionise the eCommerce industry, but for all the promise and excitement, it must be taken with a pinch of salt. Players, new and old, when expanding using the micro fulfillment route, must keep in point the following challenges and be prepared with contingencies for them: Constant inventory replenishment Be it using the Milk-run route or the EOQ model, micro fulfillment centers, due to their smaller size, will require their inventory to be replenished often, and this means a proactive inventory replenishment system must be in place to handle this. Consumer unpredictability A limited storage capacity can sometimes make it difficult to quickly adapt to a certain trend. For example, an influencer posting about a certain product leads to an overnight trend, and this may lead to unfulfilled orders. Risk of stockouts With a limited inventory of certain SKUs, there is a risk of some products/SKUs facing stockouts during unpredictable high demand changes. Not suitable for all products/SKUs They are not suitable for some larger products which cover more area, and given the limited space available, it will be a choice between which SKU to sacrifice. Order consolidation Customers order multiple grocery items simultaneously and expect all the items to be delivered together. But at the micro fulfillment center, if even a single item is out of stock, it can lead to a delay in the delivery or cancellation of the product by the retailer’s end, both leading to depleted customer satisfaction and mistrust of this system. Source Top 8 Micro Fulfillment Companies in India  Micro fulfillment in India is followed using a relatively hybrid concept. The FMCG sector in India is vastly unorganized, with close to 95% being unorganized. So, rather than only setting up dedicated micro fulfillment centers, many 3PL, eCommerce and fulfillment companies are using the already established infrastructure of these stores as micro fulfillment centers while also setting up their own micro fulfillment centers. While completely automated micro fulfillment centers have not been set up in India yet, many companies dealing in the hyperlocal delivery industry are using this hybrid model of using the existing Kirana stores as micro fulfillment centers. Below are some of the leading micro fulfillment companies: WareIQFlipkartDunzoSwiggyGrofers/BlinkitBig BasketOla DashShadowfax WareIQ Source WareIQ is a category defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs! WareIQ offers centralised tech platform for your entire eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages Today, over 300 brands have taken charge of their ecommerce logistics & fulfilment with WareIQ to unlock tremendous value in terms of revenue and customer satisfaction. WareIQ Rush is their same-day-delivery platform. Using this platform, WareIQ is aiming to help online sellers offer same day delivery in every major metropolis in India, with a plus 99% fulfillment rate. Sign Up Now with WareIQ RUSH to avail our superior fulfilment tech platform & enhance your online business growth. Flipkart Source One of the original players to bring about this hybrid concept of using Kirana stores as a micro fulfillment centers, this eCommerce giant has opened up micro fulfillment centers and launched the “Flipkart Quick” service to deliver close to 2000 products ranging from grocery to electronics such as smartphones. It now uses its vast network of micro fulfillment centers to provide grocery services across 1800 cities, 23 states, and 10,000 pin codes in India. Dunzo Source Established in 2014, this hyperlocal delivery system caters to 7 cities. Seeing the changing consumer demand due to the lockdown, Dunzo plans to open 300 micro fulfillment centers across 20 cities and keep the top 2,000 SKUs in each center. Their main goal is to provide delivery in under 19 minutes, in every corner of the country. Swiggy Source Swiggy’s Instamart is now available across 18 cities and has achieved the 15-minute delivery service level by opening up multiple micro fulfillment centers in partnership with local Kirana stores. The potential of this service can be realised by understanding Swiggy’s decision to invest $700 million into establishing a micro fulfillment center for hyperlocal deliveries. Grofers/Blinkit Source Grofers, now rebranded as Blinkit, one of the country’s earliest hyperlocal grocery delivery companies, is opening 1000 micro fulfillment centers across India and providing a 15-minute grocery delivery service. With the onset of services like Swiggy Insatmart and Dunzo, Grofers is trying to claim the mantel of India's leading online grocery platform. Big Basket Source Big Basket, with its BB Daily and BB Instant services, provides hyperlocal delivery services by being able to deliver around 90% of the items within two hours. Big Basket was amongst the earliest adopters of the micro fulfillment service. It presently has ten micro fulfillment centers in each metro city and one each in 50 smaller cities. Ola Dash Source Ola is known for its cab service but its up-and-coming same-day-delivery eCommerce service called Ola Dash, is seeking to up the ante by opening up to 500 micro fulfillment centers across 20 Indian cities. Ola Dash is presently providing a 10 minutes “Store to Door” delivery service across nine cities and across 2,500 SKUs and the micro fulfillment platform is set to expand upon that. Ola is hoping to make a name for itself in the eCommerce space. Shadowfax Source This logistics company provides same-day delivery and courier services and is now being used by retailers to fulfil their online orders. With Shadowfax’s micro fulfillment centers which are actually their delivery and sorting hubs, they provide hyperlocal delivery of products such as groceries and medicines, in a very short amount of time to their customers doorsteps. Conclusion: How You Can Utilize Micro Fulfillment Centers of WareIQ to Offer Same Day Delivery to Customers The Indian eCommerce industry is rapidly progressing towards the hyperlocal fulfillment sector. Zomato recently announced their decision to enter this sector as well, and with multiple other startups also aiming to provide the “10-minute” delivery service, the way forward is through micro fulfillment centers only. As the pandemic restrictions slacken and people are returning back to the offices, the hassles of coming home and buying groceries will return once again too. This will lead to an increase in the demand for hyperlocal delivery services, and subsequently, the need for micro fulfillment centers across metros and even smaller cities in the country. One such company seeking to provide same-day delivery services is WareIQ through their WareIQ RUSH platform. Established in 2019, WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages ( Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. [signup] Micro Fulfillment Center FAQs (Frequently Asked Questions) What is the process of micro-fulfillment?Micro-fulfillment is a strategy for improving delivery times by locating small-scale warehousing operations in highly populated urban areas. Does WareIQ provide micro fulfillment services or have micro fulfillment centers?Yes, WareIQ provides micro fulfillment and has dozens of micro fulfillment centers & dark stores across the country which helps in uniform distribution of inventory across India closer to the customers. How much does a micro fulfillment center cost?To fulfill orders through micro fulfillment centers, it costs around 5$ per order. What is the drawback of micro warehousing and micro fulfillment center?• Requires constant inventory replenishment• Depends on irregular consumer demands• Increased risk of stockouts• Depends on customer locations• Not feasible for all SKU types Is micro fulfillment part of last-mile delivery service?Micro fulfillment warehouse is an integral part of last-mile delivery service because it is generally the last node before the order gets delivered to the end customer. Is micro warehousing the future of eCommerce?Certainly yes, because same day and next day delivery at a minimal cost is the future of ecommerce and micro warehousing will play a vital role in the same. Is micro-fulfillment the next big thing for retailers in malls and restaurants?Micro-Fulfillment is absolutely the next big thing for Mall Retailers, and Restaurants. E-commerce companies and merchants can benefit from micro-fulfillment centers to strengthen their fulfillment strategies. Because they are closer to their clients, they can minimize lead times and turnaround times, allowing them to meet increasing Service Level Agreements.
April 13, 2022
Top 7 Best 3PL Fulfillment Companies to Manage Logistics of eCommerce Sellers in India in 2023
ECommerce in India is booming and correspondingly, so is the 3PL fulfillment industry. Different agencies have shown that the demand for third-party fulfillment companies is bound to grow steadily. Technavio, a UK-based research firm, has predicted the industry to grow at a CAGR of 8% and by $10.74 Billion between 2021 - 2025. Similarly, Mordor Intelligence has predicted a CAGR of 11% for a similar period. This growth is fuelled by sectors such as eCommerce, FMCG, manufacturing, and retail. Yet, not many sellers are aware of the advantages, features, and services of 3PL fulfillment companies. So here are a few points to help sellers get a better understanding of this industry and how a symbiotic relationship can be established between eCommerce and 3PL fulfillment companies. What are Third Party Logistics or 3PL Fulfillment Companies? 3PL Fulfillment Companies are the companies to whom the entire order fulfillment cycle can be outsourced when the online seller wants to move away from self-fulfillment or doesn't want to manage the operations in-house. These third-party logistics fulfillment companies provide eCommerce logistics, inventory management, warehouse management, packaging services, and other aspects of the fulfillment cycle for either a specific portion or the entire supply chain operation. This helps sellers maintain an asset-light and non-capital-intensive business model, thus increasing their liquid capital and allowing the seller to focus on improving their business while the 3PL fulfillment companies improve the supply chain efficiency. [contactus_gynoveda] Why is Logistics a Headache for eCommerce Players in India? India, a country with diverse geographical features, cultural practices, and infrastructural progress, is bound to present logistical challenges to eCommerce players. Some of the predominant issues being faced are: Reliance on roads for freight transport With transportation by roads being the preferred means of freight movement for eCommerce players, two dominant issues, as highlighted by a report issued by the consulting firm McKinsey and the Indian Institute of Logistics, are: India’s over-strained highwaysAcute shortage of drivers Lack of internet connectivity and digitization With low internet penetration, stages of the logistical segment remain constrained, due to the lack of technological infrastructure in certain areas. The sellers do not have access to adequate transportation facilities. With some of the older players in the industry being slow to digitalise, stages of the logistical network undergo significant delays as there is an information delay between the transportation service and the reseller. Safety concerns Deteriorated law and order situations in some regions of the country lead to pilferage, theft, or even hijacking of the cargo, leading to additional expenses and loss of inventory and time. Pay-On-Delivery is the primary method of payment With “Cash-on-Delivery” (COD) being the end customer's most preferred means of payment, additional time is spent on cash collection and handling by the last-mile delivery personnel. A high number of returns Though this is a global trend, the eCommerce players in India consistently witness a higher number of returns. This causes the logistical players to ensure a reverse logistical flow at no additional cost to the end customer. Inconsistency in postal codes and incorrect delivery locations Despite being one of the largest postal systems in the world, there can be issues with the postal code of the end-user, leading to the last-mile delivery personnel having to call and confirm with the end customer. Many infrequent or first-time eCommerce users tend to make errors in inputting their addresses, leading to subsequent issues. How can 3PL Fulfillment Companies Help with Logistics Management for eCommerce Businesses? A seller might have the product of the century and it might be the next big revolution in the tech sector. But the harsh reality is that it would all be worthless if the seller is unable to deliver the product to the customer’s doorstep without incurring significant costs. This is where 3PL fulfillment companies step in to cater to the following essential needs of the seller, which are: Being cost-effective By simply using Economies of Scale, 3PL fulfillment companies handle multiple sellers and, thus, manage to distribute the costs of transportation among many parties. This allows the individual seller to incur significantly lower costs. The seller can also maintain an asset-light model without investing capital in infrastructures such as warehouses and trucks. You May Like: Know About Types of Warehouses. Offering greater coverage Third-party fulfillment companies have established logistical networks to provide services to sellers. An individual seller may not be able to deliver a product to a customer in some location, but with established resources of 3rd party fulfillment companies, such as existing warehouses and supply chains, these companies can not only fulfill the seller’s needs but also a strategic location. Offering faster delivery time In this era of same day / next day delivery needs, 3PL fulfillment companies, with their warehouse network, trained staff, and advanced technology, meet the service levels promised by sellers and can help smaller sellers compete with their competitors who may be the bigger players in the industry. Taking advantage of scalability Demand undergoes a cyclic trend, and this trend varies weekly and monthly. Thus, to provide a cost-effective way for sellers to meet the varying need of customers during the entire year, third party fulfillment companies provide sellers with flexibility and scalability to handle the variation in demand. Thus, 3PL eCommerce fulfillment companies can help eCommerce sellers by offering a better consumer satisfaction level, overall. Customers receive their orders on time or faster, irrespective of their geographical location, and without additional shipping charges; all of these factors lead to a heightened level of customer satisfaction. What are the Typical Offerings of 3PL Fulfillment Companies? Third-party fulfillment companies strive toward offering an end-to-end solution to eCommerce companies, and all 3PL fulfillment companies provide the following services: Inventory managementLogistics solutions (First mile to last-mile delivery)Warehouse managementFreight forwardingFinancial solutions for freight forwarding such as letters of credit How to Select the Right 3PL Fulfillment Company for Your eCommerce Business? Probably one of the most important decisions a seller will have to take is to decide which third party fulfillment company to choose for their products. To help such sellers out, here are some questions they must ask. This shall aid them in choosing the best 3PL fulfillment company for their requirements. How technologically sophisticated are 3rd party fulfillment companies?The world is advancing rapidly and so is the logistics sector. In this era of live tracking and same day / next day delivery, a seller needs a third party fulfillment company that can keep a seller informed and ahead of their competition.Can the 3PL fulfillment company match your growth?If an innovative product does not manage to reach its target customer sitting halfway across the country, or the reach is slower, and a competitor picks up on the idea and launches a similar product with a broader and faster reach, it will be game over for the seller.Is the third-party fulfillment company financially strong?In an asset-heavy industry such as the logistics sector, it is vital for any seller to ensure their 3PL fulfillment company is financially strong, especially during unaccounted disruptions and emergencies.How deep is the third party fulfillment company’s talent & How well are they ready for adverse situations?It is crucial to understand the depth of the third-party fulfillment company’s experience pool because it shows how well they understand the industry and how good their contingency measures are. Which are the Top 7 Third-Party Fulfillment Companies [Updated 2023]? India is booming with all the third party fulfillment companies on offer, all competing to be the most prized and trusted by sellers and end customers alike. With a booming eCommerce sector and, subsequently, the 3PL fulfillment sector, there are many competitors. But here are 7 of the top 3PL fulfillment companies for small/medium businesses or large businesses in India in 2023. WareIQDelhivery eCommerce LogisticsBlue Dart LogisticsEkart LogisticsShadowfaxMahindra Logistics LtdXpressBees Logistics Each company has been mentioned along with some of its services or features which act as a differentiating factor against the other players. WareIQ Source Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment tech solutions for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda, and Wingreens Farms, have trusted WareIQ as reliable partners in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as next day delivery and same day delivery. The onboarding process is simple, convenient, and less time-consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Suggested Read: Check out the list of best Warehousing Companies Delhivery Third Party Fulfillment Source Delhivery, since its inception, has successfully fulfilled over 1 billion orders across India. Their aim is to build an efficient operations model for business, through a combination of world-class infrastructure, cutting-edge engineering, and technology capabilities, and logistics operations of the highest quality. It is one of India’s largest and most popular 3PL fulfillment companies that is also homegrown. It offers end-to-end fulfillment solutions.It serves over 17,000 pin codes and 175 cities.It offers features such as sending tracking details to customers through SMS.It provides same-day/next-day delivery options.It provides multiple payment options at the time of delivery. Blue Dart Logistics Source Blue Dart is a prominent transportation and distribution company that utilises air as its primary source of transport, in South Asia. It offers delivery and logistics services to 35,000 plus locations in India. A part of the DPDHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart has access to the largest global logistics network that includes more than 220 countries and offers a wide range of facilities, such as air express, freight forwarding, supply chain solutions, and customs clearance. It has an unparalleled logistical network spanning over 220 countries and is one of the largest third-party fulfillment companies in the world.It caters to 35000 locations within India with a forward and returns logistical network.It has experience and expertise in regulatory and customs operations.It has a net service level of 99.96%. Ekart Logistics & Third Party Fulfillment Company Source Ekart Logistics is one of India's premier logistics and distribution companies. Commencing operations in 2009 as Flipkart’s in-house supply chain subsidiary, Ekart became a household name when it came to metrics such as customer experience, punctual delivery, and management processes. They offer complete end-to-end fulfillment services. It was originally created to handle Flipkart’s fulfillment but now caters to many other sellers.It is one of the more popular 3PL fulfillment companies in India because of its low rates and express delivery options.It has same-day delivery available in 13 cities and next-day delivery available in 50 cities across India.It provides end-to-end fulfillment solutions.It provides real-time data for sellers to ensure their service level promises are being adhered to. Shadowfax We Deliver Source Shadowfax was founded in Bangalore in 2015 and offers delivery and fulfillment services that are centered around a technology-based platform and hyperlocal delivery. The company has emerged as India's largest hyperlocal delivery service and offers on-demand hyperlocal delivery services with analytical platforms to track the entire process. It serves over 7000 pin codes and 500+ cities.It provides marketplace and warehouse pickups.It offers low-cost hyperlocal delivery.It provides express contactless delivery with multiple doorstep payment options. Mahindra Logistics Ltd Source Mahindra Logistics Limited is a branch of Mahindra, a name that most people will be familiar with as a major player in the automotive industry. A logistics and distribution company that has a significant presence across India, its primary offerings include technology-focused logistics solutions and distribution facilities, especially in rural areas. It is part of a reputed conglomerate company.It has India’s largest warehousing facility at a single location.It serves over 400 clients.It focuses on sustainability and, thus, has introduced Electronic Vehicles in its last-mile delivery. XpressBees 3PL Fulfillment Company Source XpressBees 3PL Logistics Company was formed in 2015 in Pune, Maharashtra. They have emerged as one of India's most rapidly growing companies in the logistics service sector. They offer end-to-end supply and distribution services. It caters to the end-to-end fulfillment needs of sellers.It covers 13000+ pin codes, 100+ hubs, and service centers.They are seasoned professionals, providing tech-based solutions.It has state-of-the-art logistics centers spread across the country.It provides 3PL fulfillment for products ranging from chemicals to heavy items like machinery. Common Misconceptions Regarding 3PL Fulfillment Companies Despite there being multiple players in the market and many of them known to sellers and the general public alike for many decades, there are still a few misconceptions that exist regarding third party fulfillment companies. Here, we shall address them so as to clear them out and leave no room for doubt in the minds of sellers. 3PL fulfillment companies are expensive to outsource toThird-party fulfillment companies use economies of scale to even out the costs among the many sellers and, thus, help to reduce the financial burden from the sellers’ shoulders. They reduce the recurring costs and capital expenditures that the seller would otherwise have to invest in.3PL fulfillment companies are not for SMEs but MNCsOn the contrary, MNCs have realised the cost-effectiveness of third party fulfillment companies. They do have small and medium-sized businesses that previously assumed third-party fulfillment companies to be too costly.3PL fulfillment companies only handle bulk volume ordersMany third fulfillment companies do not have a minimum order quantity because they club orders of different sellers who reside in a specific location and, thus, manage to reduce the logistics costs.3PL fulfillment companies take away control from the sellerThird party fulfillment companies are extremely tech and data-driven, thus, providing numerous reports that provide sellers with better insights and knowledge. This gives the sellers more control over their products as they can understand where and how much their product is selling. Conclusion The product is the seller’s pride and joy and every seller wants that their hard work, investment, and ambitions, which take the shape of the product they are selling, reach the end customer as promised. So be it an FMCG, MNC, or someone who is working out of their flat, the requirement is the same and that is where 3PL fulfillment companies provide a common platform where every seller stands to gain by being part of a larger ecosystem. With the above points that highlight the features and also the common misconceptions about 3PL fulfillment companies, sellers can now make a more informed decision about their choice of a third party fulfillment company that will help the seller climb the ladder of success. We hope you found this article interesting. We recommend using WareIQ for all your third party fulfillment requirements. WareIQ is a category-defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & eCommerce shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next-day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs! WareIQ, a Leading 3PL fulfillment company in India offers centralised tech platform for your entire eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralized platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages [signup] 3PL Fulfillment Companies FAQs (Frequently Asked Questions) What is the difference between 3PL and fulfillment?They may seem the same, but they are different. The main difference between 3PL and full-service fulfillment is that fulfillment provides a dedicated team to provide ongoing flexible solutions and customer support, a range of marketing resources along with picking and packing, labeling, order processing, customer relations and managing returns. What is a third-party fulfillment service?The outsourcing of ecommerce logistics procedures, such as warehousing, picking and packing items, inventory management, shipping orders, and managing refunds, is known as third-party fulfillment. Which are the top 3PL fulfillment companies for eCommerce businesses in India?• WareIQ• Delhivery eCommerce Logistics• Blue Dart Logistics• Ekart Logistics• Shadowfax• Mahindra Logistics Ltd• XpressBees Logistics How are 4PL Companies different from 3PL?A 4PL company performs all of the functions of a 3PL company, and a lot more too. In addition to functions of 3Pl, a 4PL company handles resources, technology, and infrastructure. They may even monitor external 3PLs and assist them in improving their performance for the benefit of the ecommerce retailer. Is Amazon a 3PL company?No. Amazon doesn’t label itself as a 3PL company, but many of its features are similar to what 3PL companies offer. Why should businesses opt for 3PL?• Cost savings for sellers• Professional Services and Knowledge• Business Expertise• Inventory management What are the Elements of Logistics with 3PL Providers?There is a wide and varied range of elements of logistics, they range from managing the inventory to making sure the products get to the customers quickly and efficiently. To name, these are some of the main elements of logistics:• Warehousing• Regular storage/cold storage• Supply chain management• Transportation• Materials handling• Distribution• Shipping and receiving• Customer service• Reverse Logistics
April 10, 2022
Introducing the WareIQ App Store: Streamline your eCommerce Fulfillment and Shipping Operations
Businesses have myriad needs which vary from one organisation to another, as well as evolve rapidly over time. To enable our esteemed customers to augment the WareIQ platform further, aligned with their logistics workflows, our team of experts has designed a suite of powerful applications. Based on your valuable suggestions, we realised that it may become cumbersome for you, at times, to hunt for the applications unless we organise them into a single point of access. Hence, we are delighted to launch the WareIQ App Store, making it extremely easy for you to discover the apps that you need at your fingertips at the right time. How does the WareIQ App Store Help You? When you visit the WareIQ App Store, you get the flavour of a superior design and ease of experience, with convenient navigational tools, fed with live data of your business performance. Let's dive deeper to understand the massive range of capabilities of the WareIQ App Store and what it means for your business. Provides you with more tools in your arsenal to boost your eCommerce operations amd make supply chain your competitive advantage.Acts as centralised portal, empowering you to manage all the stages of your eCommerce fulfillment and shipping operations from WareIQ platform directly.Shed down the inefficiency, inconvenience and complexity of working on multiple non-integrable apps. Our suite of powerful applications can easily integrate with your eCommerce workflows and systems, thereby opening new avenues to scale up your business.Leverage AI-ML powered analytics, fed with live data, for smart demand planning, smart inventory placement and network optimisation to enable same/next-day delivery for our customers.Helps you reach out to your customers on the right channel at the right touchpoint, and build trust with your customers through transparent communication and seamless engagement.Build customer loyalty by ensuring a delightful post-shipment experience for your customers. Top Apps to Check Out on the WareIQ App Store It may look confusing to you at the first glance, which app to use for which purpose. To make your task easy, here's a detailed analysis of each of the apps on the WareIQ App Store. Branded Tracking Delight your customers with a premium post-ship experience through a Branded Tracking page built with capabilities such as re-targeting and cross selling to increase your revenue. Turn your order tracking page into a profitable marketing channelImprove your products and shipping operationsIncrease customer engagementIncrease customer satisfactionCustomized branded pages Sample Branded Tracking Page There are several benefits of using the Branded Tracking application on the WareIQ App Store: COD and NDR Verification - You can easily verify Cash on Delivery collections by the delivery person and get Non Delivery Reports at your fingertips, so that you are always ahead of your competition on the vital performance metrics.Showcase Product Banners to your customers - Product Banners create a long-lasting impression of your products on your target customers' minds, enabling greater brand-recall and mindshare than your competitors. Gather feedback from your customers - Collecting feedback from customers just after the delivery helps you understand the pain-points of your customers, so that you can work on the weaknesses immediately.Create Brand Awareness - Creating brand awareness will increase customer loyalty, drive up-selling and cross-selling opportunities and boost word-of-mouth for your brand. Link-backs to your store - Store links that redirect the customer to your online store help to drive repeat sales and reinforces customers' confidence on your brand and products.Live Tracking and Updates - Provide full shipping journey and real-time order updates on the tracking page, so that you maintain the highest levels of transparency and trust with your customers, avoid unwarranted misunderstandings. It is very easy to create and customise your own Branded Tracking Page. Click here to learn how you can do it. Notifications It is well-established fact that customer loyalty can be effectively boosted through frequent and transparent communication with the customer through the product fulfilment process. It also helps to reduce the number of grievances and support tickets raised by customers from time to time. With Notifications application on the WareIQ App Store, you can significantly enhance customer engagement through effortless communications, and deliver an impeccable post-purchase experience to your customers through AI-ML powered Notifications and WhatsApp automation. This helps to: Increase customer satisfactionBuild customer trustTransparency in the shipping processIncreases the delivery success ratePre-empt EscalationsReduce unnecessary customer support calls There are several benefits of using the Notifications application: Send timely order updatesCommunicating cutomers about the delivery scheduleUpdating customers about their orders regularlyCreate brand awareness and drive cross-sell opportunitiesSend order updates to your customers on the particular events that you wishGet your business and operations related notifications Customer Feedback Customer Feedback App can get detailed reports on the WareIQ dashboard for brand performance based on the feedback collected from your customers, which will help you to: Increase customer retention and loyaltyImprove customer satisfactionAnalyze customer sentimentMeasure and improve the brand perceptionIdentify unhappy customers proactively You reap some major benefits by using the Customer Reviews app on WareIQ App Store: Gather customer feedbackAct on customer escalations in real timeCollect customer feedback on brand and shipping experience Weight Lock Predicting the final dimensions and weight of the ordered consignment is a tedious and almost impossible task. However, courier partners maintain stringent pricing policies across different weight and size ranges, making it difficult to handle such issues. With the Weight Lock application on WareIQ App Store, you can freeze the weights of your products to eliminate the hassle of weight discrepancies and ship products without worrying about the weight discrepancies. This will definitely help to: Avoid repeated follow-ups with the courier partners over the weight discrepanciesGet accurate shipping cost so that you can do the cost planning before handSave your time and effort on negotiations for weight discrepanciesBring uniformity to streamline your business operationsMake your operations more efficient with Weight Freeze However, there are some product-level pre-requisites for setting up the Weight Lock app:- Dimensions of the productWeight of the productProduct Images Click here to learn how you can easily add Master Products, upload their dimensions, weights and other details. Shipping Badges Shipping Badges appear on your product pages that helps customer check pin code serviceability and the expected delivery date for any product. Why Shipping Badges App? Check pin code serviceability and the expected delivery dateGet upto 30% increase customer conversionsIncrease the trust of your brand Benefits of Shipping Badges App: Drive sales for your productsShow estimated delivery timeReassure customers with prime-like badges on your website You can use this app to: Check real-time inventory availability of the productIdentify the nearest warehouseCheck for the fastest available shipping timeline across our logistics network IVR Calling New-age eCommerce customers prefer to remain connected to the sellers through time-saving modes of communication such as direct calling, but at the same time, they are concerned with their privacy. Similarly, eCommerce business and customer success managers are often exhausted with telephonic intrusions on their personal mobile numbers. To alleviate these worries, now you can leverage the IVR Calling feature on WareIQ App Store as a command centre to connect with your customers and provide lightning-fast reconciliation, without revealing your telephone number. The feature helps you to: Record conversations and track them on order basisEmpower customer teams to seamlessly address customer grievancesEnable a privacy-first approach by keeping your contact details and customer conversation details private RTO Shield RTO Shield gives the eCommerce/D2C businesses a complete checkout strategy to save on RTO losses and boost your revenue Why WareIQ’s RTO Shield? Claim refund for the shipping cost of any RTO order that was predicted safe by usTechnology based smart COD checkout option to detect risky users and save on shipping costsAutomatically disable COD for untrustworthy and blacklisted customersDuplicate orders identification and eliminationShipping Address Verification and smart shipping decisions based on the completeness of the address Benefits of RTO Shield: Improve conversion rates and reduce cart abandonmentFastest checkout experience, checkout under 10 secondsIntelligently identify high RTO risk customers from data sets comprising of telecom, banks, hyperlocal, and OTTIdentify abusers with the help of historical behaviour data on past buying behaviour and win over fraudsters How does it work? Integrate the application with WareIQ3 months historical data would be needed to train the model & generate accurate predictions.Go live in 3-5 days WareIQ RUSH Online businesses can offer Same Day Delivery to their customers and accelerate their online sales with WareIQ Rush. WareIQ RUSH allows eCommerce & D2C businesses to reach a larger audience in a shorter period of time (within one day) by empowering them with a strong nationwide network of fulfillment centers and micro-fulfillment centers near their customers. Why do you need WareIQ RUSH? Capture impulse buying behaviour of your customers by giving them shorter delivery timelinesReduce cart abandonment rate by giving express delivery to your customersAvoid cancellations due to delayed delivery and deliver the orders within hoursDeliver the COD orders quickly to get the remittance earlyGive a delightful and hassle-free experience to your customers that they can remember Benefits of WareIQ RUSH: Reducing delivery times - Ensuring your fulfilment centres are well-stocked so that you can reach a larger audience in a shorter period of time & offer same day delivery serviceReducing costs - Save resources spent on establishing infrastructure and store your inventory in fulfilment centres as per your business needsImproved customer satisfaction - With WareIQ’s prompt response times, you can ensure timely deliveries and greater brand reliability translating to satisfied customers Conclusion WareIQ offers a full-stack fulfillment platform for eCommerce companies to offer same day and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. With a strong nationwide network of fulfilment centres & urban dark stores near to end-customers and access to all major national & hyperlocal last mile couriers at discounted rates, WareIQ has established itself as a reliable partner for many reputed eCommerce players across the country. The easily integrable centralised tech platform has been extremely helpful for our customers. With the arsenal of business tailored apps on the WareIQ App Store, you can now choose which app to use to supercharge your supply chain operations. The 1-CLICK App-Integration experience is opening new avenues to scale up business over an inefficient & complex ecosystem of integrating multiple standalone business applications.While you can choose & drop apps as per your business usage in a completely hassle-free experience, you can get working previews of the apps through free trials, and subscribe as per your usage. These smarter apps powering same/next-day delivery help leverage AI/ML intelligence for areas, such as on-demand planning, smart inventory placement and network optimisation. Sign Up Now with WareIQ to avail our superior fulfilment tech platform & enhance your online business growth.
March 25, 2022
Same Day Delivery Service: Key to Accelerate Online Sales in 2023
Did you know that same day delivery service can help brands achieve 30% jump in revenueHigher repeat purchasesNear zero returns % As more & more brands start selling online to persist in the market, due to the burgeoning preference of online shopping among consumers, easy & improved accessibility to smartphones & faster internet services, one of the service offerings that has turned out to be the key enabler to online business growth is faster delivery service. Gone are the days when same day delivery service used to be just another factor for maximum customer delight. Same day courier delivery service is the new normal for online brands now. With the growing presence of online brands & geographically dispersed demand from customers across the country, eCommerce brands can differentiate themselves from other online players with same day courier delivery service even to the customers in the nook & corner of the country. Read along to understand how same day delivery services can be a game-changer for eCommerce & D2C business & how WareIQ RUSH can be your best fulfillment partner to accelerate your online sales. What is Same Day Delivery for eCommerce? Same Day Delivery for eCommerce brands is fast evolving as one of the most preferred services. Leading marketplaces like Amazon and Walmart have made deep pockets in the eCommerce space with Same Day fast Delivery service. As the concept is fairly new, there is a lack of awareness among eCommerce brands regarding the myriad advantages of same day/ 24 hour delivery. It means delivery of purchased products to the customer in less than 24 hours, ideally within the same day as the order is placed on the eCommerce platform. A recent survey showed: 60% of online shoppers said that delivery speed was an influential factor in their purchase decisions80% of shoppers shift to a different ecommerce brand if delivery speeds are too long. Thus, speed is a very important factor for any eCommerce business as success depends not only on the product quality but also on the time taken by it to reach the customer. More specifically, about 49% of customers consider Same Day or Next Day Delivery as a value addition to their purchase experience on any eCommerce platform, according to a recent study. [contactus_uth] Why is Same Day Delivery Service Necessary for Online Brands? The e-commerce industry is getting very competitive day by day. With the entry of multiple billion-dollar companies, the segment is getting crowded as never before. With a lot of money in hand, they are able to provide multiple services such as same day /next day delivery service to the end customer which the small or medium-sized entrepreneurs are unable to provide. Moreover, the success of an e-commerce business not only depends on the product quality but also on the entire customer experience which depends heavily on the delivery timelines. For offline businesses who are planning to start online businesses & hence be a multi-channel retailer, same day courier delivery provides an opportunity to participate in the e-commerce boom and stay relevant in the market by providing more convenience to their customers at the same time with a hassle-free same day delivery experience. Do customers really want it? According to a recent survey by PWC, more than 60% of shoppers say delivery speeds influence their purchasing decisions and more than 80% of online shoppers search elsewhere when delivery speeds are too long, this clearly shows how much speed matters. As per Conveyco, “Nearly half of consumers said they were willing to wait within two days for delivery in 2021 as opposed to a quarter of consumers who said they would wait within 3-4 days. This 20% drop off illustrates the importance and expectation that most consumers have when it comes to standard two-day shipping.” Source: Mckinsey Report Now the expectations have started shifting towards same day courier delivery. If the online businesses don't find out solutions to meet the rising customer expectations of hassle-free same day delivery experience, either they are going to be surpassed by their competitors or completely run out of business altogether in the coming future which won't be too far. How is Same Day Delivery Service a Key Enabler for Revenue Growth for eCommerce Brands? High conversion rates - Ecommerce brands offering this fast delivery service have higher customer conversion to capture impulse buying behaviourLow cart abandonment rates - customers tend to abandon the cart if the delivery time is long (5 - 10 days)Delightful customer experience - give a delightful and hassle-free experience to your customers that they can rememberLow order cancellation rates - reach your customers in 24 hours, so that they won't cancel the order due to a delay in delivery.Short cashflow cycles - to get the cash from the COD orders early, you will have to deliver the orders early What are the Top Challenges Faced by eCommerce while Providing Same Day Delivery Services? With geographically dispersed demand & rising customer expectations of same day delivery service of the products purchased online, even in the remotest parts of the country, e-commerce brands are now under pressure to provide such service to stay relevant in the market. However, 24 hour delivery can be challenging for e-commerce brands to offer because of the inaccessibility of prime-like fulfilment infrastructure to online brands selling outside of Amazon due to the following 3 factors: High fixed investments (significant contract size)Rigid contractsTech complexity The fact that eCommerce brands typically don't have physical stores limit their ability to offer same day or 24 hour delivery service. This also makes it difficult to personalize deliveries and create a seamless customer experience. If e-commerce and D2C brands are handling their own delivery operations, they face a lot of challenges: Missing the 24 hours delivery timeline of orders due to improper planning & coordination of fulfillment process leading to minor delays in O2S (Order to Ship), S2D (Ship to Deliver) timelines that leads to delay in expected O2D (Order to Deliver) timeline of 24 hoursInadequate size of fleets & understaffed warehouses to handle the increased volume associated with same day delivery (in case of sudden spike)Improper packaging, & mishandling of items that lead to product damage during transitImproper labeling that leads to wrong product reaching a wrong destination Do it yourself (in-house) or find the right partner to do it for you (outsource)? There are 2 ways in which online brands can provide same day delivery services to their customers: In-house fulfilment: This provides more control and transparency on the processes, but it is hard to oversee and manage as it requires a lot of capital and manpowerOutsourced fulfilment: This helps to serve the ecommerce businesses in a cost-effective manner but comes with its own set of challenges Apart from the differences, the operations involved in both the methods are similar, which includes Receiving and storing stock. Tracking and analyzing inventory.Picking and packing orders. Shipping deliveries with a shipping partner. The major challenge with both the solutions while offering same day delivery service to the customer is the cost of delivery. If you add the shipping cost to the product, then definitely the customer will abandon the cart. You also can't bear the cost of shipping because it will wipe off all the margin you had selling the product. Here is a short comparison between the 2 methods: How WareIQ RUSH Helps eCommerce & D2C Brands Accelerate Online Sales with Same Day Delivery Services? 5 ways in which WareIQ RUSH helps you accelerate your online sales with same day delivery services: Faster Order to Delivery WareIQ RUSH allows ecommerce & D2C businesses to reach a larger audience in a shorter period of time (within one day) by empowering you with a strong nationwide network of fulfilment centres near their customers. Our smart inventory placement ensures that your fulfilment centres are well-stocked and enables efficient & prompt delivery. As per reports, more than 60% of consumers, currently receiving deliveries in 5-15 days, are willing to pay more for a 1-day shipping speed and about 40% of customers prefer to shop from stores that offer 2-day shipping. Improved CPS (Cost per Shipment) WareIQ RUSH’s customers save resources spent on establishing infrastructure(i.e. Warehouses and fulfilment centres). We help you store your inventory in fulfilment centres as per your business needs. Our team’s expertise in logistics and our extensive warehousing network across India enables greater influence during negotiations(with warehouse owners and delivery partners), resulting in volume discounts for our clients Planning ahead in time WareIQ’s tech platform uses real-time data to enable your organisation to predict demand. With this data, you can make wise data-driven decisions ahead of time, thereby reducing costly delays and enabling supply chain efficiencies frequently Onground expert support Given the vastness of the logistics involved, WareIQ RUSH provides the expertise needed to improve and advance your supply chain for India’s ever-changing e-commerce environment. Our customer success teams support your day-to-day on-ground operations along with other requirements such as transport documentation, import and export licenses, compliances and economic regulations Improved customer satisfaction With WareIQ’s real-time data and prompt response times, you can ensure timely deliveries and greater brand reliability. This translates to satisfied customers — the most crucial success metric for direct to customer brands in a competitive space like India Customer Testimonial on Twitter Conclusion The online shopping experience of customers reaches an altogether different level with same day delivery experience. With minimum differentiation in product quality & features in similar categories & price range, same day delivery service can be an outstanding value proposition to your customers. In order to stay competitive in the market, same day courier delivery is probably the only way forward for eCommerce & D2C brands. While same-day delivery is an immense opportunity, it can be an operational challenge for founders/business owners alike. This is where WareIQ comes into the picture to help businesses accelerate their online sales. WareIQ is a category defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs! WareIQ offers centralised tech platform for your entire eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages [signup] Same Day Delivery FAQs (Frequently Asked Questions) What services should the fastest couriers provide apart from same day delivery?Pickup, delivery, returns management, COD and prepaid payment are common services provided by India's quickest courier services. What makes WareIQ different from the other couriers?WareIQ is an ecommerce fulfillment company that acts like a shipping aggregator with shipping Partnership across all prominent National & Regional Couriers, along with integrations with same day delivery partners in metros. Are first-mile and last-mile shipment included in these quickest courier partners?Yes. All of these courier services provide first-mile and last-mile same day/ next day delivery. Does WareIQ offer same-day delivery service?Yes, WareIQ offers same-day delivery in all 7 major metros. How does WareIQ ensure same day delivery services for all its eCommerce clients?WareIQ ensures fulfillment centres near your customer are well-stocked, leading to same-day delivery.The 3 reasons mentioned below ensures same day delivery for WareIQ’s ecommerce partners:1. Strong nationwide network of fulfilment centers, dark stores & hyperlocal services 2. Accurate advanced demand forecasting models3. Smart inventory placement system
March 03, 2022
Why e-commerce and D2C businesses choose 3PL for their fulfilment needs
Indian e-commerce has grown and evolved significantly over the last few years. Brands are increasingly turning towards alternative online selling channels beyond ecommerce marketplaces (like D2C and social commerce), to reach consumers. Thereby, requiring fulfilment services beyond the captive logistics of the ecommerce marketplaces like Amazon FBA. Enter Third Party Logistics service providers (3PL). 3PLs allows e-commerce and D2C companies to save time and effort spent on organising and managing a supply chain by insourcing their logistics processes end-to-end, including picking orders from the manufacturing unit, warehousing, packaging, shipping, etc. A market study conducted by Mordor intelligence showed that the Indian 3PL market is expected to register a growth rate of over 11.5% during the period of 2020 to 2025, with D2C and e-commerce entrepreneurs demanding new logistics capabilities and complex solutions from the 3PL service providers to help them in the successful management of supply chain processes, bring down conventional logistics costs and handle more complicated tasks as they scale. In this article, we explore why e-commerce companies are choosing 3PL providers for their fulfilment needs. Rise of e-commerce in India A report by IBEF (India Brand Equity Fund) suggested that the Indian e-commerce market will reach US$ 99 billion by 2024, growing at a 27% CAGR over 2019-24. Source: IBEF (India Brand Equity Fund) Among other things, this growth will be fuelled by the following factors: Increasing internet user-base and smartphone penetration: India has the second-highest active internet user-base globally and is also one of the largest data consumers. As per IBEF report, this number has grown by a significant proportion in 2020 and is forecasted to grow by approximately 60% by 2022. Graph by IBEF on Smartphone user base in India Covid-19 PandemicThe Covid-19 pandemic has also undeniably contributed to the increase in ecommerce sales as citizens were forced to stay indoors.With more and more people staying indoors and on their screens, there has been a fresh influx of first-time online shoppers as well as an increase in online shopping in general in the absence of an offline avenue. The 2021 Global Payments report by Worldpay FIS confirmed this by tracking trends across 41 countries and concluded that digital commerce had accelerated during the pandemic. The report projected the Indian e-commerce market, driven by shopping on mobile, to grow 21% annually over the next four years. There is a good chance many of the first-time online shoppers will permanently shift a part of their shopping online, given that online shopping appeals to the time and comfort conscious consumers leading busy lives. Logistics providers that are driving the Indian ecommerce industry There are primarily three types of logistics service providers (LSPs) that are driving ecommerce fulfilment in India. Traditional LSPs, Captive LSPs and e-commerce retail-focused LSPs. In 2018, an in-depth analysis by KPMG showed that e-commerce retail-focused LSP’s (logistics service providers) occupied 28% of the e-commerce retail logistics sector, and this number has been increasing. E-commerce retail-focused 3PLs E-commerce retail-focused 3PLs are designed specifically to handle the demands of e-commerce fulfillment, a lot more intensive operation than offline distribution and fulfillment. Some 3PLs are equipped to work best with startups and SMEs and provide plug-n-play substitute to building infrastructure, while still giving access to demand analytics, fulfillment infrastructure and advanced WMS technologies. Many SME’s and startups are choosing to take advantage of this. And some of the benefits include: Decentralising inventory for one or two-day delivery without investing time and resources on building infrastructure. (e.g., warehouses, forklifts, labor, etc) Alternative to hassles of fulfill orders in-house or via other captive marketplace logistics Saving several hours a week packing boxes and shipping orders. More time for strategic projects like marketing and product development. Lower minimum order requirement __________________________________________________________________________ Looking for a fulfillment service provider for your e-commerce or D2C business? WareIQ is a 3PL offering end-to-end fulfillment services that include smart inventory management, strategic and customised warehousing solutions and tech-focused optimisation of your supply chain to meet fast shipping timelines and boost sales. Get in touch to know more.
May 13, 2021
3 things to know about WareIQ’s Next-Day Delivery
The ubiquity of internet access has levelled the retail playing field, making it easy for individuals and businesses to sell products without geographic limitation. eCommerce shopping is growing rapidly in India. The backbone of any successful eCommerce retailer is its logistics strategy and how quickly and efficiently it can fulfill orders to customers. Why is logistics so crucial? As more transactions move towards online, customers want what they order almost as instantly as they would get it if they were in a physical store. This expectation is largely attributable to one company: Amazon. It was only a few years ago that acceptable delivery timeframes were 5-7 business days. But definitely no today! Amazon has transformed the market in such a way that free, two-day shipping is now the accepted norm and that’s quickly evolving into a one-day expectation. One of the biggest challenges for eCommerce retailers is shopping cart abandonment. Sixty-nine per cent of all online shopping carts are abandoned. Multiple sources of industry research confirm that the number one reason is due to high shipping costs. So, one antidote to shopping cart abandonment is faster, more affordable shipping. And one antidote to Amazon is being able to deliver at a comparable cost and speed. The answer? Next-day delivery. Reaching your end-user within a next-day delivery is made possible with a larger, dynamic fulfillment network. But it doesn’t come without its challenges. As more and more retailers seek to compete with Amazon and offer fast, low-cost delivery to customers, here are the top 3 things to know about a next-day delivery fulfillment network like WareIQ: Identifying the Right Fulfillment Locations Allocating and Managing Inventory Evolving Customer Delivery Promises 1. Identifying the right fulfillment locations The crux of offering next-day delivery to your customers is adding more fulfillment centers to your distribution network. Traditional means of doing that have either meant you buy and operate your own facilities and resources, you outsource to a 3PL, or you go through Amazon’s fulfillment services. Next-day delivery from WareIQ is different. Instead of investing in fixed assets, long-term lease commitments, or Amazon’s services, you can leverage our marketplace of already-operating facilities that have excess space and resources for warehousing and fulfillment services. But, if you want to reach 95% of your customers with next-day delivery, how do you know how many fulfillment centers to add and where to add them? At WareIQ, we’ll start by running a full network analysis that models various fulfillment scenarios using your actual backend data. Based on your fulfillment goals for time and cost, we’ll work with you to find the most cost-effective network scenario to achieve these goals. 2. Allocating and managing inventory Having more locations in your network does complicate how you manage and allocate your inventory. However, there are several ways to work through this along with WareIQ. As you move into more WareIQ locations, what should you consider when planning for inventory? Decentralized demand increases uncertainty and variability and makes forecasts harder to pin down. Regional and local preferences may create a different mix of inventory at each location Rebalancing inventory between locations may be required Here are three ways to keep your inventory in check as you grow your network: Understand the needs of your customers: We can help you move to next-day fulfillment to all of your customers, but is next-day shipping their expectation for all of your products? Analyzing historic inventory backorders can provide a rough understanding of what you’ll need at each location, and performing A/B testing can help quantify the improvements to conversion that’s associated with shorter ship times. Start with your top-performing SKUs: Inventory allocation becomes exponentially more complicated when you combine your high- and low-performing SKUs at the regional and local level. As you begin to offer faster ship times, start with your top performers and allocate those by region. Keep it simple. Proactively manage your projects and relative inventory: In the early stages, you may need to spend more time managing inventory. Take it slowly and measure every move until you can better predict and proactively manage inventory and its allocation. We’re also here to help you make the most of your network. We can partner with you to help you analyze and forecast demand, establish the right mix of A, B, and C SKUs. 3. Evolving customer delivery promises WareIQ’s Next-Day Delivery is designed to help you improve your fulfillment strategy with a solution that makes sense for your business. This can be done in three ways: Drive growth: You can reach more of your customers faster through a network that offers the flexibility and scalability traditional 3PLs and warehousing solutions can’t Cut costs: Eliminate traditional warehousing expenses and get the right inventory to the right location at the right time for the right cost Reduce risk: Control your own brand experience by delivering to your customers in your own brand collaterals and packaging As you refine your fulfillment strategy, you can begin to evolve your customer delivery promise and differentiate yourself from your competitors. For high-growth eCommerce retailers, your logistics strategy is the backbone of your business. To Know about WareIQ Next-Day Delivery - www.wareIQ.com
March 04, 2021
The benefits of selling D2C
Obviously cutting the middleman out of the equation provides the potential for brands to earn a higher margin and have direct access to their consumers and their data. But there are other notable benefits of selling D2C, which we explain below: Benefit #1 To gain a better understanding of the customer Before the intervention of D2C, manufacturers rarely interacted with the people who purchased their product. Sure, brands may try to get a good understanding of their target market by doing research and conducting surveys. But trying to understand your customers through these methods isn’t necessarily the best way to get to know them. Ideally, you need to have direct contact with your customer through every stage of the sale process, this also includes the communication that you have with the customer after you sold the product. These types of interactions are very hard to replicate in a focus group. To give you an example, it is widely known that consumers in the US want to eat healthily. GlobalData reports that 87 per cent of consumers in the US check the ingredients before they purchase a food product, and 75 per cent are concerned about consuming too much processed and unhealthy foods. But on the contrary, those same customers, who have said they want to eat healthily, also want to indulge in a gourmet burger served with fries. D2C enables brands to gain direct insights into their consumers and gather data that accurately reflect their behaviour. Benefit #2 Faster GTM (go to market) Besides being stuck in their ways, another reason why most legacy brands tend to shy away from innovation is that of the extreme risks involved. On average, a new product launch takes between 18 to 36 months - too slow, right? That’s exactly what customers feel. In D2C, manufacturers can take quick decisions allowing them to launch a new innovative product on a smaller scale but faster. Manufacturers can develop a specific product, test it within a very tight demographic, and then get their feedback. This enables large manufacturing firms to understand what their customers love and hate about the product so they can make the required adjustments where appropriate. Benefit #3 Increased control over brand, product, and reputation In a traditional manufacturing-retailer relationship, manufacturers could only have full control over their packaging and their outbound marketing activities like TV commercials and billboards. Once the product hits the shelves, larger brands no longer have control in trying to influence the sale. Even though these large brands try to influence as much as they can through commercial advertisements, if retailers struggle to sell their product, then they’re at risk of incurring a loss. With D2C, firms maintain complete control over their brand from the moment a customer makes their initial engagement right up until the product has been purchased.
February 24, 2021
Building a Next-day shipping engine for your business
As increasing consumer demand accelerates e-commerce growth, the logistics of getting orders to customers becomes more complicated - especially with the novel coronavirus impacting entire supply chains. Despite the uncertain times (or more so during this time), one thing remains unchanged; the customer's need for fast delivery. Popularized by Amazon, same-day and next-day delivery has become the default expectation today. In fact, studies by PwC & Accenture reveal that: 61% of consumers are willing to pay more for 1-day shipping speed and 40% of customers prefer to shop from stores that offer 2-day shipping. More than (51%) half of retailers offer same-day delivery and 65% plan to offer it within two years. Fast shipping is no longer a good-to-have but rather a necessity for e-commerce businesses to survive. Amazon has built a supply chain that can deliver most products within 2-day (and high moving goods the same day). They optimize every part of the fulfilment value chain to achieve these timelines. But can other e-commerce sellers provide the same experience without Amazon-level resources? Yes, they can. How? To optimize the fulfilment cycle, we must first understand the ‘Click to Door’ journey - all the different stages and destinations an order goes through before it reaches your customer. Click to Door journey What does it take for an order to reach your customer? Let’s take a look. Pack & Ship: The journey starts with your warehouse, where the order has to be packed and labeled. This could typically take 1-2 days depending on order volume and your warehouse's manpower productivity.First Mile Delivery: The order is collected from your warehouse by a courier partner and shipped to the distribution center. Typically, the pick-up schedule is once a day if the warehouse is located in the metros. In case of larger order volumes, courier partners can also schedule multiple pick-ups every day.Mid Mile Delivery: This stage involves the transfer from one hub to another. All collected parcels are aggregated based on to and fro zones and moved together. The mid mile process, typically, takes one day. Local Sorting Center: Once the order reaches the delivery target zone hub, it is passed to the local sorting center based on the area of delivery. This typically takes anywhere from half a day to two days. Last Mile Delivery: Finally, the order is picked up from the sorting center and aggregated with multiple orders going to the same pin code and assigned to a delivery boy. The entire process is inherently long and relies on the productivity of your distribution partners and the partnership that you have with them. Inefficiencies in either of these stages can lead to significant delays and unhappy customers, i.e. lost revenue for your business. How can you optimize the process? To build an efficient shipping engine, your logistics network must be efficient. This incorporates a mix of partners, resources, and best practices designed to help you optimise. Schedule multiple pickups in a dayStore goods in distributed warehouses close to your demandPartner with same-day delivery partners While you can implement the above processes yourself, it may require a lot of initial investment and stretch your capacities. A good alternative would be to partner with companies that offer logistics support. This is where we come in. Modern logistics partners such as WareIQ unifies network, technology, and expertise to offer end-to-end fulfilment services allowing you to focus on your core business and not worry about logistics. With WareIQ you get: The ability to store inventory in several of the fulfilment centers so you don’t have to manage your own warehouse(s)Robust technology that tracks your inventory and orders and offers advanced analyticsThe e-commerce logistics expertise needed to improve your supply chainBulk discounts and ability to reduce your delivery times and shipping costs [contactus] Many growing e-commerce businesses like Kama Ayurveda, Wingreens Farms, Sangeetha Mobiles, and Organic Riot partner with WareIQ to offer next-day shipping. WareIQ helps you shorten your orders’ click to door journey and make the entire process more efficient [signup] With WareIQ's infrastructure and technology, you can ship 90% of orders across India in 1 day. Such delivery timelines translate to not only cheaper logistics costs but an elevated customer experience, resulting in higher conversions and lower cart abandonment.
November 11, 2020