WareIQ welcomes new partners in the kitchenware and appliance category
Read Here

Contact Us

Mastering Supply and Demand: A Guide to Effective Inventory Optimization

Mastering Supply and Demand: A Guide to Effective Inventory Optimization

Business circles have heard about inventory optimisation, but they have difficulty finding a solution to the numerous supply chain issues they might have in their company.  Inventory is a collection of goods that an organization keeps for later use. The inventory optimization system analyzes and manages the same. Inventory can be stored at different points along the production and distribution supply chain. When low items need to be replenished, the inventory optimization system helps determine the amount of each item to be hoarded and the number of items that need to be ordered or manufactured when replenishment is necessary. Inventory optimization application improves inventory control and management across a broader supply network by integrating the most recent technologies and methods. Inventory optimization design goals include improving customer service, reducing lead times and costs, and meeting market demand. Raw materials, work-in-process inventories, and usually final products' storage policies and procedures are all covered by inventory optimization. Effective supply chain management reduces costs and lead times, improves customer demand adaptation, and leads to optimal inventory. Inventory optimization and supply chain managers' main concern is to calculate the exact amount of inventory at every point in the supply chain without creating overstock or shortages in order to minimize the total supply chain cost. Because a shortage of inventory yields losses in sales, while an excess of inventory may lead to useless storage costs, it is critical to make an exact estimation of optimal inventory. How to Optimize InventoryThe operating cycle of a business determines the optimization of its investment in working capital. It calculates the amount of time that has passed between the investment of cash and the realization of the investment out of sales revenue. The period during which investments of one unit of money remain locked in the normal course of operations until revenue is recovered is known as the operating cycle. Each project's operating cycle is different. The operating cycle of the cost element in a typical small-scale industry starts with the purchase of materials. The contents are not consumed right away. 'Raw Materials Conversion Period' is the next step in the cycle. When materials are sent for production, there is another time interval between sending the materials and making the finished product. This interval of time is referred to as the 'Work-in-Progress Conversion Period'. The company anticipates demand and produces finished goods. The finished product would remain in the store until the demand for it is fulfilled. Competition and other factors cause the company to offer credit facilities to its customers. "Book Debts Conversion Period" is the period of time between sale and cash acquisition. When the company buys raw materials from suppliers, it gets the credit. This time frame, which is referred to as the "Payment Deferral Period", shortens the operating cycle. Inventory Optimization Management TechniquesInventory management primary challenge is to balance operating efficiency, investment costs, and other costs associated with large inventories. The goal is to reduce the basic conflicts while optimizing inventory holding. When it comes to making decisions about which item to manufacture and when to keep inventories in balance, a lot of different techniques are needed, from simple graphical methods to more advanced and complex quantitative techniques. Many of these techniques use mathematics and statistical ideas and instruments, along with various control theories from engineering and other fields. They are mainly focused on helping with better policy compliance and decision-making. Effective inventory optimization management requires an understanding of the nature of inventories. To achieve this, the following analysis and classification methods are available.TechniqueBasisMain UseABC (Always better Control)Value of ConceptionTo control raw materials, components and work-in-progress inventories in the normal course of business mainly to control purchasesHML (High, Medium, Low)The unit price of the materialMainly to control purchasesXYZValue of the items in storageTo review the inventories and their uses at scheduled intervalsVED(Vital, Essential, Desirable)Criticality of the componentTo determine the stocking levels of spare partsFSN(Fast-moving, Slow moving, Not-moving)Consumption patterns of the componentTo control obsolescenceSDE(Scarce, Difficult, Easy to obtain)Problems faced in procurementLead time analysis and purchasing strategiesGOLF(Government, Ordinary, Local, Foreign sources)Source of the materialProcurement strategiesSOS(Seasonal, Off-Season)Nature of suppliesProcurement/holding strategies for seasonal items like agricultural products.Continuous Improvement and KPI MonitoringBased on the organization structure, each objective is divided into several sub-objectives, and these sub-objectives are then further divided into KPIs for each department. Surprisingly, even though the KPIs are established to achieve the same overall objective, they frequently conflict with each other. Thus, some departments report failures when they meet their KPIs.  Each department's organizational structure and functions must be changed so that their KPIs are synchronized in order to resolve the KPI conflicts. To achieve KPIs, the information system design should support departments' activities. Department-wise old KPIsProduction Department- Operating rate, production efficiency, and production cost are the KPIs for the production department. Continuous production reduces idle time and increases operating rates. Thus, a higher operating rate frequently leads to overstocking. Bigger lot sizes and continuous production reduce setup and changeover costs. But it makes it harder for the production department to adapt to demand changes. As a result, it hurts the KPIs for Logistics (excess inventory) or Sales (lost sales opportunity). Sales Department- The sales department's KPI is its sales figure. Sales teams usually make sales plans that meet demand. There are two main reasons. Their desire to increase sales is first shown by an ambitious plan. Secondly, they include “safety stock” in their sales plan to prevent sales opportunities from being lost. As a result, the company has a tendency to overstock. Additionally, the sales team tends to concentrate on products that sell quickly because the KPI is an overall sales figure rather than a single product sale. As a result, these products' sales exceed the planned target, resulting in stock-out. At the same time, slow-moving product sales fall short of the target, which leads to excess inventory optimization.  When stock-outs occur, the production department must adjust its production and purchase plans to increase production, which leads to higher production costs. Overstocking increases storage costs. Logistics Department- The company's logistics department is in charge of its product distribution system, which includes warehouse management and transportation. On-time delivery rate, transportation costs, and storage costs are the KPIs of the department. These individual KPIs are in conflict. Regular deliveries of smaller amounts will increase the on-time delivery rate. Also, the logistics team maintains high inventory optimization levels so that the goods can be shipped quickly। This causes overstock. RestructuringOn-time delivery rate, transportation costs, and storage costs are the KPIs of the department. These individual KPIs are in conflict. Regular deliveries of smaller amounts will increase the on-time delivery rate. Also, the logistics team maintains pipeline inventory management optimization levels so that the goods can be shipped quickly. This causes overstock. Department-Wise New KPIsProduction Department- Production cost is now the most important production KPI, followed by plan achievement rate. After reorganization, SCM centrally controls the supply chain. Thus, the most important function of production is executing and achieving the production plan that has been prepared by SCM. Sales Department- The company's sales figures are still the KPI for Sales. It is, however, the sum of all the individual products' sales, not just one total figure.  Logistics Department- The KPI for achieving the on-time delivery rate was also transferred to SCM from Logistics because the distribution planning function was transferred to it. The distribution plan achievement rate, transportation costs, and storage costs are the new KPIs for logistics. ConclusionBusiness circles have heard about inventory optimisation, but they have difficulty finding a solution to the numerous supply chain issues they might have in their company. Inventory optimization application improves inventory management strategies across a broader supply network by integrating the most recent technologies and methods. Inventory optimization design goals include improving customer service, reducing lead times and costs, and meeting market demand. 

July 10, 2023

Categories:
Different Types of Packaging and Their Uses

Different Types of Packaging and Their Uses

Warehouse packaging is crucial for a number of reasons, including protecting products, facilitating transit, and enhancing branding. For successful warehouse operations, you need to know about the different types of packaging and how they are used. We will discuss primary, secondary, tertiary, and specialised types of packaging in this blog, while also discussing the growing importance of sustainable packaging solutions.Retail-ready is one of the types of packaging that makes it easy to put products on store shelves and improves the shopping experience for both shopkeepers and customers. Flexible packagings, like plastic films, pouches, and bags, is versatile, convenient, and saves space. Customized packaging is specially made to match a product's needs and branding, helping companies stand out.Temperature-controlled packaging ensures that perishable items and medicines stay at the right temperature when they are transported. E-commerce is another type of packaging that focuses on keeping products safe, compact, and easy to open, which is important for online shopping.Primary types of PackagingPrimary packaging is the first layer of packaging that comes directly into contact with the product. Protecting and keeping the product safe during transportation and storage is its main goal. Boxes, cartons, bags, pouches, bottles, and jars are some common types of primary packaging. Various items are often packed in boxes and cartons, which provide a strong and secure enclosure. Bags and pouches, on the other hand, are flexible packaging options that are convenient for items like snacks, grains, and powders. Primary types of packaging also allow advertising and communication of product information. Companies often use this layer to show their logo, product name, ingredients, usage instructions, etc.Secondary types of PackagingPrimary packaged products can be stored and protected in secondary packaging. During transportation, it helps unitize, consolidate, and secure the primary packages. Shrink wrap, stretch wrap, and corrugated cases are common examples of secondary types of packaging. When heated, shrink wrap is a thin plastic film that adheres tightly to the packaged goods, protecting them from contamination, moisture, and tampering. Stretch wrap is an elastic plastic film that is stretched manually or mechanically and wrapped around palletized loads to secure them in place.Corrugated cases are made of corrugated cardboard. These are sturdy boxes that provide additional protection for main packages. They are often used for bulk shipments. It guarantees the product's integrity and safety during the journey. Retailers often use appealing secondary types of packaging to display their goods on shelves and increase visibility, which leads to more sales. Tertiary PackagingTertiary packaging is the outermost layer of packaging that is used to protect and transport several pieces of secondary packaged goods. During transportation, it is specially designed to facilitate storage, stability, and load security. Pallets, skids, strapping, banding, and dunnage are tertiary types of packaging examples. Pallets and skids are flat structures made of wood, plastic, or metal on which products are stacked. They make warehouse handling, movement, and storage simple. Palletized loads are secured by banding and strapping to avoid collapsing or shifting during transportation.Dunnage, which includes air pillows, foam inserts, and paper fillers, is used to fill voids in tertiary packaging to protect goods from movements and falls. Tertiary packaging reduces product damage and transportation costs by maximizing storage space and stability.Primary PackagingSecondary PackagingTertiary PackagingDefinitionPackaging that directly holds the productPackaging used to group primary packagesPackaging used for shipping and handlingPros- Protects the product from damage and contamination- Provides product information- Enhances product visibility- Facilitates efficient handling and transportation- Protects primary packages during transit- Enables bulk packaging and labeling- Provides additional protection for shipping- Consolidates multiple secondary packages- Facilitates storage and distributionCons- Limited in terms of size and capacity- Can be costly to produce for individual products- May not provide sufficient protection for shipping- Adds extra material and cost to the overall packaging- Can be bulky and require additional storage space- Increased waste from packaging materials- May require additional handling equipment- Higher material and logistics costs- Increased waste from packaging materialsExamplesBottles, cans, pouches, blister packsCardboard boxes, shrink wrap, palletsWooden crates, shipping containers, palletsSpecialized types of PackagingBased on the nature of the product being shipped or stored, special packaging is designed to meet specific requirements. e-commerce packaging, temperature-controlled packaging, and hazardous materials packaging are all included.  Temperature-controlled packaging is designed to keep products sensitive to heat, cold, or changes in temperature in a specific temperature range. Transporting fragile goods, medicines, and other temperature-sensitive items requires this packaging.  Hazardous materials packaging is designed to follow rules and safely transport items categorized as hazardous. It maintains containment, stops leaks, and gives handlers clear labelling to warn of potential risks.  Due to the rise in online shopping, e-commerce packaging has grown significantly in recent years It is focused on giving customers a positive unboxing experience, ensuring that goods are delivered safely, and minimizing the risk of damage during transit.Sustainable types of Packaging SolutionsAs environmental issues are growing, sustainable types of packaging are becoming more and more popular. These solutions help in reducing waste and increasing carbon footprint. Sustainable packaging also allows the recycling of biodegradable and compostable materials.Plant-based plastics and fibres naturally break down over time, which reduces the types of packaging waste impact on the environment. Recyclable packaging is made of cardboard, paper, and certain plastics that can be reused to make new goods. Materials like bubble wrap, foam inserts, air cushions, and moulded pulp ensure that products remain undamaged during storage and transportation. Sustainable types of packaging minimize the impact that it has on the environment by using recyclable, biodegradable, or compostable materials.Minimalist packaging designs focus on reducing waste, maximizing space, and avoiding unnecessary types of packaging materials.  Businesses can save resources and cut costs by only using what is necessary. Sustainable packaging solutions improve a brand's image and customer perception while also helping save the environment.Consumers are becoming more aware of their decisions when it comes to purchasing things, and they prefer brands that align with their values. Types of Packaging solutions include methods, materials, and designs that are used to pack products. These solutions can be tailored to meet certain needs. This includes safety, transportation,  promoting the brand, eco-friendly, and making it convenient for customers.Importance of types of packaging in warehousesProtection: Packaging protects products from damage, contamination, and external elements like moisture, dust, and ultraviolet light.Transportation: Proper packaging helps products move safely and efficiently throughout the supply chain.Branding and marketing: Packaging enhances the customer experience by communicating brand and product information.Storage and organization: Storage, inventory management, and order fulfilment in warehouses are made easier with well-designed packaging.ConclusionFor successful warehouse operations, you need to know about the different types of packaging and how they are used. Primary types of packaging are the first layer of packaging that comes directly into contact with the product. Boxes, cartons, bags, pouches, bottles, and jars are some common types of primary packaging.Primary packaging also allows advertising and communication of product information. Shrink wrap, stretch wrap, and corrugated cases are common examples of secondary packaging. When heated, shrink wrap is a thin plastic film that adheres tightly to the packaged goods, protecting them from contamination, moisture, and tampering.Tertiary packaging is the outermost layer of packaging that is used to protect and transport several pieces of secondary packaged goods. Temperature-controlled packaging is designed to keep products sensitive to heat, cold, or changes in temperature in a specific temperature range. Transporting fragile goods, medicines, and other temperature-sensitive items requires this packaging.  Hazardous materials packaging is designed to follow rules and safely transport items categorized as hazardous. Minimalist packaging designs focus on reducing waste, maximizing space, and avoiding unnecessary types of packaging materials.  Businesses can save resources and cut costs by only using what is necessary. Storage, inventory management, and order fulfilment in warehouses are made easier with well-designed packaging. Packaging solutions are essential for keeping products safe and giving customers a good experience. They are constantly changing to meet industry needs, consumer preferences, and sustainability objectives. Businesses can improve product safety, reduce environmental impact, and create a memorable brand image by choosing the right packaging solutions.Also read: Importance of Packaging In Ecommerce

July 06, 2023

Inventory Management Strategies for E-commerce

Inventory Management Strategies for E-commerce

E-commerce has become popular in the retail industry due to the internet surge and increasing customer confidence. In E-commerce, business is conducted electronically and it satisfies the objective of an individual. Manufacturers get various opportunities to sell and distribute directly to the customer through E-commerce. Advancements in technology have built new streams in inventory management and supply chain. Inventories across these networks must be controlled by the management in this era of complex supply chain networks. One of the core of supply chain management is effective inventory management. Along with traditional approaches that one adopted to control inventories, new tools and technologies are used to manage inventories in E-commerce.   With the advent of the same, several new supply chain concepts such as inventory aggregation, transshipping, virtual inventory, and virtual order fulfilment have emerged. Risk pooling allows to keep inventory management on hold allowing the supply party to do the same until it is needed at a downstream location. Virtual inventory management is a concept of satisfying customer demand from more than one inventory management location. It emerged from information sharing. A primary distribution site is assigned to the customers. These sites have backup locations with minimal additional cost. The replacement of inventory management with information allows for the utilization of inventory from any available stocking location to fulfil an order. This can be accomplished by either shipping the products directly from one of these stocking points or by transferring inventory from one location to another, known as cross-shipping or transshipping, to meet the order requirements.Agile Web Systems for E-commerce Inventory ManagementSome companies do not have the necessary security and fail to provide reliable data and when these companies decide to incorporate a web-based system it gets affected. Additionally, they also require continuous maintenance with guaranteed improvement. It is imperative for the employee to re-record his/her data and information when a customer purchases a product.It may result in data redundancy that leads to long-term maintenance requirements. In order to create prototyping for inventory management, Scrum methodology is used. This strategy has easy management and process control. Scrum methodology allows one to carry out large projects in a shorter duration and therefore it involves 5 stages for a better result.The product portfolio of 6 user strategies is displayed in the first stage. This stage is crucial to understand the objectives of the system to be implemented. The second phase takes into account the stories and shows the sprint backlog. In this phase, the increment activities to be carried out are distributed. The third stage is dedicated to meetings to discuss software development. Stages 4 and 5 implement new stories and develop the software. Role of AI in Inventory Management for E-commerceInventory management is a major challenge in the retail market but it is now easily tackled by AI algorithms. As overstocking needs to meet inventory management costs and rental, managing stock became a nightmare for every retailer.AI can help to design models of predictive analytics in the fluctuating market. This includes identifying the key factors affecting the speed of orders. These analytics are used by E-commerce companies to improve productivity and utilization of resources. AI tools also help the provider simplify the distribution network and inventory management.A hyper-efficient logistic system is created by AI and big data in the smart E-commerce ecosystem. Data is gathered through IoT and remote sensing. Products and vehicles have sensors which provide data on the receipt of goods, origin, and destination. It also leverages the cost of last-mile delivery. Using big data and AI continuously pushes logistics to evolve in a more sustainable way.Marketplace ModelAlso known as zero inventory, this organization creates a platform where the dealer can frame its products and maintain stock in a store. A certain commission is changed on the order by the facilitator from the merchant. Examples include snapdeal, Flipkart, and eBay.Inventory modelA product is chosen by a buyer from an online shopping platform post and the company take care of the process. In this inventory model, the organization maintains the distribution centre for the stock inventory and the order is dispatched to the customer's doorstep.Hybrid ModelAmazon and Flipkart have recently shifted towards the hybrid model due to current FDI inflows in India. This model is a mixture of inventory and marketplace models. Fulfilment services like FBA, Snapdeal Plus and Flipkart Advantage are included in the marketplace model. Sellers can make the choice of self-fulfilment or marketplace fulfilment. Talking about the application of machine learning in e-commerce, includes sentimental analysis, fraud detection, inventory management optimization, and much more. Retailers must see the demand precisely using predictive analytics. These models are designed with the help of AI which helps to identify the key factors that lead to changes in demand for different products.With the help of this, retailers can predict their inventory management needs. To save the product demand from the bullwhip effect, machine learning methods like neural network and support vector machine (SVM) plays a major role in demand forecasting.FactorMarketplace ModelInventory ModelHybrid ModelDefinitionAn e-commerce platform where multiple sellers list and sell their products.An e-commerce model where the company maintains its inventory and fulfills orders.An e-commerce model that combines elements of both the marketplace and inventory models.Inventory OwnershipThird-party sellersCompany-ownedCombination of third-party sellers and company-owned inventoryScalabilityHigh scalability due to a wide range of products from different sellers.Limited scalability based on the size of the company's inventory.Moderate scalability as it combines the offerings of multiple sellers with its inventory.Inventory ControlLimited control over seller's inventory.Full control over inventory management and optimization.Control over company-owned inventory and limited control over third-party seller inventory.AI IntegrationAI can be used to optimize search results, personalized recommendations, and fraud detection.AI can be leveraged for demand forecasting, automated reordering, and inventory optimization.AI can be applied for demand forecasting, personalized recommendations, fraud detection, and inventory optimization.Cost EfficiencyLower operational costs as there is no need to maintain inventory.May have higher operational costs due to the need for inventory management.Costs can vary based on the extent of third-party inventory and company-owned inventory.FlexibilityOffers flexibility in product variety and range.Limited flexibility as it relies on the company's inventory.Provides a balance of flexibility by combining third-party inventory and company-owned inventory.Customer ExperienceCan provide a wide range of products and competitive pricing.Offers better control over inventory availability and faster order fulfillment.Can offer a combination of diverse product selection and efficient order fulfillment.Risk ManagementLower risk as the responsibility lies with the sellers.Moderate risk as the company is responsible for maintaining inventory.Moderate risk due to managing both third-party inventory and company-owned inventory.Problems Encountered in Inventory ManagementDemand FluctuationDemand fluctuations are caused due to seasonality and product popularity. Due to this most of the online retailers have to account for the same. For e.g., most stationary retailers face a challenge to supply the necessary item when schools reopen in India after summer vacation. During this time the demand will fluctuate more due to seasonality. Similarly for online apparel stores demand fluctuation will be caused by a particular product. Retails should be able to handle such situations by having better foresight.Reverse LogisticsWhen online retailers face one of the greatest challenges to enhance customer satisfaction it is known as reverse logistics. The challenge is high product returns and therefore reverse logistics management is crucial for survival. When products are returned, they need to be organized into categories to see if they can be reused in different products. StockoutsWhen online retailers carry lesser inventory to reduce costs its benefits are widely acknowledged. But on the other hand, it may increase the risk of stockouts. Stockouts can cause retailers to face declining sales and customer satisfaction.Managing SKUThis is mostly faced by online apparel retailers where they face problems in inventory management of information for various SKUs. This occurs because each product can have various sizes and colours.Conclusion In E-commerce, business is conducted electronically and it satisfies the objective of an individual. Manufacturers get various opportunities to sell and distribute directly to the customer through E-commerce. Along with traditional approaches that one adopted to control inventories, new tools and technologies are used to manage inventories in E-commerce.Risk pooling allows to keep inventory management on hold allowing the supply party to do the same until it is needed at a downstream location. The replacement of inventory management with information allows for the utilization of inventory from any available stocking location to fulfil an order. This can be accomplished by either shipping the products directly from one of these stocking points or by transferring inventory from one location to another.It is imperative for the employee to re-record his/her data and information when a customer purchases a product. It may result in data redundancy that leads to long-term maintenance requirements. In order to create prototyping for inventory management, Scrum methodology is used. AI tools also help the provider simplify the distribution network and manage inventory. A hyper-efficient logistic system is created by AI and big data in the smart E-commerce ecosystem.

July 06, 2023

An Introduction to Amazon FBA: Fulfillment by Amazon

An Introduction to Amazon FBA: Fulfillment by Amazon

Being one of the largest retail platforms, Amazon is a hub of millions of merchandise. To get success in online retailing, logistics plays an important part. An effective logistic system saves the processing cost, transportation cost, and storage costs, and adds value to the transaction. According to studies, for 93% of consumers, the shipping option is an important factor to be considered. Along with providing benefits to Amazon sales, the advanced logistics system is also available to third-party sellers through the Amazon FBA program. Through this program, third-party sellers can place their products at fulfilment centres. On behalf of these sellers, amazon then ships the items and provides customer services.How Amazon FBA WorksFBA stands for fulfilment by Amazon and it allows the sellers to store their merchandise in Amazon fulfilment centres. Here is a step-by-step process of how it works:1. Seller Account Setup:Create an Amazon seller account where you can choose between an individual/ professional seller account. 2. Product Listing:Sellers can start creating product listings once their account is created. One needs to provide detailed product information, description, title, pricing, and other details of the product. 3. Inventory Shipment:This process involves proper packaging and labelling of the products following Amazon’s guidelines. Sellers can ship their products in two ways: Directly or through Amazon’s partnered carriers. 4. Storage at Amazon Fulfillment Centers:Once the product is arrived at the fulfillment centers Amazon stores the inventory in its warehouse. Proper storage condition and inventory management to maintain stock. 5. Order Processing:After placing an order, it is processed through Amazon’s system. The order is then picked, packed, and shipped to the customer on behalf of the seller. 6. Shipping and Delivery:The extensive logistics network of Amazon here comes to play. It uses various shipping methods like Prime and non- Prime delivery options to ship the products, ensuring a fast shipping experience for customers. 7. Customer Service:Customer inquiries, complaints and return-related inquiries is handled by Amazon FBA. Returns and refunds are facilitated as per its policies. 8. Fee Structure:The Amazon FBA service includes a fee structure which includes storage fees depending on the space occupied by the inventory. The fees vary based on product size, weight and storage description.9. Sales and Payments:Through the Amazon seller dashboard, sellers can monitor their sales and inventory performance. After every two weeks, Amazon distributes payments to sellers for their sales.10. International Expansion:Amazon FBA also allows sellers to expand their business globally.Importance of Meeting Delivery Appointments and How to Ensure Appointments, Consequences of FailureIn Amazon's Fulfilled by Amazon (FBA) program, meeting delivery appointments is crucial for successful business operations. Let's explore why it's essential, how to secure appointments and the impact of not meeting them.Why Meeting Delivery Appointments Matters:Customer Satisfaction: Timely deliveries make customers more satisfied, which leads to positive reviews and repeat purchases.Amazon Performance Metrics: On-time delivery is a critical performance measure that impacts your seller rating and buy box eligibility.Buy Box Eligibility: Your chances of winning the buy box and increasing sales increase with regular on-time deliveries.Order Volume: Meetings increase order volumes because your products remain available for purchase.How to Secure Delivery Appointments:Shipping Queue: Stay proactive and monitor your shipping queue regularly in order to secure preferred delivery dates.Ship Early: To avoid delays and meet appointments, ship items ahead of the estimated arrival date.Carrier Communication: Coordinate with carriers to ensure they pick up shipments at the earliest possible time.Utilize Amazon-Partnered Carriers: For reliable and faster deliveries, choose Amazon-partnered carriers.Impact of Failure to Meet Appointments:1.Order Defect Rate (ODR):Late deliveries lead to a high ODR, which may result in account suspension.2. Customer Feedback:Late deliveries cause negative feedback, which hurts your reputation and trustworthiness.3. Lost Buy Box:Consistent late deliveries may result in losing the buy box, affecting sales.4. Performance Notifications:Amazon sends performance notifications for unsuccessful appointments.Advantages of Amazon FBA1. Wide Customer Reach:With a massive customer base, amazon provides its sellers with access to millions of potential customers. By leveraging the prime membership program, sellers can get a large customer base. 2. Prime Eligibility:Amazon FBA products are eligible for Prime which offers them free and fast shipping. Eligibility for prime enhances the visibility of products and increases customer sales potential. 3. Reliable Fulfillment:The fulfilment network of Amazon is well-established and efficient. It ensures timely processing, packaging, and shipping4. Warehousing and Inventory Management:Third-party sellers can benefit from the warehouse infrastructure of Amazon. It helps in storing and managing the inventory freeing up the sellers from the burden.   5. Multichannel Fulfillment:Through the advantage of multichannel fulfilment, sellers can fulfil orders not only from Amazon but also from their websites. This provides a consistent experience for customers across various sales channels.6. Customer Service and Returns Handling:Sellers that use FBA are taken care of customer inquiries, feedback, and returns. The customer service team of Amazon manages customer interactions, resolves issues, and processes returns. It also reduces the workload for sellers and ensures a positive customer experience.Potential Challenges and Considerations1. Fulfillment Fees:FBA services from Amazon include fees for storage, picking, packing, and shipping of the products. The fees can impact one’s profitability especially if the products are of low margins. It is important to consider these fees while setting prices and managing your inventory.2. Competition:The popularity of Amazon FBA has increased competition among sellers. One faces competition from other sellers, as well as from Amazon itself. To stand out from the competition it is necessary to conduct thorough market research and differentiate your products.3. Product Preparation and Labeling:It is important to prepare and label the products to comply with Amazon FBA. This involves additional time, effort, and costs for labelling and packaging materials. To avoid issues and delays, understanding Amazon's packaging and labelling guidelines is a must. 4. Inventory Storage Limits:High storage limits are imposed on sellers by Amazon. This usually happens during the peak season. Exceeding these limits may result in additional fees. Some may also face restrictions while sending new inventory. To optimize storage space, effective inventory management is crucial.5. Inventory Placement:Amazon helps sellers to distribute their inventory across multiple centres. But it can result in higher transportation costs and complexities in management.Success Stories and Tips from Amazon FBA SellersSuccess Story: Deepak Rajaram and the 'Goodness' Pet Food BrandDeepak Rajaram is a dog-lover from Chennai. He embarked on a  journey to revolutionize the dog food industry in India. He was Inspired by his desire to provide the dogs with the best nutrition. That is how Deepak founded the brand 'Goodness pet food. With determination and the support of his wife Swapna, Deepak's business soared to new heights. Thanks to their strategic partnership with Amazon.Tips from the Story:By observing the market for gaps or unmet needs that align with your passion or expertise. Addressing these gaps can offer opportunities for business growth and customer satisfaction.Utilizing platforms like Amazon help to reach a broader audience, especially when facing challenges in traditional retail. Online marketplaces provide access to a large customer base, trusted infrastructure, and logistical support.One must prioritize quality and nutrition in their products. This can be done by offering something unique and valuable. Delivering on promises and maintaining consistent quality will help build customer trust and loyalty. Building a strong support system and delegating responsibilities to capable individuals who share your vision must be a priority.You may also like to read: Top Amazon FBA Alternatives in 2024Boost Your Fulfillment Strategy with WareIQ's Seller Flex ServicesWhile Fulfillment by Amazon (FBA) offers a robust solution for sellers looking to streamline their logistics, integrating WareIQ's Seller Flex services can further enhance your fulfilment strategy. This innovative approach allows sellers to maintain control over their inventory while benefiting from the advantages of Amazon's extensive marketplace.The Benefits of Combining Seller Flex with FBAGreater Control Over Inventory ManagementWith WareIQ's Seller Flex, sellers can manage their inventory from their own warehouses or utilise WareIQ’s network of fulfilment centres. This flexibility allows for:Responsive Stock Management: Quickly adapt to changes in demand without the constraints of Amazon's storage limits.Optimised Inventory Placement: Strategically position stock in locations that minimise shipping times and costs.Enhanced Delivery SpeedIn today's fast-paced e-commerce environment, timely deliveries are essential. WareIQ's Seller Flex services complement FBA by:Reducing Shipping Times: By leveraging a nationwide network of fulfilment centres, products can be dispatched from locations closer to the customer, ensuring quicker delivery.Maintaining Prime Eligibility: Products fulfilled through Seller Flex can still carry the Prime badge, providing the same level of customer trust and satisfaction associated with FBA.Streamlined Returns ManagementReturns can be a significant challenge for sellers. WareIQ simplifies this process by:Efficient Returns Handling: WareIQ manages returns on behalf of sellers, reducing the administrative burden and allowing sellers to focus on growth.Quality Control: Utilising an in-house QC app, WareIQ ensures that returned items are documented accurately, streamlining the claims process and minimising disputes.Addressing Common Challenges of FBA with WareIQ’s Seller FlexWhile FBA offers many advantages, it also presents challenges that can impact seller performance. WareIQ's Seller Flex services help mitigate these issues:Avoiding Compliance PitfallsThe intricate requirements of FBA can be overwhelming. WareIQ ensures that inventory is prepared according to Amazon's standards, reducing the risk of non-compliance penalties.Cost ManagementFBA fees can accumulate quickly, especially with storage and fulfilment costs. By using WareIQ’s Seller Flex, sellers can lower their overall fulfilment expenses through optimised logistics and reduced reliance on Amazon's pricing structure.Integrating WareIQ's Seller Flex services with your Amazon FBA strategy offers a powerful combination that enhances operational efficiency and customer satisfaction. By providing greater control over inventory, faster delivery options, and streamlined returns management, Seller Flex empowers sellers to navigate the complexities of e-commerce confidently. As you elevate your fulfilment strategy, consider the advantages of incorporating WareIQ's innovative solutions alongside Amazon FBA to achieve sustained growth and success in the competitive marketplace.ConclusionAmazon is a hub of millions of merchandise. To get success in online retailing, logistics plays an important part. According to studies, for 93% of consumers, the shipping option is an important factor to be considered. Along with providing benefits to Amazon sales, the advanced logistics system is also available to third-party sellers through the Amazon FBA program. FBA products are eligible for Prime which offers them free and fast shipping.Eligibility for prime enhances the visibility of products and increases customer sales potential. Through the advantage of multichannel fulfilment, sellers can fulfil orders not only from Amazon but also from their websites. FBA products are eligible for Prime which offers them free and fast shipping. Eligibility for prime enhances the visibility of products and increases customer sales potential. Delivering on promises and maintaining consistent quality will help build customer trust and loyalty. The fees can impact one’s profitability especially if the products are of low margins. It is important to consider these fees while setting prices and managing your inventory.

July 04, 2023

7 Inventory Management Techniques: Exploring FIFO, FEFO, and LIFO Methods

7 Inventory Management Techniques: Exploring FIFO, FEFO, and LIFO Methods

Originating from the French word “Inventaire”, inventory means a listicle of things discovered. It simply refers to raw materials, products in the manufacturing process, goods, packaging, and all sorts of physical inventory. These items are stored to be kept prepared for future distribution needs.What are the inventory management techniques?The key factors that make a venture successful include its ability to provide valuable services to users and retain finances. Its major activity of it is to have suitable products available at an affordable price within an acceptable timescale. In stabilizing this situation, many parts of a business are involved, for eg., designing, purchasing, and manufacturing. The next important process involves the continuity of goods supply to the users. It applies to the items that are already in the marketplace.Customer service, logistics or manufacturing of a company is supported by inventory management techniques, especially in situations where the item is unable to satisfy the demand. It could arise due to many reasons such as the pace of purchasing, protracted manufacturing, or the demand rate exceeding the maximum supply rate.  Inventory management techniques and toolsThe inventory control organization employs inventory management techniques within the framework of one of the basic inventory models. The basic inventory management models include the fixed order quantity system or fixed order period system. All items of inventory and all stages from the stage of receipt from suppliers to the stage of their use should be covered. ABC AnalysisThe mechanism provided by ABC analysis inventory management techniques for identifying items not only has a significant impact on overall inventory cost but also identifies different categories of stock that demand different management and control. The inventory items are valued while carrying out ABC analysis. Following this, the results are ranked. These results are grouped into three bands- ABC codes. The A band accounts for 85% of the total values while the B&C classes have 15% and 5% for the remaining.XYZ AnalysisAnother one of crucial inventory management techniques items is XYZ analysis. X refers to very little variation and is characterized by steady turnover occurring over time. Y means some variation and is not steady. Hence, the demand variability can be predicted to an extent. Factors causing demand fluctuations include seasonality, lifecycles, and the economy. Z has the most variation and the demand can fluctuate strongly for Z items.HML AnalysisSimilar to ABC analysis, HML analysis differentiates from ABC analysis in terms of cost per unit criterion. The items under HML analysis are classified based on their unit prices. They are categorized into high-price, medium-price, and low-price items.VED AnalysisAiming for vital, essential, and desirable analysis, VED analysis refers to the maintenance of spare parts and the functionality of stocking spares. The non-availability of some important spares renders a number of equipment and even causes damage to human life. Some spares on the other hand are non-functional and serve unimportant purposes. So all in all, V stands for the vital items which render the whole line operation or the equipment. In this process, unsafety leads to loss of production. E is the essential item which reduces the performance of the equipment without rendering it. D stands for the desired items which are non-functional and hence do not affect the performance.SDE AnalysisSDE Analysis is done by knowing the availability in the market. This analysis is useful in industries where some materials are scarce as it provides proper guidelines for deciding inventory management policies. S are the items which are in short supply for eg., raw materials and spare parts. D refers to difficult items that are not available in the markets readily. For these items, it is difficult to get quality suppliers. E are the items which are easily available in the markets.SOS AnalysisSOS refers to seasonal, off-seasonal systems and consists of raw materials like agricultural inputs. The price of these materials during the off-season would generally be lower. These items are procured and stocked for meeting the entire year's needs. The prices of these items are almost the same throughout the year and are less during the harvest season. A perpetual inventory system is a stock management technique that updates stock levels when there are transactions, like sales, purchases, or returns of purchases.FSN AnalysisThe FSN analysis is based on the rate of spare parts usage. FSN stands for fast-moving, slow-moving and non-moving items. The items in the FSN analysis are characterized based on how frequently the parts are issued and used. For instance, fast-moving are items which are issued from inventory and are used more than once for a specific duration. Slow-moving items are less frequently used and might be used once. Non-moving items are not issued from the inventory at all. FIFO, FEFO, and LIFO MethodsFirst in, first out method (FIFO)The items under the FIFO inventory management techniques that are first procured must be sold for production first. This implies that in-hand items are recent ones. This strategy connects with the actual progress of stock in most industries and therefore is desirable. In the phase when the cost is increased. It is presumed that most primitive units are first utilized. This means that the smallest amounts are charged according to the cost of goods that are sold first. One advantage of this method is that the oldest stocks are flushed out and inventory that is retained.First Expired First Out (FEFO)Under FEFO the items that are procured with early expiry are sold for production first. It means that the items in hand are more durable. The materials that are utilized are the ones about to expire in recent times. This method benefits by flushing out the stocks and retaining the most fresh inventory.Last In, First Out Method (LIFO)One of the inventory management techniques where the items that are procured last are consumed first is LIFO. This implies that in-hand items are the oldest ones. LIFO is banned under international financial reporting standards as it does not go with the natural flow of stock. The last units procured are utilized first. The cost of goods that are sold, leads to a low amount of operating costs and low-income taxes. One disadvantage of this method is that the oldest stock is not flushed out for years.FIFO VS FEFOWhen organizations distribute products with a limited shelf life FIFO or FEFO plays an important role in inventory management accounting. In the FIFO analysis, the goods selected first are the ones which are procured first. Whereas in FEFO, when new stock is purchased the goods are scheduled in the line of expiry. This is useful for beverages, medical products, and groceries that can perish rapidly. The basic objective is to keep fresh food in hand with FEFO inventory management techniques. In the FIFO method, goods may be purchased by mistake which has less expiry date and in such case, organizations may have to suffer a hefty loss due to its First in first out policy.ConclusionThe key factors that make a venture successful include its ability to provide valuable services to users and retain finances. Customer service, logistics or manufacturing of a company is supported by inventory management techniques, especially in situations where the item is unable to satisfy the demand.The basic inventory management models include the fixed order quantity system or fixed order period system. When organizations distribute products with a limited shelf life FIFO or FEFO plays an important role in inventory management accounting. In the FIFO analysis, the goods selected first are the ones which are procured first. In LIFO, The last units procured are utilized first. The cost of goods that are sold, leads to a low amount of operating costs and low-income taxes.

July 03, 2023

Understanding Fulfillment Storage Pricing: Occupancy Rate vs Per Unit Rate

Understanding Fulfillment Storage Pricing: Occupancy Rate vs Per Unit Rate

If you're an e-commerce seller in India, it's crucial to evaluate and understand the significance of two pricing models that can greatly impact your fulfillment costs and operations: occupancy-based rates vs. per unit-based rates.Let's dive into the details and explore why choosing the right pricing model is essential for your business success.📌 Occupancy-based rates:- Charges based on the physical space your inventory occupies in the warehouse.- Ideal for sellers with bulkier or larger items that require more space but have lower unit quantities.- Offers a cost-effective option for products that occupy significant warehouse space.Example: If you have 10 large furniture items occupying 100 square feet of warehouse space, you would be charged based on the occupied space, regardless of the number of items.📌 Per unit-based rates:- Charges based on the actual number of units stored or processed.- Suitable for sellers with high-volume inventory and smaller-sized products.- Provides flexibility and cost efficiency by paying for the specific quantity of units.Example: Suppose you store 500 small electronic gadgets in the warehouse. With per-unit-based rates, you would be charged based on the actual number of units stored, offering flexibility and cost efficiency.Selecting the most suitable pricing model depends on various factors unique to your business.✅ Consider your product characteristics, such as size and weight.✅ Evaluate your sales volume and storage needs.✅ Opt for occupancy-based rates if you have larger or unique items that require more warehouse space.✅ Choose per unit-based rates if your product range consists of smaller-sized items or experiences fluctuating demand.In conclusion, the best pricing model for e-commerce fulfillment in India depends on your product characteristics, sales volume, and storage needs. Occupancy-based rates are ideal for sellers with bulkier or larger items, while per-unit-based rates are suitable for sellers with high-volume inventory and smaller-sized products. By evaluating your specific needs and requirements, you can ensure that you are getting the best possible value for your money.

May 24, 2023

Amazon SEO 2026: A Step-By-Step Guide To Improving Your Product Listings On Amazon

Amazon SEO 2026: A Step-By-Step Guide To Improving Your Product Listings On Amazon

If you haven’t stepped on the e-commerce trend train, it is high time you do. There is a high chance that you are not fulfilling your sales potential just by selling your products on your website. The solution to all your sales problems is Amazon; however, only having a product page on Amazon will not ensure success; you want your page to appear first on the search engine results page ( SERP) when a customer tries to find a product that you are selling. If you want the customers to buy that product from you, you must learn how to comprehend  Amazon SEO by simply cracking Amazon’s A9 algorithm. First and foremost, you have to understand that Amazon is a buying platform, and its SERP works differently than traditional search engines like Google or Bing. Hence the varying factors or elements for the A9 algorithm are much simpler but, at the same time, tricky to understand. Every seller in the business wants a piece of the action by getting their pages through the top ranks of the Amazon SERP because they know that their customers use this platform rigorously. Therefore, in this article, we will discuss not only how the Amazon product ranking algorithm works but also take notes on some key strategies on how to rank higher on Amazon than your competitors. Let’s get into it.What is the Amazon’s Search Algorithm? Understand How Amazon Search Works.To understand the Amazon search algorithm, we must dive into the structure of algorithms as a whole. A search algorithm is a sophisticated system of ranking factors that determine which content is relevant based on a search query. These algorithms are updated and constantly evolving to improve the search experience of the customers. The structure of Google’s search algorithm, for example, is very similar to that of Amazon. The only major difference is that Google is centered around study, navigation, and research, while Amazon’s only focus is shopping and e-commerce. The search algorithm for Amazon is called the A9 because Amazon SEO is handled by the Amazon subsidiary - A9.Before we find out how to rank higher on Amazon, let us understand how the A9 works, search Amazon, and check out the search results. The A9 matches your query to a group of relevant products, and these products are shown to you in a series of pages. The question is how Amazon selects these products to display.The answer is ranking factors that are similar to Google but only exclusively built for e-commerce. The primary factor that helps customers find your product on search is the keyword you use in your product information - title, description, etc., along with other factors such as the price, availability, reviews, sales, etc.We will discuss the several ranking factors on Amazon SEO further in this article.  [contactus_gynoveda]What Is Amazon SEO, And Why Does It Matter?Amazon Search Engine Optimization is a process that allows you to rank higher on the research results of Amazon.com. If you are constantly wondering how to rank higher on Amazon SEO, a few simple steps and tactics can help you optimize your product search, boost sales and enable the shoppers to find your brand at ease. Following are the main reason why you must youse Amazon SEO as a seller:To generate more and more traffic to your product page and listingsTo enhance your brand as well as your product visibilityTo increase conversion rates and boost sales. How Amazon SEO Works?To learn about optimizations made in Amazon product listings, we must first understand how Amazon SEO works. This generally includes detailed information about the search result page, sponsored products, search box, and Amazon sales rank.Search Results pageEvery time a shopper searches for a product on Amazon, they can see the searches or the product display in two ways - a List view where the layout features 15-16 products on the search page or a Gallery view where 24-25 products appear on every result page. To boost your SEO ranking on the results page, certain will help you determine the same, namely - Product titles, descriptions, features, optimized images, and competitive pricing. Sponsored ProductsSponsored ads are another strategy used by Amazon sellers where they can promote individual product lists with the help of PPC or CPC campaigns. Sellers who have a Professional seller account enrolled in the Amazon Brand registry can set up these ads. After the ad is set up, Amazon will match your ads to the shopper's queries, and your product will appear to high-intent shoppers who are actively looking for product categories that are similar to your listings. The ads usually appear on the top of a product page or sometimes are even combined with the organic results. Hence, these ads can help you increase the visibility of your product on the shopper's search results. Search BoxAmazon search box is located at the top of the platform’s homepage. Amazon SEO retrieves relevant searches for the word or phrase that has been typed in the search box and enable customers to narrow down or refine their search result. The search box helps the shoppers to find the products quickly by just typing in general keywords. Search FiltersThere are various filters in place that can be used by online shoppers to customize their search results in a certain order. These are - department, best-sellers, new arrivals or realizes, featured items, customer reviews, movers and shakers, high or low price, digital content and devices, programs, and features. Sales RankThis is the rating given to sellers based on their performance, account health, reviews, etc. If you want to know how to rank higher on Amazon, you must consider improving on these points to enhance your selling potential. What are Amazon Search Ranking Factors?Several factors influence the Amazon search ranking or the A9 algorithm. They are-Price - When pricing your products, you must evaluate how much the shoppers are willing to pay for the categories that are similar to your product listing. A huge price difference between your product and that of your competitors can pose to be a disadvantage for you. Stock supply - Keeping your stocks updated can ensure that your products appear on the search because running out of stock can disappear your listing and push it further down. Text Relevance - Using the most relevant keywords in your product listing page, especially in the title and description, can optimize your product on Amazon SEO. Sales velocity - The more products you sell, the more chances are of rankings becoming successful on Amazon. Therefore if you want to know how to rank higher on Amazon, you must have a successful sales velocity. Optimize Your Amazon Listings in 7 Steps.Amazon SEO is a never-ending process that helps you engage with all the customers on the platform.  By focusing your efforts on seven different steps, namely - Keywords, product images, product titles, product pricing, descriptions, Key features, and backend search keywords, you can improve and optimize your product listing from an SEO standpoint. Let us discuss this in detail. Step 1 - Amazon Keyword Ranking ResearchKeywords are the key to finding your products; they are a comprehensive set of words or phrases that a customer uses to find something online. Think like your customer before listing your product; what phrases or words will you use to find your product on Amazon? While researching for keywords, you can follow these ideas -Check out the Amazon search box after typing in a bunch of words and phrases, and note down the relevant suggestions from the drop-down menu. Compare your product search terms and take your competitors as a reference. If you type in the phrases that are relevant to your product listing, you will find the different types of searches on Amazon to begin with. Compile a list of short and long-tail keywords that have high and low search volume, respectively. The search box is a great way to find popular keywords. Lastly, you can use the Amazon suggested and related item categories to explore new ideas for your keyword research. Step 2 - Product Title OptimizationRemember to know how to rank higher on Amazon SEO; you must think like your customers. Product titles are a great way to increase your chances of being discovered by a customer and for them to click on your product page. Following a few things like matching the title to the physical packaging, keeping the title length between 60-80characters, using punctuations, conjunctions, and capitalization, using numerical, using abbreviations, and using catchphrases (best-seller, hot items, etc.), can help you increase your search volume.Step 3 - Product Description OptimizationA high-quality product description highlights the product features and usage in such a way that it enables the customers to find, analyze and purchase your products. A high-quality product description will include the following - The Brand nameThe details like size, shape, etcThe material type used in eh productsAnd other relevant details like colors, packaging, delivery time, specs, etcBefore making your product description, the seller must read and adhere to the rules and policies mentioned in the product listing guidelines and review them properly. Step 4 - Optimizing Product Key FeaturesKey features are bullet points that are added to the details on the product page and play a very important role in Amazon SEO. This well-written bullet points describe your product specifications, contains keywords, and communicate with the customers so that they can make a buying decision. You can follow the below-mentioned guideline to develop your bullet points - Include five bullet points for every product and keep them under 100 characters to improve readability and appear in full on the product details page. Prioritize and highlight the top key features of the product that you want your customers to notice and consider while making a purchase decision.Maintain consistency in all your product bullet points in terms of the order, and keep mentioning the important information that has been used in your product title and description.No promotional or pricing information should be mentioned. Do not end the points with punctuation, and always start the first word with a capital letter.Adhere to the rules and policies of Amazon SEO and the details pageStep 5 - Product Image OptimizationOnline shopping is heavily dependent on visualization and the ability of the customers to access your products. Hence keeping high-quality images of the products from different angles can persuade the customer to choose your product over the competitors. Always show the product you want to highlight, keep various angles, use the high resolution to minimize pixelation when zoomed in, and highlight different features of the products. Step 6 - Search Term OptimizationSearch terms are backend keywords that allow you to maintain the engagement and readability of your content while making sure that Amazon SEO indexes all relevant keywords for the product. These search terms are embedded at the backend of your product listing and do not appear to the shoppers but enhance the discoverability of your product. Some ideas to optimize search termsInclude generic words, synonyms, abbreviations, and alternative names of the product.Minimize unnecessary characters and maintain the logical order of the search.Include spelling variationsAvoid punctuation and repeating words such as a, an, and, by, of, etc.Use either singular or plural search terms and use all lowercase letters. Always separate the words with spaces onlyStep 7 - Product Price OptimizationPrice can heavily influence your customer and determine the performance of your product. Research the pricing of your product based on competitors listing and develop a compelling price point. Keep in mind that overpricing your product can pose a disadvantage for you.  Five General Amazon SEO Best Practices CaptionAvoid repeating keywords at all costs. The only way to know how to rank higher on Amazon SEO is by providing a good customer experience. Only give the information your customers needs and avoid stuffing and repetition of keywords.Keep your focus on the sales copy by answering relevant questions and product inquiries. Anticipating important information about the product can help you a great deal while crafting a description.Improve your ranking by offering fast deliveries, enrolling in the brand registry and using A+ content, and becoming an Amazon Prime seller, which gives you a prime badge and your customers fast and free shipping. Improve your listing by using basic styling tips like being descriptive but conceive, persuasive but not pushy, authentic and truthful, as well as avoiding exaggeration. Improve your Amazon SEO game by downloading the Amazon Quick Start seller style guide that lets you customize your product detail page and its formatting. What is Amazon’s A9 Algorithm?SourceAmazon A9 is the official name for the Amazon search algorithm that looks for products and prioritizes content based on two important ranking factors - Relevance - Revenacy is found in the keywords that are search terms embedded in your Amazon product listing. These search terms must match the search queries of the shoppers. To rank better on Amazon SEO and make your products visible to the customers, you must use the most relevant search terms in your product detail page, including the title, bullet points, description, etc.Performance - When it comes to several ranking factors make that make it is tricky to prioritize and therefore exert control. Every single aspect of your product performance requires a distinguished strategy that is based on actionable metrics along with several Amazon Seller tools. When it comes to product performance, Amazon leans on metrics like Sales Velocity/history, conversion rate, Click-through rate, stock availability, Reviews, Sponsored products, and other indirect ranking factors that can help you top Amazon SEO. Amazon SEO ToolsSourceAmazon offers some SEO tools that are shortlisted below.A+ Content Listing Quality DashboardManage your Experiments and Run experiments toolsTools to add high-quality image listingsSeller Central Partner NetworkSeller UniversityAmazon Selling CoachAmazon SEO: Wrapping UpA successful Amazon SEO strategy depends on how well you understand the A9 algorithm and what it wants from the seller. When you figure this out, make sure you figure out how to make your customer happy and improve their experience. The A9 algorithm’s functionality comes down to the relevance and performance of the product page. Once you implement the ranking factors, your sales, conversion rates, and page performance will improve automatically. Amazon SEO: FAQs

April 13, 2023

Cold Chain Logistics Guide: How To Effectively Perform Temperature-Controlled Warehousing and Shipping?

Cold Chain Logistics Guide: How To Effectively Perform Temperature-Controlled Warehousing and Shipping?

We’re all aware of how globalization in trade and commercial sectors has bridged the gaps between nations and connected the world in a more economical, technological, and innovative way, but it does not technically dissolve the physical distance between these nations. Hence, the evolution of global trading between countries had to be resolved through the safe transit of goods using cold chain logistics. In a simpler analysis, you can create a small temperature-controlled packaging by simply filling your plastic bag with ice to carry your ice cream home without melting it, but transporting tonnes of perishable items as cargo to thousands of miles away requires time, effective coordination and most importantly temperature controlled logistics to prevent it from getting damaged. To ensure that cargo does not get damaged because of undue temperatures, shock, or any other external factors, manufacturing companies like pharmaceutical, medical, and food rely on cold chain logistics as an important part of their eCommerce operation. In this article, we will explore key information on cold chain logistics so that it can be implemented in your business logistics requirements. What is Cold Chain Logistics?Cold chain logistics is the science, technology, and process that is required in the transportation of temperature-sensitive products during the supply chain operation employing technology like temperature-controlled packaging methods and effective coordination and planning of the transit operation. To execute a cold-chain logistics operation, deep knowledge, and understanding are required of the perishability of the items that you will be shipping. Further, cold chain logistics is completely dependent on physical technologies that ensure that due temperatures are controlled throughout the operation. Some of these technologies and methods include refrigerated trucks and rail cars, temperature-controlled containers in cargo ships, and air cargo. [contactus_gynoveda]Elements Of A Cold Chain LogisticsCold chain logistics is a comprehensive process of preparing, storing, transporting, and monitoring temperature-sensitive products that need to be shipped. Hence a lot of components are involved that you must be aware of before executing such a logistics operation. These elements involve : Cooling Systems - These systems are utilized to bring the goods to the required temperature and manage it during every supply chain process, including processing, storing, and transporting.  Cold Storage - These are facilities where goods and products are stored with temperature-controlled technology, waiting to be transported.Cold Transport - Temperature and humid controlled containers where the cargo is shipped.Cold Processing And Distribution - Cold processing facilities help in the processing of goods with the help of sanitation techniques, and distribution deals with the loading of crates, pallets, and boxes that are also kept in temperature-controlled environments while being distributed. How To Provide Temperature-Controlled Environments In Cold Chain Logistics? It is important to note that different types of products require different temperatures and control methods to maintain their integrity and avoid damage. Hence, to implement a cold chain operation, you must have the right knowledge of transporting temperature-controlled cargo and how they should be adapted based on shipping circumstances. The vitality and shelf-life of these products are heavily dependent on how you can successfully maintain the temperature range throughout the supply chain process. Any temperature-sensitive shipment across an extended period of time will largely depend on the type of container being used, its packaging, and most importantly, the refrigeration method, which accounts for 20% of the energy consumption. When we speak about packaging, several factors, like the size of shipment, outside temperature, period of transit, etc., must be taken into consideration before deciding what type of technology will be used during the packaging process. Following are some of the cold chain packaging technologies that can help you enable a temperature-controlled environment during transportation. Suggested Read: What is Custom Packaging?Quilts - These are large pieces of insulated materials that are wrapped around or placed over the freight that act as a buffer in temperature variations and keep it relatively constant throughout the transit. Hence, if you want to keep frozen goods at the same temperature, this can be a useful technology, but it does not work as effectively as a refrigerated container. Quilts also help in maintaining the temperature of the freight as opposed to the varying outside conditions. Reefers - These are temperature-controlled transportation units like a minivan, small truck, semi-trailer, or an ISO standard container that allows the circulation of temperature-controlled air, which is maintained inside with the help of an independent refrigerator. It can maintain both cool and warm temperatures inside the vehicle. Dry Ice - Dry ice is solid carbon-di-oxide at a temperature of about -80°C used to keep frozen shipments like food, pharmaceutical drugs, and exploitative goods in refrigerated unit devices for an extended period, mostly during air cargo transportation.Gel Packs - These are phase-changing substances that can go from solid to liquid or vice versa to maintain the internal temperature of the cargo and capture the escaping energy. Gel packs are mostly used to keep large pharmaceutical and medical shipments under their desired range between 2 and 8°C.Liquid Nitrogen - This is a chemical substance that remains in the gaseous state at about -196°C, mostly used to keep the cargo frozen over a long period. This is a very hazardous cold storage substance and is mainly used during the transportation of biological cargo like tissues or organs.Eutectic Plates- These are cold plates, much like gel packs but can be reused many times. These have a lot of applications but mostly for shorter transits, such as temperature-controlled deliveries in suitable areas, night deliveries, etc. Suggested Read: Looking for top Cold Storage Companies for Sellers in India?Differences Between Cold Chain and Normal Supply Chain[table id=69 /]Benefits Of Cold Chain LogisticsCold chain logistics play an important role in global food safety management by providing vital and good quality food, drugs, and other products to the world’s remotest region. For consumers, it means fresh and standard goods, and for companies in the modern business, it poses the following benefits - Reduced product spoilage, thus leading to improved profits.Lower the risk of damaged goods reaching the consumers; hence it reduces the possibilities of legal and public relations liabilities. Extended shelf life of products, better quality ensuring continuity of goods, repeat orders, and strong customer support.An extended transportation area means that companies can now reach new markets and improve export and contributions.Since food and medical regulations are strict all over the world, cold chain logistics allows better compliance with these regulations.Cold Chain Logistics Use CasesSourceThe necessity of new drugs and the constant demand for exotic goods all around the world have made multiple industries, like agriculture, manufacturing, healthcare, etc. to be dependent on cold chain logistics. Let us explore the uses of the same based on specific industries. Food Industry Cold chain logistics give you warehousing and transportation facilities that are completely temperature-controlled and maintain humidity levels. Following are some of the general temperature settings for different types of goods - Deep Frozen Meat & Seafood :  -30° C and -18° C (-22° F and -0.4° F)Frozen Meat and Seafood :  -18° C and 0° C (-0.4° F and 32° F)Perishable Cold Fruits, Vegetables and Dairy Goods :  7° C and 14° C (44.6° F and 57.2° F)Fresh Produce : 14° C and 24° C (57.2° F and 75.2° F)Pharmaceuticals And Healthcare IndustryThere has been a steady growth in the demand for cold chain logistics by the pharma industries and it is predicted to be worth $ 21.3 billion by the end of 2024. To maintain the vitality of biological cargo, vaccines, and medicines and to adhere to regulations set by governing bodies, certain temperatures need to be maintained while shipping pharma cargo. These general readings are - Medicines :  2° C and 8° C (36° F and 46° F)Biological Cargo : 2° to 8°C and sometimes down to -80°CVaccines ( eg COVID - 19) :  -70°CCold Chain Standards And RegulationsGoods that are shipped using Cold chain logistics are very sensitive and can cause direct implications for public safety. Hence a lot of government institutions and bodies set regulations around the operation to ensure the safe storage and shipping of these goods. Following are some of the standard regulators - The US Food and Drugs Administration (FDA) is responsible for developing regulations and standards for the entire supply chain process, including processing, packaging, storage, delivery, and documentation.In Europe, the Goods Distribution Practises sets the main standards of packaging and distribution.Guidelines for the international packaging and shipping of vaccines are regulated by the World Health Organization (WHO)Perishable cargo regulations are standardized by the International Air Transport Organization (IATA)Further, there are other standalone government institutions and those based on individual countries, like the US Customs, the Transportation Security Administration (TSA), the Department of Transportation (DOT), the Global Cold Chain Alliance (GCCA), etc.,  that ensure the safety compliance of logistics operations. Common Cold Chain Management IssuesCold chain logistics can have management issues and problems during the supply chain operation. Let us recognize them before they can arise - Quality Issues with the Product - Thee can be product quality issues with the cargo from the beginning; hence cleaning, sorting, and proper sanitization processes must be done before packaging and loading. Improper Packaging - This can lead to contamination and damage of the product during transportation. Improper Documentation - Cold chain logistics operations require proper documentation and record keeping, especially because these stored records analyze important information like storage temperatures, handling instructions, etc., which is crucial to prevent unavoidable conditions from spoiling the load. Transportation Delays - Cold chain logistics are very time sensitive, and any delay in shipment or transportation can destroy the cargo. External Conditions - Variations in temperature due to external conditions like hot climate, improper handling, improper pre-cooling, leaving the doors open, loading, faulty cooling containers, etc., can create huge problems during cold chain logistics. WareIQ: Fulfilling Cold Chain Logistics Across IndiaToday 3PL and other freight forwarding companies have been taking the burden of cold chain logistics enforcement off the shoulders of manufacturers across various verticals. these companies provide guided expectations and exceptional services fuelled by expertise when it comes to transporting goods that are temperature sensitive. One of the most important aspects that go unnoticed in executing cold chain logistics is integration planning and control of various elements of the supply chain. This can only be done with the proper use of data that can be curated manually from various sources. With the rise in the demand for cold chain logistics, 3PL and other logistics companies are rigorously investing in smart technology and data science to harmonize the entire operation. It is to be noted that data is streamlining industries and allowing more accurate decisions to be made in logistics.Such accuracy is very important when dealing with time-sensitive perishable items, which in the likelihood of getting damaged or destroyed, can cause huge losses to the reputation and functionality of any business. Modern practices in cold chain logistics and the constant evolution and technological contribution in the industry have led to a steep decline in the possibility of an error. Who knows, soon we might be able to send millions of goods across the world in just a matter of time and with intact quality and greater ease, creating endless possibilities and opportunities for expansion and development in the remotest of regions. The sector has a long way to go, but the beginning is here. Cold Chain Logistics: FAQsWhat is Cold Chain Logistics?Cold chain logistics refers to the management and transportation of temperature-sensitive products, such as food, pharmaceuticals, and vaccines, using specialized equipment and processes to maintain their quality and integrity.What are the Challenges of Cold Chain Logistics?The challenges of cold chain logistics include maintaining the required temperature range throughout the supply chain, ensuring proper handling and storage of products, managing inventory and logistics, and complying with regulations and standards.What are Some Common Technologies Used in Cold Chain Logistics?Some common technologies used in cold chain logistics include temperature sensors, data loggers, GPS tracking, RFID tags, and cloud-based data management systems.How Can I Ensure The Safety and Quality of My Temperature-Sensitive Products During Cold Chain Logistics?You can ensure the safety and quality of your temperature-sensitive products during cold chain logistics by working with a reliable and experienced logistics provider, using validated packaging and equipment, monitoring temperature throughout the supply chain, and implementing a robust quality management system.

April 06, 2023

List of the Top Warehousing Companies in Pune in 2026

List of the Top Warehousing Companies in Pune in 2026

Pune is the 2nd largest city in Maharashtra after Mumbai by size and population. The metropolitan area encompasses the neighboring regions of Pimpri-Chinchwad, Khadki and more. The city is known as “The Oxford of the East” owing to the large presence of educational institutions. It also holds significant stature as an IT, manufacturing and automobile hub. The city also consistently ranks in the upper threshold of the most liveable cities in the country.Because of this, many companies, including large MNCs, small startups and everything in between, call the city home. Therefore, to aid retailers in being able to store and fulfill orders across the country, a large number of warehousing companies in Pune have sprung up, providing storage, inventory management and other important facilities. In this blog, we will take a look at what warehousing companies are, the best options in the city and why WareIQ should be your number-one pick among warehousing companies in Pune.What are Warehousing Companies?Warehousing companies are businesses that provide storage facilities and services for various goods and products on behalf of their clients. Warehousing companies operate in various industries and can be found in different locations. They provide a wide range of solutions that often include storage, handling, distribution, transportation, inventory management and logistics.Some warehouse companies in Pune also have the presence of advanced warehouse management software (WMS) that can perform functions such as being able to integrate with multiple online platforms, tracking inventory and order data across storage facilities, providing real-time alerts to any changes in inventory levels and much more. Most of these services are essential to the functioning of retail companies across different industries. Warehousing companies play a crucial role in the supply chain by ensuring that the products are stored safely, transported efficiently and delivered on time.[contactus_uth]Top Warehousing Companies in Pune in 2026WareIQSourceFounding Year: 2019Services Offered: Nationwide storage network, inventory management, in-house WMS, packaging, cold storage and more.About the Company: WareIQ is a 3PL logistics and warehousing company that provides a wide variety of services using advanced AI and ML technology to ensure speed, efficiency and attention to detail. In terms of warehousing capabilities, the company offers a nationwide network of fulfillment centers for storage at the national level and dark stores for storage at a regional level, an in-built WMS that takes care of inventory management and provides real-time updates, customized packaging facilities, labeling services for each SKU, cold storage facilities for easily perishable goods and a whole lot more. This, combined with its other logistics offerings such as order fulfillment and last-mile delivery, makes it one of the best warehousing companies in Pune.Nutan WarehousingSourceFounding Year: 1972Location in Pune: Bhawani PethServices Offered: Warehousing, transportation, handling of hazardous goods, operational vehicle fleet, maintenance and more.About the Company: Nutan Warehousing has been continuously operating for more than half a century and is one of the most experienced warehousing companies in Pune. The company was incepted with the goal of providing affordable warehousing solutions to a vast range of industries, such as agriculture, manufacturing and chemicals. The company can handle hazardous materials, such as pesticides, fertilizers and cement, among others. It can also store more conventional goods such as food, plant seeds and tools, as well as bulky items such as machinery. This experience of handling such a diverse spread of products will ensure that it will be able to store whatever type of goods your company needs.Ncube LogisticsSourceFounding Year: 2016Location in Pune: ErandwaneServices Offered: Warehousing, intermodal transportation, freight forwarding, customs clearance, project logistics and more.About the Company: Ncube Logistics Solutions, a subsidiary of the Ncube Group of Companies, offers full-service logistics and warehousing solutions. With expertise in inventory storage, intermodal transportation and logistics, the company provides customers with all-encompassing solutions for all of their warehousing, logistics and freight forwarding needs throughout India. In regards to warehousing, it operates multiple warehouses that are strategically located in proximity to inland depots and CFS facilities. It also offers temperature-control facilities for perishable goods and provides all the equipment needed for loading and unloading products of all sizes.WareDepotSourceFounding Year: 2019Location in Pune: BibwewadiServices Offered: Order fulfillment, warehousing, freight forwarding, on-demand storage, freight forwarding and more.About the Company: WareDepot is a start-up whose primary goal is to offer sellers in India top-notch warehousing and fulfillment facilities so they can concentrate on their area of specialization. Intending to boost client transparency about their storage and supply chain procedures, the company began with just a single small warehouse. This has now developed into numerous warehouses spread throughout 6 metropolises in India, providing a greater choice of services at competitive pricing. The company ensures that fulfillment is carried out efficiently, whether it is D2C or B2B, by handling the picking, packing and dispatch of every order.Reality WarehousingSourceFounding Year: 1994Location in Pune: WagholiServices Offered: Warehousing, tailored solutions, cold storage facilities, inventory management, packaging and more.About the Company: The storage and warehouse requirements of most types of organizations can be met by Reality Warehousing, which is an excellent option among warehousing companies in Pune. They provide first-rate amenities and upwards of 5 lakh square feet of safe and secure storage space. The company provides services for domestic storage, cold storage facilities and other warehousing solutions, such as packaging and inventory management. Additionally, the company offers a choice of multiple types of warehouses depending on your requirements, such as RCC warehouses, industrial warehouses and built-to-order warehouses, making it a compelling option among warehousing companies in Pune.Also Check: Top 10 Best Logistics Companies in Mumbai For Omni-Channel Brands in 2026Conclusion: Leverage WareIQ’s Nationwide Storage Network to Store Your InventoryWarehousing companies in Pune play an important role in the multiple functions of retail companies, such as order fulfillment, product storage, inventory management, packaging, handling, dispatch preparation, and much more. These services are essential for sellers to be able to not only have a place to store their inventory but also to fulfill orders to different parts of the country and the world from these storage facilities.If you are a budding retailer or are looking to partner with warehousing companies in Pune that more closely fit your requirements, you need to chalk out your short-term and long-term storage needs, layout additional services you need and ascertain your available financial budget. WareIQ is one company that provides competent warehousing facilities in addition to multiple other services.WareIQ is an order fulfillment company that has emerged as one of the leading options in the country. In addition to warehousing, we also provide comprehensive solutions for inventory management, order fulfillment, shipping aggregation, last-mile delivery, international shipping, ultra-fast delivery, and much more. Some aspects of our company that make us stand out from the rest are as follows:Nationwide Storage Network: We have multiple fulfillment centers for nationwide delivery and dark stores for hyperlocal delivery scattered across most prominent locations in the country.Intelligent Inventory Placement: We offer AI and ML-based inventory placement recommendations to ensure your products are stored in the closest proximity to your customers.Custom WMS: We have an in-built WMS that can integrate with multiple selling channels, automate replenishment triggers, conduct inventory management, provide real-time updates and much more.Customizable Packaging: We provide packaging facilities where every element can be tailored according to your tastes and preferences.Labeling Services: We provide in-house shipping labeling services to ensure all your products are shipped with the necessary information for more efficient order fulfillment.Suggested Read: 10 Best Warehousing Companies in Jaipur for Your Business NeedsWarehousing Companies in Pune: FAQs

April 06, 2023

Delivery Exception: Meaning, Impacts, Causes, Corrective Measures, & Ways to Reduce Shipment Exception

Delivery Exception: Meaning, Impacts, Causes, Corrective Measures, & Ways to Reduce Shipment Exception

eCommerce can be a challenging industry on a good day and can be an absolute nightmare on a bad one. There are so many processes and operations that can be affected by one another that if even one gets delayed, it can result in a snowball effect further down the line. This can ultimately lead to a package not being delivered on the specified date and time or even at all. More than 60% of customers have specified that they have personally experienced a delivery exception and a further 73% of the ones that have expect a quick resolution from the retailer.The delivery of an order is the one physical interaction between a customer and your business and if that doesn’t go according to schedule, it can lead to a ton of negative sentiment and frustration, making your business susceptible to poor customer feedback and bad reviews. In this blog, we will take an in-depth look at the meaning of a delivery exception, the impact it has on your business, the main reasons they occur, how to correct them, and methods to reduce their frequency.What is a Delivery Exception?A delivery exception refers to a situation in which an order or package that is ordered by a customer gets delayed due to various unforeseen circumstances, whether internal, such as mishandling, breakage, vehicle breakdown, and more, or external, such as harsh weather conditions, road maintenance and traffic, among others. This could lead to the ETA getting revised to a new date or time depending on the severity of the delay, causing inconvenience to the receiving party and anxiety as to whether their products are intact and unharmed.Customers usually receive updates on the status of their order whenever it passes through different stages of the supply chain and this also includes specifying incidents of delays that occur. However, it is worth mentioning that a shipping exception does not lead to a delay 100% of the time and can be received even after the initial hiccup but this is the exception, not the rule.[contactus_lilgoodness]Impacts of a Shipping Exception on Your BusinessReduces Chances of Repeat PurchasesThough delivery exceptions are almost always inadvertent and frequently unavoidable, they can nevertheless be frustrating for clients and need to be handled carefully. Even if it was legally the fault of the carrier or an act of nature, a customer may decide not to shop from you again if they had a bad delivery experience, even if everything else went smoothly. This will impact your ability to get repeat purchases, not only from them but from other existing customers that read their reviews. Because repeat purchases account for the majority of the business for most companies, this can have dire consequences.Impacts Your Company’s Brand ImageBuilding a strong brand image can be the key differentiator in customers choosing your business over your competitors. You can only inspire confidence from customers if you consistently provide them with an efficient and hassle-free experience. Having the occurrence of delivery exceptions and delays can seriously impact the way customers perceive your business and can damage all the hard work you have put in in the blink of an eye. Therefore, in order to preserve your brand’s reputation, you should have safeguards in place to limit shipping exceptions from occurring.Damages the Customer ExperienceOne reason why shipping companies and online retailers provide their customers with a tracking ID for their products is due to the possibility of delivery exceptions. Customers can see what is occurring after the consignment is taken over by the carrier thanks to this openness. Nevertheless, even with the most trustworthy eCommerce order tracking facilities, a lot can happen to a shipment while it's in transit and some of those things can even go unnoticed. Delivery exceptions may cause packages to be delayed or not delivered at all, which will aggravate customers and lead to them having a poor experience with your company.Lowers Your Future Sales VolumesAs discussed above, if a customer experiences a delivery exception, it can forever taint their perception of your company. This can go on to affect not only their decision to never purchase from you again but also have the same impact on potential customers reading their reviews to get a better sense of whether your company is the right fit for them. If a growing number of people are unhappy with your business, this can translate into more negative reviews and more customers deciding not to give your business a chance and instead, opt for one of your competitors.Increases ExpendituresIf a product is delayed due to whatever reason, it will most likely increase the transportation and operational cost of getting that order to the customer. For instance, if an order is delayed due to bad weather, it will have to be held up in transit so you may have to pay for additional storage, pay a higher delivery fee to the courier company and even risk the order getting returned due to the customer being increasingly frustrated. All these factors can significantly increase the cost it takes to deliver that order to a customer, reducing your overall profit margins in the process. Read here to know how can you reduce transportation costs.What are the Primary Causes of Delivery Exceptions?Improper DocumentationOne of the most avoidable reasons for the occurrence of a delivery exception has to do with a package containing incorrect or missing documents while being in the carriers' possession. This could be anything from erroneous or missing documents to an incorrect delivery address. A major delay can occur if there is any dispute regarding the accuracy of the documentation because it can cause the product to be delivered to the wrong address or be held up while it is still in transit.Presence of National HolidaysIf a national holiday occurs while a shipment is in transit, either in the home country or the destination nation, it can cause a delay in delivery and ultimately lead to a delivery exception. Whenever there is a government holiday, most companies including shipping firms are also expected to place a halt on their services, Due to a backlog of cargo, carriers frequently experience additional delays due to such holidays since they must play catch up in the days after, leading to inefficient shipping procedures.Unavailability of the RecipientAnother common cause of a delivery exception is the unavailability of anyone to collect the order when the delivery executive arrives. This can be more or less mitigated with the presence of order tracking details that updates the customer about every movement of the parcel and revises the ETA based on certain circumstances. However, if the package arrives later or earlier than the specified time, the customer may not be available to collect it, which leads to a failed first-attempt delivery and will lead to more confusion than is necessary.Harsh Climate ConditionsDelivering a package will probably be delayed if a weather-related issue or natural calamities, such as heavy rain, large amounts of fog, flooding, cyclones and more, makes moving through that route impassable. Nature is an immovable force and makes these unforeseen and uncontrollable delays unavoidable. As long as you have a different shipping route you can use or have the same product stored at a different location, you can still make up for the lost time. However, if there is no other option, both you and the customer will simply be at the mercy of the stoppage of whatever weather condition is causing the delay.Customs Clearance IssuesInternational shipping has its fair share of difficulties. Frequently, packages are delayed at customs for longer than anticipated, which can frequently cause delivery dates to be missed, leading to a delivery exception. A more efficient customs clearance procedure can be achieved by making sure you have the correct tariff codes at the SKU level and all the other documents that are needed for the seamless entry and exit of products to the required country.Suggested Read: Looking for international courier services in India?Possible Outcomes of a Shipping ExceptionThe Customer Receives the Order On ScheduleA delivery exception does not always mean that the order is guaranteed to get delayed. If the issues are resolved without requiring drastic changes and do not take up too much time, there is a possibility that the items will still be delivered according to the existing ETA. However, the customer should still always be kept in the loop.The Customer Receives the Order On a Revised DateThis is the most common outcome of a delivery exception. Many times, it is caused due to circumstances, not within the control of your company or the shipping carrier, such as bad weather, unavailability of the customer, and more. Hence, there is simply no alternative than to revise the ETA to a more suitable time and inform the customer, rather than risking product damage or even more dire consequences.The Product Gets Returned and/or ResentIn some cases, if there is no possible alternative or solution for the delay, such as product damage, theft, or unrealistic delays, there is no option but to initiate a return and either offer the customer a replacement, refund, or exchange in order to make sure their needs are fulfilled.Suggested Read: Looking for reverse logistics companies in India?Easiest Ways to Correct a Shipping ExceptionContact the Shipping ServiceCompetent order tracking for both you and your customers is the first step in preventing shipment exceptions. It can either be provided using specialized software or directly through the carrier’s website. If you don't have an order-tracking system in place, managing shipment exceptions will become more and more challenging.It is simpler to prepare customers for delays if your courier partner is able to make them aware of the problem. You can find out from the carrier facility the reason for the delivery exception and if it is something to do with incorrect details or the unavailability of the customer, you offer help by providing them with the correct information or informing the customer.Communicate With the CustomerYou could get in touch with the customer to confirm the accuracy of the delivery location and make the necessary modifications if that was the reason for the delivery exception. It is best to notify the consumer about a potential hold-up and the reason for it if the exception was caused by other factors, such as bad weather or product damage.Send an email or message apologizing for the inconvenience to those who were impacted, and don't forget to express gratitude for their tolerance. Each opportunity to transform a less-than-ideal circumstance into a fruitful shopping experience for the customer will be cherished by them and increase your chances of holding onto repeat purchases.Initiate a Return or Redelivery​​You need to discuss the urgency of the situation and possible next steps if a product is harmed during transit or cannot be delivered due to some other reason. The best outcome in this regard would be to resend the goods or provide a full refund or the possibility of an exchange for the same value.If you have shipping insurance for the cargo, the majority of the expense would be taken care of if the package was destroyed while in transit, reducing the financial burden on your company. Offering a return or a refund may cost your company in the short term but could be beneficial by retaining the affected customer in the long run.5 Ways to Reduce the Prevalence of Delivery ExceptionsProvide Comprehensive Order Tracking FacilitiesSourceFor eCommerce orders, providing accurate order tracking facilities should be standard practice. This will ensure that your customers are always kept up to date and will be more likely to be available when the shipment is due to arrive. This will reduce any additional risk of failed delivery attempts and shipping exceptions resulting from it. Additionally, customers will feel more at ease knowing the exact status of their parcel, even in the event of a delay and this will make them less likely to cancel it or initiate a return.Cross-Check the Accuracy of Important InformationSourceUsually, the most significant piece of information about your shipment is the delivery address. The carrier will be able to properly deliver parcels to their specified locations if all the relevant information is provided accurately. An erroneous address being entered is a manual aspect of delivery exceptions that is regularly subject to human mistakes. Thankfully, there are resources that aid in preventing this and a simple one is to simply verify that all the information is correct before dispatching a shipment.Provide Real-Time Alerts About New DevelopmentsSourceA shipping exception can be avoided by constantly sending alerts, refreshing tracking links and keeping customers updated to make sure they know where to access the most recent information on their packages. Apart from the main tracking screen, you can even send them proactive notifications through whatever contact information you have, such as email, Whatsapp and SMS. This will ensure that they always have the information they need at their fingertips so that even if they aren’t present to collect their order, they can make the necessary arrangements.Offer Weather-Resistant Packaging and Other Safety FeaturesSourcePackages are always vulnerable due to bad weather, such as rain or fog. One way to ensure its safety while it is in the courier company’s possession and that it is delivered to its final location intact is to secure it with weather-resistant packaging. Also, you can consider using water-resistant labels and paper to reduce the possibility of ink leakage. Other safety measures you can implement include insuring every product against damage and having specialized transit facilities for delicate and perishable items.Have a Choice of Multiple Courier ServicesSourcePartnering with multiple shipping companies has many advantages, one of which is that you won't ever need to be constrained by the limitations of a single one. Try utilizing other carriers if you find that one is more likely to have delivery issues or delays to see if it makes a difference. Additionally, different carriers choose to place more importance on covering certain locations so it is important to pick the right one for each order. Partnering with a 3PL fulfillment company like WareIQ will automatically give you a wide selection and will even assign the most efficient carrier depending on the requirements of each order.Suggested read: Awaiting Shipment: Understanding Delays and How to Manage Them EffectivelyConclusion: Prevent the Occurrence of Delivery Exceptions With WareIQ’s Efficient Order FulfillmentMaking your customers deal with a delivery exception can seriously hamper your chances of getting repeat purchases from them and can also lead to a poor opinion about your brand from all the prospective customers that read the feedback about their experience. Shipping exceptions are often inevitable because they aren’t always in the control of your company or your shipping partners.It is often caused due to natural calamities, infrastructure issues, traffic delays and much more. However, it is advisable to have the necessary tools and strategies in place to offset the negative impacts and make sure that your customers receive their products on time. While this can seem like a challenging task, partnering with a 3PL fulfillment provider like WareIQ can make sure your customers' exposure to delivery exceptions is limited.WareIQ is a swiftly-growing eCommerce fulfillment company that was founded in 2019. It offers multiple eCommerce solutions for various requirements, ranging from order fulfillment and inventory storage to last-mile delivery and international shipping. Our vast use of technology can help curtail the adverse effects of delivery exceptions and reduce their frequency. Some of the ways we can do this are listed below:Intelligent Inventory Placement: We use AI and ML-based recommendations to store your inventory closer to your customers so that delivery times will be cut short.Smart Courier Allocation: We have partnered with more than 20 courier service providers and automatically assign the quickest and cheapest option for every order.Branded Order Tracking: We provide branded order tracking facilities to ensure that your customers are always up to date on the status of their packages.Last-Mile Delivery: We provide last-mile delivery services to ensure your packages reach their customer’s doorstep on time and on schedule.RTO Shield: We help protect you from the negative impact of returns by providing an RTO Shield and insurance for every product.Delivery Exception: FAQs

April 05, 2023