In the e-commerce world, on-time delivery is one of the biggest contributors to achieving customer satisfaction. And making it happen every time for each package is possible only when you have a streamlined logistics management process from the first to the last step. Some businesses outsource their logistics operations while some choose to set up an in-house order fulfilment team. In the case of 3PL or third-party logistics service providers, a business has least involvement in the logistics operations.
On the other hand, the latter requires an e-business to have a full-fledged team of professionals, invest in e-commerce delivery management software, and set up the right infrastructure. Depending on the customer base, regions, and various other factors, the e-commerce company might need to set up distribution centers or micro-hubs. In-house logistics management involves a plethora of processes, which can be difficult to deal with manually. But before we dig deeper into those problems, let’s check out the definition of in-house fulfilment.
What is in-house order fulfilment?
In-house fulfilment is when an e-commerce firm handles warehouse, inventory, and logistics operations on their own. It is also known as self-fulfilment.
In-house order fulfilment challenges
Inefficient warehouse and inventory management
Warehousing and inventory management plays a pivotal role in running logistics operations successfully. Any delay or inefficiency at one stage can lead to high logistics cost as well as other problems in further processes. Another thing that can impact the logistics and delivery operations is the lack of storage space or resources for managing both these operations.
For businesses with a large volume of orders and amount of inventory, it is not feasible to execute the processes manually. Therefore, the best option is to automate inventory and warehouse management to ensure timely pickup, packaging, and delivery.
High logistics cost
In-house shipping is manageable and cost-effective when you are offering your products in a particular region or zone. A great option for efficient delivery management, to offer your products across the country, is to set up fulfilment centers; however, it would also require a significant investment. High cost of delivery could also be due to the cost of infrastructure, material required for packing and transportation, insurance, and increasing number of returns.
Manually managing delivery operations and lack of technology can also cause delay in deliveries. It directly impacts customer experience and increases the chances for returns. According to reports, 44% of the customers said that they wouldn’t buy from a store again if the delivery was delayed twice or more.
Apart from these three, a few other problems associated with self-fulfilment include lack of expertise, inferior order precision, and poor customer experience. However, that doesn’t mean a business can never think of this option. In-house fulfilment is great if an e-commerce company has-
· Limited order volume
· Offers customized orders
· Have sufficient funds
· Deals in highly specialized business
How to overcome in-house order fulfilment problems?
To get rid of the aforementioned as well as other fulfilment-related problems, integrating delivery management software or logistics software is the best option. The software digitizes processes associated with order management, rider management, route management, route tracking, and end-customer management. The automation minimizes the need for human resources for managing, executing, and monitoring various delivery tasks. Besides, it also ensures speedy completion of each process with great precision.
The logistics management software automates order segregation, order dispatch, airway bill generation, label printing, route planning, vehicle & driver selection, order tracking, and almost all the other operations. Apart from this, it also allows all the stakeholders to track their order in real-time, which minimizes the chances for delayed or missed deliveries. In short, the software contributes to delighting end-customers, which further helps to achieve customer satisfaction and improve customer loyalty.