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Boxzooka Press

How retailers can keep growing returns costs in check

This images show someone returning a package.

While most retailers have recently recorded a decline in returns, the cost burden is still big, and many retailers are increasingly looking for ways to reverse course even further.

It’s retail’s unavoidable story, especially e-commerce: For each percentage of growth in sales comes more returned items from customers. It’s the double-edged sword that keeps getting sharper, year after year.

And while to some, the 2023 holiday retail season may seem already far away in the rear-view mirror, the true picture of the most recent season of holiday returns is only now becoming clear. The end of January marks the unofficial close of the preceding holiday retail season with the final act of returns. 

The National Retail Federation (NRF) expected holiday returns for 2023 in the U.S. to total around $148 billion compared to $171 billion for the 2022 holiday season, $151 billion during the 2021 holiday season, $101 billion in 2020, and about the same $100 billion for the 2019 holiday season.

While the rate of holiday returns year-to-year may be on the decline for the first year since the pandemic, these numbers fail to tell the whole story. In 2019, before COVID-19 upended consumer buying habits, retail returns for the entire year stood around $309 billion, or 8.1% of total retail sales. They peaked in 2022, more than double that 2019 figure, at $816 billion for the year or 16.5% of sales. In 2023, the total returns declined for the first time in years, at $732 billion or 14.5% of total retail sales.

So, while most retailers have recently recorded a decline in returns, the cost burden is still big, and many retailers are increasingly looking for ways to reverse course even further.

How pandemic changed returns game

It’s hard to believe that it’s been a little over four years since the pandemic changed things forever. Back then, lockdowns and distancing turned ecommerce into the next best option to in-person shopping. From there things took off. According to the NRF, before the pandemic retail growth in 2019 the year-over-year growth in e-commerce was at 3.5%; then in 2020 it jumped to 7.6%, then to 14.4% in 2021, and back to 7% in 2022. Growth in 2023 was expected to drop again to somewhere between 4% and 6%.

COVID’s enduring change to retail is reflected the most on the e-commerce side. It drove millions of consumers to online shopping, who would have otherwise hit up bricks and mortar shops. And while the rate of year-to-year growth may be slowing, there’s a huge new contingent of loyal e-commerce shoppers that won’t give up the new-found ease of digital shopping any time soon.

E-commerce has always been saddled by the returns problem. The more people shop virtually, the more likely they are to return items they couldn’t try on or “test” out before making the purchase. With the new pandemic “crop” of e-commerce consumers, returns will only become more problematic for those retailers that fail to optimize this side of their business.

It’s no longer a seasonal chore where the biggest hit comes during the holidays. Today, for a thriving e-commerce business, returns must be viewed as a year-round, always-on business strategy.

High costs = more restrictive policies

In 2022, for every $1 billion in sales the average retailer lost $165 million in returns, a number that gets bigger and bigger with each passing year. The pandemic saw a lot of returns policies eased, but as the emergency faded, retailers have increasingly looked for more ways to reduce their burden.

The expenses associated with accepting a returned item can oftentimes exceed the item’s resale potential, with shipping costs eating up a huge chunk of that value. Add on top of that the cost of manpower for processing and other key actions within the returns pipeline, it’s no wonder retailers are looking for better options.

Some have implemented fees for returning items while 58% of retailers went to “returnless” or “keep it” returns protocols in 2023. Others are offering store credit in lieu of refunds and some are encouraging shoppers to bring unwanted items back to the physical store. It’s a tricky balance, keeping customer loyalty front and center while putting stronger policies in place to right size the business. Thankfully in the world of retail, customer loyalty isn’t exclusive of a restrictive returns policy.

So how do we balance these business needs while maintaining strong customer relationships?

Maximizing returns at crunch time

For all the tips that can be covered in this context, one thing stands out: Getting returned merchandise through the system quickly and back to stock for potential resale is paramount. For this reason, returns need to be treated with the same urgency as outbound orders.

Focusing on “forward fulfillment” is the key to achieving this velocity, especially when it comes to the annual crush of holiday returns. This means having a strong third-party logistics (3PL) partner that can help manage returned goods, redirecting them to a new destination for processing, repackaging, and resale. Streamlining the returns process in this way, reducing transportation costs, and speeding up the return-to-market cycle, is the end game. Certainly, retailers can achieve this on their own, but a strong 3PL eliminates the hassle and gets it there quicker.

There are other things retailers can do, too: 

  • Be prepared: Preparation is key for success during the hefty return season after the holidays. Planning for an influx is critically important. This means having a clear and efficient returns process, which includes a dedicated team to handle returns, a clear returns policy, and a streamlined system for processing returns. 

  • Analyze the data: It’s essential to understand why the product is being returned in the first place. Analyze the data on returns to identify patterns and trends. This can help businesses understand the reasons for returns and take additional steps to address them. 

  • Communicate with customers: Communication is key when it comes to handling returns. Shoppers expect transparency during the returns process and to be kept informed. Communication builds trust and loyalty, giving customers confidence that your business will take good care of them. Having the proper tools and a robust returns plan will alleviate future problems. Make sure customers know what to expect.

  • Automate where possible: Automation helps streamline the returns process and can reduce the burden on staff. Simple tools can include using barcode scanning or RFID technology to track returns, automated emails or SMS texts to keep customers informed, and analytics tools to identify return trends and patterns. 

  • Look for opportunities: Businesses constantly evolve to improve the customer experience. In December 2023, DoorDash and Uber announced a new service: a return Package Pickup service that lets a driver pick up one to five packages from the customer’s doorstep and drop them off at a FedEx, UPS, or USPS location for them. Ensure your customer knows every convenience imaginable to guarantee you’re providing the best customer service possible. 

While returns remain a significant challenge for online shoppers and stores alike, they can also be an opportunity with the right approach that addresses returns all year round. By being prepared, analyzing the data, communicating with customers, looking for opportunities, and automating where possible, online retailers and stores can handle returns efficiently. More importantly, focus on the relationship you’re building with your warehouse fulfillment center or 3PL. They’re your secret weapon in handling returns easily while building customer trust and loyalty. 

In just a few short months, the ramp up to the 2024 holiday season will begin. Now is the time to review your returns protocols, take a deep dive into the 2023 season’s data, and build a more efficient system for the season ahead.

By Tom Behnke

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Boxzooka Press

Optimizing Warehouses – Blend of Art, Science, and Humans

A picture of a large warehouse fulfillment center.

Today, warehouses in the supply chain are more complicated than ever, from meeting constant and growing customer demand, especially in the e-commerce sector, to an ever-growing selection of products and even globalization. Warehouse operations that are in tip-top shape have never been more important.

An inefficient warehouse will negatively impact every other part of the business, from sales to customer service and daily operations. Naturally, a highly optimized warehouse provides benefits and profits to the business as well as a “positive halo effect” across the entire supply chain.  

Warehouse optimization refers to the process of improving the efficiency and effectiveness of a warehouse’s operations, layout, and processes to maximize productivity while minimizing costs. The primary goal is to streamline the flow of goods through the warehouse, enhance order fulfillment speed, reduce errors, and utilize resources more effectively.

This has become a hot topic in light of the explosion of AI, Artificial Intelligence, software, and other innovative new tools. Machine learning and robotics, in particular, are changing the landscape for the future of material handling. If you scan the agendas at industry events like Modex, Manifest, and ShopTalk you’ll find dozens of speakers and hundreds of companies leveraging the remarkable possibilities. Not surprisingly, SDCE references AI almost 5,000 times when you search the publication’s website. 

At the same time, we may be in the “too much, too fast” segment of AI product development when it comes to logistics. The best warehouse operations also value the insight and expertise of human beings, who should always be the backbone of a successful model.

“A tech-only layer on top of the current logistics industry just doesn’t work.,” Ryan Peterson, CEO, Flexport, Wall Street Journal, December 2023. “I still think at the end of the day, there’s a strong role for people with a lot of expertise.” 

Compliance is an important area that must remain on the radar because it’s not one where AI can be fully trusted. This requires 100% accuracy, something only a real expert can understand and back up.

Given this landscape, let’s consider the foundational aspects of warehouse optimization. This means an eye for innovation that supports the business and is sensitive to not bankrupting the company. As you build your plan to optimize your warehouse(s), it is prudent to incorporate a blend of automation, technology, and human interdependencies to create process efficiencies.  

Best Practices for B2B and B2C Commerce.  

Efficient Layout 

Warehouse optimization starts with an efficient layout that meets your needs now, with plans for future growth. Do you have a clear highway for material handling equipment that is safe and effective? Map the flow of inbound inventory and products for efficient staging and put away. Storage areas should be designed with SKU velocity in mind with automation tools that have predetermined the slotting strategy, bin sizes, and replenishment cycles. Be mindful of the human traffic and number of footsteps to access production/assembly areas. At the heart of the layout should be a detailed inventory management plan managed with a WMS. 

5S – “The Toyota Way”

It’s not old school, it’s ‘the’ school. Sort, Streamline, Shine, Standardize, Strive, and the 6th S is Safety. These principles of LEAN Six Sigma manufacturing can be quickly incorporated into your existing warehouse operations. In fact, these tasks should become cultural, with every employee in sync with the processes that create efficiency. Standardization is an area that lends itself to machine learning and automation tools. 

Know Your Staffing Requirements

Labor management planning is essential for productivity and cost management. Warehouse managers are better equipped when they have specific productivity, quality, and throughput targets that are measured and monitored daily. Labor management is a data-driven exercise that requires effective leadership techniques and communication channels.  

Technology Gaps and Automation Strategies

Identify the gaps in your current technologies for warehouse management with an eye toward automation. 

“There’s a time and a place for automation when a business reaches a certain scale that requires it, especially to try to eliminate repetitive, non-value-added activities.” Suggests Nick Pellegrino, COO, Boxzooka, Multichannel Merchant.

The time, cost, and effort of implementing new technologies and new processes to optimize your warehouse can deter you from moving ahead. A roadmap with a budget and an ROI will take some of the risk out of implementing new tools. 3PLs with multi-client facilities are constantly examining new tools for more efficient store, pick, pack, and ship processes. We’re 30 years into barcoding and scanning for accuracy, and there is a long list of choices for put to light, pick to light, voice picking, robots that follow pickers, goods-to-person robotics, and automated storage retrieval systems, to name a few.   

Data-Driven Decision Making

“In God We Trust, All Others Bring Data.”  

Supervisors, managers, leaders, and all employees need data to support their suggestions and plans for optimization. The days of “gut feel” decision-making and “we’ve always done it that way” attitudes are not productive management tools. Consider the large number of tools that might help you manage your facilities. Inventory management tools, WMS, TMS, labor planning tools, forecasting tools, intelligent slotting tools, quality assurance processes, regional distribution analyses, space allocation tools, and inventory density monitors – with so many choices, management teams need to be disciplined in choosing and using the best tools for their shop. 

Supply Side Strategies

Finally, do you have a handle on the supply-side equation and the flow of products into your building? Being active in these upstream activities with vendors, transportation providers, clients, and suppliers is equally important to keeping your warehouse efficient. The sequencing of inbound materials to be able to store, stage, and assemble outbound products is essential. Warehouse optimization is the essential link between supply and demand in your business.    

Conclusions

We’ve highlighted a handful of techniques to help optimize warehouses. As the industry becomes more integrated with new forms of technology and automation tools, warehouse management experts will keep finding more efficient means to operate their facilities. Having the right blend of human-integrated automation systems is ultimately the quest for improving customer satisfaction and maintaining a competitive edge in the marketplace.  

By Tom Behnke

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Boxzooka News Boxzooka Press

Making Sure Your Fulfillment Partnership Doesn’t End in Divorce

A man and woman are unhappy.

In the logistics industry, we have a saying, “you date your transportation partners, but you marry your 3PL fulfillment partner.” There’s a lot of truth in this analogy. Perhaps we can humor you with the many ways that finding a 3PL is similar to heading to the altar – metaphorically. 

The dating process involves researching, screening, and talking with different potential partners, with Google being the Hinge or Bumble equivalent, right? Search for the top ten 3PLs or the fulfillment companies in your neighborhood. How’s their website? Do they have positive reviews? Do any of your friends know them? Can you get a referral, or is it going to be a blind date? 

Now you’re ready to reach out, make contact, fill out the web form, and wait for it, boom! You get a canned email, a voicemail – or five, and the dating game begins. Who makes the best first impression? Do they care about your business? Are you also being screened or qualified? Are they too sales-y? Have you checked their LinkedIn profiles and determined if they’re mature or inexperienced? And the ones that don’t contact you, was it something you said (or something you didn’t explain clearly about your business?) 

How’s the analogy so far? Bear with us. 

After a few days of back and forth, it’s time for the first date. This is the test now. Face to face (or zoom to zoom). Are you meeting with the people you started with? How’s the neighborhood? Do they keep a clean (ware)house? What about the folks who will be doing the work? Can you visualize a future together? There are so many questions, and at some level, you need to have a good gut feeling about this relationship. You need a partner who cares but who can also manage the challenges that will present themselves. Fulfillment naturally has its challenges.  

There’s no doubt you have put together a roster of potential suitors, so now it’s time to boil it down to your favorite partners and create a scorecard. Financially stable? Check. Good people? Check. Champagne pricing for your beer budget? Will they take good care of the rest of your family (employees)? This is an important decision. Let the negotiation (aka the first fight) begin. We’re officially dating now.  

Time for the prenuptial agreement, rather, the contract. Are these terms reasonable? There’s a lot of expense for this marriage ceremony, and we can’t afford to have it go south. Can we finalize the marriage without missing a day of work? Of course we can; everything is going to be great together!

Let the honeymoon begin, starting with the reception (the kick-off meetings.)  

We’re getting started on the right foot and getting along, right? Any signs of cold feet? Are we having problems already, or so far, so good? And our hopes are high for a stable, mutually gratifying relationship for years to come (forever, maybe?)

And then we have a bump in the road. We never knew that your team was (fill in the blank) not available on weekends. Can we work through these issues together? Where’s that great dashboard we were promised? Where are my B2B orders? Why is this stock not available? Are you not processing returns? Do we need to escalate these problems, or do we need counseling or mediation?  

We’re learning things about each other that we didn’t see when we first met. We hoped to grow old together (at least for five years) and feel content. We thought we would be in tune with each other’s needs. Our relationship may be boring, but is it effective? 

OK. Let’s pull out the agreement and talk about the “D” word. It’s time to separate. Who negotiated these terms? Let’s not make this any harder than it already is.  

Hard to believe we’re going to need to “get out there again” and start dating other 3PLs. But we can’t give notice until we’ve got our next partner lined up.  

Time to formally give notice.  

Whew, we killed that analogy but with the intent of dramatizing some of the things that can go wrong in relationships with fulfillment providers. Picking a new 3PL for your e-commerce fulfillment needs is important and should be treated with respect for the realities of life in the logistics arena.  

To make sure the next relationship with a 3PL fulfillment provider doesn’t end in an ugly and premature breakup, it’s important to know extremely well (i.e., your own business), be able to clearly articulate the needs of your business, and properly vet the 3PL’s ability to fulfill those needs. Consider a checklist of your requirements and ensure those requirements are not only addressed in the negotiations but also in the ultimate agreement or a written statement of work signed off on by both parties to ensure everyone’s on the same page. 

By Tom Behnke

Categories
Boxzooka Press

Ecommerce Quandary, Fixing the Returns Problem

Someone hands packages to be returned to a worker.

Ecommerce is a blessing and a curse in the world of retail. While it’s played a key role in the overall success of retail in recent decades, it’s also saddled the industry with a growing returns problem. For every percentage growth in sales, more items are returned by customers.

As the 2023 holiday season’s returns tallies become more clear, we’re reminded again of the importance of having a good plan in place to limit the negative financial impact that returns impose. Holiday returns for 2023 were expected to total about $148B, according to the National Retail Federation, NRF. That’s compared to $171B for the 2022 holiday season, $151B during the 2021 holiday season, $101B in 2020, and about  $100B for the 2019 holiday season.

Returns related to the holidays seem to be on the decline for the first time since the pandemic, which is good news, but that doesn’t tell the whole story. Before COVID and the lockdowns completely shifted consumer buying habits in 2019, retail returns for the year stood around $309B, 8.1% of total retail sales. Returns hit their high watermark in 2022, more than doubling the 2019 number, at $816B or 16.5% of sales. 2023 saw the first decline in total returns in years, at $732B or 14.5% of total retail sales.

Despite that recent decline, the cost burden isn’t shrinking, leaving many retailers to find ways to reverse course.

The Pandemic Effect

Nearly four years ago to the day, the pandemic and the multiple lockdowns took their big swing and changed things forever. As terrible as it was, it was a boon for ecommerce. Lockdowns and distancing turned people away from bricks and mortar to ecommerce, the safest option for in-person shopping.

Prior to Covid, retail growth in 2019 stood around 3.5%, jumping to 7.6% the next year, then 14.4% in 2021, and back to 7% in 2022. Growth in 2023 was expected to drop again to somewhere between 4 and 6%.

The lasting effect of the pandemic on the retail universe is most reflected in ecommerce, as millions of consumers adopted online shopping. This created a very large new group of loyal ecommerce customers; they won’t be giving up this new-found ease of shopping any time soon, and they’ll keep the returns conundrum rolling for years to come.

Returns have always been a negative in ecommerce, the more we shop online, the more likely it is we’ll receive an item that doesn’t fit, or just doesn’t meet the “mark” since we couldn’t try it on or try it out. 

Tightening Returns Policies to Lessen the Blow

Returns are no longer a seasonal endeavor, with the biggest hit coming during the holiday season. Today, returns must be viewed as a year-round problem, answered with an “always-on” business strategy.

For every $1B in sales the average retailer lost $165M in returns in 2022, a figure that is ever-growing. During the pandemic, many eased returns policies. Then, as the emergency started to fade, retailers started looking for ways to recover some costs from returned items. The expense of accepting a returned item can be more than the resale potential of that item. Shipping costs also certainly eat up a major piece of that value. Then, add the cost of manpower to process those returns and other key actions within the returns pipeline; it should come as no surprise that retailers are looking at all avenues to right-size this problem.

About 58% of retailers moved to “returnless” or “keep it” models for their returns. Others have put fees into place to cover some of those costs. Some are offering store credit instead of refunds, while others are asking customers to bring returns back to the physical store instead.

All of this has to be done while keeping customer loyalty the overriding priority. Putting more strict policies into place has to be done in a way that doesn’t alienate customers. The good news is that, in the retail world, customer loyalty isn’t exclusive to a restrictive returns policy.

Maximize Returns Operations, Lower Costs

One thing above all others stands out as far as preserving the value of a returned item. Moving returned items through the system quickly and back into stock for resale is vital here. Retailers that treat returns with the same urgency as outbound orders will realize the benefits.

For so many, this can be difficult at best. That’s why having a great 3PL partner, one tasked to manage returned goods and managing the process in an expedited manner, is absolutely essential. Streamlining the process in a way that reduces transportation costs and accelerates the return-to-market cycle should be the ultimate goal.

This is where the expertise and experience of strong 3PLs like Boxzooka can make all the difference, getting rid of the hassle and decreasing the negative cost. But there are plenty of simple things any ecommerce company can do today:

  • Be prepared: Plan for the influx; being prepared is key to success, especially during the hefty returns season after the holidays. It’s never too early to plan and make sure the returns process is clear and efficient, which can include dedicated teams to handle returns, clear returns policies, and a streamlined system for processing returns. 
  • Pre-empt Returns: Provide tools and information that reduce the chance an item will be returned in the first place. Things like online “sizing” tools, customer feedback with reviews about sizing, sizing charts, and plenty of product imagery as well can reduce the chance a customer’s order won’t “meet the mark.”
  • Analyze the data: Understand the trends! Knowing why something is being returned in the first place can lead to discovery when data is analyzed in a way that identifies patterns and trends. This can allow retailers to take additional steps in a customized approach.
  • Communicate with customers: Today’s shoppers increasingly want transparency from retailers, especially during the returns process. Keeping them informed and knowing what to expect goes a long way in making up for fees or other policies meant to reduce cost burden.
  • Automate: Streamlining the returns process with the use of automation can be a major aid to staff. Simple tools like barcode scanners, RFID tech to track returns, automated messaging to keep customers in the loop, and tools to analyze data and trends, can be an ecommerce retailer’s best friend.
  • Find New Opportunities: Ecommerce companies should constantly evolve by finding new opportunities to improve the customer experience. Whether it’s new technology or a new concept, be in the know so you can leverage the latest and greatest!

Returns are, no doubt, a significant challenge, especially after the holidays. But, with the right approach that addresses this as a year-round problem, it can be a great opportunity. For ecommerce retailers that are prepared, are constantly looking for trends and new discoveries, communicating/updating customers inside the returns process, and automating where it makes sense, tackling the returns problem and ultimately reducing the cost burden is within reach.

Most importantly, focus on the relationship you’re building with your warehouse fulfillment center or 3PL. They really are your secret weapon!

It won’t be long before we’re in the midst of the ramp-up to the 2024 holiday season. The time to review your returns protocols, review the 2023 data/trends, and build a more efficient system for the next season is now!

By Tom Behnke

Categories
Boxzooka Press Ecommerce Fulfillment

Same-day Delivery Expectations are Growing. How Can Online Retailers Compete? 

A man delivers groceries to a woman at her home.

Same-day delivery has been around for a while – think flowers, Dominos, and auto parts. UberEATS, DoorDash, and your local grocery store dramatically expanded the same-day food delivery sector during the pandemic. And, thanks to Amazon, Target, and Walmart, people are receiving more than food every day to their front door. 100 million Prime members in the USA are spoiled with same-day options on virtually anything. Forgot a birthday? No problem, let’s see what we can get today.  

These heightened consumer expectations make it difficult for online brands and retailers to compete. Most eRetailers have a “same day shipping” option with a cut off time for purchases to be packaged and shipped using an overnight ship method (FedEx, UPS, DHL) to arrive the next day. Expensive, but effective and a cost that the consumer can choose.

It is worth noting that a customer may incorrectly view same-day shipping and same-day delivery as one and the same. These mistakes are easy to make, particularly with orders placed on mobile devices (+50% these days). It is important to make the delivery promise distinction clear at checkout so there is no confusion. Transparency is a best practice to help build customer loyalty. 

Same-day delivery options are less common for most online retailers and can be expensive. Amazon Prime is $139 per year – not free, but it feels like it when the option for same-day delivery pops up. In major metro areas in the USA, a handful of same-day couriers are available (check Google in your area). In most cases, these services cater to high-value items with a limited delivery area.    

Here are a few of the best practices for online retailers to consider to meet the rising consumer expectations. 

Offer Fast Shipping or Free Shipping – Not Both

eCommerce retailers can offer fast shipping options on every order as long as fulfillment operations are capable of shipping on the day the order is placed. Retailers generally offer Free Shipping at a price point that makes sense for the order value. Consumers understand these choices and are more tolerant of slower delivery when they get a “deal.” Setting expectations for the delivery date is important, and providing an expedited shipping method for a premium is a common practice. 

Prompt Delivery Updates and Tracking Information

Retailers are motivated to provide consistent and reliable updates to order status and delivery updates. Mobile purchases are the routine and naturally demand a steady flow of tracking messages. When presented effectively, order updates and tracking information are positive experiences that enhance your brand. For example, getting your company’s order tracking information via UPS or FedEx does not promote your brand as much as the carrier’s brand. There are methods for presenting tracking information in a window with your branding and messaging.  

Retailers that are not providing enough updates can be disappointing customers and opening the door to negative reviews.  

Optimized Warehouse Operations

Managing a productive warehouse operation or having a top-tier 3PL is necessary for meeting the expectations of today’s e-commerce shoppers. Warehouse operators must have their buildings optimized for workflow to minimize order processing time and get orders fulfilled accurately. There are dozens of opportunities for leveraging automation in fulfillment operations to streamline repetitious processes for material handling, packaging, and shipping. Same-day order processing has become the industry standard, which means people, processes, and technologies have to work flawlessly every day.  

Leverage Technology Wherever Possible

Today’s consumers have high expectations for quick answers and clean websites and apps. Having your technology platforms and partners effectively integrated is important to providing real-time updates and positive user experiences. Brands need to be thoughtful about what technologies (e.g., OMS, barcoding, AI, WMS, TMS) are integrated into fulfillment and transportation processes to enhance accuracy and speed.  

For instance, have you considered implementing route optimization software for delivery efficiency? There are several sophisticated Transportation Management Systems available to help manage the complexity and costs of shipping methods.  

Regional Distribution Centers Reduce Delivery Time and Expense

Having your products closer to your customers naturally cuts down on shipping time and expense. For most customers, 3-to-5-day delivery times are acceptable. Distribution Centers positioned for East Coast and West Coast order fulfillment can leverage less expensive transportation services and make the delivery promise.  

There are several important techniques for managing inventory to optimize your distribution network. Brands with low numbers of SKUs can manage split inventory with fewer complications than brands with high SKU counts. The goal is to make sure the majority of your products are fulfilled completely from the “local” warehouse and avoid any split shipments (one item from one warehouse and one item from another warehouse).  

Continuous Improvement

What mechanisms are in place for regular evaluation and improvement of fulfillment processes? How do you gather feedback from customers to enhance the overall delivery experience? Are your operations positioned to scale with the business? Having a continuous improvement mindset is a necessity to keep meeting customer expectations while controlling costs.  

Addressing these questions, businesses can develop strategies to not only meet but exceed customer expectations in this world of same-day delivery and information at your fingertips. 

Boxzooka is a quality-focused 3PL with great technology, lean operating processes, happy clients, and a vibrant culture.  

By Tom Behnke