The Challenges of an Online Retailer in the Warehouse

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The Challenges of an Online Retailer in the Warehouse
12 Apr 2017

Backorder Handling
In e-commerce, the demand fluctuates on a daily basis. As a result, e-commerce warehouses face unpredictable backorders. Automatic allocation and packing of backorders during receiving are crucial in e-commerce.

Single-Item Orders
In e-commerce, the average number of single-item orders is around 30%-50%. The traditional system is familiar with and good at picking pallets and boxes from the warehouse but not picking single items.

Shipment of Pieces
A traditional warehouse usually ships products directly to another business–mostly in higher quantities and in bulk. Whereas B2C warehousing involves a higher number of individual orders and smaller quantities within the order. E-commerce warehousing is all about operational speed, accuracy and customer service.

Multiple Sales Channels
The most challenging and critical process in an online retailers life is inventory sharing throughout all sales channels to avoid overselling and miss-selling. Required priorities, allocations and reservations should be included in the system through this cooperative infrastructure.

Carrier Synchronization
The consumers are offered a wide variety of delivery options. Online retailers should have seamless integration with carrier systems in order to make it effortless for them to offer more delivery options. They should automatically print shipment labels and get the best shipment rates by using rate shopping options.

Drop Shipment
Online retailers should collaborate with large retailers and drop ship to customers proactively. They should also coordinate with their vendors to drop ship to their online consumers.

Temporary Employees
Parallel to the growth of an e-commerce company, it should be possible to subscribe new users on a temporary basis. The inventory management system should allow subscribing more users when they are needed and unsubscribe them as the number of orders decrease. An e-commerce inventory management system should support all devices including industrial guns, smartphones and tablet PCs so that the temporary workers are able to use their own smartphones.

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About LA Software
Founded in 2004, LA Software is a supply chain technology company serving small and medium size retail, e-commerce and 3PL businesses. We provide best-of-breed solutions that empower companies to achieve more by optimizing costs, increasing profitability and reducing time to value.

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