logistics
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Drones and the future of logistics

It’s a bird, it’s a plane…no, it’s an unmanned aerial vehicle (UAV) commonly known as a drone!

Though drones were initially conceived and have been used as a part of modern warfare in the past, they are now increasingly being looked at by businesses to reduce costs, save time and improve customer service.In fact, one of the world’s largest companies, Amazon, is their most famous use-case through its recent public testing of drones with Amazon Air. And given its global influence, it’s no wonder Amazon forced other companies to stand up and take note of the potential uses of drones within businesses.

Regardless, many companies have already been looking into the technology and are already testing drones and using them, albeit in a limited manner. More recently, the buzz around drones has been (due to Amazon) around delivery, wherein customers are delivered products and goods via drones. However, though they can be used in delivering food, small items and products, drones can also be used within development, recovery, and search and rescue missions. Given that there is potential for drones within development, reconstruction, and retail, it is also true that drones can have a huge and untapped potential within the logistics sector.

In fact, as per a new market research report Drone Logistics and Transportation Market by Solution (Warehousing, Shipping, Infrastructure, Software), Sector (Commercial, Military), Drone (Freight Drones, Passenger Drones, Ambulance Drones), and Region – Global Forecast to 2027, “the market is estimated to reach USD 11.20 Billion in 2022 and is projected to reach USD 29.06 Billion by 2027, at a CAGR of 21.01% from 2022 to 2027.” Thus, with such impressive growth figures predicted it is no wonder more players within the logistics sector are closely examining the future potential of drones.

So what exactly is a drone and why is it so important? In technical terms, a drone “is an unmanned aircraft” or “a flying robot.” It may be “remotely controlled or fly autonomously through software-controlled flight plans in their embedded systems working in conjunction with on-board sensors and GPS.”

As earlier mentioned, drones were first associated with the military for intelligence, anti-aircraft, and target practice. However, they now are more commonly used by civilians recreationally, by cinematographers in film, for weather monitoring, agriculture, surveillance, and even traffic assessment.

Within logistics and distribution there are two main types of drone delivery being explored – home drone delivery and supply chain delivery. Home drone delivery in more popular though supply chain delivery can be very important in saving time, costs and streamlining processes.

For warehouses, drones can be used to “randomize picking routes.” In order to improve utilization within warehouses, and where there aren’t fixed palletizers, by changing the “programming of aerial drones, pallets can be set-up as and when required.” Drones can also help replace conveyor systems in places where there are configuration problems.

Given the vast amounts of stock and inventory within the logistics sector, there is potential for drones to work as possible alternatives to trucks or other surface transport options. Here, they could be deployed between warehouses to ensure demand within a local or regional area is met and to balance and manage inventory levels.

One of the biggest issues facing businesses is claims/returns. Here, drones could be used to pick-up faulty products from customers and drop them to be replaced/fixed. Large retailers could benefit from having their logistics save time given the benefits of no road traffic or congestion as well as reduce efforts of human labor and save on fuel prices.

Going further, there is also scope for end customers within a limited and finite range to be served by drones. However, given the current restrictions on weight and package type only certain goods can be transported. Nevertheless there is still an untapped potential for companies looking at the last mile (when a package reaches a customer’s door) delivery and can help remove the need for humans, reduce cost of transport, labor, and save time.

Also, within a warehouses drones can help with safety issues such as being able to reach places where employees may face danger or accidents. In the event an accident has taken place drones can be sent to take pictures of accident-prone sites or, where there is a problem, can be deployed to help review/solve problems.

Further, as has been mentioned, there is even greater scope for drones to “offer the potential to increase flexibility and combine the speed of automated handling equipment with the scalability of a manual warehouse workforce.” Thus, a combination of a human-drone workforce can greatly improve efficiencies with warehouses. This can also be complemented by RFID-reading drones, which can “pinpoint and count tagged inventory stowed inside stand-trailers, making them invaluable for large distribution centers with outdoor goods-yards,” saving precious time and costs.

In terms of the future, there is a great deal of potential for drones to be used within the logistics sector. However, one of the biggest hurdles is their limited weight. At present, packages weighing more than 5 kg are hard to hold and there is a risk attached to them. For now, larger drones are more expensive and need more testing. Given this their range is also limited as is their speed and they can only embark on short trips.

There is also the issue of government regulation and the need for several licenses and procedures to be followed for commercial usage of drones. Here there are several grey areas and issues of security, surveillance, safety and risk need to be addressed. Thus, at present, only large players such as Amazon, Walmart, DHL, and UPS (among others) are actively using drones.

However, given the rapid pace of technology, innovation by businesses, and competition for increased customer loyalty, the future looks bright and it seems only a matter of time before drones, as part of the technology revolution, which includes AI, robotics, IoT, etc., will enter the mainstream and will inevitably become commonplace within the logistics sector.

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E-Commerce Fulfillment Trends in 2018

Let’s be honest about the fact that 2017 has been a pretty good year for e-commerce fulfillment. While businesses were pleasantly surprised by the innovation and speed of technological implementations, several startups benefited from these changes. However, it would only be appropriate to take a look at 2018 and what expectations the entire supply chain industry can have from the same. The current year started on a few positive notes and it wouldn’t be wrong to be optimistic regarding the upcoming trends. Moreover, we should take a note of the fact that ecommerce fulfillment trends do not change every year but extrapolate with each passing day. This means, it wouldn’t be advisable to look only at 2018 but to concentrate on a more expansive analysis.

Looking at the E-Commerce Challenges

It wouldn’t be wrong to say that trends also signify the lingering challenges associated with ecommerce fulfillment. Majority of these challenges are inventory and warehouse specific loopholes, ably assisted by a host of other micro effects. Ecommerce fulfillment, therefore, specifically focuses on the aspects of shipping and product deliveries while offering the best possible combinations to the customers.

2018 will see a Change in how Fulfillment is perceived

Ecommerce fulfillment has already started spreading out in multiple directions. The Omnichannel visibility combines the likes of drop shipping, warehousing and other necessary avenues. In addition to that, majority of fulfillment service providers are pairing up with 3PL companies for creating an elite network of clients. What sounds optimistic is that fulfillment partners are increasingly establishing accountability for every supply chain metric. Be it covering the shipping damages, packaging essentials or the last mile considerations; fulfillment partners in 2018 are concentrating on the holistic aspects of supply chain management.

Shipping Costs to Rise

Those who are expecting the shipping costs to cap out are certainly in for a disappointment. While fulfillment service providers will start looking into the basics of retailing and packaging, the shipping costs in 2018 are expected to shoot up. The customer satisfaction levels, therefore, won’t be compromised on.

Warehouses will keep getting Makeovers

Although the sky high prices won’t cease from existing, the concerned warehouses will start getting makeovers they deserve. Majority of fulfillment partners and retailers will start readdressing their warehouses in 2018 for necessary improvements. The emphasis will therefore be on eliminating the inadequacies and identifying the key areas for improving the existing frameworks. Moreover, it’s only fitting that fulfillment centers keep checking the size and spread of the warehouses for accommodating bulky materials.

Better Branding and Customer Experiences

Getting up close and personal with a brand will be easier in 2018 as fulfillment partners will do majority of the work. With online shoppers getting a cohesive platform for comparing prices, delivery rates and discount codes— customers will be getting all the advantages. Brands will start paying heed to customer sentiments and the shipping strategies will be way more user-friendly as compared to the existing ones. The best thing which fulfillment partners are expected to achieve in 2018 is higher degrees of personalization. This concept will include better at-home deliveries and even higher levels of packaging.

Intensified Labor Pressure

This variable is likely to get squeezed between other fulfillment metrics. While the requirements are amplifying at an alarming rate, there is definitely a lack of skilled labor. Although companies are setting up warehouses with scalable automation at the fore, the pressure for procuring skilled labor is intensifying with each passing day.

Better Delivery Options

While shipping and packaging are some of the important facets leading towards product fulfillment, it’s actually the delivery options that determine the efficacy of the last mile solutions. In 2018, fulfillment partners will start focusing more rural deliveries and innovations concerning in-home deliveries. Newer techniques for delivering products will start showing up in 2018 with the focus being on customer satisfaction and readiness. While the concept of nominated deliveries is fast catching up, it needs to improve further in order to make some more sense. Majority of retailers with dedicated fulfillment services are slowly but steadily concentrating on delayed shipping options for allowing the customer to save money.

E-commerce fulfillment solutions will keep evolving with time. However, 2018 is only a stepping stone for the service providers to achieve fulfillment perfection. Customers must understand that prices might go up in certain cases but the overall satisfaction levels will keep improving.

Inventory Management
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The Basics of Inventory Management: Warehousing, Picking, Packing and Shipping

Small businesses need to understand a simple strategy that concerns establishing coherence between customer demands and the existing supplies. More often than not, startups and even medium-sized enterprises fall short of resources— which in turn sabotages their credibility. While manufacturing is never really an issue with technological innovations at the helm, it is the product distribution that takes a beating.

 

Major issues include inadequacies related to product picking, packing and shipping. In addition to that, certain businesses also find it hard to store their products in an efficient manner. However, if businesses continue worrying about these aspects of inventory management, it becomes hard for them to grow and even outrun the competition. Moreover, delayed shipments can easily kill off the customer satisfaction levels with companies failing to deliver products on time.

 

There are several firms which readily outsource the pick and pack services— in order to save time and even overhead costs. Pick and Pack warehousing is a comparatively newer aspect that combines the essentials of product storage with excellent shipping services. Companies that worry about storing their products in a secured environment are better off hiring 3PL service providers which emphasize on Pick and Pack warehousing. While it easily mitigates the storage constraints, a host of other benefits are also available for businesses to leverage.

 

Meeting Customer Demands

 

Having specialized warehousing services at the helm can help enterprises meet varied customer requirements. Once a business starts blossoming and growing rapidly, it becomes important to stay on track with the persistent user preferences. This is where outsourcing comes in handy, especially by offering excellent Pick and Pack storage and distribution services to the concerned organizations.

 

Fulfilling the Storage Requirements

 

Before we delve any deeper into the basics of Pick and Pack services, it is important to understand the influence of outsourcing in regards to handling the storage needs. Manufacturing industries usually need to ship extensively and having a restricted storage space can actually slow them down. While it is always possible to hire specialized warehousing services, most companies look for cohesive options that can cover multiple bases. Having one logistics company handle the basics of storage, picking, packing and shipping can be the best possible option when the manufacturer is looking to minimize the costs.

 

Efficient, off-site warehousing is one aspect of this cohesive program that allows an enterprise to manage inventory without opting for contract or distribution warehouses. Online warehouse management is also possible. Unlike other warehouses that solely offer storage options, facilities synonymous to the Pick and Pack management believe in dispatching the products, almost instantly. To be exact, enterprises can enjoy the benefits of a dynamic storage system where products aren’t dumped for an eternity but are expedited immediately.

 

Understanding Picking and Packing Better

 

Unlike conventional warehouses that offer storage facilities, managerial flexibilities and a host of other features, enterprises relying on Pick and Pack services are best served when it comes to the holistic catalogue of services. These include a variety of Inbound and Outbound services, dedicated towards amplifying the revenues and serving the customers better.

The best part about using Pick and Pack Distribution is that a shared warehouse can serve the purpose for multiple organizations. The products are then immediately packed and distributed to the concerned customer base. As we could already infer from the discussion, this form of inventory management is affordable and exceedingly cost-effective. With small businesses using Pick and Pack services rather extensively, the popularity seems to be validated.

 

In addition to that, outsourced pick and pack services also assist manufacturers with their inventory solutions. Firstly, the designed warehouses managed by these specialized 3PL service providers are organized and extremely efficient. Apart from that, they offer advanced inventory management solutions like stock replenishment and necessary intimations. As the part of a holistic cycle, these solutions also involve picking up manufactured products from the companies, storing them in bespoke warehouses, packing them accordingly and finally, shipping them across multiple channels.

 

Bottom-Line

 

An inventory-specific business model requires higher levels of cohesion between warehousing, packaging and distribution. While hiring a 3rd party fulfillment service for the specifics is a good option, pick and pack service providers are actually best suited for a retail-specific business. This form of inventory management works wonders for small to medium business owners, thereby helping them save additional costs and efforts.

 

 

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10 Myths About E-commerce Fulfilment Solutions

The high paced growth of the E-commerce sales channel has given immense boost to the E-commerce Fulfillment Solutions and various Third Party Logistics companies. However, there exists a wide section of the market – especially the smaller, newer e-commerce players who debate the concepts of outsourcing their Fulfillment operations or for that matter, even consider a professional Fulfillment solution. So here’s an attempt to break certain myths about the whole order Fulfillment solution and put things into perspective.

  1. Getting orders is tough; Order Fulfillment is easy.

Right and wrong. While the base of any business is getting more and more orders for your products, it is equally important to have a seamless, cost effective and fully optimized order Fulfillment process in place to ensure repeat customers, better revenues and even better profits. Many small and new businesses believe that having a good product to sell is a war won. However, what they miss is that order Fulfillment is a giant that will slowly grow so big that it would be tedious and not profitable to do it all by themselves.

  1. Fulfillment solutions are only for the BIGGIES.

A BIG Myth. Fulfillment solutions can benefit businesses of any scale. The key is to tap on the right Fulfillment partner for your business’s need. A bit of research and having clarity of what you need from your Fulfillment partner can be far more beneficial and economical than doing it all by yourself.

  1. Fulfillment Solutions Are Expensive.

At the first look of it – Yes they are! But have a closer detailed look and you would know that it’s an investment that saves you a lot more expense at a later point…maybe even today. If you are an ecommerce merchant handling your own order Fulfillment, you know how high your fixed costs have gone. You can cut them down by outsourcing your order Fulfillment to a specialized Fulfillment solution provider. Imagine not having to bear the cost of that warehouse?

  1. Order Fulfillment solutions are only friends of ‘volumes’.

No doubt, volumes ensure better profits but Fulfillment solutions are profitable to all. Smaller businesses often go through fluctuations in their sale volumes. Festivals and special occasions can sometimes give a huge spike which can become highly difficult to manage in terms of product deliveries. Having a Fulfillment partner ensures that you receive the scale up and down of order Fulfillment resources without having to either increase your fixed costs or lose market credibility with poor deliveries.

  1. We’re too small to have complex systems and processes

Small e commerce ventures believe that having Fulfillment solutions may end up complicating their otherwise simple delivery process. On the contrary, if you wish to grow and scale up your business in future, it is far more important to have your processes put right at an early stage. Looking in to detailing at the start and letting Fulfillment experts set up your base can actually save you lot of time, money and effort of revamping at a later stage.

  1. We know them best- Our Business, Our Customers

Most retailers are driven by the thought that they know their business and their customers well and no third party can match up to the standards of reaching out to their customer. Remember, just like you, the 3PL or Fulfillment solution providers are experts of their business and your delivery services may actually not match up to their efficiency and standards. Let the experts do the job!

  1. We’ll lose sight and control.

Business owners worry that having their warehouse stocking, logistics and shipping out of their main system may lead to losing sight of their product and control on their deliveries. However, the truth is that modern Fulfillment solutions give better control and visibility to business owners. With providers offering real time tracking, order Fulfillment can be a cake walk.

  1. It’s Only Packing and Shipping! What Extra would They Do?

Most small to mid-size companies are not fully aware of the offerings of modern day 3PL’s and thus fail to see the benefit. Order Fulfillment companies are way beyond a pick, pack, ship player. Their extensive value added services can really help your business grow.

  1. They may stunt our growth

For the ambitious ones, being stuck with a Fulfillment partner is a scary thought. The truth, however, is having selected a ‘fit to your needs’ Fulfillment partner and having a great working rapport can in reality help you scale faster than you could do yourself.  Your partner scales up as your business grows.

  1. What if my inventory is slow moving? It’ll be far more expensive.

Yes, it’s a fact that there may be chances of you paying much extra on storage for slow moving inventory. However, collaborating with a good Fulfillment partner who gives you a good picture of your stock and stats, can help you avoid the scenario of SMI in the first place. Additionally, Fulfillment solution providers offer value added services like promotions in order delivery which can help the slow inventory pick pace.