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E-Commerce Automation Improves Efficiency and Profitability

With the huge increase in online orders over the past few years, E-commerce warehouses are more in demand than ever before. And, with an increasing number of orders and customers expecting their deliveries faster than ever before, warehouses must be equipped to meet customers’ expectations and demands.

Warehouse management is a crucial part of ecommerce operations. If you rely on well-designed processes and proven warehouse management software, it will likely positively affect the bottom line of your online store. However, if you neglect this part of the supply chain, the consequences may be severe. From unsatisfied customers to tons of money burnt on inefficient processes, it may turn out to be a fatal blow to your business. That’s why it’s crucial to carefully pick a good warehouse management system for your ecommerce.

Today’s volatile marketplace has altered the way we value and justify automation investments in the eCommerce supply chain landscape. Historically, automation usually required cost justification, meaning in order to pay for equipment, software, or a robotic system, you’d have to offset operational costs with a payback worth the investment. The principal question was “How fast is my ROI?” and it was common for automation to need to run 24/7 for it to make sense.

The way we evaluate return on investment and key KPIs has shifted. There are different drivers besides just cost that help to justify automation presently. The goal of eCommerce automation investments today is more about working alongside employees to standardise output and the quality of processes for online commerce. There are many challenges in the supply chain—from bottlenecks to labour shortages and warehouse capacity constraints—that can hinder or altogether stop companies from getting their products to customers. This makes reliability, scalability, and security more important than ever before.

An ecommerce warehouse must streamline all logistical processes to meet consumer expectations. An efficient WMS integrated into your business can optimises the logistics of online shops, whatever their size, number of daily orders or storage capacity.

With automation, there are ways in which you improve performance on stability of service and customer experience which might not cost justify in the same way as previously but may be required to accomplish business objectives. Taking a step back and evaluating your business holistically can help optimise the benefits you gain from automation. Below are three ways to see return on our eCommerce automation investment:

Develop a Consistent Standard Process that Ensures Confidence

Individuals perform tasks with different speeds, styles, methods, and levels of accuracy. Even after implementing process best practices, it’s impossible to guarantee a team of people will complete every task in the same exact way, resulting in margin for discrepancies and error. When set up correctly, automation can eliminate that risk and replace it with confidence in performance output. By implementing the consistency and standardisation that only automation can provide, you can create a dependable process and service level. Standardising certain routine processes also empowers employees with more time to perform valuable tasks that require deeper thought and can’t be automated. These are very important long-term benefits of automation.

Scale Business Processes Up and Down with Ease

Amid our nation’s current supply chain labour crisis, it can be much more expensive and time-consuming to find additional people than it is to modify the speed of an automated workflow. There can be a lot of risk associated with relying solely on human labour to get your products out to customers, especially as volume fluctuates throughout the year. Luckily, automation can supplement your existing workforce to help reach your business goals faster. Automated software and robotic solutions save you time and allow businesses to easily scale up and down with the flow of product. Of course, automation is heavily dependent upon product profiles and attributes, and some automation is more scalable than others, so it’s important to do your research beforehand.

Leave Breathing Room for Continuous Supply Chain Improvement

There will always be a need for people to manage different aspects of operations, from inventory management to all functions within a facility flow. By automating parts of that flow, you free up bandwidth for employees to focus on other aspects of the business. As a result, you have the opportunity to focus on continuous improvement in areas outside of the automation and improve the overall capability of the operation. There are a lot of variables that go into distributing products and performing process steps within a warehouse (and the supply chain in general), so having fewer areas to focus on can lead to much better results.

Finding the Right Automation Investments for Your Business Needs

Automation within supply chain is far from one-size-fits-all. Because we’re in a technological era with significant innovation, the market is extremely saturated with many types of solutions that fit different needs. The right automation investment for your business will depend on your company’s profile, volume threshold, flow of product throughout the year, budget, workforce, and other factors. Given today’s redefining of what makes an automation investment worthwhile, a cost-benefit analysis is only part of the picture when considering automation, and you need to understand specific business requirements and KPIs.

Conclusion

Ecommerce supply chain management is quite unique: people may place large orders or just put single items in their shopping carts. On top of that, every client expects the shipping process to be as quick as possible. To answer this need, you have to align your processes with the delivery operations, for instance, scheduled pickups. As a result, your team will likely have to pick up their pace. The fast pace and the high expectations of your e-commerce clients and their end customers means you need a WMS company with experience of delivering WMS for e-commerce warehouses, that is simple, responsive and totally geared up to the modern e-commerce world.

About us:

Speak to one of our team to understand how Clarus’ WMS system can cost effectively support best practice warehouse management processes, better customer service and highly efficient working for a range of warehouse operations with pay per month options and no IT infrastructure needed.

Our platform can scale from a one user, small depot system to a 100’s of user distribution centre operation. The ClarusWMS platform will cost effectively scale with your business based on demand.

ClarusWMS is a UK based supplier of warehouse management solutions with a wealth of industry experience in third party logistics, wholesale / retail distribution, online fulfilment and manufacturing warehousing.