With the continued competition retailers face because of online shopping, as well as the constant struggle to meet customers’ rising demands, the speed of delivery has become a key factor for success for many e-tailers. Drones, one-hour delivery, overnight delivery – these are all made possible thanks to vendor managed inventory and proper supply chain management.
Check out this great whitepaper featuring recent research done by Cognizant. This study found that nearly 24% of customers shopping online think that same-day shipping is important, and for most respondents, delivery time and cost ranked as a four on a scale of 1-5 with regard to the decision to purchase.
Check out the full whitepaper here.
As more and more shoppers head online to make their purchases, the expectations change compared to selling on the store floor. Now, instead of having to ensure shelves are stocked well (of course you still have to do this), if you offer online sales you now have to ensure that your own shelves are stocked – you can’t very well offer overnight delivery if the product is not available. However, this still remains one of the biggest stumbling blocks for retailers without the space to accommodate the sales.
The best way to combat these challenges is to start at the very beginning of the process design. Proper supply chain management, specifically vendor managed inventory, are key to this equation.
Want more on inventory management? Check out this video.
When searching out vendor managed inventory programs offered by suppliers, look for the ability to have product stored at the preprint or finished goods stage, as well as the ability to have it released on an “as needed” basis – this will really help with just-in-time delivery. Also look for a company that can offer you prescheduling to manage orders no matter the size. Keeping this inventory on hand, but offsite, allows you to be sure that the product is available on very short notice, but still remains cost effective by removing the need for increased overhead by reducing warehousing costs.
Don’t get stuck with floundering sales because you can’t meet customers’ demands. Keep your product on-hand, but offsite, always ready when you need it.
For more information on how a vendor inventory management system can help you compete in the e-tail delivery race, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.