More and more websites are adding subscription order services for their customers. The model may benefit your current ecommerce site, or be the major feature for your next business. In either case, subscription fulfillment has some challenges that you may not come across in standard fulfillment operations. Fortunately, fulfillment providers like yours truly are uniquely prepared to tackle these challenges.
Take order volume, for example. Because of the predictable delivery cycle for orders, subscription fulfillment is subject to peaks and valleys of volume. One week, your warehouse is packing and shipping like mad to meet the subscription deadline. The next, everything is quiet as you prepare for the next subscription offering. Predicting volume from subscription to subscription can be difficult, so it's critical to have flexible warehouse space for storing inventory and sufficient labor for fulfilling orders. Because they work with multiple customers, fulfillment providers have the flexibility to scale space and labor to accommodate volume fluctuations easily.
It’s also important to get the logistical timing right for subscriptions. Subscription boxes are often promoted extensively in social media, so you’ll want to synchronize arrival dates so that subscribers in different shipping zones receive their orders at approximately the same time. This requires close communication and negotiation with carriers. Logistics is an area where Fulfillment Works excels – we help you to optimize your distribution network to reduce transportation costs and work with multiple carriers to negotiate competitive shipping rates.
Additionally, fulfillment providers are invested in warehouse management systems and data analyzing solutions. When you find the right fulfillment partner, you can leverage their resources without the overhead investment. As a result, you’ll be able to improve inventory management and process orders faster - ultimately, enabling you provide a better subscription service.
In addition to struggling with issues related to logistics management expertise and software, many ecommerce businesses are stymied by the physical limitations of their facilities – so much so that the demand for major warehouse improvements is on the rise.
A recent survey from Zebra Technologies Corp, which polled 1,400 warehouse IT and operations management professionals, indicated that the worldwide demand for warehouse space and inventory management solutions is increasing. According to the study, 48% of participants said that they are currently working to increase their number of warehouses - while 76% plan to increase warehouses by the year 2020. Other interesting takeaways from the survey include:
Another study from CRBE also found an increasing demand for warehouse space, mostly due to a desire to improve reverse logistics efficiency.
In ecommerce, the sale often goes to whoever has faster, cheaper, and easier shipping options – and improving your distribution network through size and efficiency is a solid strategy for maintaining a competitive edge. If you haven’t done like the respondents to Zebra Tech’s survey and imagined what your warehouse needs will be in 5 years, you may get left behind. If you’re not sure where to start or what factors to consider, we’re always happy to help.
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