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Case Studies

warehouse in India

How Logistics Outsourcing Helped an E-Commerce Seller Scale His Business

PROBLEM STATEMENT
The primary concern of the client was to expand his business in the domains of consumer products and eCommerce. The client also wanted to expand their footprint and customer base. Along with that, one of their biggest worries was assessing fundamental flaws in the downstream distribution process.

CHALLENGE
The client was encountering complexities in the manufacturing process, procurement, distribution, and fulfillment. Major issues arose in the areas of enhanced delivery accuracy, better packing quality, and the organization's desire to obtain the most up-to-date warehouse automation standards. Thus, they were required to develop innovative ways of doing business, cost-focus strategies, and optimize supply chain operations.

SOLUTION
Warehousing Express conducted in-depth research and made necessary adjustments in digital transformation. They also decided to offer the client strategic last-mile delivery and route optimization. WELPL has undeniably excelled in segments such as lowering shipping costs by 30%, improving delivery accuracy to almost 90%, improving packing quality, and optimizing logistical operations by employing automation technologies wherever they were needed, for instance to provide real-time inventory status and shipping information.

RESULT
Warehousing Express is combining all of the above-mentioned techniques to offer customers ease in areas such as order fulfillment, logistics, and warehouse management. WELPL's state-of-the-art solutions helped the client increase sales, reduce in-transit damage, and enhance customer satisfaction with real-time order updates. With its phenomenal third-party logistics services, Warehousing Express has made seemingly impossible and difficult tasks possible.

CLIENT FEEDBACK
"The client appreciated Warehousing Express's ability to integrate KPIs across multiple domains, and the brand awarded full points to this industry leader for improving its bottom line and organizational performance. The client believed that outsourcing warehouse and logistics operations to WELPL was his best decision, and it proved to be a real game-changer. Earlier, the client was able to fulfill only 100 orders a day, but with WELPL's order processing and logistics services, the client was ultimately able to fulfill 500 orders a day, and 15,000 orders a month. Beforehand, the client's geographical footprint was limited but working with WELPL allowed him to trade throughout the country. This phenomenal growth was possible only because of Warehousing Express's ultra-modern service offerings, including route optimization, order processing and fulfillment, and real-time inventory and shipping updates. Furthermore, the client was enthralled with the model of Last-Mile Delivery, and its implications for organizational growth were positive."

ABOUT THE CLIENT:
The client is widely regarded as one of the industry's leaders in the realm of e-commerce and consumer goods. For decades, the client has dominated the e-commerce segment and has a positive image in the country.

OVERVIEW:
The e-commerce industry is one of the most thriving industries in India. Furthermore, the industry is expected to witness a bull run in the upcoming years. There has been a paradigm shift in the shopping experience, and online shopping practices have been growing consistently. However, with such rapid expansion comes the possibility of new challenges and complexities. Online retailers face some common challenges like inventory management, tracking online orders, order fulfillment, reducing shipping costs, managing returns, and so forth. Similarly, our client was also facing these challenges and thus decided to outsource logistics and warehouse services to Warehousing Express, the leading 3PL provider. Therefore, he was able to focus on his core business, leaving all the logistics concerns to us! This certainly helped the client to expand his customer base and make his business all the more profitable.

OUTSOURCING LOGISTICS:
Most organizations have discovered that outsourcing supply chain and logistics related functions to third-party logistics (3PL) providers has given them a competitive edge. Businesses cite increased flexibility, operational performance, enhanced service levels, and a stronger focus on their core competencies as perks of using 3PL providers' services. Since logistics outsourcing is a rising trend, the extent and kind of outsourcing vary substantially across time, industries, and enterprises. Some companies employ 3PL providers solely as a source for storage or distribution purposes, whereas others trust them with complete control of their logistics network.

Coming back to the story of our client, he was primarily using our warehouse services, for storing his inventory stock, but later the client decided to outsource all the logistical and e-commerce fulfillment procedures to a renowned 3PL provider- Warehousing Express. This proved to be the best move for him, and helped him scale his business tremendously. If you are an entrepreneur who wants to expand your business, you already know that the best way to do it is to surround yourself with a fantastic team. And yes, a 3PL should be included!
Here's how the third-party logistics services of WELPL continue to benefit its clients:
  • Cost Savings: Reducing costs related to storage and shipping.
  • Being industrial leaders, we have considerable experience, expertise, and knowledge, allowing our clients to tap into the world of the latest software systems and equipment.
  • End-to-end services related to warehousing, packaging, distribution, transportation, and supply chain management.
  • Helping clients with order processing and fulfillment.
  • Complete assistance in handling returns, exchanges, and refunds.
  • Providing Data-Driven Insights.
  • Solving all the logistical challenges and making your supply chain all the more flexible, agile, and robust.
Automation Technologies:
It's fairly easy to conclude that warehouse automation is absolutely essential, but most organizations struggle when it comes to putting it into practice. Warehousing Express has improved its multi-channel e-commerce logistics by entirely automating the whole sales and distribution network. In the ecommerce industry, it has incorporated the latest trends to meet the ever-changing customer needs.

The Route to Success:
A partnership with WELPL certainly helps clients to venture into new markets, make their supply chains all the more efficient, and gain a competitive edge in the industry. Warehousing Express has almost always found the answers to clients' problems and offered them modernized infrastructural facilities and services. As a result, they make certain to make all of the essential adjustments necessary to resolve the issue, and they have set up multiple platforms to incorporate numerous upgrades in the required regions.
WELPL continues to thrive on challenges, and in the E-Commerce and Fast-Moving Consumer Goods segment, the company has faced various obstacles along the route to success, but it has wisely learned how to conquer all of them. Furthermore, Warehousing Express is always available for their clients to help them expand their businesses across the country.

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Our Latest Blogs

ecommerce warehousing
01 Jul 2022
As obvious as it may sound, warehousing is one of the most crucial facets of running and managing an ecommerce business. Regardless of the size of your business, you will always need to store your products safely and securely. Apparently, this is what ecommerce warehousing entails.

In this comprehensive guide, we will go over the fundamentals and specifics of warehousing and explain why it is beneficial for your online store.

What is eCommerce Warehousing?

In the simplest terms, it refers to the process of storing, managing, and organizing products that are intended for online sales. It involves operations like storage, distribution, inventory management, and logistics. Today's smart warehouses can perform the functions of both a distribution center and a fulfillment center. While some e-commerce warehouses are owned and run by the retailers, others are under the supervision of 3PLs, or third-party logistics and e-commerce fulfillment partners.

The market for e-commerce has gained enormous popularity in India, and it is only expected to grow in the foreseeable future. For instance, warehouse in Chennai, the online shopping industry is flourishing, driving demand for e-commerce warehouses in the city. The situation is pretty similar in other metropolitan areas.

What are the Elements of a Warehouse?

Warehouses have specialized elements (like technologies, systems, applications, equipment, and infrastructure) that ensure efficient storage as well as distribution of products to potential customers.

Let's examine the distinct elements of a storage facility:

  • Numerous racks and shelves to provide optimal product storage.
  • Security measures to assure that inventory is stored safely.
  • A temperature-controlled or climate-controlled storage system for products like food, beverages, pharmaceuticals, and other products that are temperature-sensitive.
  • An Inventory management system that provides the seller with information about the whereabouts of his products (where they are stored, when they left the facility for shipping.)
  • Equipment, such as forklifts, pallet jacks, conveyor belts, etc.
What is Warehouse Management?

The administration of all activities and procedures involved in operating a warehouse is referred to as warehouse management. It is an essential component of ecommerce fulfillment. If done correctly, it can help your business achieve extraordinary results.

In the most inclusive sense, it includes day-to-day warehousing operations or tasks like:

  • Taking all the necessary precautions for safety and security when storing the inventory.
  • Keeping track of each SKU's bin, shelf, and/or pallet locations to achieve optimal warehousing slotting.
  • Conducting inventory audits.
  • Keeping track of stock levels.
  • Demand Forcasting.
  • Obtaining licences and certifications.
  • Scaling up warehousing operations as the business grows.
  • Track all daily shipments, both inbound and outbound.
  • And a lot more.
While businesses are developing innovative strategies to increase customer satisfaction, the basic tenets are sometimes overlooked. A consumer is likely to switch to a different supplier if he cannot get the products he needs or finds the ordering process to be challenging. Effective warehouse management is then necessary in this situation.

Let's grasp this concept with the help of an instance: If you are thinking of setting up an e-commerce warehouse in Hyderabad, you will need to find a good warehousing solution. There are many options available, but not all of them are equal. You will need to find a warehouse that is large enough to store your products, has a good location, has access to the latest technologies, and is affordable. With the help of a robust and efficient warehouse management system, one can easily manage storage, distribution, logistics, and order fulfillment operations. It also helps in providing visibility and transparency into supply chain operations and real-time information and insights to make more informed decisions.

Using a Third Party Logistics (3PL) Partner for Storage and Logistics Needs:

You can optimize and significantly improve your supply chain by partnering with a third-party logistics service provider for your warehousing requirements. They automate and streamline your logistics processes, such as storage and distribution, inventory management, and order fulfillment.

Now that we have covered the fundamentals, let's look at the advantages of outsourcing eCommerce warehousing and fulfillment operations to a third-party logistics provider.

Key Benefits of eCommerce Warehousing

  • Inventory Management
One of the most significant benefits you get with a 3PL provider is efficient inventory management. This includes monitoring inventory levels, ordering and replenishing products, and demand forecasting. They also provide an integrated inventory management software to speed up and automate the procedure. By observing trends and past patterns, the software enables you to plan for varying levels of demand and sales.

  • Easy and Efficient Integration
Your online store platform can be easily integrated with a WMS to keep records of all of your inbound and outbound inventory and to ensure that everything is operating efficiently and is in sync. Integrating your online store with a WMS allows you to streamline operations.

You can automate daily tasks that include:
  • Notifying customers of order updates and shipments.
  • Ordering of extra supplies to prevent out-of-stock situations.
  • Keeping track of inventory across several sales channels.
  • Focus on Your Core Business
eCommerce warehousing involves so much more than having space to store your products. It involves taking care of packaging, shipping, monitoring stock levels, placing new orders, and a whole lot more. When you outsource it all to a 3PL, you can concentrate on other areas of your business, such as finances, marketing, and customer service.
  • Growth Potential
A 3PL partner can scale operations as your business grows. As your online store grows and the number of orders rises, you will need more resources, personnel, and space to keep your inventory and manage fulfillment. When you work with a 3PL, you are certain of having space to grow both in a figurative and literal sense.

Final Thoughts:

If you are just getting started in ecommerce, warehousing can seem like a daunting task. But with a little planning, and knowledge it can be a breeze. Warehousing could be overlooked in the zeal of running an online business. But keep in mind that efficient inventory and warehouse management can help you achieve excellent results while saving money and time. Keep the pointers discussed above in mind to grow your business.


warehouse in India
13 Jun 2022

Warehousing has taken on a whole new meaning in the supply chain of many businesses. The warehousing industry in India is experiencing a significant transformation in order to keep up with the country's ever-growing manufacturing and logistics sectors. One of the major drivers of increased demand for warehouse in India is the rapid growth of the manufacturing, automotive and spare parts, retail, and FMCG industries. Furthermore, to maintain a strong competitive edge in the market and boost business efficiency, warehouse digitization is becoming a necessity.

Key Market Trends and Prospects for Growth:

The warehouse sector is an important part of India's economy since it keeps the global supply chain moving. With the rise of e-commerce, there is a greater need for supply chains to be more responsive, flexible, and robust. As a result, warehouses in India should embrace intelligent, efficient, and automated technology solutions. For instance, Warehouse in Chennai is on its way to becoming the next major warehousing and logistics hub in India by embracing technological breakthroughs. However, striking the right balance between integrating technology and training warehouse employees on how to use it successfully is extremely important.

According to a recent industry study, the Indian warehouse automation market would expand to USD 512.2 million by 2026, from USD 86.2 million in 2020. Digitization is certainly considered as the best possible option to gain a competitive edge in the dynamic business environment. Within the e-commerce, retail, and third party logistics sectors, there are promising growth prospects in the automated technologies. Artificial intelligence, industrial robots, the internet of things (IoT), and other dynamic solutions available in the market ensure a smooth and safe flow of goods for diverse storage and logistics operations.

Before proceeding further, let's take a moment to understand and define the key terms.

What exactly is Warehouse Automation?

It essentially refers to the process of automating and optimizing the flow of inventory into, through, and out of warehouses to the end-customers with little or no human intervention. It actually refers to the use of software applications and systems to perform tasks that would otherwise be performed manually. An organization can significantly eliminate labor-intensive tasks such as repetitive, menial work, and data entry processes as part of automation initiatives.

In this regard, companies all around the country are adopting technological solutions to automate repetitive warehousing, distribution, and logistics tasks, thereby reducing labour costs and increasing efficiency. For example, warehousing automation companies in Hyderabad employ cutting-edge technology to improve operational efficiency, while also ensuring a synchronized, seamless flow of procedures.

The following are some of the prominent technological trends in the warehousing industry:

  • Goods-to-Person (GTP)
  • Voice Picking Systems
  • Autonomous Mobile Robots
  • The Box Selection Algorithm
  • Pick-to-light (PLT) systems
  • Internet of Things (IoT), Artificial Intelligence and Machine Learning Solutions

The Benefits of Automated Warehouse Systems:

Even though automation entails an initial investment, it has numerous benefits, including improved operations and fewer instances of human error. For businesses to become even more efficient and productive, logistics warehouse digitization has become paramount.

Here are the key benefits of warehouse digitization:

Greater Efficiency

The first and most significant benefit of digital warehousing is improved efficiency. The reliance on manual labour decreases when you optimize your operations. Firms invest in fully automated systems in order to improve operational efficiency and meet ever-growing customer demands. Today's smart warehouses have substantially better turnover, are constantly restocked, replenished, and resupplied, and can provide a plethora of services like storage, distribution, logistics, and order management, among others.

Safety and Security

Ensuring the safety of the workforce and products is reason enough to invest in warehouse automation technologies. Working in warehouses usually involves high-risk activities, including managing heavy pallets and high racks, and working with poisonous items (e.g. chemicals). Today's robots can perform the majority of these tasks, thereby reducing employees' risk and ensuring safety.

Sustainability

Sustainability is a priority for almost every industry, and logistics warehouse are no exception. Executives can achieve their sustainability and environmental goals with the help of WMS solutions and other digital technologies. It helps in controlling resource usage, optimizing space utilization, and incorporating basic green practices like recycling into operations.

Better Scale-Up

The best part about automated systems is that they are simple to scale up and down to meet evolving customer demand. Retailers, for example, do not need to hastily double their staff and manage with seasonal workers during the holiday season. Instead, they can adjust schedules and reprogrammed fleets to handle increased input and output, allowing workers to focus on more consumer-centric tasks like customer care and festive packaging.

Bottom Line

In the foreseeable future, investing in the right automated warehouse systems will prove to be a great move. Intelligent warehouses are the way of the future, and business organizations are gradually embracing the concepts of efficiency, automation, visibility, and transparency in their supply chains.

CONNECTING SUPPLY CHAIN
09 Jun 2022

Over the last couple of decades, businesses and supply chains have become increasingly globalized. Undeniably, supply chain management (SCM) has emerged as a potentially beneficial tool for gaining a competitive edge and boosting organizational performance. Most businesses are struggling to compete with a higher level of market pressure in an increasingly competitive environment. In order to be successful, organizations must explore better methods to ensure that clients are satisfied with great service levels at reasonable prices.

Firms should indeed manage an entire network of interactions, including logistics and several other operational processes, from suppliers to end customers, rather than conduct business with other corporations one at a time. It is often believed that fierce competition is now primarily between value chains, rather than between business organizations. As a result, the spotlight is now turning towards effective SCM practices.

This blog post will outline some of the prevalent issues and challenges in the realm of SCM along with the impact of supply chain management on organizational performance. Read further to learn more!

Labour Constraints Severely Impact Efficiency of SCM:

Supply chain disruptions and restrictions are grabbing headlines and harming the performance of enterprises across a wide range of industries. According to the research findings, an improper SCM strategy can have a disastrous impact on operational efficiency, customer retention, and service. Manpower, a valuable asset in most businesses, is one of the significant contributing aspects to a successful supply chain. The disjointed nature of operational and management systems makes resolving these issues difficult, but a single, highly integrated framework can help managers overcome interruptions and crises more successfully.

What makes the matter so complex?

There are now a number of interconnected variables that have combined to create a perfect chaos that is having a negative influence on supply chain performance, reliability, effectiveness, and efficiency, such as:

  1. Rapid swings in demand (both up and down) throughout various sectors of the economy are induced by production constraints and uncertainties.
  2. Slow down in production activities.
  3. Transportation delays, capacity constraints, and accelerating fees are all factors to consider.
  4. Supply disruptions and a lack of storage facilities in key regions have created inventory placement issues.

The matter of concern is not just that businesses are facing logistical, supply chain, or labour issues; it is that they are facing significant challenges in all these areas at the same time. Accessibility to reliable, qualified personnel is crucial for SCM operations. Coming up with a solution necessitates a quick analysis of combining operational and workforce performance data in order to make better, smarter decisions.

The Importance of Cross-Functional Insights in Improving the Supply Chain Workforce:

As a result of the requirement for greater visibility across large numbers of suppliers, there is a transition from linear supply chains to more interconnected networks that connect multiple stakeholders. By employing advanced technologies, applications, and systems, SCM and HR professionals can easily access data, share information, work collaboratively, and make the right decisions. SCM analytics systems can reveal interconnected operational and manpower constraints, giving decision-makers the insights and information they need to optimize the production-distribution network. Warehouse, and logistics executives, for example, can immediately monitor demand/supply discrepancies and modify workforce requirements to maximize on-time delivery while lowering costs. Human resource professionals and managers can recognize workforce shortages and competency gaps in production and logistics roles across the country and change their recruitment and retention strategies accordingly.

Now that we have outlined some prominent industry challenges and the necessity of an integrated technological platform to manage SCM operations, let's discuss how can supply chain management improve company performance?

SCM's Impact on Organizational Performance:

There is a direct and positive impact of supply chain management on organizational performance. It has become an indispensable component of a business's success. The most recent advancements in the aforementioned industry include information sharing technologies, outsourcing methods, supplier partnerships, and continuous production flow. To increase an organization's fundamental competencies, SCM procedures centre around procurement, customer satisfaction, and the creation of high-quality products.

A well-managed distribution network can considerably reduce a firm's operational costs, resulting in higher profits and increased productivity. Businesses with high-performing supply chain operations generally outperform their competitors in the industry in terms of profitability and success. SCM strategies impact not only flexibility but also the productivity and efficiency of the resources available within a business organization.

Bottom Line:

It all comes down to your supply chain if you want your business to thrive. Long-term success and improved operational performance can result from SCM practices at a higher level. For better visibility, the supply chain of the future must be resilient, flexible, adaptable, efficient, and robust, as well as digitally networked. There must be efforts to connect distribution networks and improve workforce insights via new technologies, thereby fostering operational execution and flexibility.

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