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It\u2019s the most lucrative time of the year\u2026 The holidays are like the championship game for online retailers<\/a>. It\u2019s when all of their people, processes, technology, and training are put to the test–and a big win can mean big profits. Only their championship game is about two months long.\u00a0<\/i><\/p>\n <\/p>\n That\u2019s right. If you\u2019re an online retailer, you have to prepare for more than just Cyber Monday. You need to prepare for a two-month-long shopping frenzy. All through November and December, consumers flock to online stores to buy gifts for everyone from their significant other to a random colleague. Hello, Secret Santa!<\/p>\n In fact, some retailers get started as early as August<\/a>. Why? Well, maybe your okay <\/i>warehouse layout and a not-so-great inventory management system get you by during the rest of the year. Not to mention, you can use a little creativity to manage crises. However, during the holiday season, duct tape and smooth talking won\u2019t cut it. These are people\u2019s gifts we\u2019re talking about and customers will remember a retailer that disappointed them.<\/p>\n If you want to participate in the retail boom and gain more happy customers, you\u2019ll need to inspect and improve your holiday fulfillment operations from top to bottom.<\/p>\n Don\u2019t panic though – we\u2019re going to walk you through how to do it.<\/p>\n <\/p>\n Contents<\/p>\n Your warehouse is the heart of your fulfillment operation. If your inventory is the lifeblood, your warehouse is the muscle pumping the right goods in the right direction. It needs to receive the goods, process them, and send them off to the right customers on time.<\/p>\n A WMS <\/a>helps you do this. It\u2019ll streamline the day-to-day operation of your warehouse by automatically directing workers to which items to pick, pack<\/a>, and putaway<\/a>, and when to do so.<\/p>\n Ideally, your WMS will also integrate with other systems that streamline your holiday fulfillment, including an inventory management system (IMS)<\/a>, order fulfillment system<\/a>, transportation management system (TMS), and others.<\/p>\n First, you\u2019ll need to conduct a needs assessment that includes feedback from various stakeholders. The outcome is a document that outlines exactly what you need in a system in order to meet business goals.<\/p>\n Once you\u2019ve conducted a needs assessment, do some research to find vendors offering suitable solutions. If you have complex requirements, you may consider sending out a brief Request for Information to gather data from multiple vendors.<\/p>\n Once you\u2019ve chosen a vendor, you\u2019ll need to ensure your warehouse will be able to use the system in time for the holiday rush. This includes:<\/p>\n Your software vendor should provide an implementation plan and timeline that clearly details what they need from you to get your system up and running.<\/p>\n Generally speaking, the implementation will be a joint effort between staff from your WMS provider and your own team.<\/p>\n While this can be a laborious process, it\u2019s important to be diligent and patient. For instance, taking the time to properly integrate your Inventory Management Software (IMS)<\/a> or order management system with your WMS is critical.<\/p>\n The last thing you want during the first week of December is orders getting lost or inventory failing to sync up.<\/p>\n Invest enough energy and resources in the training process. After all, the holiday season is when you want everyone to bring their A-game. Your holiday season order fulfillment<\/a> operation needs a motivated, engaged workforce to succeed.<\/p>\n Even if you know your system will be better for everyone involved, you still have a workforce of people who must adjust to a new way of doing things. Throw in the inevitable glitches, and you\u2019ll have a frustrated staff.<\/p>\n Poor communication during the implementation stage and a bad training program during the post-implementation stage can have negative repercussions. It can lead to disengaged employees, holiday season order fulfillment errors, and even increased turnover<\/a> when you need your team the most.<\/p>\n Ask your provider if they offer training materials or workshops as part of the implementation plan.<\/p>\n You should also be mindful to offer user-specific training. Specialized workers will use the system in different ways.<\/p>\n Before fully switching over to the new system, test the following critical elements of your warehouse management system<\/a>:<\/p>\n Once you\u2019ve tested these features independently, conduct a dry run to ensure they all work together properly. During your dry runs, you should test several different scenarios.<\/p>\n Once you\u2019re confident in your warehouse management system, it\u2019s time to go live.<\/p>\n At this point, your system will be able to properly carry out its function. But remember: working properly isn\u2019t the same as working at your best.<\/p>\n As you use the system in the months leading up to the holiday season, you may notice areas for improvement and optimization. Generate weekly reports and schedule time to analyze them.<\/p>\n You can derive great insights from your WMS data. These insights will guide your continuous improvement efforts and empower you to have productive conversations with your system provider about system changes.<\/p>\n Technically, everything after the go-live data requires real-time management. But, in this context, we are referring directly to the months of November and December. During this time, you may want to assign an individual to monitor your sales channels and your inventory system.<\/p>\n If your tests, dry run, and business-as-usual operations after the go-live date went well, there shouldn\u2019t be a problem. But, don\u2019t underestimate how quickly things can spiral when there\u2019s serious pressure on the system.<\/p>\n Having someone around to identify and resolve small issues – before they become huge catastrophes – presents enormous benefits.<\/p>\n <\/p>\n Better Warehouse Performance = Higher Profit Margins:<\/strong> Logiwa syncs accurate data across your entire interface so the inventory numbers you see on your dashboard are what your employees see on their devices. Learn how Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x shipments.<\/a><\/p>\n Every year, there\u2019s a hefty portion of the population that saves its holiday shopping until the last minute. Then, they scramble to find a retailer who will ship their gifts fast.\u00a0<\/i><\/p>\n On the one hand, this represents a huge business opportunity for retailers. On the other hand, this poses a logistical nightmare if handled poorly.<\/p>\n If you\u2019re going to promise same-day delivery or \u201cby December 24\u201d delivery, you\u2019d better be 100% confident that those gifts will get there. If not, you\u2019re looking at a lot of frustrated customers who will be empty handed on Christmas morning after paying big bucks in rush delivery fees.<\/p>\n Trust us: Pointing to the words \u201cforce majeure<\/i>\u201d in the fine print won\u2019t stop your customers from blasting your brand on social media.<\/p>\n Avoid overpromising. Sure, it\u2019s tempting to offer two-day shipping. You want to snag a nice chunk of the holiday ecommerce market. Remember though, you also don\u2019t want to overwhelm your holiday season order fulfillment operation. Better to make money shipping the right goods to the right customers on a manageable schedule.<\/p>\n\n
Make Sure You Have an Effective Warehouse Management System<\/h2>\n
WMS Software Implementation<\/h2>\n
Train Your Employees<\/h3>\n
Testing and Dry Runs<\/h3>\n
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Go Live and Optimization<\/h3>\n
Real-Time Management<\/h2>\n
Design a Bulletproof Shipping Strategy<\/h2>\n
Determine What Is Realistic For Your Company<\/h3>\n
Decide How Much Cost You\u2019re Willing To Absorb<\/h3>\n