Supply Chain Disruptions Linked to Earthquake in Japan

There's an interesting article in the latest Multi-Channel Merchant email newsletter about how the recent earthquake and tsunami in Japan have caused port closures and manufacturing delays. The article predicts significant supply chain disruption for a wide range of U.S. and international companies.

We see a number of fulfillment clients who import Chinese products and components, but not as many importing from Japan. What about you? Do you expect your supply chain to be disrupted by the natural disaster in Japan? Do you have contingency plans in place?

Order Fulfillment Costs You Need to Know

Outsourcing your order fulfillment may sound attractive, but how do you know if you can afford it? Each fulfillment agreement is different, depending on your needs and the company you partner with, but these are some general categories of order fulfillment costs you can expect to see.

1. Per order fees. Very simply, this is an origination fee that gets charged for each order your fulfillment outsourcing partner fills.
2. Per unit fees. Usually a small additional fee per unit on top of the original order. So a single-unit order will be charged order fee + unit fee, while a five-unit order will be charged order fee + 5 x unit fee.
3. Storage fees. Your fulfillment warehouse will generally charge for both pallet storage and pick shelf storage based on the best configuration for your product size and order volume.
4. Account administration fees. Depending on your partner or your needs, you may see monthly or hourly administration fees for managing your account.
5. Shipping charges. If you don't have your own preferred carrier account, you can generally ship using your fulfillment partner's account, and those costs will be passed through to you. If you're using your partner's account, you may be asked to provide a freight deposit to fund the account initially.
6. Kitting and assembly fees. If your product requires kitting various components or assembling a bill of materials, you may see either a per-unit or an hourly charge for kitting. These charges are often negotiated in advance based on time and motion studies.
7. Receiving fees. Receiving fees may be on a per-pallet basis, a per-carton basis, or an hourly basis. You may see discounted rates if you can provide advance shipment notification.
8. Account minimums. If you are a low-volume shipper, your fulfillment house may charge you a monthly minimum.
9. Additional services. Some fulfillment houses offer additional services like component procurement, e-commerce storefront functionality, cycle counts or custom report development.

To get the most out of your discussions with a potential fulfillment partner, it helps to know what services you'll need from your partner, how much it costs you to provide those services in-house, and what you can expect to pay for those services through a fulfillment company.

E-commerce sales and outsourcing your product fulfillment

I recently discovered scores of charts and tables highlighting key trends in all areas of e-commerce. Created by Internet Retailer's award-winning editorial research team, this collection of graphical data illustrates where e-commerce has been and where it's going. Check it out at http://www.internetretailer.com/trends/

This month’s “Featured Trends & Data” highlights some key trends about the burgeoning e-commerce industry in the areas of technology, marketing, sales, e-commerce, the Internet and consumer shopping.  trends.

While most of this is “big picture” stuff, it can provide inspiration to companies of any size. And as the economy recovers and e-commerce sales continue to grow, there is an increasing trend toward companies outsourcing their product fulfillment. Why? Simply put this allows companies to focus on sales, marketing, and product development, which translates into more revenue from more customers. 

Fulfillment companies help retailers eliminate the hassles of storage and shipping by managing the picking, packing, shipping and returns processes, as well as carrier selection, kitting and assembly, and other services.

For more information check out our free White Paper: Key Questions to Ask Any Potential Fulfillment Partner

 

Key Fulfillment Clients Share MORE of Their Best Ecommerce Ideas!

Ecommerce provides a relatively level playing field for everyone to compete. At Key Fulfillment our clients run the gamut, from big corporations to family-run businesses.

Continuing the discussion from last week’s blog, here are a few more easy-to-implement tips from some of our clients:

1] Offering your first-time customers a special discount or store credit to be used toward future purchases will encourage them to keep coming back for more!

2] Displaying your product(s) in all available colors on your website (rather than just listing colors) helps customers visualize the product which makes them more likely to buy. Providing large images, rather than thumbnail size photos, will also encourage your customers to buy.

3] Asking your customers to comment on their shopping experience after each order is a great way to improve your website, gather new product ideas, and glean topics for future blogs. You may be surprised by what you hear!

4] Offering your best customers ‘refer-a-friend’ discounts can help you grow your business similar to the way word-of-mouth advertising works. In return, you can ask these customers to promote your products or services via reviews, one of the best forms of product promotion.

5] Making sure the copyright notice on your website is up-to-date is oh-so-important!

Do you have some ideas you’d like to share? We’d appreciate hearing from you.   

Key Fulfillment Customers Share Some of Their Best Ecommerce Ideas!

Key Fulfillment recently polled some of its fulfillment clients regarding lessons “lived and learned” in the ever-changing world of ecommerce. Here are some of their comments with more to follow in later blogs:  

 1]  Holding monthly prize drawings for new subscribers to your newsletter (or for brand new online customers) is a good way to increase your reach. Be sure the winners and their prizes are posted on a regular basis via social media and/or at a featured spot on your website.

2] When designing your website, place your product headlines, photos, and the all-important calls to action ‘above the fold’ so that these critical elements are visible without scrolling. 

3] Sending your product information to locations like Shopzilla and Shopping.com can help you extend your ecommerce reach. Just be sure the websites you contact are appropriate for your product(s) and have a decent amount of traffic. 

4] Including a handwritten “thank you” note with each order, or for orders over a certain amount, goes a long way in maintaining customer loyalty. If you outsource your fulfillment, ask your fulfillment house for costs and details.

5] Growing your social media presence by announcing “one-day only” sales the day before (via Twitter, for example), is a great way to increase your following. Just make sure you limit the offer in some way if you have a large customer list.

6] Streamlining your shopping cart process can help minimize cart abandonment. Make sure product costs can be accessed from any page. And always test the shopping experience for yourself on a periodic basis to make sure it’s a positive experience for your customers!

 

Do you have some ideas you’d like to share? We’d appreciate hearing from you!

 

The Top Four Reasons for Hiring a Fulfillment Center

If paying for outsourced fulfillment services seems "out of your league" take a moment to consider the advantages that a product fulfillment service can offer:

1. Leveraged shipper relationships: Fulfillment centers negotiate significant discounts with many freight carriers which enables them to amortize shipping and handling costs across ALL clients. Whether you are just getting started in business or expanding your business, you can take advantage of these discounts which in many cases will offset the costs of hiring a fulfillment center. Logistics Management
2. Flexible labor pools: Fulfillment centers develop employment strategies to accomodate ALL of their clients at a shared facility. When workers enjoy more consistent hours, they develop better skills which help to ensure your orders are shipped in a timely fashion and at lower costs. This is especially important to businesses that are seasonal or have peak operating times.
3. Kitting and assembly: Many fulfillment centers offer the ability to assemble multiple parts from multiple suppliers. Packaging a complete kit just before it is shipped to the end user can help trim shipping costs along the way. Kitting and assembly
4. Eliminate safety concerns: Quality fulfillment centers engage in ongoing safety training for their workers. These overhead costs are shared among ALL of their clients, so the net cost of compliance is marginal across each shipment.

6 Tune-up Tips for Your Ecommerce Website

Want stronger online sales? Your fulfillment house can't make it happen without you! Make sure your ecommerce website engages  your customers (and entices your prospects to become customers) this holiday season -- and all year ‘round!

 

1. Keep it short, but sweet! Make sure your product descriptions are truthful and to-the-point.
2. A picture really IS worth a thousand words! Don’t skimp on photography – hire a professional.
3. Keep it friendly! Make sure your FAQ’s, policies and procedures are clearly stated.
4. Keep track of your traffic. How are your customers finding you? Why are visitors  leaving before they buy? Take a look at HubSpot’s Inbound Marketing Software to help you track hundreds of keywords and much more: http://www.hubspot.com/products/demo/
5. Be wildly accessible! Make sure your contact information is on every page of your website.
6. Call to action! Make sure you’re offering your visitors something of value on every page of your website.

Product Fulfillment - Cleantech and Renewable Energy Sectors

The Colorado Cleanteach Industry Association and the Colorado Energy association make a clear case for Colorado's leadership in renewable energy sectors.

"Energy innovation comes naturally if you're surrounded by all the resources you need. In Colorado, you'll find an unmatched combination of smart, skilled people, leading federal energy labs and research universities, supportive energy policy, and dependable natural resources. All in a strategic location that's a flight away from global cleantech markets.

This comes together to make Colorado North America's cleantech hub. Our state is home to companies such as Vestas, SMA Solar Technology, REpower USA, and RES-Americas. They know ideas – and cleantech business – thrive in our energetic atmosphere."

Colorado's cleantech legislative initiatives are paving the way for accelerated growth in the future.

"Gov. Bill Ritter, the U.S. Department of Energy, and the Colorado Housing and Finance Authority (CHFA) announced two new programs on November 30, 2010 that will finance energy-efficiency improvements in commercial buildings and renewable energy businesses in Colorado."

The National Renewable Energy Lab (NREL) serves as a regional catalyst for supply chain co-location as well as for innovation of national/international importance. 

"NREL is the only federal laboratory dedicated to the research, development, commercialization and deployment of renewable energy and energy efficiency technologies. Backed by 33 years of achievement, NREL leads the way in helping meet the growing demand for clean energy."

 

Key Fulfillment offers product fulfillment services - including outsourced inventory receipt and management, warehousing, order management, and shipment/transportation management - across many industries and sectors, and the Cleantech and Renewable Energy sectors are among its fastest growing.  Key's fulfillment and third-party logistics experience and contacts in these supply chains have supported this growth.  Key has made a strong commitment to maintain focus in these sectors which are so important to Colorado's economy and national energy policy.

eCommerce Software and Order Fulfillment Outsourcing

Choosing a strong ecommerce software platform is arguably the single most important decision facing ecommerce start-ups and growth companies.  Bold statement, huh?!  But really, this is the hub from which marketing (SEM/SEO), sales, customer service, operations and financial (to name a few) activities originate.  If you get it right (and there are a number of good plug-and-play software alternatives), it can make business and life so much easier.  If you want to optimize your order fulfillment outsourcing relationship, for instance, focus on this step first!

 

Source for article below: http://ecommerce-software-review.toptenreviews.com/

It takes a lot to get any small business going, and chosing the right eCommerce software package is just one of many steps. There are a few other steps every eCommerce site owner must take:

• Choose and register a website domain name
• Select a website hosting company
• Design a website
• Decide on a shopping cart provider
• Set up a payment gateway
• Arrange for credit card processing
• Open a merchant account
• Market, Market, Market! 

And all this must happen before you sell a single product from your eCommerce website. Getting the right setup typically requires purchasing products from five or more companies before you ever sell a single widget.

Now, imagine an eCommerce service that registers your chosen website domain name, provides you with easy website building tools, hosts your website, helps you apply for a merchant account, connects you to a shopping cart, a payment gateway and a credit card processing service, and helps you connect to such powerful marketing avenues as social media and Search Engine Marketing, all working together in harmony—this is the power of eCommerce software.

With the multitude of eCommerce software solutions available today, even choosing the right product can be a burdensome and time-consuming venture. Within this site, you’ll find articles on eCommerce topics and comprehensive reviews to help you make an informed decision on which eCommerce software is right for your business. At TopTenREVIEWS We Do the Research So You Don’t Have To.™

Holiday Shipping Schedule

If you ship orders direct to consumers, you know that crunch time is coming.Your customers expect quick turnaround on their orders, and they want their shipments to arrive in time for their holiday celebrations.

To help you ensure that your packages reach your customers on time, we've put together a handy, all-in-one guide to the major parcel carriers' holiday schedules. You can see at a glance who's open, who's closed, and any pickup and delivery restrictions.

Click here to get your copy of this year's holiday schedule, and have a stress-free holiday shipping season!