The Importance of Packaging for E-Commerce Fulfillment
Scott Hothem • April 14, 2016
In the increasingly competitive world of e-commerce, controlling costs is essential. Remaining efficient while keeping operations costs down is what allows for lower prices and quicker delivery options. While advanced software, warehouse automation and other technological elements are very important and helpful, one often overlooked aspect of e-commerce fulfillment is packaging, and this can be an expensive oversight. A recent editorial in Modern Materials Handling discusses how costly packaging can be in your supply chain. Read the article here.
Recent Blog Posts
Every 3PL can build an impressive presentation. You can review technology, locations, capabilities, services, and carefully selected photographs of the operation, all without ever stepping inside the building. Those details matter, of course, but they only tell part of the story. What happens when you leave the presentation behind and actually walk through the warehouse? Almost immediately, fulfillment becomes more tangible. Instead of hearing how an operation works, you can watch it unfold around you. Inventory is being received, orders are moving through the building, teams are communicating, and the people who could eventually be responsible for your products are doing the work right in front of you. For a prospective customer, that experience can reveal far more than another slide ever could. That philosophy is one of the reasons Barrett Distribution Centers hosts open houses. Mary Glenn, Director of Business Development at Barrett, recently reflected on Barrett's Memphis open house and explained that the intention was never to bring prospective customers into a building just to deliver another sales presentation. “This wasn’t going to be a sales pitch. This wasn’t going to be, you know, come and get PowerPointed to death.”
The contract is signed. Your inventory is moving. Systems are being connected. After months of comparing providers and talking through every detail, your new 3PL relationship is finally becoming real. The first 30 days should not be about handing over the keys and hoping everything works. They should be about turning everything discussed during the sales process into something your customers can actually rely on. Scott Wilkins , Vice President of Customer Solutions at Barrett Distribution Centers, has described implementation as an important moment in establishing that relationship. “The implementation itself really sets the stage for that relationship. The more information that you have up front, the better off that relationship is going to get off on the right foot.” So, what should those first few weeks actually look like? Week One: Get Everyone on the Same Page The beginning should involve a lot of communication. Your 3PL needs to understand more than how many orders you ship. This is the time to confirm inventory details, sales channels, packaging requirements, retailer expectations, technology needs, transportation requirements, upcoming promotions, and the small details that make your business different. You should also know the people involved. Who is your main contact? Who is responsible for operations? Who handles systems questions? Who gets involved when something unexpected happens? Scott describes the work behind building a customer solution as a team effort, saying, “It takes a small army to develop and submit a potential proposal.” That collaboration becomes even more important once the proposal turns into a real operation. Weeks Two and Three: Turn the Plan Into an Operation This is where a lot of the behind the scenes work happens.
Signing with a 3PL can feel like the finish line after weeks of conversations, proposals, pricing, and warehouse visits. But the signature is really where the relationship begins. Before your first customer order leaves the building, your 3PL needs to turn everything discussed during the sales process into an operation that works for your brand every day. That transition matters. A good onboarding should make you feel more confident about the decision you just made, not leave you wondering what happens next. First, Your 3PL Gets to Know the Details During the sales process, your 3PL learns the larger story of your business. Once you sign, the questions become much more specific. What does your inventory look like? When are your busiest periods? How are orders received? Do certain products need special handling? Are there retailer requirements to follow? Do orders include branded packaging, inserts, kits, gift messages, or other details? This is where conversations become processes. Your team and your 3PL begin working through the information needed to build an operation around how your business actually functions. Then the Behind the Scenes Work Begins There is a lot happening before the first order ships. Systems need to communicate, inventory needs a home, and the people inside the warehouse need to understand what makes your business different.
