Consumer Electronics Fulfillment
Last year the consumer electronics market generated over $200 billion in revenue and as a result of this growth, many brands experience complex challenges when it comes to inventory management and order fulfillment. From constant product innovation and competition, to seasonal and holiday inventory surges, to increasing big box retailer demands to same day direct-to-consumer fulfillment expectations, to returns processing; order fulfillment has never been more critical to this fast growing and competitive industry.
Why is accuracy so important for consumer electronics brands?
Customer demands are at an all-time high, and your consumer electronics supply chain must be aligned and responsive or risk losing that customer for life. As there are more technology options and competitors than ever before, accurate order fulfillment must be a top priority for brands. Accurate inventory management, efficient picking, packing procedures and consistent order cycle times need to be aligned to deliver the right item to the right place at the right time, every time.
HOW IS INVENTORY MANAGED FOR consumer electronics FULFILLMENT?
Electronics manufacturers produce, market and sell a wide variety of products with multiple features and configurations, making inventory management a challenge. With an increasing number of SKUs, poor inventory management can distract and drain financial resources from consumer electronics brands. Adding the fact that technology changes quickly, brands can be left with aged, unsold product that loses value and costs money to store year-after-year.
Having visibility into your inventory, across your entire line of SKUs, is essential to managing the packaging, handling, and transportation of consumer electronic products. Many of these products are valuable and expensive, requiring additional security measures to be taken to ensure safekeeping throughout the supply chain.
why is reverse logistics so important for consumer electronics brands?
Managing reverse logistics for consumer electronics brands is critical to preserve and recover margin dollars. Having the ability to efficiently inspect, re-condition, test and restock saleable items into your inventory, while also providing a frictionless customer experience, is essential. Keeping products safe and secure is another obstacle.
WHAT ROLE DOES PACKAGING PLAY IN CONSUMER ELECTRONICS FULFILLMENT?
Packaging is an important consideration from both a branding and product protection standpoint. If an order is going directly to a consumer, the packaging and presentation is essential. If an order is going to a retail outlet, the product needs to be shelf ready and the master carton must be labeled properly to avoid chargebacks. To improve inventory management, streamline product receiving procedures and reduce handling costs, industry best practice is for master cartons and units to include 1 SKU per carton with scannable UPC labels and serial numbers visible where applicable.
wHAT ENVIRONMENTAL CONCERNS NEED TO BE ADDRESSED BY CONSUMER ELECTRONICS brands?
Many consumer devices use lithium batteries. It’s important for the safety of people, the safety of the product, and the safety of the environment that these items are stored, transported, and handled correctly. Understanding the regulations and restrictions that accompany these types of products is crucial.
Logistics providers may be required to have ESFR or in-rack sprinkler systems, physical cages, specialized training for staff to properly handle and package hazardous or ORMD items.
Warehouse management and parcel management systems must be able to accurately identify hazardous goods and have the internal logic to determine which items cannot ship together in the same box, which DOT compliant labeling is required and the best class of freight service for the goods contained within an order containing restricted items.
WHY IS SCALABILITY IMPORTANT TO CONSUMER ELECTRONICS bRANDS?
The consumer electronics industry is dynamic with new products coming to market each month and technology changing at lightning speed. Today’s hot product is tomorrow’s old news. Many consumer electronics brands have seasonal, holiday or promotional surges that can dramatically effect order volume. The ability to scale your fulfillment capacity at these times is vitally important to your brand.
Access to strategically located fulfillment centers to efficiently and cost effectively deliver product to consumers in 72 hours or less can make or break a brand. The right third party fulfillment partner can drive superior performance by deploying proven industry systems and processes, while applying its intimate knowledge of servicing big box and eCommerce retailers will ensure that your customers’ expectations continue to be met year after year.