Imagine running a company that has no trouble….
- March 29, 2024
If you run an online business, you need to be mindful of all of the little details that bring the puzzle together.
eCommerce logistics makes up a $270 billion market that is growing at 20%. Companies in the field rely on a strong supply chain to help with order fulfillment, inventory management, and other details.
Finding out the causes of misshipments can help you nip a lot of issues in the bud while making your business more productive and reliable. Here’s how you can get misshipments under control.
Why Do Misshipments Happen?
The first thing you need to do is learn what misshipments are. Misshipments refer to any disruption, miscommunication, or setback when it comes to delivering products to customers.
They are a common occurrence in all forms of eCommerce and are a constant variable that needs to be tracked and managed. Order fulfillment is a big part of the supply chain that you can fix one step at a time by correcting misshipments.
Reducing these incidents improves your communication with carriers, lets you improve customer rapport, and gives you the chance to scale your business.
There are a few common misshipment causes that you should keep an eye on:
Errors During the Picking Process
Human error is part of the supply chain and any area of business. Though automation is on the rise, human error is still a major factor in the picking process.
All it takes is one person in your warehouse or fulfillment center grabbing and packing the wrong item to send to customers. This could happen due to confusion, poor training, or simple mistakes.
You’ll typically have to eat the restocking and shipping fees in order to make things right with the customer. It cuts into profits when errors are constant.
The cost of misshipments adds up, so you should consistently work to fix these sorts of errors as they happen.
Inventory Management Problems
When your inventory management isn’t strong, you’re more likely to run into misshipment problems. Many companies keep sloppy inventory records and aren’t sure of what they have in stock.
Your inventory can get backed up or depleted due to seasonal demand, and you may have items on back order. If you’re still using old and outdated inventory management systems, consider upgrading to a new Software as a Service (SaaS) package that is custom-built for your company.
The Item Never Ships
Another common problem is that the order simply never ships when it’s supposed to. Delivering packages to customers on time requires constant communication for every step of the queue.
If an order slips through the cracks and no one ever packed it or shipped it, you can run into serious issues with customers.
Packages Are Damaged or Stolen
In many situations, the package is simply damaged or stolen. Once a package leaves your property, you can’t reliably control every single factor. This is why you maintain insurance and other checks and balances that protect you while letting you freely do business.
Keep reliable records every step of the way and in real-time so you can correct these issues quickly and get a clearer idea of when the misshipment occurred.
How to Reduce Misshipments
The main way to reduce these instances is to revisit or create your misshipment prevention plan. Putting these issues into formal policies makes sure that everyone in your building is informed and up-to-date.
These points should be part of your misshipment plan:
Improve Your Communication
Your ability to communicate is the biggest asset you have. When everyone is informed and on the same page, you minimize the mistakes that cause misshipments.
It also helps you quickly take informed action once the inevitable misshipment occurs. This minimizes damage and cost while maintaining goodwill with the customer.
Communication helps with demand forecasting and allows you to improve your output and the way you do business.
Train Your Staff and Encourage Breaks
Treat your staff well and give them all the resources they need. This reduces fatigue, improves engagement, and trains your professionals to produce consistent, error-free work.
Create a positive work environment and offer excellent wages, salary, and benefits packages. Encourage breaks, and add quality food and amenities to your lounges and break rooms.
You should also encourage employees to use vacation time and time off whenever they want or need a break from the grind. These steps will improve your workplace as a whole and minimize misshipments in the process.
Partner With Quality Professionals
Make sure that you’re contracting with quality, trustworthy professionals. Start with a third-party logistics (3PL) company that can handle many of your supply chain needs.
These professionals can help you ramp up your technology with hardware and software solutions. Using data and analytics helps you predict issues and makes your workplace more effective.
These companies have high-caliber professionals that you can rely on when outsourcing much of the heavy lifting. Working with professionals is the best investment you can make if your goal is to eliminate misshipments.
Correcting Your Order Fulfillment Woes
Reducing your misshipments will improve your order fulfillment process to the fullest. You’ll be less stressed and your company will be more productive.
The most important piece is to partner with a company that can help you out with these goals.
ACI Logistix has a team of professionals that can assist you with all your eCommerce logistics solutions. Send us an online message for more information.
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