FULFILMENT GUIDE TO - modernretail.co.uk
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June 2021 modernretail.co.uk GUIDE TO... FULFILMENT
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CONTENTS
Prime Air: the revolutionary delivery drone 06
Outsourced fulfilment: more than delivering the goods 10
The growing importance of flexible fulfilment 14
How can you use fulfilment and shipping to scale your business? 17
What’s happened to the flexibility in warehousing that businesses desperately need? 22
Make the most of Fulfilment by Amazon 25
7 ways to hire the right warehousing staff 29
Connecting your ecommerce components to thrive in 2021 and beyond 34
Micro-fulfilment – a game changer for online grocery? 38
Perfecting omnichannel fulfilment: Salamander Cookshop 41
How using a handheld WMS app can improve performance in your storage operation 44
Make your warehouse work smarter 46
The importance of choosing a reliable delivery partner 49
Scale up with warehouse automation 53
Whistl: fulfilment that fits 58
What is green fulfilment and how can you achieve it? 62
Is your warehouse prepared for tomorrow’s challenges? 67
Contributors Credits Thanks
Managing Editor Many thanks to all those who provided editorial
Rob Gamage - rob@modernretail.co.uk content or images, helping us to compile what we
hope is a useful and informative read! Please send
Content Editor
any comments or suggestions to
Holly Worthington - holly@modernretail.co.uk
rob@modernretail.co.uk.
Business Development Manager
Emma Mjekiqi - emma@modernretail.co.uk Modern Retail is published by Considered Digital
Ltd (Registered Company Number 12684643), 24
Frankland Road, Croxley Green, Rickmansworth,
WD3 3AU.
Holly Worthington
Holly brings a wealth of experience in both
print and digital publishing. As Modern
Retail’s Content Editor, Holly is passionate
about helping independent retailers to thrive
in today’s ever-changing market.
P U B L I C AT I O N B R O U G H T TO YO U B Y 5
Prime Air: the
revolutionary
delivery drone
Amazon’s future delivery system, How does Prime Air Work? in making 50% of all Amazon shipments
Prime Air, is designed to safely net zero by 2030. These drones are
After receiving an order, a drone is
powered by electricity and charged using
get packages to customers in 30 loaded with the customer’s package,
sustainable means, saving on fuel usage
minutes or less, using state-of-the-art making its way out of the warehouse and
and reducing emissions.
guiding itself to the customer’s delivery
technology. While it may be a while
location using GPS. Operating completely
before we see it used on a mass scale,
autonomously, it uses ‘sense and avoid’
we take a look at this innovative When can we expect to see Prime Air?
technology to prevent contact with
solution to automated delivery. any obstacles. The customer receives a Prime Air is still in the trial phase,
notification when their delivery is on its however the initial trial in Cambridge
way, telling them when it will arrive. When was a resounding success, suggesting it
the Prime Air drone reaches its location, may not be too much longer before we
it scans the landing area for potential see Prime Air drones being used more
hazards, lowers to the ground, drops the often. Amazon is working to gather data
package off and flies straight back to to continue improving the safety and
altitude to return to the warehouse. reliability of their systems and operations,
with the goal of building more aircraft in
the near future.
Safety and environmental impact
Safety was a major question surrounding
Prime Air facts
the idea of a delivery drone, however
Amazon seems to have found the • Packages for Prime Air can weigh up
solution to this. Combining diverse to 5lb
sensors and sophisticated machine
learning algorithms, the drones are able • Prime Air aircraft travel at nearly
Contributor: to prevent collisions and identify flight 400 feet
Holly Worthington environment changes.
• There are Prime Air development
In terms of the environmental impact, centres in the UK, United States,
Prime Air could play an important role Austria, France and Israel
6 P U B L I C AT I O N B R O U G H T TO YO U B Y
“Prime Air could play an important role in
making 50% of all Amazon shipments net
zero by 2030.”
Image credit: Amazon
Outsourced
fulfilment: more
than delivering
the goods
In an ecommerce retail model, the James Hyde, CEO of James and James D2C fulfilment is challenging
quality of the fulfilment process – from Fulfilment, explores how offering a
Direct to Consumer (D2C) fulfilment is
fulfilment solution that goes above and
the timeliness of delivery to the look challenging for many firms – especially
beyond the role of a traditional fulfilment
and feel of the packaging – defines companies looking to compete with the
provider, and providing a fully integrated
big names in the business, with next day
a customer’s experience. And that value-added service, gives ecommerce
delivery and a range of courier options.
process has to be consistently perfect retailers the opportunity to scale and
succeed in 2021. Scaling up to cover peak sales can be
whether a retailer is shipping one
a major headache too. The issue is not
product or one thousand.
just recruiting the staff but also ensuring
First Impressions Count consistent quality – from picking accuracy
to packaging. How can a retailer scale
Too many retailers underestimate
up in response to an unexpected plug
the impact of fulfilment on customer
from an Insta-influencer or a mention in
experience. Spending a fortune on
a magazine? How can that opportunity
carefully curated websites and great
be grasped without a robust, scalable and
delivery promises is a wasted investment
repeatable fulfilment model?
if the product turns up late, damaged
or swathed in acres of unnecessary Few individuals become retailers because
packaging. First impressions count. they are excited about the fulfilment
process – yet great fulfilment skills can
The way the product is presented, from
make or break an online business. This
the neatly folded packing slip, to the
is an absolutely critical component of
personalised message, to the low-impact
the customer experience. Therefore,
packaging, should reflect the brand
companies need to put serious thought
and reinforce the customer experience
into it.
regardless of how many units sold.
Contributor:
James Hyde, CEO of James and
James Fulfilment
10 P U B L I C AT I O N B R O U G H T TO YO U B YFulfilment expertise delivers Removing fulfilment complexity goods at discount. Proactive inventory
management can transform this retail
Outsourced fulfilment is an obvious Fulfilment delivery policies will not be set
cost model.
solution. It offers economies of scale and in stone; and for retailers, with a diverse
ensures a retailer can respond to spikes in product portfolio and customer base,
demand without affecting the quality of delivery costs are likely to vary. And,
Conclusion
customer experience. without accessing continuously updated
information about fulfilment costs, such Fulfilment is an extension of the
If a retailer is to achieve that essential
decisions can only be based on gut feel customer experience and one that will
match of fulfilment experience to
– and that is where too many retailers define a customer’s brand perception.
the core brand value, there are many
have caught a cold and ended up selling But it is also about efficient retail
issues to consider upfront. An absolute
at a loss. operations and proactive management
fundamental is to be realistic about the
of both inbound stock and outbound
delivery promise. This means having a In contrast, a good outsourced fulfilment
product to maximise revenue.
clear understanding of the cost model. partner solves this and can help retailers
What does it cost to ship to the UK and to develop packaging that reflects brand Retailers that fail to embed the perfect
internationally? What is the variance image. They can provide insight into fulfilment model within the customer
between next day and longer shipping the pros and cons of recycled materials experience are not just missing an
times – and how much do courier – from the additional weight that has important part of the process, they are
prices vary? to be considered for any air freight, to fundamentally misunderstanding the way
balancing the cost of recycled packaging consumers and ecommerce fit together.
This is where the insight collected by a
against the value of customer perception
fulfilment partner can make a difference
and approval.
for a retailer looking to scale up the
ecommerceoperation. With a deep In addition, a fulfilment partner should
understanding of the complete cost share continuous insight regarding both
model, a retailer can match delivery stock levels and age of stock. They
options to the required level of customer should work with retailers to show
experience. For example, is free shipping where costs could be recouped – such
essential to reinforce the brand’s luxury as the opportunity costs associated with
feel, or does the retailer need to set a retaining a warehouse full of unsold
minimum spend threshold to make free items, compared with selling those
shipping viable?Bend, don’t break. Our Flexible Fulfilment is Agile & Affordable. When your business priorities change you need a fulfilment partner with agility and know-how to help you seize opportunities for growth. laurap@thephlgroup.co.uk I www.thephlgroup.co.uk
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01938 551919 EmailThe growing
importance
of flexible
fulfilment
The COVID pandemic has seen a For many, they realised just how easy hurry. While this was a great way to keep
dramatic shift in the way that people online shopping can be, particularly business coming in, it meant that these
when retailers design a customer- fulfilment processes weren’t designed to
shop. In 2020 alone, online sales
focused approach. be scaled up or down, and weren’t often
grew by 46%. Those that previously the most efficient.
Despite retail stores reopening, the
preferred instore shopping had no
growth of ecommerce shows no
other option but to buy online, with
signs of slowing down any time soon.
new cohorts being introduced to the Instead, customers are expected to
Now is the time for long-term
strategy
world of ecommerce. buy from retailers that can facilitate an
omnichannel offering, including instore, The growth of ecommerce is here to stay
home delivery and click and collect. and retailers finally have a little breathing
room to re-group. Now is the time to
The growing need for a flexible approach
invest into fulfilment strategies that will
to retail has put pressure on supply
deliver long-term benefits.
chains, making it essential to adapt
fulfilment in a way that caters for a wide Here are the two main ways to make sure
range of consumer preferences. your chosen method can be flexible:
1. Invest in warehousing and real-time
inventory management systems
Makeshift fulfilment processes
Real-time visibility is key to
As retail stores closed their doors understanding stock levels,
during lockdowns, shoppers turned anticipating trends, preventing
to ecommerce. This drastic change in wastage and replenishing inventory.
consumer behaviour forced retailers to Introducing processes that make
make quick fixes in order to survive. inventory management simple can
reduce workload for retailers, as well
Contributor: Those that didn’t previously have a
as helping to fulfil orders efficiently
Holly Worthington significant online presence or offer home
and quickly.
delivery had to find ways to offer this in a
14 P U B L I C AT I O N B R O U G H T TO YO U B Y“Now is the time to invest into fulfilment strategies that will deliver long-term benefits.” P U B L I C AT I O N B R O U G H T TO YO U B Y 15
1. Offer a variety of delivery and 2. Efficiency
collection options Planning a fulfilment strategy that
When retailers have access to facilitates a wide range of storage
real-time inventory levels, they can and delivery methods can improve
create a synchronised approach to efficiency and productivity. Having
stock availability and sales. A well access to real-time inventory levels
designed system will mean that is another way to be agile, saving
retailers know how much stock they time through automation
have, where it is located and how wherever possible.
long it will take to reach any chosen
3. Adaptability
destination. By creating a process
As we have seen, the retail landscape
that communicates all relevant
can change quickly. Having a flexible
information, retailers can offer a
approach to fulfilment enables
wide range of delivery and collection
retailers to adapt as required.
options with confidence.
Regardless of any challenges that
retailers are faced with, those that
are able to pivot to a different model
Flexible fulfilment is key will be best positioned to overcome
Retailers must analyse their fulfilment any difficulties.
processes and develop partnerships in
4. Customer experience
order to meet changing demands.
When implemented well, a fulfilment
Here are some of the reasons that strategy designed for omnichannel
you should look to introduce a flexible retail can help retailers to overtake
fulfilment model: competitors and stand out from the
crowd. It also means retailers are
1. Choice able to convey accurate delivery and
Being able to offer a variety of stock information, creating a positive
delivery and collection options helps and memorable customer experience.
to attract loyal customers. Catering
for a wide range of preferences will By focusing on agility, retailers can create
enable retailers to attract the largest processes that are resilient and will be
possible customer base. able to go from strength to strength,
despite any challenges that they may face
in the future.How can you use
fulfilment and
shipping to scale
your business?
Customers’ expectations are becoming This article outlines the growing need The challenge for retailers
increasingly complex and retailers are for convenient fulfilment options and
the ways that retailers can ensure their As sales increase, retailers are faced
having to work harder than ever before with the challenge of fulfilling a growing
business operations are scalable.
to scale their businesses. Keeping up number of orders. Often, a solution
with a wide range of delivery options that was once efficient becomes
inefficient when scaled up and it
can easily become a priority when the Customers need convenience
needs redeveloping.
business is not designed to be scalable,
Convenience is key in creating customer
meaning other areas of the business An enormous 95% of shoppers say that
loyalty, with retailers benefiting from
convenient delivery options play a major
can take a back seat. offering a range of delivery options and
role in their choice of online retailer.
being able to compete with the likes of
In addition to this, alternative delivery
Amazon Prime.
options such as click and collect have
The ecommerce market has enabled become essential to win customers’
customers to make quick and easy business. On top of having a choice of
purchases. Non-store retailing (retailers convenient delivery options, the returns
with no physical store presence) spend process is expected to be just as easy,
grew by 56% between April 2019 and April quick and simple.
2021, while Amazon’s UK sales soared by
Most retailers are already busy enough,
51% last year.
so those that commit large amounts
The reason for this rapid growth is that of time to their fulfilment and shipping
customers have looked to shop with processes often have to neglect the
retailers that can offer their preferred growth of their business.
delivery methods. However, to gain
returning customers, retailers must
make sure that the delivery side of
Contributor:
every purchase is seamless.
Holly Worthington
P U B L I C AT I O N B R O U G H T TO YO U B Y 17“Retailers that automate processes or
work with suitable fulfilment partners
can simplify the process of scaling up and
down as required.”
How can you make your retail Benefits include:
business scalable?
• Not having to worry about sourcing
For a retail business to be scalable, increasing warehousing space to
it is essential to connect your selling store additional stock
channels to your fulfilment process and
• Not having to spend time
then deliver in a way that creates a great
managing returns
customer experience. Automation helps
to maintain consistency and deliver a • Having experts on hand that
stand-out fulfilment process, however big understand processes, for example,
or small the demand is. shipping overseas and knowing the
implications of Brexit
If sales continue to rise, there comes
a point in every business where • Some fulfilment businesses have
outsourcing becomes a viable solution. centres in different countries,
In this case, instead of storing, picking, meaning you can keep inventory
packing, printing labels, sending and close to the customer for
dealing with the logistics of returns, faster delivery
these aspects of the business can be
outsourced to a specialist. • Upscaling does not require any
major changes to processes, unless
Choosing to work with a fulfilment you choose to change your
partner that knows the industry is key in fulfilment partner
being able to scale your retail business
as required.
18 P U B L I C AT I O N B R O U G H T TO YO U B YRetailers that automate processes or
work with suitable fulfilment partners
can simplify the process of scaling up and
down as required. By outsourcing this
aspect of the business, it frees up time to
focus on selling, as well as growing the
brand and customer base.
Efficient management is key in making
fulfilment as quick and easy as possible,
allowing retailers to spend their time on
more productive areas of the business,
rather than being tied down to manual
aspects of warehousing and delivery.
P U B L I C AT I O N B R O U G H T TO YO U B Y 19What’s happened
to the flexibility
in warehousing
that businesses
desperately need?
Economists predict that the UK Even before the pandemic, the UK from events such as, Covid, Brexit, trade
economy will show a dramatic recovery was significantly ‘under-warehoused’. friction with China, flooded Taiwanese
According to estate agency Savills, a chip-makers, and the Suez Canal
from the pandemic – but this could
record 50.1 m sq ft of space was taken blockage, businesses are facing greater
be curtailed by a simple shortage up in 2020. Some 20 m sq ft of that uncertainty and are looking to build
of storage space. Our clients tell was new build – half of which was resilience into their supply chains. And
us of a serious market failure, yet, ‘speculative’ and usually snapped up that means holding more inventory which
long before completion. Amazon alone in turn puts further pressure on available
extraordinarily, in the government’s
took a quarter of the available space, warehouse space.
recent White Paper on planning, there the 3PLs are also active, and, say Knight
was not a single reference to the land Flexibility is a sound bulwark to
Frank, another agent, ‘The UK only has
uncertainty. So most businesses, our
and space needs of supply chain and 10 months’ worth of warehouse supply
clients included, don’t want or need vast
available at current growth rates’ – and
logistics industries. new empty sheds. They need operational,
much less in London, the South East,
workable space that they can move in to
and the near-urban locations needed to
and use from day one, to accommodate
support on-line last mile.
increased inventories of raw material,
Rental rates are soaring and even the 40 work in progress, and finished goods
million sq ft that Knight Frank expect to but also for kitting, picking, packing,
see completed in 2021 may not restore a returns processing and a host of other
functioning market. Demand for space is tasks. They need services, and at least
only going to increase. a minimum of fit-out, already installed.
Their current requirements are strictly
Every £1 billion extra spent through
tactical – they need to be able to move
e-commerce generates need for
out again as strategies become firmer.
750,000 sq ft of extra space, and
ecommerce is just one competing But most new development is aimed at
need for warehousing. In both retail flagship brands and 3PLs making long-
Contributor:
and manufacturing we see businesses term commitments to big sheds where
Matt Whittaker, Commercial Director at Bis
abandoning the dominant lean, Just-in- long leases and multi-million investments
Henderson Space
Time, low inventory, procurement-led are needed to equip a facility. A 100,000
supply chain model. With increasing risk sq ft shed counts as ‘small’ even though
22 P U B L I C AT I O N B R O U G H T TO YO U B Ythat is 20% larger than the playing space while they develop their longer- Such premises will usually have at least a
surface at Wembley. New spaces are term strategies, or to keep the business basic, perhaps even a quite sophisticated,
drip-fed from the developers’ land banks, operating while new solutions are applied fit-out, suitable for immediate occupancy
keeping rentals high and ensuring further to existing warehousing. for little additional capital outlay. Shared
yield compression. labour and services can sometimes be
They need to move in quickly and,
an option. A further advantage for many
The smaller and mid-size businesses we when appropriate, move on. They need
companies is that as a short-term service
meet, the heart of the UK economy, are something akin to space-as-a-service,
agreement there is no five-year liability
manufacturers and retailers, not property not an investment. Most property
hanging over the balance sheet.
companies. Their balance sheets can’t companies are reluctant to have that
support such long-term liabilities. And conversation. As such, businesses are For any company considering how to
most new build sheds are offered as turning to well-connected warehouse rebuild their supply chain to combine
just that – a bare shed. The tenant has operational space brokers like ourselves flexibility and resilience, this approach
to fit out and equip the facility, from to develop a solution that meets their could be a game changer. Any business
automation to basic services. It could be immediate and quite often longer-term that needs to take care of cash as they
six or nine months before the business needs whilst avoiding an expensive long- trade out of the present crisis, that needs
can ship its goods in, perhaps longer. term lease agreement. a short-term tactical solution while
Businesses don’t have that money, or working out the long-term strategy,
Over many years we’ve developed a
that time. or that needs to trial new markets or
wide network of warehouse suppliers
business models without overstretching,
Timescales are critical. Savills say that – we introduce businesses with a need
can find a viable and well-proven
last year 12% of transactions were for for additional capacity to providers who
alternative to a constrained, rigid and
‘short’ leases – but we know this greatly have spare operational space available
uncompromising property market through
understates the need for high quality, on a flexible basis. Often facilitated deals
working with a well networked broker.
yet flexible, warehouse provision. To are as short as 3-9 months, (although in
Look no further.
developers, a five-year lease is ‘short’, practice these can roll over for several
but many companies are pushed to see years) but any term of less than three
clearly for five months out. They need years is better than can be obtained in
short-term provision, to buy breathing the current investor-driven market.
P U B L I C AT I O N B R O U G H T TO YO U B Y 23“For any company considering how to
rebuild their supply chain to combine
flexibility and resilience, this approach
could be a game-changer.”
24 P U B L I C AT I O N B R O U G H T TO YO U B YMake the most
of Fulfilment
by Amazon
Fulfilment by Amazon (FBA) is a way If you’re considering using FBA, here are • Unlimited storage space
to remove the stress of dealing with some of the main considerations that There is an unlimited amount of
you’ll need to know: space that you can have access
fulfilment, enabling you to scale your
to through FBA, meaning you
business. Giving retailers access to don’t have to worry about finding
one of the most dynamic fulfilment How does FBA work? additional storage space when you
networks in the world, there are many increase your inventory.
Once a retailer has decided to use
reasons that this is a great method • Saves time
Amazon FBA, they send their products
of fulfilment. to one of Amazon’s warehouses to be While it does cost to use Amazon
stored. When a customer places an order, FBA, it also saves significant
Amazon pick and pack the products, amounts of retailers’ precious time,
shipping it directly to the customer. making it possible to focus on other
areas of the business.
This simple process means that once
Amazon receives the products, the • Flexible
retailer does not have to be physically There are various options, meaning
involved in the fulfilment process. FBA is suitable for almost any type
of retailer. You can reduce the
cost of fulfilment if you ship small,
lightweight items, you can offer
Benefits of FBA
discounts through ‘subscribe & save’
There are many reasons that FBA can be and you can even sell from third
a suitable fulfilment option for retailers. party ecommerce sites but still have
Benefits include: Amazon take care of your inventory.
• Fast delivery • Customer service
Products listed on FBA can qualify Amazon offers customer service as
Contributor:
for free shipping and Prime badges, part of FBA, including 24/7 support
Holly Worthington meaning fast deliveries are in various languages. This can
made simple. significantly reduce the amount of
P U B L I C AT I O N B R O U G H T TO YO U B Y 25• time spent by retailers trying to deal shipping is done according to
with customers’ queries. Amazon’s instructions.
• Easy returns • Cost
Retailers using FBA can tap The fees for FBA can add up quickly
into Amazon’s seamless returns per unit, making it a less viable option
processes, taking care of all aspects for lower priced items. Amazon has a
of returns on the retailer’s behalf. calculator that allows you to see how
profitable FBA is as a solution for your
• Hassle-free shipping
products. Fees include:
throughout Europe
There are many different fulfilment • Inventory storage fees
options to choose from. As an These are charges on all items
example, you can store inventory stored in an Amazon fulfilment
in different countries, despatching centre, based on the space that
them from specified fulfilment your products take up.
centres, depending on the
• Fulfilment fees
customer’s location.
You are charged per unit when
each unit is picked, packed,
shipped, handled, returned, or
Disadvantages of FBA requires customer service.
• Specific preparation requirements
• Unplanned service fees
To ship products to Amazon, they
If your products arrive at the
must be prepared in accordance
fulfilment centre and are not
with very specific guidelines. This
adequately prepared or labelled,
can be time consuming to make
an additional fee is charged.
sure all packaging, labelling and
26 P U B L I C AT I O N B R O U G H T TO YO U B Y“Amazon FBA gives retailers access to
one of the most dynamic fulfilment
networks in the world.”
• Long-term storage fees 3. Prepare your products
Products stored by Amazon for for transportation
more than 365 days result in fees, The next step is to prepare your
however this can be avoided by products for their journey to the
careful inventory management. fulfilment centre, making sure it
meets all Amazon packing guidelines
• Returns processing fees
and adheres to shipping and
When a customer is given free
routing requirements.
return shipping by Amazon, a
returns processing fee is charged. 4. Ship your products to Amazon
Finally, you need to create your
• Removal order fees
shipping plan, print Amazon
If a retailer wants their inventory
shipment ID labels and send all
to be disposed of, Amazon is able
of this with your products to the
to do this for a specified cost
Amazon fulfilment centre.
per item.
5. Get selling
As soon as Amazon has received
How to get started with FBA your shipment, your products are
ready for purchase.
1. Set up FBA
To set up FBA, create an Amazon
selling account and head over to
Seller Central.
2. Create product listings
After adding your products to the
Amazon catalogue, specify your
inventory for FBA.
P U B L I C AT I O N B R O U G H T TO YO U B Y 27Are these the same?
There is no one-size-fits-all fulfilment!
Your business needs and products are unique, so don’t settle for a
standard fulfilment service.
We will provide an end-to-end solution tailored to you...
Fashion
Alcohol & Food
Amazon FBA Prep
Custom Packaging
EU Fulfilment
Green Delivery
etc...
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+44 (0) 20 3514 1004 • inbound@bezos.ai • www.bezos.ai7 ways to
hire the right
warehousing
staff
As online sales have skyrocketed, It’s essential to hire staff in a way that 3. Train effectively
the number of warehousing staff will maximise productivity and create a Whether a member of the team is
positive working environment. Having a full-time or a seasonal employee,
has increased. Hiring temporary and
strategic approach to hiring warehouse they should be trained properly.
permanent staff has become a priority workers will help you to find the best Regardless of how qualified a person
in order to keep up with demand, and most suitable talent to boost your is, every warehouse is different
however a warehouse is only as business’ operations. and without training, they won’t
reach their full potential. Having
effective as those that it employs. These top tips will help you choose staff
a designated manager or point of
that will benefit your business in the
contact for each new employee
long-term:
helps to ensure they understand the
1. Be honest about the role they are expected to perform. It
physical demand also makes them feel a valued part
Make sure your job description of the team immediately, which can
explains how physically demanding grow employee loyalty. Having new
the role will be, to make sure employees shadow another member
workers understand the amount of staff is a successful method of
of lifting and carrying that they training them up while contributing
will need to undertake. Failing to to the team’s productivity.
mention this when hiring can lead to
4. Encourage recommendations
having unsuitable employees, which
Recommendations are a fantastic
can disrupt workflow and take time
way to source suitable warehouse
to find a replacement.
staff. Offering a referral scheme
2. Explain skill requirements can work to reward candidate
List your skill criteria clearly when suggestions that are right for your
hiring. Explain any specific skills business, as well as creating positive
Contributor: working environments. Other
that are essential, as well as those
Holly Worthington that are desirable, to make sure that benefits include reducing recruitment
suitable candidates apply. costs, finding great employees and
boosting team morale.
P U B L I C AT I O N B R O U G H T TO YO U B Y 29Tarlu specialises in third-party
Outsource your pick
and pack today with Tarlu
In support of its commitment, Tarlu
services to customers of all types and clients develop in a competitive climate.
It doesn’t matter whether you presently
variety of industries. have one sale a week or a thousand, we
Through its cloud based Warehouse are all about the journey ahead!
Management System Tarlu supports Always Improving
customers selling via a range of UK and
Gaining buy-in from the major retailers
international trade and online sales
is a tremendous achievement for clients
channels.
but with it comes a wealth of delivery
With 24/7 online access, customers requirements.
inventory levels and order progress.
has successfully streamlined delivery
Tarlu trades with many parts of the processes into major retailers such as;
world and aims to increase its presence
Tesco, Sainsbury’s, Holland and Barrett,
by opening up new markets for itself
TK Max, Amazon, SPACENK, Fenwicks
and its clients.
and Goldsmiths.
Supporting Growing Businesses Trusted by multinationals such as TATA
Tarlu is committed to helping businesses and Pepsico our standards are already
grow through the provision of its high but Tarlu is always looking to go
services. that one step further…
T: +44 (0)330 223 2218
enquiries@tarlu.com
www.tarlu.com1. Pay competitively other employees’ enjoyment of
Paying staff fairly and competitively the job. During interviews, those
can make it easier to find and retain hiring should pay attention to the
great warehouse workers. Cutting candidate’s personality, checking
costs on wages can result in high their communication skills and work
staff turnover and workers that ethic are suitable, as well as their
have little experience. Offering work experience.
competitive pay helps to attract
3. Re-evaluate your hiring efforts
talent and find staff that are keen to
If your new hires are not working
work hard and progress their careers.
out, it could be time to reassess your
2. Hire for skill and character strategy. There may be red flags that
There are various attributes that a you are ignoring during the hiring
successful employee should have. process and you should adapt your
As well as having the right skills for interviews and selection processes
the role, it is essential that they are to take these into account.
a good fit for the workplace. Hiring
These seven tips will help you to hire
people that are great at their job,
effectively, increasing the likelihood of
but likely to cause confrontation
growing a workforce of reliable, skilled
or disharmony in the workplace,
and loyal warehouse staff.
can damage productivity and
“Having a strategic approach to hiring
warehouse workers will help you to find
the best and most suitable talent.”
P U B L I C AT I O N B R O U G H T TO YO U B Y 33Connecting your
ecommerce
components to
thrive in 2021
and beyond
Throughout the past year, consumer As consumers shift online, the a tailored, consistent experience across
trends have indicated that the competition for digital space can be all channels that can challenge even the
just as intense as high-street retail. most established brands.
accelerated adoption of ecommerce is
Brands now have to shift focus
here to stay. For many brands, 2020 New findings from McKinsey have
towards streamlining and connecting
even discovered that 62% of European
was a year of unprecedented growth operations with fulfilment, marketing,
consumers have tried a new shopping
online, from lockdowns forcing and sales activities. This is where using
behaviour during the pandemic, with
automated systems to manage supply
brick-and-mortar stores online to over 70% of those consumers intending
chain processes becomes increasingly
companies bringing forward plans important: intricate marketplaces such as
to continue their new shopping habits.
to launch established products on So, as the world of ecommerce is here
Amazon utilising and offering their own
to stay, is your business prepared for the
ecommerce platforms to capitalise on fulfilment, sales and marketing systems
new normal?
can be beneficial for sellers, however,
growing demand.
expanding channel offerings may prove For more information or advice about
difficult as they are often not cross- connecting your ecommerce components,
compatible with other channels. get in touch with the Activ8 team.
Establishing interconnected systems
that can communicate and interlink
sales, marketing and fulfilment processes
across various channels can help
merchants adapt to ongoing changes
in market regions and stand-out from
the ecommerce crowd. Aside from
automating day-to-day manual tasks
and data gathering, connecting your
commerce components helps to provide
Contributor: a seamless experience to ensure that
Activ8 each customer touchpoint and interaction
reflects the correct brand values. It also
enables businesses of all sizes to create
34 P U B L I C AT I O N B R O U G H T TO YO U B Y“As consumers shift online, the competition for digital space can be just as intense as high-street retail.”
Micro-fulfilment –
a game changer for
online grocery?
Online grocery may be booming The pandemic has advanced consumer competing with store customers for
but keeping it profitable will be the engagement with online grocery by products on the shelves and large
between five and 10 years, and since cumbersome picking trolleys causing
challenge. Louisa Hosegood, Digital
it’s strongly believed that over half of congestion. What’s more, retail stores
and Strategy Director at Bis Henderson the current online behaviour will be are designed and laid out for browsing
Consulting, believes Micro-fulfilment maintained, retailers are scrambling to shoppers, which is not the most efficient
could be the big game-changer. come up with faster modes of delivery format for order picking, impacting
and more efficient ways to fulfil orders. fulfilment costs.
Delivery timelines for online orders have
been shrinking rapidly, ranging from a
A possible solution
couple of days to just a few hours, leaving
many grocers simply unable to compete However, there is an emerging solution.
with the retail juggernauts for the coveted The concept of micro-fulfilment leverages
superfast, premium delivery offers. the advantages of localised delivery,
or pick-up, and combines them with
A number of grocers have invested
the efficiency of a large, automated
heavily in huge automated warehouses,
warehouse. These small-footprint, low
a few are using the strength of
investment, highly automated systems
partnerships, while most retailers are
– typically occupying 3,000-10,000 sq.
relying on their existing store footprint to
ft – can be built into the backroom or on
satisfy this massive surge in demand.
the perimeter of existing stores or may
In-store fulfilment is by far the most be deployed as a stand-alone facility to
widely adopted approach. It has the serve a cluster of local geographies or
huge benefit of being close to the housing several different retailers.
customer, which minimises delivery
The technology makes picking much
costs (or eliminates if the customer
faster and more accurate, offering the
Contributor: collects). However, there are drawbacks.
capability to provide online grocery
Louisa Hosegood, Digital and Strategy Unrelenting online demand is taking its
pickup in under an hour from placing an
Director at Bis Henderson Consulting toll on the in-store customer experience,
order, while saving on expensive manual
with online pickers roaming the aisles
38 P U B L I C AT I O N B R O U G H T TO YO U B Y“Micro-fulfilment addresses some of the greatest challenges facing the online grocery sector. It will just take resolve and expertise to deliver.” P U B L I C AT I O N B R O U G H T TO YO U B Y 39
labour and distancing picking operations Sweating existing assets in this way USA, and are also working with leading
from browsing customers. Most of an enables creative property solutions property developers in the urban logistics
order is picked in the automated system in space-constrained locations, which arena. Our comprehensive understanding
and presented to staff for consolidation not only helps to maximise returns on of the challenges involved in grocery,
and delivery, supplemented by an real estate commitments but enables retail and eCommerce, together with our
element of manual picking for frozen, deli proximity to the fast-growing urban independent relationships with a wide
or loose weighed items. eComm-shopping population. range of suppliers – from veterans to new
entrants – puts us in a strong position to
The automation maximises use of the Of course, micro-fulfilment is not limited
help businesses deploy this potentially
cube, enabling a wide range of products to the grocery sector. The efficiency and
game-changing technology. We help
to be stored densely and retrieved cost-effectiveness of deploying such
define requirements, offer vendor-neutral
quickly, enhancing product choice, technology makes it appealing to many
advice on supplier/solution selection;
availability and customer service. And other sectors, from consumer goods
we collaborate on producing detailed
locating a Micro-fulfilment Centre (MFC) to healthcare.
designs, and take the project on through
inside an existing store does not require
Overall, micro-fulfilment has the potential implementation to post go-live review.
any additional replenishment points to be
to deliver substantial labour savings, faster
added to the network. Micro-fulfilment addresses some of the
order processing, enhanced value from
greatest challenges facing the online
Importantly, MFCs are far less capital- property assets, a strong local connection
grocery sector. It will just take resolve and
intensive than large warehouses to set with the customer and a significantly
expertise to deliver.
up and can be fully functional within just reduced cost-to-serve, which addresses
a few months – reducing risk, smoothing the all-important profitability challenge. More on Bis Henderson Consulting at
investment against volume growth, and www.bis-hendersonconsulting.com
Bis Henderson Consulting has been
providing opportunities to test and learn
working closely with leading grocers
through modular implementation across a
in this space, both in the UK and the
wider grocery network.
HANDS-ON EXPERIENCE
& HIGH-MINDED VISION
Consulting Services in:
Every imaginable supply chain
CHALLENGE is coming - and every SUPPLY CHAIN
one of them demands imagination.
Business evolution means stepping outside the
LOGISTICS
comfort zone. That’s why we’re here. To catch the rising
tide for business, we raise the bar on consulting.
AUTOMATION
We’re creative when you need the breakthrough.
We’re networked when you need the reach. IMPLEMENTATION
We’re practical when you need to make the future work.
& EXECUTION
And we always, always make sense.
TECHNOLOGY
MAKE SUPPLY SENSE
bis-hendersonconsulting.comPerfecting
omnichannel
fulfilment:
Salamander
Cookshop
Winner of the Good Retail Awards’ Consumer demands: Offering different delivery options
Bricks ‘n’ Clicks category, Salamander
Salamander Cookshop has excelled David spoke about the importance of
Cookshop, has created a successful in designing a complete shopping offering suitable delivery options for
omnichannel fulfilment model. David, experience that impresses customers. customers. He said: “The speed and
owner of Salamander Cookshop David explained: “We use the shop like range of delivery companies available
the tip of the iceberg. The big advantage with guaranteed times of delivery and
spoke to Modern Retail about their
of local retail is that you can touch, feel next-day options has made it easy to
approach to combining instore and and see the products, speaking to an offer choice. Dropship to home is mainly
delivery, making fulfilment work for expert instore. We make sure we have used by those who don’t live nearby,
the customer. a good range in stock for customers to or if it’s a big product. By being able to
view. Then you have access to the rest of give customers the option to have large
the iceberg, which is the other colours, deliveries arrive at their house the next
variants and models. Once you know day, this is something that can help
which product you want, you can have it to facilitate a wide range of
delivered to your home the next day, or customers’ requirements.”
choose to click and collect. It’s the sweet
spot because we show a variety instore
and then have the full range and access Working with suppliers
to the distributor’s warehouse, seeing if
they’re in stock and ordering them for David explained the importance of
delivery. Convenience, options, speed working closely with suppliers. He said:
and competitive pricing are part of every “You need to understand the needs of
decision we make, keeping customer customers and then speak with suppliers
experience at the forefront of everything to make this possible. It’s a case of
we do.” working together to find ways to make
fulfilment work. We worked with Le
Contributor: Creuset to have a guaranteed stock level
Holly Worthington instore, which is mutually beneficial, as
P U B L I C AT I O N B R O U G H T TO YO U B Y 41“The speed and range of delivery
companies available with guaranteed times
of delivery and next-day options has made
it easy to offer choice.”
42 P U B L I C AT I O N B R O U G H T TO YO U B Ywe know we have products to show how Salamander Cookshop utilises Cookshop is aiming to achieve. David customers and there is a significant stock availability: “This can be somewhat added: “If someone comes in and asks range of their products for shoppers to reliant on the supplier and what they’ve for a specific kitchen gadget, I want to be choose from. I also show the catalogue invested in. When you have access able to compete with Amazon Prime. If to customers so they can see different to the warehouse, committed stock you have access to the warehouse of a options that aren’t instore for them to and available stock visibility, this is big supplier with an extensive catalogue, see. It is possible to find a way to work so important. It enables you to offer you are able to compete. We’ve tried to with suppliers, particularly if they know customers access to the full range of be quicker and more responsive, always you buy a lot from them and they can products without needing to have a trying to find a solution for customers, support you somewhat in that. Having large stock holding. People are bound even if it’s something we don’t have in these relationships with suppliers makes to want the colour you don’t have in our shop. People often assume that you it possible to find solutions for customers. stock, so being able to look this up is might be more expensive because you’re If you say yes to a customer, they’ll come vital. You need to have the technology a small independent retailer, but that back. If you say no regularly, they’ll go in place at the till, for staff to be able to isn’t typically the case. My desire would to a different retailer and find loyalty quickly access stock availability and tell be that we are able to be as responsive elsewhere. There’s a mutual interest in customers the options that they have as Amazon Prime, as well as being able making it work, selling great products and available, as well as the delivery options to offer expertise and an unparalleled keeping customers happy.” and timescales for delivery.” customer experience.” Real-time stock availability Competing with Amazon Prime Having real-time stock availability While competing with the likes of makes it possible to deliver a seamless Amazon Prime may be a challenging omnichannel process. David explained task, this is something that Salamander
How using a
handheld WMS
app can improve
performance in your
storage operation
What do we mean when we talk of So what is specifically involved in each of of the warehouse management system
improving performance? Well, usually these areas, for example with efficiency (WMS) in the e-commerce sector, we
which can be rather a general term? believe this type of system will deliver
this means improvement in a number
What we are really discussing here is the better results than other types of stock or
of specific areas, such as being more efficiency of individual tasks, in other order system. But whichever you use, you
‘efficient’, more accurate, working with words, the ‘process’ by which the tasks may derive benefits with an integrated
good operational discipline, proper in your operation are performed. Think handheld app which are not achievable
about some of your own processes. Are without one.
utilisation of personnel, and of course
they as lean, simple and streamlined as
increasing ‘productivity’. Improving all they could be? Increasing accuracy on
The first requirement for a handheld app is
these areas together can deliver what that it should be purpose-designed for the
the other hand is more easily explained,
tasks you want to perform – not a desktop
we hope most warehouse managers it is purely the removal of as many errors
process on a mobile device. This means
as possible.
would call increased performance. task efficiency is inherently ‘designed in’
Securing good operational discipline is so it offers a streamlined process aimed
certainly an underrated improvement. at achieving the task quickly and easily.
Without this actions that take place in Add into that, for picking, putaway or
your warehouse could be unproductive any other process the means to validate
or erroneous, which you would probably actions using bar code scanning and you
agree is unsatisfactory. This also relates have the second requirement for major
to utilisation – keeping your personnel performance improvement.
fully tasked as much as possible - and
After all, what do most errors in your
both will ultimately impact the quest for
operation relate to? Generally, it’s
productivity improvement, the aim of
because things are identified incorrectly
getting more from your available resource
(or not all!) in terms of goods or locations
without increasing labour costs.
for goods. A good handheld app will
Contributor: So why will a handheld app make it easier give you many options for validating
to improve these areas? After all, the accuracy, from the simple verification of
ProSKU
effectiveness of a handheld solution a storage location to a range of product
depends largely on the system to which or batch identifiers. These options can be
it integrates. As advocates for the use configured to your needs, adding
44 P U B L I C AT I O N B R O U G H T TO YO U B Yverification where it’s needed and leaving How cleverly this can be done depends deliver all the suggested improvements
it out where it’s not. on the type of App. As a minimum it and create a perfect operation. There
should receive available task instructions are various factors involved, beginning
So we can see how a handheld solution
automatically from a central stock or primarily with the kind of system to
helps improvement in these areas, but
WMS system, which can be selected which your handheld app is integrated.
we can also see that using a streamlined
by an appropriate user from a simple You will have to determine based on
process promotes operational discipline.
task menu on a handheld device. In the your unique operational factors whether
This is because the user is allocated
more advanced systems, parameters may the processes you’d like to perform with
a specific task which permits only
allow a wide measure of control to direct a handheld app can be supported by
necessary operational variations. It does
task instructions to specific users, areas, that system.
not allow scope to diverge from that, or
equipment types or based on completion
to decide on a different course of action. On the other hand if you are looking to
of other actions.
Clearly this means that any ‘necessary’ decide on a system for your business,
operational variations must be factored So when we come back to productivity and whether that should include a
in, but with the right system, they will be. improvement, we see that there is no one handheld app, then based on the
factor that raises your productivity. It is above, the answer is probably yes. Even
When we look at utilisation we know
a combination of things that produces then you need to carefully evaluate
that to achieve productivity gains your
that outcome. It begins with the use of the options it provides, and whether
personnel should be utilised to the
an efficient process, which supports the its features are flexible enough to
optimum level during their working hours.
means to validate accuracy within it. It is incorporate your way of working, to
A good handheld app helps here too, as
facilitated by the maintenance of good deliver the benefits we’ve talked about.
it means that tasks can be continuously
operational discipline that allows staff As always, a system is only ever a tool
drip-fed to the workforce. This minimises
minimal divergence from the process, and for a specific job, and you must decide
the breaks (which typically occur between
by promoting a workflow regime with the whether the tool is the right one.
groups of tasks) needed to collect
minimum number of interruptions.
instructions or confirm completion, as
well as reducing associated supervisory It would be wrong to, and we don’t
time, resulting in greater focus on claim that simply using a handheld App
productive work. with your WMS or stock system willMake your
warehouse
work smarter
Use pallet racking for small parts While constant innovation generates a to maximise the available floor space to
storage and turn a ubiquitous stream of new intralogistics solutions, create a pick face with sufficient locations
‘classic’ pallet racking remains the most for the required SKUs, and enough stock
storage product into a flexible
commonly used storage system. to ensure availability during picks.
order picking solution. Its relatively low investment costs and
flexibility have made it an indispensable
framework for storage and order picking Flow shelves for fifo
systems.
Flow, or roller track, shelves can be easily
The drive to minimise stock levels for installed into pallet racking to increase
each SKU and improve picking process the number of pick locations and volume
efficiency to speed up order fulfilment, of SKUs located on the ground level pick
combined with demands for Just-in-Time face. Goods are easily picked from the
delivery and online retail, is generating a front of the racking – the rollers on the
greater need for small parts storage. flow shelves allow bins and containers
containing small items to be picked roll
smoothly to the front of the shelf. A full
Adaptability & efficiency container of items will roll to the operator
each time the empty one at the
This is where the adaptability of pallet
front removed.
racking comes to the fore because small
parts picking can be easily integrated
within pallet racks. One option is to
Shelving
create small parts pick locations on
the reachable ground level, with upper Standard shelving is another option to
storage levels serving as a buffer store for create flexible small item pick faces within
replenishment. pallet racking. The simplest solution
is static shelving at right angles to the
This will result in a reasonably efficient
racking, with space in between each run
Contributor: picking process but ground floor locations
to facilitate picking. An alternative option
BITO within a pallet rack will, of course,be
is pull-out mobile shelving that
limited. Solutions are therefore requiredmaximises the available space under the Bins complete the solution
racking – though movement of shelving
BITO’s comprehensive range of plastic
has a negative impact on pick time. A
bins and containers includes different
third solution involves static shelving
sizes, with all kinds of accessories, for use
parallel to racking, which makes front
in shelving and in flow racks. Working as
items easy to pick. In all cases, shelving
a one stop shop solution with BITO pallet
dividers can be fitted to organise pick
racking, shelving and flow racks, they will
locations better.
keep goods protected throughout the
Inclined supply shelving within a pallet intralogistics process and during transport
racking bay will make items clearly visible to ensure the quality of products are
for picking. Cardboard cartons or plastic delivered to the customer in
bins can be used, though the latter option prime condition.
enables preparation in advance at the
goods-in area by filling the plastic bin
with the items to be picked.
“While constant innovation generates a stream of new
intralogistics solutions, ‘classic’ pallet racking remains the
most commonly used storage system.”You can also read
