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Your Warehouse Will Need 3 Things This New Year

Peak season highlights what consumers are demanding from warehouses so decision-makers can adjust. Higher consumer demands and increased shipping costs pressure warehouse decision-makers to find solutions that improve inventory accuracy and shipping efficiency. To manage the new year, the warehouse industry is employing several strategies to deal with potential shipping problems ahead. Studies indicate that over half of warehouse decision makers intend to grow their networks as a strategy for the new year. Additionally, surveys show that 85% of warehouse decision-makers have implemented mobility solutions, so frontline workers can improve inventory accuracy. Despite this, 79% of warehouse decision makers are concerned they will not meet their business objectives without automated systems to handle the following challenges:

  • More SKUs stores in the warehouse
  • Labor shortages
  • Omnichannel shopping
  • Competition in the on-demand economy
  • Less or unused warehouse space
  • Fulfillment demands

 

Set Your Operations Up for Success

 

Higher returns after peak season, labor shortages, and a greater risk of cybercrime can decrease warehouse efficiency in the new year. To combat these issues, automation experts recommend preparing operations for incoming changes with future-forward technologies. Consider these solutions that make it easier to navigate challenges with simple but effective warehousing:

 

  1. Modernized order fulfillment technologies – A big trend and issue that continues for warehouses this year and next year are labor shortages. Recent studies show that 73% of warehouse operators can’t find enough labor. Enterprise robotics can help manage the pains of fewer workers and higher labor costs with 3 times more productivity and 50% faster order picking. Robotics also puts less stress on employees in smaller labor pools and can keep workers focused on non-repetitive tasks.
  2. Connected warehouses and supply chain – A more connected workforce that is informed on deliveries and orders helps your workers stay prepared for the new year’s challenges. Efficient connectivity can help improve asset visibility for smoother reverse logistics and a stronger enterprise network is prepared for cyber threats.
  3. Easy to use mobile powercarts that improve productivity – Dependable mobility from powercarts provides power to your mobile devices like tablets and printers for more than 8 hours. Reliable power ensures warehouses don’t lose productivity or drain cost. Mobile Power Carts are easy to use and provide unparalleled features for uninterrupted warehousing.

 

After the holiday season, businesses will need enterprise technology to keep up with challenges like continuing labor shortages and higher returns on top of high expectations. Get more information about how you can optimize inventory accuracy and warehouse visibility with the right solutions.

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Optimizing Reverse Logistics? Here’s a checklist

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Reverse logistics has become a tough challenge for businesses because of the rise in e-commerce and the demand for easy and free returns. Businesses that achieve hassle-free returns retain more customers and improve brand identity. Studies show that 92% of consumers say they will buy again if the product return process is easy, and 79% of consumers want free return shipping. Additionally, the reverse logistics market projects to grow. Studies estimate that the global reverse logistics market size expects to reach $937.1 billion in 2022. Studies show the costs of handling returns jumped 59% due to supply chain and labor issues last year.

 

Businesses could suffer from higher return, shipping, and handling costs when they fail to meet consumer expectations for seamless returns. Researchers suggest that moving backward through the supply chain is actually more difficult because there isn’t a priority for efficient returns and products move against the normal flow of products. Consider following these steps to ensure your return process is optimized:

  1. Know why your returns happen in the first place – Given the expense that comes with returns, you should try to find why consumers are returning items. Awareness of reasons for returns can help you determine if you have the right return policy and if it’s playing a role in a higher volume of returns.
  2. Put transparent monitoring systems in place – Implement innovative monitoring systems that monitor assets throughout the return process. When companies improve asset visibility during reverse logistics they find areas that need improvement and can work to improve quality.
  3. Implement clear and easy return policies – E-commerce has created specific customer expectations for purchasing, and in this case, returning products. Since consumers are expecting free and same-day shipping, create a simple return process that can meet or be close to these requirements.
  4. Invest in the right technology – In addition to an effective inventory management system, you can digitize inventory updates with handheld devices. Consistent digital updates to inventory counts help improve your accuracy and speed for reverse logistics. Mobile devices can help workers accurately read tags and labels to improve accuracy and speed during the return process.
  5. Add return labels on the original shipping and packaging – Just simply adding the right return labels can reduce delays dramatically, while simultaneously improving customer satisfaction. Enterprise labeling helps the product get back much more quickly and helps the customer, which improves efficiency in the entire return process.

 

Visibility into the return process, clear and easy returns, dependable technology, and correct labeling can give your business what it needs to optimize reverse logistics. Simple solutions like this make the return process more valuable and cost-efficient.

A return process should be as simple and efficient as a delivery process. Learn more about what you can do to optimize reverse logistics and supply chain efficiency.

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It’s Time to Revisit your Reverse Logistics System

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Back in 2019, bracketing – otherwise known as the act of buying multiple similar products with the intent of returning them – was estimated to cost businesses up to $550 billion by 2020 as more online retailers move to offer free shipping. Now, while businesses continue to accommodate the surge in online shopping, that estimate can be expected to rise as home shoppers are unable to shop directly in store. 

Moreover, research suggests that four out of ten customers return products bought online. Because returned transactions can cost businesses up to 12$ per parcel, it is highly crucial that supply chains learn to maximize profitability at the face of increasing return rates. Expenditures are further increased when the following responses are taken into account:

  • Products may be stored in the wrong place and lost
  • Products may no longer be usable, ultimately ending up in landfills 
  • Workforce must spend extra time inspecting and refurbishing returned goods 
  • Customers will most likely turn elsewhere to find the product their seeking.

To minimize financial loss and chaos, Avalon Integration recommends revising your inventory management plan to provide your reverse logistics team with maximum visibility from door to dock.

Visibility is King

Warehouse worker in red shirt scanning barcodes

Protect your workflow from sudden influxes with a transparent inventory management system.

Between social distancing limitations and holiday surges, it’s safe to say reverse logistics will not disappear anytime soon. Protecting your workflow from sudden influxes, a transparent inventory management system allows your workforce to accurately track and move products and resources to where they are needed more. A few technologies currently increasing inventory visibility are:

  • RFID Locationing – Tracking moving inventory in real-time, RFID locationing allows you to verify incoming orders, accelerating your sorting and refurbishing process. 
  • Bluetooth Locationing – Serving as a more cost-effective solution compared to RFID technologies, BLE can help define storage zones within your warehouse, ensuring returned goods aren’t lost or misplaced on the wrong shelf. As a result, this also reduces the number of products disposed in landfills. 
  • Color labels – Stringently tested to endure harsh environments, Zebra’s Certified Consumables can maximize visibility by adding color into your labeling system. This allows workers to quickly identify products at a glance and minimize unnecessary labor efforts. 
  • Versatile data capture technology – Paired with either RFID tags or enterprise-grade labels, visibility technologies such as Zebra Rugged Tablets, give you access to your inventory’s status at the palm of your hand while also streamlining other functionalities through one ergonomic and durable device.

When done with the right tools and expertise, maximizing inventory visibility can be both seamless and profitable. To see how these technologies can fit into your workflow, contact our automation experts for a free assessment of your current reverse logistics strategy.

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Are reverse logistics clogging up your supply chain?

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Many businesses put more emphasis on streamlining outbound shipments than returns because they view the movement of outgoing orders as a revenue stream. The returning shipments are seen as a cost. As a result, a sluggish process for reverse logistics is a profitability drain on the company, when, in fact, it could be used as an opportunity to strengthen the bottom line. Reverse logistics account for approximately 7 to 10% of the cost of goods, so addressing inefficiencies here can deliver a strong boost to your bottom line!

How Can You De-Clutter the Process of Reverse Logistics?

Reverse Logistics - Declog the Warehouse

Are reverse logistics clogging up your supply chain? If so, it’s time to take a look at how you can de-clutter the processes. Avalon Integration works extensively with manufacturers and warehouses, and we see some common factors that need attention.

Outbound shipments have a high priority since they reflect sales and have deadlines. 

Reverse Logistics - High Priority Customers Means Good Productivity

Customers are expecting their shipments and don’t tolerate delays. Returns are handled with less priority. However, there’s still a customer on the other end of this inbound shipment—and it could be an unhappy customer—so efficient and accurate processing of the return leads to increased customer satisfaction. There should be a dedicated team of workers who work solely on reverse logistics, not delegating your shipping staff to this job when they are available. Equip them with mobile technology to expedite the job and increase accuracy. A rugged handheld computer enables a worker to scan the barcode on the shipment to record the order number and customer. Then, the returned items are scanned, instantly updating the customer’s account because the device is linked to the enterprise’s backend system. In addition, the inventory count is updated with the numbers from the returned merchandise.

Good Equipment Means Productive Workers With Reverse Logistics

Reverse Logistics - Productive Workers

An enterprise-grade mobile computer gives your warehouse workers the ability to also record the condition of the goods when they’re returned. Mark them to be restocked, refurbished, or discontinued. The device is equipped with a camera, so any damage can be recorded when the box is opened. You can focus intently on getting their orders to them quickly, but if your reverse logistics delays the processing of their returns, you compromise that positive relationship. This real-time visibility certainly increases customer satisfaction on both ends of their orders. The dedicated, advanced reverse logistics system reduces waste and delays. Your inventory counts become accurate and up-to-date, preventing mistakes in re-ordering that lead to overstocks. When you immediately record returned merchandise, you avoid unnecessary replenishment.

Avalon Integration develops technology solutions to support an efficient reverse logistics process. Our partnership with Zebra gives us the power to provide the devices that reflect the latest advances, like best-in-class scanning, enterprise-class device management and security, and rapid processing and connectivity. Talk to us to learn more about improving your reverse logistics.

 

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