It takes a lot of work to run an e-commerce business, which is something that you likely already know. To be successful you have to market and sell the products and then once the orders come in, you then have to turn around and get them out the door as fast as possible. Fulfilling these orders requires time, patience, and attention to detail.
As with shopping for most business services, the stakes for selecting an outsourced fulfillment services vendor are extremely high. The selected fulfillment company will store all of your product, pick and pack shipments to customers, and generally serve as the entire back end of your company. This is an enormous responsibility, not to mention that if things end up going wrong, changing providers is beyond difficult. So choosing the best fulfillment Center for your specific needs that will perform high quality work is critical to not only the success of your business but also the minimization of any potential disasters or headaches with logistics.
A Labor Management System (or LMS) is a piece of software that is used in order manage and monitor a workforce. In particular, it is often found in fulfillment businesses but can potentially be used in any industry.
Essentially, this works by providing increased visibility, to show where money is being spent and how that money is being returned. At the same time, you’ll be able to identify your most productive employees, as well as any that aren’t performing at their best.
When you’re an e-commerce company, the cost of shipping your product from its manufacturing point to the customer can be one of the biggest starting costs – and it takes a little bit of thought to calculate just how much of the percentage of the total price it will take to cover shipping costs, especially if this is your first e-commerce effort.
Just how you’re shipping the item will determine what kind of deals you can offer clients; free shipping is a great initiative, but it doesn’t always make financial sense for the company – and the same can be said for higher shipping costs. Continue reading