Within the e-commerce industry, the importance of customer experience, buying experience and product experience has been known for a long time. But now focus is shifting to the potential of a really good delivery experience. To get a grip on the trend we visited D-congress in Gothenburg, Sweden’s largest e-commerce conference, and came home with a lesson learned; that there is still a lack of focus on warehouse potential.
The lack of warehouse focus in discussions on delivery experience have in part organizational reasons. Traditionally the warehouse operations is managed by supply chain and warehouse managers and there is a gap between the e-commerce and marketing managers driving the front-end of the e-commerce. Working with a business model of this sort will most likely lead to sales growing without profit following.
Realizing that we need to bridge the organizational gap will be the first step to securing an excellent delivery experience. Your warehouse is the heart of you business, and there is a lot of competitive advantages that can be won by smart warehousing.
How do you place your goods? How do you set up the picking rounds? How do you calculate how many and what packaging is needed for each order? Using smart technology to optimize these aspects based on customer data and behavior will not only lead to higher productivity in the warehouse, but is also a prerequisite for a good delivery experience. For example, shorter lead times is only possible if the warehouse can handle it, inaccurate packaging might result in a more expensive purchase, and picking errors lead to unnecessary returns.
In short, using the latest technology in warehouse management enables you to respond to what most people demand: better information, more accurate deliveries, faster deliveries, and smoother return handling.
THE SUSTAINABLE WAREHOUSE – A PART OF THE DELIVERY EXPERIENCE
The theme of this year’s D-congress was Purpose Driven Commerce. The e-commerce industry has realized that we need to take accountability for our actions on the environment and future generations. Consumption has spiraled and sustainability is now on everybody’s lips trying to decrease the impact this has on our planet.
With growing environmental concern among consumers, this is also an added dimension to the concept of the delivery experience. For example, using AI to optimize packaging and avoid shipping air is cost-saving, positive for the environment, as well as gives the consumer a better experience when opening the box.
Moving forward, incorporating smart technology into the heart of your business will be the winning concept for a future proof business model. Using costumer data in a structured way enables continuous improvements based on actual behavior, not assumptions. In these challenging times, where delivery expectations are rising every day, this is a matter of life and death to keep ahead of the competition. So, carry on and let the best delivery experience win!