Wholesale shipping plays a vital role in the success of retail organizations.
It involves the movement of large quantities of goods from manufacturers or suppliers to retailers, and ensures that products are efficiently delivered to meet consumer demands. This area of supply chain management is nothing short of complex. So many factors go into the decision-making around wholesale shipping, like:
- Procurement
- Operational efficiency
- Delivery times
- Delivery methods (ocean, air, land)
- Inventory management
- Tracking capabilities
- Forecasting
In today’s fast-paced retail landscape, where ecommerce continues to grow and retailers are seeing the increasing impact of physical brick-and-mortar stores, optimizing the wholesale shipping process becomes even more critical. Not-to-mention the stress around ever-changing regulations and politics…
Regardless, there are ways to best support your wholesale shipping strategy and enhance your retail organization’s logistics.
Wholesale shipping isn’t going anywhere
Wholesale shipping is and will remain a fundamental part of the retail industry, and its significance is only increasing.
According to Statista, global ecommerce sales are projected to reach a staggering $6.3 trillion by 2024, highlighting the continued growth of online shopping. As consumers increasingly turn to ecommerce platforms for their purchases, the need for efficient wholesale shipping becomes even more critical.
Ensuring timely delivery of products to wholesalers, customers’ doorsteps and physical stores around the globe will keep your customers and your revenue streams happy.
What is this I’ve heard about brick-and-mortars and chapter 11’s though?
In recent years, we’ve witnessed the closure of several well-established retail stores, while others have faced financial turmoil and entered Chapter 11 bankruptcy protection. This is nothing new as businesses start and end, but it does feel like there have been more discussions around this topic since 2020.
However, these developments can be attributed to various factors, such as:
- Changing consumer preferences
- Increased competition
- Ease of access with ecommerce
Though the closure of just some physical stores doesn’t diminish the importance of wholesale shipping; it merely underscores the need for retailers to adapt their strategies to the evolving retail landscape.
When you enhance your wholesale shipping operations, you can remain competitive and thrive in this dynamic market.
So, what does enhancing your wholesale shipping logistics look like?
Let’s dig into it…
4 wholesale shipping enhancements
- Invest in the right Inventory Management Systems
- Efficient inventory management is crucial for seamless wholesale shipping. By implementing advanced inventory management systems, such as automated inventory tracking and real-time stock monitoring, retailers can optimize their supply chain processes. These systems enable accurate demand forecasting, prevent stockouts, and minimize the risk of overstocking. Over half of Operations professionals agreed that advanced inventory management solutions positively impacted their wholesale shipping processes, resulting in improved customer satisfaction and increased profitability.
- Seems like a no-brainer, but not all Inventory Management Systems are created equally. Do your research to find what you need for your organization. What are your “must-haves”?
- Optimize warehouse operations
- Streamlining warehouse operations is essential to ensure the smooth flow of goods during the wholesale shipping process. Implementing warehouse management systems (WMS) and utilizing technologies like barcoding and RFID tagging can enhance inventory visibility, reduce errors, and expedite order fulfillment. It’s been found that companies employing WMS achieved a 16% reduction in order cycle times and a 6% increase in order accuracy, leading to greater operational efficiency.
- Additionally, do you know where there are places in your warehouse operations where you could cut down on time and resources to be more efficient? One less commonly thought of way is to move to reusable packaging. We’ve found that by switching to reusable packaging from cardboard, you could save $225,000 per year in retail operations (based on 75 retail store locations with weekly shipments of 50 boxes – ask me more about this).
- Collaborate with reliable logistics partners
- Partnering with dependable logistics providers can significantly improve wholesale shipping efficiency. Seek out logistics companies with a strong track record in handling retail shipments and who offer competitive pricing, reliable delivery timelines, and robust tracking capabilities. According to a report by Armstrong & Associates, the third-party logistics (3PL) market grew by 10.5% in 2020, indicating the increasing importance of outsourcing logistics services. Leveraging the expertise of 3PL providers can help retailers optimize their shipping processes, reduce costs, and enhance customer satisfaction.
- Embrace data analytics
- Data analytics plays a vital role in identifying areas for improvement in wholesale shipping. By leveraging data from various sources, including sales, customer behavior, and logistics, retailers can gain valuable insights to optimize their supply chain. Predictive analytics can help forecast demand accurately, enabling retailers to plan inventory levels and reduce lead times. A study by McKinsey revealed that companies using advanced analytics in their supply chain operations experienced a 3-4% increase in perfect order rates, resulting in enhanced customer loyalty and improved profitability.
- As mentioned above, RFID tagging can help provide more data about what goes on inside your warehouse operations, but there’s more data to be captured that your current inventory management and warehouse management software can only capture so much of. What about your sustainability data and the ability to track your packages 24/7/365? Moving to reusable packaging that provides real-time tracking gives you more visibility into your supply chain so you can optimize, optimize, optimize.
So, what’s next?
Wholesale shipping remains an indispensable part of the retail industry, and it requires a good amount of trust with your distributors.
By investing in advanced inventory management systems, optimizing warehouse operations, collaborating with reliable logistics partners, and embracing data analytics, retail organizations can improve their wholesale shipping efficiency, reduce costs, and deliver exceptional customer experiences.
By adapting to the changing retail landscape and prioritizing efficient wholesale shipping, retailers can navigate the industry’s challenges and emerge as leaders in the evolving marketplace.
Looking for more visibility into your supply chain? Learn more about LimeLoop’s Trackable Reusable Packaging
