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Getting Your Fulfilment Operations Ready For A Successful Online Christmas

Press Release

By: Zendor
18 August 2005

Online retailers should start preparing their Christmas fulfilment operations as early as March. ‘Plan for the worst and aim for the best’ is fulfilment provider Zendor‘s advice for retailers preparing for their first online Christmas, and those looking to improve on last year‘s performance or upgrade service levels. All retailers, whether using a third party fulfilment provider or undertaking fulfilment in-house, may find the following tips useful when preparing for Christmas:

Forecast and plan early - Use whatever data you have to forecast volumes, ideally based on last year’s figures. If this is your first Christmas, ask your fulfilment provider (if using one) for guidance or look at other existing channels, for example, catalogue if appropriate. Key numbers needed are stock levels, product mix, space requirements, number of deliveries, returns levels.

Communicate your requirements - Whether you use a fulfilment provider or have your own warehouse operation, review resource and capacity within the warehouse. Has adequate space been provided to accommodate stock? Will the staff levels cope with customer demands? Give carriers as much notice as possible when your needs change - they will be just as busy as you in the run up to Christmas.

Ensure that your supplier or warehouse operation is flexible - Look at how working practices differ at this time of year. For example, if you have excess stock being delivered, can your supplier/warehouse accept deliveries of containers direct from the docks and store them for you? Are they able to handle high peaks and troughs? The more notice that is given to your supplier of unique requirements, the more accommodating they can be to your needs.

Be prepared for fluctuating staff levels - Staff absences can be as high as 10-15% of the total workforce around the Christmas period. Build a good working relationship with your recruitment firm to adequately cover staff absences at short notice. Permanent staff may request holidays also, so allow plenty of cover and training for new employees to cover staff absences.

Build a contingency plan to ensure delivery before Christmas - It is vital to have a plan that will allow for delays and unforeseen problems, and still deliver goods on time. For example, clearly communicate a ‘cut-off’ date for ordering goods to guarantee delivery by the 24 December, and consider late orders being upgraded to express delivery after an agreed date.

Prepare for the unexpected - Power cuts, over and under-forecasting (which can happen even after thorough planning has taken place) can adversely affect productivity and output if not prepared for. Walk through every eventuality, have a plan in place, and remember, building a good working relationship with external contractors will always help cope with unexpected.

Have IT back-up in place - Most retailers are reliant on internal systems to generate customer advice notes, track deliveries, and monitor stock levels and payroll. In the event of IT failure, have a system in place so that work can continue. If your IT is outsourced, confirm that such procedures are accounted for by your external supplier.

If you prepare for the worst, then you are in the best position to have a festive season geared for optimal sales results and service levels. John Ganley, Operations Manager at Zendor comments: “At the end of the day, if things go wrong and you are prepared, then they can be fixed. The first reaction may be to panic, but if you have a good team and suppliers around you who are well-briefed and prepared, then you should be able to sort any problems out that may arise without impacting adversely on the customer”.