e-commerce, delivery, customer churn, CX, gamification, retail, customer loyalty, How Future-Minded CX Teams Can Stay Ahead of Customer Needs with AI Innovation

When operating an e-commerce business, the first thing many companies realize is that delivery is everything. Surveys show that most people expect an online delivery to arrive within about 24 hours of the time they ordered it. This presumption gives businesses little time to process the order, complete the package and send it to the carrier for a prompt delivery.

Even if you cannot achieve this goal, you can still reduce the time it takes for customers to receive an order. These approaches can improve efficiency, reduce costs and increase rates of successful fulfillment. 

Optimize Inventory Management 

For faster order processing, inventory management is the elephant in the room. Many businesses lack an effective inventory management strategy, which means that they do not necessarily know what they have, or have what they need.

Automation allows companies to identify what they have at a glance, with barcodes and other tools to provide updated counts in real time. An automated sorting system can speed the process of unloading and organizing materials and products so that businesses can get to processing orders more efficiently. 

Automate Order Processing 

The time between order and shipment can take minutes, or it can take days, depending on the system that companies use. Automated order processing removes many of the bottlenecks in the fulfillment process, by automatically allocating inventory, printing packing slips and mailing labels and more.

Human intervention may only be needed to pick inventory and confirm accuracy before completing the package and delivering it to a carrier. 

Revise Your Picking Strategy 

The process of selecting inventory for the order can add hours or even days to the delivery date, but companies can improve on picking efficiency.

Inventory storage should be optimized to put the most frequently ordered items near the front to decrease picking time. For large inventories, businesses should consider using automated pick systems or conveyor systems to move inventory to the front for packaging.  

Improve Packing Efficiency 

Improving packing efficiency can decrease waste and optimize the packaging for the carrier. Different carriers express unique preferences for a particular size or weight of packages they deliver, and their costs will reflect those preferences.

For e-commerce businesses looking to improve delivery times while keeping shipping costs down, finding ways to meet these packaging requirements is paramount. Using lightweight packaging materials and efficient packing techniques can reduce the weight of the package, which lowers shipping costs and may create opportunities for faster shipping solutions. 

Form Partnerships With Logistics Providers 

Medium-scale shipping needs may require forming relationships with multiple logistics partners. Third-party logistics removes many of the responsibilities of delivery from the e-commerce company, highlighting the importance of selecting the right partner.

3PL businesses have their own systems for fulfillment, and their delivery rates can help you determine which one is the best choice for your shipping needs. Consider multiple options for different package sizes and weights and be sure to understand their processes before agreeing to a contract. 

Automate Customer Communication 

Customers want to know the status of their purchases, which is a service that most businesses can automate. When the system prints a mailing label, customers receive an email or text with a tracking number.

An automated system can also track the status of the delivery and provide updates on the estimate, including delivery day. These actions increase transparency in the order process, which improves customer trust and gives them the tools to assess delivery times on their own. 

Ship From Multiple Locations 

It may come as no surprise that deliveries over shorter distances take less time than those spanning thousands of miles, emphasizing the benefit of using multiple shipping locations. Major national or worldwide e-commerce corporations choose strategic locations for warehouses, so they can be sure of covering most inventory needs at a shorter distance.

Businesses can consider a variety of options, from renting additional warehouses to devoting a portion of retail space to a shipping center. 

Optimize Delivery Routes 

Optimal delivery routes can help companies to minimize lost time due to traffic, inclement weather and other obstacles to timely delivery. Route optimization includes analyzing several factors, such as: 

-Selecting routes with minimal delays 

-Anticipating delays for overseas deliveries, like bottlenecks at customs 

-Scheduling deliveries outside of common traffic hours 

Although optimizing for distance can be the most obvious solution, for many deliveries, the last several miles offer the most opportunity to increase efficiency. Optimizing fuel purchasing and breaks for truck drivers can increase the accuracy of delivery estimates. 

When most shoppers expect deliveries within a day or two of making a purchase, e-commerce companies must find ways to step up to the challenge. Fast shipping does not have to be exclusive to large corporations with a huge stake in the online buying market. By implementing these practices, businesses can discover ways to trim their order management, processing, packaging and delivery processes.