Is Your Business Prepared for E-Comm 2020?
Over the last few months the E-Commerce Sales Channel has been the saving grace to Suppliers. Order levels had a significant spike and many Wholesale Companies have had to scramble to keep up with the volume. Warehouses have been operating with a skeleton staff. This isn’t sustainable over the long haul.
As we move into the next phase of the Pandemic Suppliers and Internet Retailers need to make sure they are prepared for the remainder of 2020 and into Q1 of 2021.
In the months of March and April 80% of retail sales came from the E-Commerce Sales Channel. Now, it is not realistic to expect that this level of sales will continue for the remainder of 2020 but, Suppliers and Internet Retailers alike need to plan for a much higher order volume than previously projected.
Companies like Wayfair and Amazon have already begun this process by hiring thousands of additional employees to handle the higher sales volume.
Now is the time for you to stop and assess your business’s internal systems. Can you sustain shipping orders at a minimum of 50% increase over last year with your current operation? Chances are the answer is no.
Let’s take a look at a few areas of potential concern and how to avoid the pitfalls.
Order Processing:
What is the maximum number of orders your team can process in a day?
At what point would orders that came in today would have to get processed tomorrow?
Warehouse:
Do you know the maximum number of orders your current team can ship a day?
At what point do you need to add warehouse staff so that you don’t sacrifice adding to your lead time?
Customer Service:
With increased order volume you will have increased needs from your customer service team.
Accounting:
Invoices and Payment Vouchers take time to create, send, and process.
Can your current structure maintain a 50% increase and possibly even higher when the 4th quarter hits?
Inventory Management:
Do you have an inventory replenishment plan for the items in your catalog that do 80% of the business?
Create a plan with the assumption of at least a 50% increase YOY.
When you look at these different areas of your business what changes do you need to implement to be able to capitalize on the increased sales? Do you need to add team members to your warehouse? Do you need to analyze and create an inventory management system? Do you understand the tipping point of your team?
If you have questions about how to create a plan for the remainder of 2020 CLICK HERE to schedule a call with us. We can help you create a growth plan that will work for your business.