Distribution management is a key aspect of eCommerce and logistics success, but it’s something that many businesses can struggle with, particularly in their early years. To maximize success within the world of eCommerce, it’s important to understand where things could potentially go wrong and how to resolve common issues.
Efficient distribution management can be difficult to achieve for many businesses, as it requires a fine balance between the supplier, warehouse, and courier. It involves the efficient movement of raw materials and goods to customers’ home, and can contribute to accurate order fulfillment, high customer satisfaction, and a strong brand reputation.
Below, we have covered the most common issues that businesses face in distribution management to help you prepare for the worst, know how to respond quickly to problems within your own business, and boost eCommerce sales.
Overstocking
Poor inventory management often leads to overstocking, where you order too much of the same product and end up with an overspill of items in your warehouse. Overstocking leads to overspending and a lack of space in your warehouse, both of which can disrupt your order fulfillment processes.
Demand Forecasting
It can be difficult to predict where customer demands are heading and adjust your stock levels accordingly. This process is known as demand forecasting and is one of the many aspects of logistics that companies have difficulty completing accurately.
Inaccurate demand forecasting can lead to overstocking, understocking, and difficulty keeping customers satisfied.
A Lack of Warehouse Space
Unfortunately, warehouse space can be costly, and this leads to many businesses having inadequate space to store and organize their products. A lack of warehouse space makes it difficult to organize items and store them safely, increasing the risk of delays in order fulfillment, inaccurate order processing, and injuries within the workplace.
Finding Reliable Suppliers
Every supplier works differently, and some are more reliable than others. Many businesses can struggle to find a supplier that they can trust and one that will be able to scale their services to meet increasing customer demands.
Having a reliable supplier is essential for succeeding as an eCommerce business as it enables you to provide high-quality products that leave a lasting impression on your customers, but it’s often something that takes a while to organize.
As a business owner, you might need to work with multiple suppliers before you discover the best one for your operations, but you will know when you’ve found the right supplier for the job.
Customer Service Issues
It’s essential to get customer service right in order to increase customer satisfaction and retention. Businesses that excel in customer service are able to build credible reputations and grow exponentially within the industry. However, many businesses neglect customer service and focus on other, more profitable areas of their operations.
Excellent customer service requires time, energy, and money. You need to hire great staff that are personable and hard-working and provide in-depth training so your support team knows how to resolve common customer issues. You also need to invest in good-quality equipment and software that ensure efficiency within your customer service team.
