Every e-commerce store aims to serve its customers quickly and reliably. Such a complete service package does not create itself. A functional logistics solution is required behind an e-commerce, where every piece must be in place. 

Familon is a Finnish brand that is part of the Swedish family-owned Wendre Group. Wendre Finland Oy is responsible for the product development, sales, and marketing of the Familon brand in Finland. Crasman acts as a partner for Familon's consumer and B2B online stores. 

The Familon.fi online store is known not only for high-quality Familon products but also for reliable and fast deliveries. Behind these is a storage solution and logistics model that has been built with long-term planning, where every part has been polished over the years to work seamlessly together. 

– Familon has its own logistics center in Heinola, well-located near the Helsinki motorway and logistics centers of transport partners. Having our own premises has allowed us to centralize logistics and storage, as well as build for the long term, says Wendre's Head of eCommerce Tuuli Roth. 

Speed, flexibility, and foresight are the cornerstones of a functioning online store

All of Familon's deliveries are made from the Heinola logistics center. This means not just consumer customer orders but also retailer orders and, by agreement, deliveries for retailers' online stores.

– This setup allows us to keep a wide range of products in Heinola. It forms the cornerstone for the flexible and fast deliveries of the online store, Roth explains. 

Letting goods sit in the warehouse for long periods is not feasible, so ordering the right goods at the right time is crucial. Forecasting is one of the most challenging aspects of logistics and warehousing, and Roth sees many of the biggest risks in inventory management there.

– Our forecasting has succeeded well. It is helped by local production and the choice of our comprehensive solution.  If goods come from afar and there are several procurement sources, managing order amounts is more challenging. Key aspects of inventory management include the adequacy of goods and cost management. Successful work is reflected to customers through fast online store deliveries, Roth explains.

Roth advises continuously monitoring the movement of goods and being ready to adjust forecasts as needed.

– Even if a product has been a sales success, it must be accepted that situations can change quickly. The range must move, and all products must have good turnover. If turnover stops, it is not worth keeping the product in stock.

Is an outsourced storage and logistics solution worthwhile? 

Familon opted for its own centralized storage solution for e-commerce because when its e-commerce operations began, it had not only its own property in a good location but also strong expertise in warehousing and logistics. There were other options for building the solution.

– If we for some reason began significantly revamping our warehousing, we would likely end up with a completely outsourced solution. It's easy to agree with an external partner to pay only for the space you need. For a budding e-commerce operator, a ready-made logistics solution offers flexibility and expertise, Roth says.

To increase flexibility and ease the management of workforce numbers, Familon has themselves transitioned to using a partner company for picking and packing. When choosing partners, Roth emphasizes the importance of long-term partnerships.

– We do not chase the cheapest price when it comes to partners, but focus on functional cooperation. Our partners must also be able to trust us. When developing things together, everyone can trust in the quality and continuity of operations. If the partnership does not work and, for instance, the wrong goods arrive at the wrong time, it also affects customers. In such cases, successful forecasts won't help.

The storage solution is part of the customer's service experience and the company's responsibility 

Familon pays attention to the sustainability of the logistics solution. In practice, this means, among other things, minimizing the movement of goods, local production, and timely availability. Familon products are delivered directly from the factory to the Heinola logistics center, and from there they go to customers without passing through intermediate warehouses. 

– We have concentrated shipments with a few responsibly operating carriers, giving the customer a desirable delivery option. A crucial part of this setup is the high-quality customer service of the online store, Roth points out.

– The way of ordering and returning products is uneconomical. We aim to minimize returns by offering the highest possible quality customer service and customer-oriented product presentations in the online store. We want to help customers choose the right products for themselves at once, Roth explains.  

 The operation and efficiency of the online store are critically dependent on the functioning of storage and logistics. Fast deliveries and a suitable range are not possible without good inventory management. 

– The logistical solution must be functional to serve customers with a sufficiently broad selection and fast deliveries. Even if the whole solution is outsourced, it must be remembered that managing it is critical for the entire setup, Roth emphasizes. 

According to Roth, the online store's storage solution is part of the customer service experience. 

— When the online store's storage solution works as a seamless part of the whole, the customer notices nothing but that they receive the desired products quickly and flexibly. A satisfied customer is the best sign that the entire setup has been successful.

This blog post is part of the Crasman Insight review, where we delve deeper into the processes of e-commerce from assortment management to storage and transport.

Crasman Insight is a publication released twice a year covering phenomena, trends, and visionary players in the e-commerce sector.

Crasman is an expert in digital business for whom nothing in e-commerce is foreign. We help you develop your e-business and prove success with data. 

{{cta('5da54e68-0866-4977-badb-9170077e3238')}}