The components of the e-commerce logistics carousel must move in the correct rhythm

The components of the e-commerce logistics carousel must move in the correct rhythm

Every online store desires to serve its customers quickly and reliably. Such a comprehensive service does not happen by itself. A functional logistics solution is required behind the online store, 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 Familon's partner for 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, systematically and thoughtfully developed over the years, ensuring every component operates seamlessly together. 

– Familon has its own logistics centre in Heinola, conveniently located near the Helsinki motorway and transport partners' logistics centres. Our own property has enabled us to centralise logistics and storage and to build over the long term, says Wendre's Head of eCommerce Tuuli Roth

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

All Familon deliveries are made from the Heinola logistics centre. This means not only consumer orders but also reseller orders and, by agreement, deliveries for resellers' online stores.

– This setup allows us to maintain a broad product range in Heinola. It forms the cornerstone for the online store's flexible and fast deliveries, Roth explains. 

Having goods sit in storage for long periods is not profitable, so you must know how to order the right goods at the right time. Forecasting is one of the most challenging areas of logistics and inventory management, and Roth sees many of the biggest risks in warehouse management here.

– We have succeeded well in forecasting. It helps having our own local production and the overall solution we have chosen.  If goods come from afar and there are several sources, managing order quantities becomes more challenging. Key aspects in inventory management are sufficiency of goods and cost control. Successful work is evident to customers through quick deliveries from the online store, Roth elaborates.

Roth advises to continually monitor goods movement and be prepared to correct forecasts as needed.

– Even if a product has been a sales success, you must accept that situations can change quickly. The selection must move, and all products must have good turnover. If turnover stops, it's not worthwhile to keep the product in storage.

Is an outsourced storage and logistics solution worthwhile? 

For their online store, Familon opted for a centralised storage solution because when starting operations, they had not only their own property in a good location but also strong expertise in storage and logistics. There would be other options for constructing the entire system.

– If we were to, for some reason, significantly renew our storage, we would likely end up with a completely outsourced solution. With an external partner, it's easy to agree to pay only for the space you need. For a novice online store operator, a ready-made logistics solution provides flexibility and expertise, Roth says.

To facilitate flexibility in managing staff numbers, Familon has itself transitioned to using a partner company for picking and packing. When choosing partners, Roth emphasises the importance of long-term collaboration.

– We don't chase the cheapest price with partners but focus on effective collaboration. Our partners must also be able to trust us. When things are developed together, everyone can trust the quality and continuity of operations. If the partnership doesn't function and, for instance, wrong goods arrive at the wrong time, it affects customers too. Then even successful forecasts don't help.

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

Familon pays attention to the responsibility of the logistics system. Practically, this means minimising goods transfers, local production, and timely availability. Familon products are delivered directly from the factory to the Heinola logistics centre, and from there, the products go to customers without passing through intermediary warehouses. 

– We have concentrated transport with a few responsibly operating transport companies, allowing customers to choose a preferred delivery method. An important part of this setup is the high-quality customer service of the online store, Roth notes.

– The way of ordering and returning products is not ecological. We strive to minimise returns by offering high-quality customer service and customer-oriented product presentations in the online store. We aim to help customers choose the right products for themselves at once, Roth explains.  

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

– The logistics solution must be functional to serve customers with a sufficiently wide range and quick deliveries. Even if you decide to outsource the entire solution, you must remember that its management is crucial for the entirety, Roth stresses. 

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

— When the online store's storage solution functions as a seamless part of the entirety, the customer notices nothing but receiving the desired products quickly and flexibly. A satisfied customer is the best indication of success in the entirety.

This blog post is part of the Crasman Insight, where we delve deeper into online store processes from assortment management to storage and transportation.

Crasman Insight is a publication that appears twice a year, covering phenomena, trends, and insightful factors in e-commerce.

Crasman is an expert in digital business, where nothing in e-commerce is unfamiliar. We help you develop your online business and prove success with data. 

Crasman Ltd

13 Sept 2022