The trend toward e-commerce over brick-and-mortar stores was underway before the 2020 pandemic took place. For the next two years, online shopping for all sorts of everyday goods suddenly became mandatory, and generations of shoppers who rarely or never shopped online suddenly had to learn and adapt.

Many retailers are now fully aware of how impactful e-commerce is, and while some struggled to come to terms with enforced digitization, many have thrived over the last two years. As a result, there is now a huge demand for fulfillment, warehousing distribution, and other logistics services.

In-house or outsource?

Companies effectively have a choice whether they will attempt to keep their inventory management and logistics in-house or use the expertise and infrastructure of an existing 3PL provider (third-party logistics). Many companies are pro-actively choosing 3PL providers as an inherent part of their strategic plans – and with plenty of good reasons that make financial and operational sense.

3PL providers offer their services to many dozens, if not hundreds of companies. Therefore, they benefit from the economies of scale that many smaller retailers cannot hope to achieve. 3PL companies have access to preferential rates from the big, household-name providers, especially in warehousing real-estate and the last-mile delivery sector. Large contracts with DHL, UPS, USPS, and the like mean that cost savings can be passed onto 3PL providers’ customers, and existing SLAs ensure quality of service for even the startup.

But costs of storage and delivery are just two parts of the equation that begins with a retailer and then spreads to services like warehousing, order fulfillment, returns, distribution, delivery, stock management, and much more. Today possible services include newcomers like kit creation (“everything you need to get started”) and subscription pack formulation (“get our box of goodies every month!”).

It’s a tech thing

For the retailer, having a direct feed into the latest warehousing technologies means its customers can have up-to-the-second stock figures displayed as they shop. Simple API integration between the 3PL and the retailer’s e-commerce sites enables data of many types to be available to decision-makers in the retail company – like where in-country supplies are, how long overseas shipments might take, and where any individual parcel is right now. With the right technology and API feeds from 3PL providers, retailers can offer the type of CX that today’s consumers and businesses demand.

There is also the added bonus of another company bearing the costs of upgrading the stock, warehousing, and delivery technology as and when new features are available. Having those demands taken away and handled by a 3PL service allows retailers to concentrate on their strategic imperatives rather than getting stuck in the weeds of planning and upgrading an ever-changing technology stack. Operations staff can think long-term, not have to chase developers for new features, or worse, track down missing consignments or one of the million other daily problems that distract from the big picture.

Be small, think big

Smaller retailers have always been told that they can, in theory, compete with huge global multinationals on the “level playing field” of the internet. Now, even tiny startups can offer high-end features to their newly emerging clientèle by leveraging the capabilities of 3PL providers like Rakuten Super Logistics.

Subscription models are especially popular among consumers and businesses alike, and the retailer benefits from assured income over long contract terms. Unfortunately, the logistics of producing selection boxes and/or handling returns (and partial returns) involves complex processes and technology that just must cover the full supply chain. Few companies have access to such technology unless they have chosen their 3PL wisely (or have very deep pockets to create their own bespoke arrangements).

Omnichannel retail is also one of those services that the millennial generations have come to expect: the ease of using apps to order goods and services has raised the bar of expectations. Having deliveries (and returns) split to home or work deliveries (or in-store pick-up) is the epitome of consumer choice and convenience.

But like subscription kits or selection boxes, the required processes and underlying technology are fiercely complex. Established 3PL providers have the technology and physical frameworks already in place and available at scale – it’s just a case of tapping into the facility.

Be small, ACT big!

Finally, it’s often well-noted that customers come to an e-commerce facility with preferences about what they want to pay and how quickly they want their goods delivered. Smaller retailers struggle to offer a range of delivery options and are always in danger of losing customers to bigger outfits with more options ready-made.

But global companies such as Rakuten Super Logistics already have a range of delivery speeds and methods from distribution centers all over the country. Goods can be transferred and held at geographically key areas, so even same-day delivery from local depots is possible. It’s the infrastructure, the technology, and the know-how that Rakuten’s customers benefit from!

To learn more about Rakuten Super Logistics’ capabilities, including order fulfillment, stock control, distribution, shipping nationally, and last-mile, get in touch with a representative near you today.

The post Third-Party Global Logistics for Your E-Commerce Facility appeared first on TechHQ.

One of the facts of life for any business is that your leverage with suppliers increases as you grow on the way to reaching enterprise size. For growing e-commerce businesses, economies of scale derived from your leverage with logistics partners just aren’t available. That puts growing business’ in this sector at a significant disadvantage.

Additionally, the fact is the big players have set customers’ expectations high: because consumers can order today and get expedited, free delivery, every other retailer has to offer the same service levels, whether it’s affordable for the seller. For growing e-commerce shops, margins are going to be thin – sometimes non-existent.

What’s also become obvious to many logistics industry watchers is the tendency (fast becoming a full-blown trend) for certain carriers to maintain peak pricing rates for longer and longer. In some cases, those peak rate pricing structures have somehow become part of “the new normal” — and it’s the little guys in this competitive sector that suffer. Smaller e-commerce retail outlets are forced either to pass on higher or slower delivery options to their customers or take the high logistics costs on the chin and look elsewhere to shave costs. Either way, it can be a struggle to stay on the right side of profitability.

There is, however, bright light at the end of the tunnel. Rakuten Super Logistics is bringing the massive buying power of a global business to bear on behalf of the smaller retail operators. It’s a big company that will naturally benefit from economy of scale when it buys logistic capacity wholesale (Rakuten worldwide turned over $13.6 billion in sales last year). And it passes those savings on to its customers in smaller e-commerce shops.

Right out of the box, that means an average saving of 6% to 8% on carrier costs for even the smallest outfit. By sourcing delivery services from a menu of household name national logistics companies and thousands of regional delivery firms, Rakuten Super Logistics can choose the best rates and the best deals on behalf of its customers.

Typically, e-commerce businesses need to spend a lot of time cross-comparing carriers’ rates, switching from one supplier to another depending on that week’s extant pricing. Even the best deal, once tracked down and made good into a firm offer, may not last — and it certainly won’t be the low price offered to the huge retailers.

But with Rakuten Super Logistics onside, every business can now offer fast, expedited delivery at low or no cost to the customer without taking a hit in margins.

Michael Leung, CEO of Sleepypod, has been using RSL. He said, “[Its] fulfillment network stretches across the United States and enables us to reach our customers quickly and with guaranteed accuracy. RSL also gives us the ability to expand our operations without worrying.”

Currently, there are three tiers of service from Rakuten Super Logistics that can be offered to your customers: Xparcel Priority, Xparcel Expedited and Xparcel Ground.

To reach anywhere in the continental US in 2-5 days, Xparcel Expedited offers fast, reliable, and secure service that previously will maybe have had to have been reserved for VIP customers or special deliveries at special rates. Now, even for a startup e-commerce retailer, passing on this premium service at no (or very low) cost to every one of your customers can be a reality.

There’s also RSL’s Xparcel Ground service for packages that comes with the quality of service you’d expect from the likes of USPS and DHL, but at a significantly lower cost than going direct, thanks to those economies of scale available to Rakuten Super Logistics. Xparcel Ground service reaches your customers safely in 3-8 days with an even lower price tag than the Xparcel Expedited tier.

Just launched in January 2022, Xparcel Priority service reaches consumers in 1–3-day transit times. The new service provides the fastest shipping times with significant cost savings for e-commerce businesses.

Regardless, average savings are — and we think these figures merit repeating — between 6% and 8%. That comes from RSL’s deep integration in the background with thousands of delivery services across the country. RSL’s algorithm sources the best possible deals for every consignment and passes on the low price it finds to you, the eCommerce retailer.

Now there is a service (or rather, two services, Xparcel Ground and Xparcel Expedited) designed for the growing and medium e-commerce businesses. This service creates a level playing field for companies to differentiate themselves positively from heavyweight competition. With delivery options and prices level, your e-commerce shop can create personalized customer experiences that consumers today demand. Being small has benefits like quickly responding to changing market conditions and even news events to carve out market share from the big players. With RSL you compete on delivery and CX, but benefit from being fast and agile, too.

There are plenty of case studies on Rakuten Super Logistics’ website, but this quote, from the CEO of an apparel company, sums up the sentiments of many: “RSL can manage [my] inventory[…] with much greater efficiency than I ever could because those are their core competencies [editor’s italics]. My strength is in building brands and running an organization. That’s where my energy and time should be focused. I need to keep my eye on the bigger picture.”

To read more into the detail of RSL and its logistics and fulfillment services, we urge you to download this whitepaper to see for yourself how a big business is, for once, on your side. Say goodbye to being treated like a second-class citizen by the big carriers and learn how to benefit.

With the success of Xparcel Ground and Xparcel Expedited, RSL will be launching Xparcel Priority in January 2021. Xparcel Priority will feature the same shipping cost savings in a 1-3 day transit day option.

The post The e-Commerce Store’s Hero in Logistics: Rakuten Super Logistics appeared first on TechHQ.

Companies spend significant time and money developing a brand, complete with a vision, values, and a carefully crafted customer experience. As well as marketing activities which often lead the drive to promote high-quality CX, every aspect of an organization plays its role — from IT, who make sure that technical systems fire on all cylinders 24/7, to operations, where professionals make sure every order and interaction is indicative of the brand’s high quality.

Therefore, it seems odd that many companies outsource one of the most telling and important aspects of a brand — fulfillment, delivery, and logistics — to third parties that don’t respect the company’s brand values they are entrusted with.

When customers receive consignments with elements missing, delayed shipping, or inaccurately picked items, a carefully crafted customer experience is shattered in seconds.

Rakuten Group, Inc., one of the world’s biggest online marketplaces, knows fulfillment and distribution better than most; successfully builds trust with millions of customers every year. If any organization in the world knows the 3PL business deeply, it’s Rakuten Super Logistics (RSL), a company that offers brands cast-iron guarantees for service quality.

The company’s 3PL capabilities are, of course, very much driven by technology, so we were pleased to speak exclusively to Gregg Beall, the Vice President of IT at Rakuten Super Logistics, about how the company operates and what its customers can expect today and in the future.

First, however, we addressed this critical issue of the need organizations have to source 3PL services that will effectively replicate those carefully crafted brand values and quality customer experience. “Our reputation and brand are intertwined with our clients’ reputation and brand,” Gregg told us. “This is why we have 100% order accuracy and next day shipping service level agreements (SLAs). We need to achieve those numbers to maintain reputations for ourselves and our clients. We see ourselves as […] an extension of our clients’ businesses.”

Given the emphasis the company places on each of its client’s quality of service, an outsider might be surprised that technology — which some might consider impersonal — is the driver at RSL on all levels. What might a visitor to a Rakuten Super Logistics facility expect to see, therefore, regarding technology actively maintaining others’ brand values?

Gregg Beall

“We use a proprietary warehouse management system (WMS) that drives our business. Our WMS fully integrates with shopping carts such as Shopify, Magento, BigCommerce, and many more. This allows our clients to have control over their orders and […] we continue to develop cutting-edge technology.” It is seamless integration, from cart to delivery, that makes the difference.

At ground level, the future warehouse is run by technology: robotic systems, automated shelving, packing lines staffed by picking robots, and much more besides. Those are areas that RSL is moving into also, so it can deliver better efficiency for its customers. Beall tells us, “Automation and robotics will further increase our speed and reliability to our clients. Warehouse automation is just the start, we also will be launching a whole new level of services to our clients to use to expand their businesses. 3PL technology is at the heart of the future of eCommerce.”

Robotics and automated systems are just one way that the peaks and troughs in demand in distribution and logistics can be smoothed out: warehouse operators can be under huge pressure to increase staff levels for peak times, yet always with an eye on costs. By using a 3PL, those headaches are cured — as long as the provider can step up to the mark. For Gregg Beall, it’s a simple equation. “At Rakuten Super Logistics, we know that to our clients, a successful peak season means flawless order fulfillment.”

Keeping those 100% SLAs is imperative, Gregg tells us. So, how is it achieved during seasonal spikes in demand? The global operator knows all about holidays and festivals from its operations all over the world. There are Couple’s Day events in Asia, Chinese New Year, Eid (as Ramadam ends), and plenty more as you examine different countries and its markets. In the US, the holidays might fall at different times, but the logistical problems are the same: “We begin planning for [US] peak season in Q2, ensuring we have the technology and equipment needed to keep up with our clients’ orders. We offer system automation of holiday activities and operation services to help clients improve the experience during the holiday season.”

It was little surprise that the talk quickly turned to automation technology – Gregg is VP of IT for the company, after all. “We listen to our customers, especially when it concerns what technology they need to drive their business.” The tech stack extends to giving clients API access to the RSL services, and third-party order management and financial systems integrations are in the pipeline – it is what customers are demanding.

However, the company’s clients do not have to come to the table with big IT budgets and resources to hand-configure API access — every size business is catered for, from the retail startup to the monolithic marketplace platform. RSL itself has grown significantly, starting out with just one location in Olean, NY. Now, it has fifteen nationwide facilities.

“[Our facilities] are strategically located next to major US ports and large metropolitan areas. One of the main advantages of our network is that we can hit a two-day ground shipping network without our clients paying the expedited costs. With automation and expansion, Rakuten Super Logistics is primed to be one of the largest 3PLs in the industry.”

The company celebrated 20 years this year. Over the last two decades, RSL has grown significantly, but the ethos of valuing and representing its clients’ brand values remains solid, Gregg says. “We still firmly believe in our values: empower eCommerce retailers to succeed.”

If your organization is looking for a safe pair of hands for its brand’s values during the logistics portions of your customers’ journey, then Rakuten Super Logistics has the global experience and the commitment to integrity and quality you may be looking for. Reach out to a representative from RSL today to see how the company will fit your needs.

The post The Super Logistics Provider That Preserves Your Brand’s Unique Values appeared first on TechHQ.

The year-on-year growth in eCommerce popularity is posing many problems for online retailers. Some of those problems are the best sort to have — lots of demand – while others can be more serious matters: not enough space to warehouse stock, too few employees to cope with the workload, and the old enemy, not enough hours in the day.

Once businesses start shipping a decent number of orders a month (say, 1,000 and upwards), there are hopefully certain pieces in the puzzle that begin to drop into place. For example, technology systems start to come into their own, with many processes undertaken seamlessly by software, including automated payment systems, messaging to customers regarding delivery times, and stock control, to name just a few examples.

However, there are still many challenges to overcome.  How does an eCommerce retailer scale their business in a pandemic and post-pandemic world?  How do these retailers keep up with the increased demand and shipping?

The  economies of scale in fulfillment and logistics are a good start for self-fulfilling orders, however, they are nothing like the advantages that the large operators have access to. Large Third-Party Logistics providers (3PLs), also known as order fulfillment companies, have access to tools and services that smaller 3PLs or self-fulfillers do not. Fulfillment in eCommerce is very much a numbers game, and it’s difficult to find cost-effective and reliable service until the company can wield the type of muscle the household name retailers possess.

Nevertheless, there are services out there that already have the infrastructure and the partnerships that might take an independent decade to build. And while eCommerce companies could manually piece together an ad hoc distribution network across the US, and forge relationships with the big-name logistics and last-mile operators, doing so would be massively time-consuming, and going forward, difficult to manage. Even then, there would be no guarantee of reliability, consistency of customer experience, or cost.

Retailers looking for this type of service should be considering solutions like Rakuten Super Logistics (RSL). The company operates a network of fulfillment centers that literally (in technology terms) plug into your systems (via APIs — Rakuten Super Logistics will help your tech guys with this if needed).

RSL’s customers also plug into the company’s existing carrier network partnerships, which offer users the economies of scale of a big-name and regional carriers — something that would never have been on the table for a small or medium-sized business. As well as lower costs in general, it means retailers can start to offer expedited delivery services for the same kind of outlay that they may have obtained for a 3-day or 7-day service in the past.

Source: Rakuten Super Logistics

Order turn-around times will also drop in line with savings on delivery times, and the instances of errors also fall away, thanks to the single point of management that the RSL service provides. When negotiating multiple dashboards (one for each distribution center and/or carrier), mistakes get made, especially if staff time is taken up with manually fulfilling orders, stuffing envelopes, even driving to the post office. The RSL software provides a single source-of-truth through which all distribution and fulfillment events are managed.

The overall ease of use translates for many RSL users as extra time — time to plan for special events like sales, Black Friday, Valentine’s Day, and so on. When those events happen, and order numbers go through the roof, the Rakuten Super Logistics service scales: you use more of the service, as required. After the festival days or sale period ends, you use less. It’s really that simple.

Similarly, as the business grows, the Rakuten Super Logistics services scale up, too, ensuring your carefully crafted brand and customer experience continue to be upheld with the best possible standards.

In a future article here on Tech HQ, we’ll be looking in more depth at the new Xparcel Ground and Xparcel Expedited services from Rakuten Super Logistics and also showcase a fantastic case study from a long-term user of the service. Until then, why not request a quote from the company that’s tailored to your fulfillment numbers?

Rakuten is a household name in Asia (it’s Japan’s version of Amazon), and its global network of distribution and logistics (RSL) is available for domestic US fulfillment and delivery. With 15 nationwide distribution & fulfillment centers, and a 100% order turn-around by next business day guarantee, this is big-name logistics for the soon-to-be-big-name eCommerce retailer.

The post The plug-and-play fulfillment network that’s ready when you are appeared first on TechHQ.