The Best: An online shop with e-cigarettes
Ultimately, many factors contribute to the success of an on-line shop. But there is a lot of optimization potential. A perfectly organized logistics makes fast delivery and good customer service possible.
Well thought-out processes in the order processing have a great influence on the margins and therefore the entire business model of online shops. In my e-commerce career, I’ve heard of retailers who have secondbeds for storage of seat bags when business flourished. I was impressed by the experience at electronic-cigarette.ie. The onlineshop flourishes in the seven year after the foundation. The products are e-cigarettes and accessories as well as the liquids required for vaping in all directions of taste.
The easiest way is the compilation when the customer uses the electronic-cigarette.ie e-juice mixer. Here the order is produced and labeled in real time. It is more complicated if the goods baskets are put together individually. The customers choose different pre-mixed vapor varieties such as tobacco, whiskey, cinnamon and strawberry from food-borne substances. For this – if desired – nicotine.
200 small packages daily – logistics in the Online shop
Every day about 200 small parcels leave the shipping warehouse, which measures about 100 square meters. Hardware are stored in small gray stacking boxes, the barcodes barely readable with the naked eye. A manual compilation would be too resource intensive – even if the routes are not long. Technical solutions are needed to optimize processes.
Mr. Peter, you are the founder and managing director of shop of electronic-cigarette.ie. How many parts has an order on average?
Peter: An order has about five positions on average, so about 1,000 items are sent per day.
What is the composition of the transmission?
Peter: After the customer has purchased the goods in the shop, a scan order is generated for shipping from the system. This is printed out and the picker sees here only the storage place as well as the piece number, which can be seen. After the job has been completely scanned, the job is sent to the mailbox, and the system automatically generates the invoice and the shipping label for the package.
The shipment is then checked again and then ready for dispatch. How long does an order take?
Peter: The picking takes – depending on the positions – about one or two minutes. Then pack and check again for about a minute. All in all, we need two to three minutes for an order.
Do you see optimization potential? And how do you manage this?
Peter :: We already have already optimized, since the running paths for the picker have already been specified. The system calculates the fastest route and avoids unnecessary and time consuming running. The next step is now the displacement of the top articles into the front running area. We separate ourselves from thinking in commodity groups. This is also no longer necessary, since the picker no longer needs any knowledge of the goods.
What time savings do they charge per order?
Peter: Considering that 20 percent of the articles account for about 80 percent of sales, the time saving is enormous. With a time saving of 30 percent, we already have about 30 seconds per order. That makes 200 orders 100 minutes a day!
Conclusion: Detailed management of logistics in the online shop is worthwhile
The procedure at electronic-cigarette.ie is by no means common. These adjustment screws are often not observed. After online retailers have been focusing on on-site optimization over the past few years, it is now time to explore the adjustment in logistics. The example shows that by optimizing the smallest process parts in logistics, an increase in efficiency can be achieved.