Online marketplace challenges
Regular volume fluctuation
The online retailer’s peak season lasts for 3 to 6 months. In this period, there is a strong need for additional capacity, as 40% of the annual order volume must be processed at once.
This means there is a mad rush to scale to 1.000 to 40.000 sqm of warehouse space, within a short 6 weeks, along with proportionally adding warehouse infrastructure, equipment, and labour.
Slow or delayed shipment
Today’s online marketplaces need faster order fulfilment than ever before. And the commitment made by this retailer to its customer is to deliver orders by the next day or within two days.
Stock inaccuracies and unavailability
You have lost out on a sale if any SKU is out-of-stock. To avoid such a scenario, a strong warehouse management system is essential. This ensures the traceability of inventory and increases the accuracy of demand forecasting.