Delivery in full on time (DIFOT) is a critical component of business survival in the eCommerce industry. Having committed to DIFOT, a company can suffer a colossal customer exodus when it fails to honor that commitment. The business will additionally fail to thrive and grow its client base.
Competition in the eCommerce sector is brutal, and it’s hard to deliver lower prices than competitors. However, it is possible to provide superior customer service to maintain high levels of client retention and new custom. For this reason alone, DIFOT should be a vital part of your business plan.
Here are ways to maintain a good DIFOT rate.
Keep sufficient stock levels
The temptation to give in to the concept of just-in-time (JIT) stock control, it can backfire on you badly if you have a sudden surge in sales. Making sure you have enough stock is complicated, and it’s unlikely you’ll be spot on every time.
To get an insight of how much stock to carry, you’ll need to make a careful study of past sales, seasonal purchasing patterns, industry trends, customer shopping habits, and supplier lead times. Track these for at least the past year as a guide and remember to factor in the current economic climate as well.
You should also include a projected increase in sales as per your business plan to come to a final number. It might be too little or too much, but it will be the result of an educated guess.
Stay organized
Inefficiency in your warehouse is a recipe for a DIFOT disaster. When you spend more time troubleshooting, looking for stock, tracing orders, and rushing orders, the chaos leads to higher shipping costs to get deliveries done on time, and there is every chance you won’t have enough stock to do a delivery in full much to the fury of your customer.
Consider the services of an order fulfillment company to take the hassle out of keeping stock organized and prepped for shipping. Red Stag Fulfillment keeps track of stock levels of your product and gives you ample warning of when to order more to keep up with customer demand. Using intelligent technology, the company offers its clients a well-rounded fulfillment service at competitive prices.
Avoid human error
Human error is inevitable, but it can be very costly and should be avoided at all costs. Often, the error is down to an untrained employee or an employee who is under a lot of pressure.
Make sure your employees have the right skills and knowledge to do their jobs competently. Overloaded employees become demotivated and less productive. Plan to get these workers some help when there is too much work for them to handle alone.
The additional costs of equipping employees to do their jobs well will be offset by increased productivity and profits and decreased opportunities for human error to creep into the process.
Product quality
If you rely on manufacturers and suppliers for parts or the entire product, poor quality can affect your DIFOT practices. A batch of substandard supplies is going to be a massive headache because you cannot use it, and you’re stuck waiting for another delivery.
Acting promptly when it comes to such problems is the primary way to prevent it from becoming a long-term issue. Take the matter up with the supplier immediately and consider switching to another company.
Although it might cost a little extra, a functional supply chain is essential and can mean the difference between business success or failure. It will lead to increased sales and an improved reputation for sticking to delivery promises.