Truly efficient multi-channel distribution requires changes to warehouse distribution networks, facility design, and inventory data management. Such major changes require some time to properly plan and implement.

We’ve got a few tips to maximize efficiency in a multi-channel distribution environment.

Maintaining Visibility to All the Inventory in One Place 

In order to make the right decision on where to place inventory and find the best location to fulfill specific orders, you need visibility of all your products.

Automated Technology

In large B2C operations, the most efficient labor-saving comes from automated picking technology, i.e., pick-to-light and voice-directed systems. When making this decision, it’s important to research how much the new technology cuts the labor cost and whether this will be able to meet your company’s ROI requirements for capital equipment. 

Another factor that may help you make the automation decision is the shortage of labor. It’s tough to find warehouse workers, and keeping them is a challenge itself. Conveyors and robots don’t ask for a raise, and they don’t quit to join a rival.

Choosing a Fulfillment Partner that Offers Flexibility 

Distribution to retailers is somewhat predictable. That’s why warehouse labor is easier to plan. The shipment volume of B2C is more difficult to forecast. That’s why your 3PL partner should be able to manage unanticipated shipment volume spikes without a heavy increase in labor cost. Here are the following things to look for:

• Strategic partnership with staffing companies to enable rapid hiring of a large number of workers for brief periods. 
• Training programs allow people into an operation without affecting their productivity and quality. 
• A labor planning system

Integrate Packaging with Upstream Distribution Operations 

Establishing a multi-channel distribution center is about doing all fulfillment activities under one roof with a single pool of inventory in order to maximize distribution efficiency. Integrating the secondary packaging with distribution center operations can cut about 30% from the combined costs of warehousing, packaging, and freight cost. Here are a few benefits:

• Faster cash cycle 
• More agile supply chain 
• Lower freight cost 
• Reduced damage 
• Economical packaging solutions
• Sales growth 

Conclusion 

With an efficient multi-channel distribution model, you need to be ready for anything so you can efficiently handle large volume swings. Are you looking for a logistics partner specializing in multi-channel distribution for your business? Visit our website to know how we can help you Gillson Solutions.