Complete Fulfillment - Avoiding Pitfalls that Cause Charge Backs, Part 1
If your warehouse complete fulfillment services company is planning a new system implementation or significant upgrade, be sure to plan your activities with great care. The systems implemented in your complete fulfillment warehouse can make or break your operations. At its core, a fully functioning business is basically a set of systems and processes. An unsuccessful system implementation may harm your immediate operations and cause a significant snowball effect of process issues, missed deliveries, and customer dissatisfaction. Avoid the following pitfalls to improve your chance of a successful system implementation.
Lack of project management can affect a complete fulfillment system. A major systems implementation is not simply an IT project. All departments are impacted by a new system so get the input and cooperation of experts across all areas of the business, coordinated by a dedicated Project Manager. Many new systems fail because companies don’t realistically plan for the project or effectively manage the designated implementation plan.
No evaluation of existing procedures can be problematic. Rather than simply replicating your existing processes and systems, be sure to ask the following questions upfront: What parts of the operation can be removed to add efficiency? What new processes and procedures are required or on the nice-to-have list? The sooner the better to ask and answer these questions.
MINIMAL DATA CONVERSION PLANNING CAN ALSO BE A PITFALL IN COMPLETE FULFILLMENT. MOST WAREHOUSE MANAGEMENT SYSTEMS ARE DATA-DRIVEN SO IT IS CRITICAL TO BUILD A SOLID PLAN FOR FILE AND DATA TABLE CONVERSION. AIM TO CONVERT AS MUCH DATA AS POSSIBLE VIA PROGRAMMING INSTEAD OF MANUAL COPY-AND-PASTE DATA UPDATE. ALSO DETERMINE UPFRONT HOW MUCH HISTORICAL DATA NEEDS TO BE CONVERTED TO THE NEW SYSTEM.
Insufficient training in a complete fulfillment warehouse is important too. It is important to remember that the software vendor will only provide documentation about how the system works. The specifics of how the system operates within the framework of your business and all training materials needs to be developed in-house. A ‘train the trainer’ approach is commonly used and serves to create Subject Matter Experts of the new system.
Inadequate testing of the system. Everything must be thoroughly tested. Involve key users from each functional area and run through all fulfillment processes in full. Create test scripts and use actual historical data in your test cases for authenticity. Test interfaces to other systems and all peripheral functionality such as reporting, printing, query creation, etc.
Unfortunately, most of us have received an ordered item late, mislabeled, or in the wrong size, color or quantity because of one of the issues listed above. When a retail product fulfillment company is found to be at fault for such a mis-shipment, a fine – or chargeback – is imposed on that company by the merchant. The pitfalls listed above can be one of the major reasons why charge backs occur at your complete fulfillment company in the first place. If certain steps are implimented in the first place then charge backs and returns wont happen. However, no company is perfect and they do, the following will help any company cope with this unfortunate misstep...........
*Please view the second half of this article at www.bestwestdirect.com
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