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Delayed deliveries, the less friendly side of e-commerce

By March 5, 2020 No Comments

Article originally published in El Economista de América

After the successful numbers left by the last Cyber Monday that took place in Chile between October 7 and 9, 2019, which surpassed 300 million dollars in sales, now the less friendly face of this mega consumer event is beginning to be revealed: the great bottleneck that occurs in the delay and dispatch of products.

Logistics problems become the most difficult headache to solve for companies participating in this event, transforming the delay in shipments and dispatches into one of the most frequent claims of customers who purchased products online from medium and large retail companies.

In some cases, products purchased may take more than twice the time to reach their destination, and the problem stems from the large amount of demand in a short period of time at these online events. “Selling in three days what is sold in three months is crazy and many think that there is no capacity to do so, taking almost a month to dispatch their offer with several postponements to the day initially agreed. And this is the main challenge that e-commerce has today, to build consumer loyalty and meet deliveries on time. This is the biggest challenge at the moment, since it will lead customers to decide where to buy, in a brand’s e-commerce or in a marketplace, such as Ripley, Falabella or Linio,” says Aaron Cassorla, expert in retail and logistics at Grupo Formax.

Although few companies are prepared to face these challenges, the technology to meet this demand already exists in Chile. This is Omnix, a tool focused on the support and management of the product’s commercialization, which allows reducing sales losses and having all the inventory available regardless of the differences and origin of the stock. “The idea is to be able to overcome the main logistical problems and respond to the consumer as in the United States, with almost instantaneous deliveries that allow the client to choose the exact time of delivery or withdrawal of the product,” explains Cassorla.

The expert adds that “thanks to intelligent analysis, any product can be made available in all sales channels, coordinating in one place replenishment, dispatch and optimization in the logistics chain, thus allowing almost immediate deliveries, since it makes available all the company’s inventory in real time, transforming all the stores into distribution centers, according to the strategy and needs of each company, which reduces lost sales”.

According to the specialist, the approach to overcome these logistical problems is to be able to integrate with as many systems as possible, since a current weakness of most organizations is to maintain ten different systems, each with its own independent monitoring. “Omnix allows integration between systems because it has a non-invasive service layer that allows us to meet the objective: to have real time inventory and manage orders. This facilitates scheduling based on fulfillment availability, order reassignments, service fulfillment ranking, replenishment, upselling and cross selling recommendations, which transforms all stores into distribution centers, since it also calculates possible routes based on their dispatching capabilities, location and prioritizes by cost or time, which contributes to making the best and most convenient logistical resolutions for product sales and distribution”.

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