Blog Posts Order Fulfillment for a Growing Subscription Company
Subscription box businesses are experiencing remarkable growth. In fact, Zuora’s Subscription Economy Index™ reveals that, overall, subscription companies are growing revenues about five times faster than U.S. retail sales.
As order volume increases, so does the complexity of fulfillment operations. In a new article on MultiChannel Merchant, Nicole Lee, Saddle Creek’s Director of Fulfillment, identifies several order fulfillment considerations that should factor into the planning process for subscription companies. Parcel management, for example, is critical.
Following is an excerpt from “Handling Subscription Box Business Growth”…
Transportation Management for Subscription Orders
Subscription companies often cultivate a sizeable following on social media and encourage subscribers to share their unboxing experience all together. Batch shipments like this must be coordinated according to customer location to ensure that subscribers in different parts of the country receive their orders at approximately the same time, so everyone participates in the surprise simultaneously.
As order volume grows, it becomes increasingly challenging to synchronize deliveries in a tight delivery window. Planning shipping volume and zone skipping to specific geographic areas can help to control arrival times and transportation costs.
Increasing freight costs are a reality all subscription companies are facing. It is not always possible to pass these expenses on to value-conscious subscribers, so seek out ways to keep shipping costs under control. With parcel rates on the rise, it is best to work with multiple carriers and negotiate competitive rates. Keep a watchful eye on surcharges and accessorials for parcel shipments. If you routinely ship larger, lightweight packages, pay attention to dimensional weight rates as well.
For even greater transportation savings, consider utilizing multiple distribution centers so that shipments travel a shorter distance to the customer. Whenever possible, select shipping methods aligned with customer expectations. Expedited delivery is often unnecessary. In fact, 90% of U.S. consumers can be reached via two-day ground service using strategically located DCs.
For more on handling fulfillment for a growing subscription business, read the full article.