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Amazon, Amazon Fulfillment, B2C Fulfillment, eCommerce, eCommerce Fulfillment, Food & Beverage, Food Grade, Fulfillment, Key Performing Indicators, Warehousing, WMS
Amazon Fulfillment Cincinnati Ohio

Raise your hand if you have an Amazon Prime account? Oh wow, 150 million hands raised? In the 25 years since Amazon was launched, it has become a household name, and is the biggest eCommerce site in the world. Having your products sold on Amazon immensely increases your audience. Amazon allows sellers to fulfill orders themselves or let Amazon handle fulfillment. Let’s dive into your options as an Amazon seller.

Lot’s of Acronyms to Digest When Talking Amazon Shipping; Let’s Break it Down: 

Fulfilled by Amazon (FBA), 


Self-fulfilled order processing route, like Fulfilled by Merchant (FBM)


Seller Fulfilled Prime (SFP)

What is Fulfilled by Amazon (FBA)?

FBA means Fulfilled by Amazon, you sell it and Amazon ships it. 


The seller sends bulk products in Amazon’s fulfillment centers for Amazon to pick, pack, and ship products once sold.

What is Amazon Fulfilled by Merchant (FBM)?

Amazon Fulfilled by Merchant is a fulfillment method in which an Amazon seller is responsible for fulfilling its products purchased on Amazon. 


FBM can be managed through a seller directly or by partnering with a third-party logistics (3PL) provider.


FBM can be more cost-effective if you can ship orders for a more sensible price compared to what FBA will charge by using your delivery partners and network, or your 3PL’s network.


FBM is a great Amazon seller shipping option it allows you the freedom to run your business as you like in terms of scalability, fulfillment methods, and inventory level control.

What is Seller Fulfilled Prime (SFP)?

Similar to FBM, you store, pick, pack, and ship your products to the customers yourself and handle all communications with the customer.


However, this shipping option also allows you access to prime customers, competing with businesses that pay the enormous fees for FBA.


SFP is ideal for sellers who have warehouse space and staff that can handle the order fulfillment or companies with a 3PL that can offer scalability and flexibility. To be successful as an SFP seller, you need to make sure that it would be more profitable for you than FBA or FBM.


Becoming an SFP seller streamlines your fulfillment process as you only need to manage inventory in your warehouses, instead of managing that inventory as well as additional inventory in Amazon’s warehouses.

Taylor Logistics Amazon Fulfillment

Partnering With A 3PL | Amazon Fulfillment 

Have experience with the program. Dealing with SFP requirements can be difficult.


Your 3PL should have advanced software that integrates directly with Amazon and gives you real-time visibility into order status and metrics.


You need a 3PL who is focused on customer service. Putting your SFP reputation into someone else’s hands is a leap of faith. Make sure you pick a partner who’s on your side, 100%.

Amazon Solutions Experts

Our team knows that all of the Amazon seller shipping options can be complicated and overwhelming. It can be challenging to decide which option is best for your business, especially when one option doesn’t fit all. It depends on the product you are selling, fulfillment capabilities, profit margins, and more. Our team knows how to meet Amazon’s stringent requirements for whichever option you choose. We have the solutions to help you scale your business, and we have the technology to execute the specifications for any Amazon shipment. 

Talk With Taylor 

Remember, the holiday season is around the corner. If you don’t have your fulfillment partner in place soon, you could be left out in the cold. Contact us today, and leave Black Friday and Cyber Monday to us. Fill out the form below and we will be in touch ASAP!


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Data, Freight, Key Performing Indicators, Operations, Technology, Warehousing
Taylor Logistics Inc. Data Center for your Supply Chain

A supply chain is a sequence of tasks that must be undertaken to distribute a commodity. When a company needs to gauge its supply chain performance, it uses a range of different supply chain metrics and key performance indicators (KPIs). Each KPI provides a slightly different vision of one slice of the supply chain. You might be asking, “What Key Performance Indicators should I measure to improve my supply chain? Here are the main KPIs in both the transportation and warehousing realms that are the most commonly reported for our customers. 

Transportation


On-Time Delivery: Shows the carriers ability to deliver successfully on time to their scheduled required arrival date or to the appointment time. Having an accurate on-time delivery is critical for your client to avoid fees, as they may be subject to fees from big-box retailers.

Cost Management: Optimizing a transportation budget through KPI use is more than just tracking costs and expenses. KPIs are essential factors to discuss during freight contract negotiations and help determine if service levels are being met. This metric puts focus on these charges and helps to pinpoint the recurrence of key incidences. Problems or issues may be monitored and resolved swiftly to avoid any unnecessary fees and ultimately lower your transportation costs. A robust audit process can help save many dollars. The more error-free your freight bills and payments, the more you save, and the more net profit gravitates to your bottom line.

Cost Per Pound: Measures gross net with total weight moved each month or quarter to show customers’ buying and usage habits. This KPI will help improve your customer to continue to buy optimal amounts. These trends can help them save money but not over or under buying products.  

Warehousing


Inventory Accuracy: Every warehouse manager knows the inventory in their warehouse costs them. Quantifying these specific carrying costs — including capital costs, inventory risk, inventory service costs, and obsolescence — help a warehouse manager make smarter buying and forecasting decisions, leading to higher inventory turnover.

On-Time Shipping: This KPI shows the percentage of shipments that left the warehouse on-time. A lot of products have tight deliveries with small windows. If a shipment is missed, your client can be hit with delays and even late fees.

Order Picking Accuracy: An incorrect order can result in an increasing shipping time per average order, inventory being put back on shelves, rate of return, etc. Lean fulfillment and warehousing practices reduce waste and streamline picking processes – and help maintain a high order accuracy rate.

Talk With Taylor


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Data, eCommerce Fulfillment, Fulfillment, Key Performing Indicators, Warehousing
Taylor Logistics Fulfillment Services

Gathering the right data and calculating the right key performance indicators (KPI) is a no-brainer when it comes to improving fulfillment operations. KPIs help to identify bottlenecks, plan out warehouse operations, and measure overall customer satisfaction. If you partner with a third-party logistics provider (3PL) to outsource order fulfillment, they should be instrumental in helping establish relevant key performance indicators and provide you with detailed reports. Whether the goal is to improve efficiency, reduce delivery time, or increase levels of customer satisfaction, there is an appropriate metric to measure progress and performance. The next question is what specific fulfillment metrics you should put in place to enable further discussion, which is what we’ll look at next.

Customer Metrics


On-Time Shipping Percentage: This refers to the percentage of orders which are shipped on time. Because as many as 70% of customers are less likely to shop with a retailer who does not meet the promised delivery window, this is a significant number to track. 

Total Order Cycle Time: This refers to the average processing time from the moment a customer places an order to the moment that it is shipped. It includes all processes that fall within that window. As customers become more and more accustomed to same- and next-day delivery options, understanding how your operation performs and how you can improve your performance matters. 

Internal Order Cycle Time: This specifically refers to the amount of time that it takes for your operation to process an order internally. Measuring the moment an order is released into the warehouse for processing to the moment that it is shipped. 

Perfect Order Percentage: Perfect order percentage looks at several different metrics to determine what percentage of orders damage-free, ship on-time, complete, and with correct documentation. By understanding your perfect order percentage, you can take action to improve your order accuracy and other pain-points within your operation.

Inbound Metrics


Take note of what’s coming into your warehouse—if you don’t account for what’s coming in, it’s impossible to be accurate about what’s leaving. Specific KPI’s for inbound metrics include:

Dock-to-stock cycle

Inbound orders received

Lines received

Outbound Metrics


It’s all about ensuring a quick turnaround from receiving your products to shipping them off to where their destination. This is where contract packaging services come in to play for your warehouse. Specific KPI’s for outbound metrics include:

Order fill-rate

Orders picked per hour

Lines picked per hour

Line fill-rate

Outbound order fulfillment

Financial Metrics


Taking stock of pertinent financial metrics can make all the difference when it comes to determining your long-term strategy. Make sure that you’re cutting lesser-valued services and streamlining your operations where you can. Specific KPI’s for financial metrics include:

Distribution costs (as a sales percentage and per unit shipped)

Inventory days of supply

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Key Performing Indicators, Leadership, Lean, Processes, Team Taylor, Warehousing

When storing another companies’ products in your warehouse it is crucial that your operations team has a system for sanitation and workplace organization. At Taylor we utilize the practice of 5S which stems from concept of lean management.

Here are the steps of 5S:

  1. Sort
  2. Set in Order
  3. Shine
  4. Standardize
  5. Sustain

5S: Sort

This requires all equipment and tools have appropriate areas within the warehouse. It’s important to sift through materials, keeping only the necessary items needed to daily complete tasks.

5S: Set in Order

It’s important to make sure all items have a designated location. Organize all workplace items in a logical way so they make tasks easier for employees. It’s also important to make sure each item has a specific spot to ensure that the team doesn’t put an item in the wrong place it also allows for managers to tell if something is missing.

5S: Shine

After items are sorted and set in order it is time to clean.  A clean and orderly warehouse ensures purpose-driven work place all team members. Look for potential safety hazards and hard to read labeling. Storage bins can be used for smaller items to prevent any loss.

5S: Standardize

Create a set of standards for processes and organization. For every item create rules for how and when they will be used. These standards can involve schedules, charts, lists, etc.

5S: Sustain

This step focuses on taking all of the previous steps of 5S and transforming them into ongoing habits to ensure continuous improvement. Sustaining a lean warehouse involves constant evaluation and discipline. The goal, after all, is to be as efficient as possible.

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