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Preparing Your Warehouse for the Holiday Rush
E-businesses expand at the holidays because of increased business, and it is critical to have a product location plan to teach to your holiday temps. An easy-to-navigate system is crucial, and is one of many things we learned along our very long road of very hard knocks as we developed our own company.
If you’re selling product and stocking it in your warehouse, you probably have some type of bin location system in place to make picking easy for your employees. You don’t? Well then, read on!
If you’re just starting out and have a few employees who know where product is located by memory, it may seem like a good system to have. Don’t be fooled. For instance, what happens when those employees take jobs elsewhere or you need to quickly hire new people to take care of the influx of holiday orders that suddenly crept up on you? Chances are you’ll be wasting a lot of valuable pick/pack time having those employees walk around aimlessly searching for product. The solution to your warehousing evolution is bin locations.
Bin locations are simply the places where products are housed in your warehouse. This is a crucial system for every e-business to develop, and you should organize your warehouse right down to the exact location on every single shelf. Taking the time to setup bin locations now, before the holidays, will save you time, money, improve your order turn-around time and eventually lead to greater customer satisfaction down the road. Here’s how you start.
For the purposes of these examples, I will assume that your warehouse is set up with racks making up aisles, which we call pick lanes. The first thing you need to do is find a starting point for your pick route. A good origination point is the spot where you keep your pick tickets and baskets or carts for picking product. The second step is to label your pick lanes. Pick lanes should be labeled alphabetically. The aisle closest to the start of the pick route can be labeled “A”, second closest is labeled “B” and so forth.
Once you have a map of your pick lanes, it’s time to label the racks that are located in each of those aisles. In order to maintain a flow, racks are labeled in such a way that your picker will start at the beginning of the pick route, walk up the first aisle, down the second, up the third and so on, eventually ending up back at the start of the route ready to pick another order. For obvious reasons, we call this a serpentine layout.
Labeling your racks along the pick aisle is simple. Let’s assume there are three racks in each aisle. Starting at the beginning, assign the first rack on the right the number 01 (put a zero in front of single digit numbers to maintain consistency and allow for future growth), the second 03, the third 05. On the left side of the aisle, assign the first rack 02, second 04, third 06 (see the example warehouse diagram). Once your racks are labeled, it’s time to drill down to the details of each rack.
The first rack in aisle A is called A01 (aisle A, rack 01). Let’s assume that rack 01 has three shelves. Starting at the floor, label the bottom shelf as A, the middle shelf as B and the top shelf as C. On those shelves your product is contained in boxes or “bins”. Starting left to right, each “bin” will be labeled 01, 02, 03, etc. You will do this for each shelf, so that in this example, product in the 4th bin on shelf B of rack 02 in aisle A would have a bin location of A02B04 (see the example rack diagram). The key thing to remember: the bin location is not tied to an item, it’s tied to the rack.
At first, organizing your warehouse may sound confusing and look like a lot of work but believe me, it will pay big dividends over time! The time spent training new employees on how to pick product takes no more than 5 or 10 minutes because the system is easy to learn. With a system in place like this, when you need to bring in temporary help to pick and pack during the holidays, your training is minimal.
Once your bin location system is up and running, you can tweak it even more to improve warehouse efficiency. For example, you may want to put your most picked products right at the beginning of your pick route so your pickers don’t have to go three aisles back to get the most popular items they pick on a constant basis. Or, if you have items that only sell in the winter, move them to the end of the pick route and put your summer merchandise at the beginning during the spring and summer months.
Co-Founder, President & COO of Solid Cactus
All posts by Scott Sanfilippo | E-Mail the author
Daring to Take that First Vacation?
So, you’ve worked hard. You’ve put in the time and effort and now your online business is running smoothly, orders are steady and sales are up. But you are tired. You’ve been burning candles at both ends for two years straight without a break. The 80 hour weeks have finally caught up with you and you’ve got a chance to take a 7-night Caribbean cruise. You know you need this break, but what are you going to do with your online store in the meantime?
Planning the Great Escape
It’s happened to all of us at some point in our online careers and we have all survived a week away from home base. But first, you have to get to the point where you believe you can survive leaving your business with “others.” Before you escape, do some business planning so that you’ll be comfortable with someone else minding the store while you’re embedded in the conga line on the Lido deck.
Haste Makes Waste
Shutting down your online store while you’re away isn’t an option, so now your priority has to be to find someone who can keep the orders coming in and going out. You have two basic choices and each comes with positives and negatives. A plan may seem obvious; this is the moment when many small business owners will decide to hire their first employee. Not so fast! You don’t want the tail wagging the dog here. Hiring staff changes your business forever. This is an important change and for many businesses an inevitable one, but it is not a change you make in a rush or because you’re forced to make it. Any new hire is going to need training and you have to learn to trust that person. After all, your business will be in their hands while you’re away. If you’re not ready to become an “employer” just yet, you’re left with Plan B, also known as “friends and family.”
I am not a big fan of hiring friends or family members, but in a crunch they may be your best resource. Just make sure that whomever you select is capable of the basics—taking some phone calls, answering e-mail and getting orders out the door. Other business functions should be able to wait for your return.
Keep It Simple
Here is a checklist of tasks your temporary assistant should be able to handle:
• Pulling orders off your website and entering them into your order management system
• Answering the phone during your normal business hours
• Providing customers with product information
• Entering phone orders and processing credit cards
• Picking, packing and shipping product from your warehouse
• Answering customer e-mail
• Handling returns and exchanges
Now here’s a checklist of things you should do to make your assistant’s job easier:
• Show them how to use your voice mail and telephone system
• Write explicit instructions on how to do things (pull orders, charge cards, ship a package, etc.)
• Write a FAQ—a list of frequently asked questions that customers may ask during a call or e-mail
• Leave a list of usernames and passwords for your website and order management system
• List emergency contact numbers in case they have to reach you
We all need a break every now and then; it refreshes us and inspires us to think up the next big venture that will allow (dare we dream?)—2 weeks vacation next year! And after all, isn’t that the real point of working? To live? E-commerce never stops and neither should your business. By choosing the right person to run things while you’re away, you can relax and enjoy the fruits of your labors knowing your “baby” is in capable hands.
Co-Founder, President & COO of Solid Cactus
All posts by Scott Sanfilippo | E-Mail the author
Knowledge is the Key
I had the pleasure of attending the Internet Retailer conference last month in Chicago. It’s a great opportunity to meet and talk to e-commerce store owners from around the country. Being the inquisitive type, I cut right to the chase, asking them about their business and how their sales are doing during these turbulent times. The majority I spoke with has not seen much of a change in sales, but one thing remained constant among everyone – they’re nervous about the upcoming holiday season. They should be nervous.
The fourth quarter of the year will be the trifecta – gas at record highs, a weak dollar and a presidential election. These three ingredients will be the determining factors as to whether we have a good or bad holiday season and unfortunately, we can’t control any of them. But you can control your store and your customer and in order to be successful this season, you have to take control now. Take the first step by reading Sean Gove’s article inside.
Speaking of the Internet Retailer conference; let me ask you. How many of you attended? Good for you if you were at the conference, but if you weren’t—why not? As an e-commerce store owner, it is your responsibility to stay on top of the latest industry trends and keep your site on the cutting edge. I will tell you that someone from Solid Cactus attends every one of these meetings. We think they are a required attendance for serious e-commerce players.
Don’t look at a conference like this as a trade show where you walk around like a Halloweener filling up your bag with tchotchkes. The trade show floor is only a small piece of the conference experience. The most important component to these meetings are the information sessions that are held throughout the events. Just like our Boot Camps, these sessions provide you with invaluable information that you can take back and use to better your business. It is especially true in e-commerce where things change and trends develop at a much greater rate than in conventional business.
Knowledge is key. You owe it to yourself, your customers and your business to
put a couple days aside and attend.
We’ll be there!
Co-Founder, President & COO of Solid Cactus
All posts by Scott Sanfilippo | E-Mail the author
Boot Camp Improves with Age (While I Age Despite the Improvements…)
This issue of eBiz Insider comes on the heels of our fourth successful Solid Cactus Boot Camp. We have now had three here at headquarters and one “at sea” on a cruise last summer. As with a fine wine, these Boot Camps have definitely improved with age. I don’t want to sound like I’m tooting my own horn, but these events are tremendous sources of information. E-commerce store owners can leave Boot Camp and immediately implement what they have learned into their own businesses to boost their bottom line. In other words, we don’t dwell on hypothetical notions at Boot Camp. We deal in real world advice for e-commerce operators.
Donna Talarico does an excellent job “reviewing” Boot Camp in this issue, but words on paper don’t do the event justice. You have to be here to really experience Boot Camp. We combine high-tech teaching with “high touch” interaction with Solid Cactus e-commerce experts. “Campers” are essentially outnumbered by Solid Cactus staff; there is no better way to get the attention you want and need. Beyond that, you have to feel the passion the attendees have for their businesses. You have to feel the excitement as they learn new ways to increase conversions. You have to feel the motivation they have to be successful entrepreneurs.
That “feel” is what Boot Camp is all about, but there are some educational sessions thrown in there as well! I’m always sitting in on them to increase my own knowledge of e-commerce. After all, technology and the way the web works are always changing and as a good e-commerce citizen, I need to stay on top of things! I still may not be 100% sold on having my own blog (after all who wants to read MY opinions on things..?), but I know that blogs are an important part of your overall search marketing strategy. I may think all commercial e-mail is spam, but I know there are consumers who buy from these mass offerings and they buy a LOT. These are the types of things you learn about at Boot Camp and that can ultimately help you earn more money. So when we send you that e-mail (ugh) announcing our next Boot Camp, don’t hesitate to sign up!
Join Us Online
Have you taken a moment to visit the new eBiz Insider website? No? Well, come on in, the water is fine! Our new site launched a few weeks ago and is quickly becoming a hot-spot for e-commerce store owners around the world. Not only can you read all the current and past eBiz Insider articles, you can also take part in lively conversations in our forums. It’s not Boot Camp, but it’s as close as you’ll get until we host our next one. Don’t wait any longer. It’s fun, it’s free and it’s only online at ebizinsider.com. See you there soon!
Co-Founder, President & COO of Solid Cactus
All posts by Scott Sanfilippo | E-Mail the author
From the Editor: Tricking a Tanking Economy
Okay, we get it. The economy is in recession and we’re all being squeezed. Not only are gas prices skyrocketing, they’re bringing the cost of every other consumer good up with them. Combine that with a falling housing market which is dragging down the stock market and scaring investors across the fruited plain and you’ve got a less than encouraging business climate.
So, obviously I’m not going to spend valuable column space trying to convince you to invest in a redesign. Instead, let’s take a step back and see what we can do to change Browsers into Buyers. Below is a “hit list” of 8 ways to increase your income without increasing your outgo:
1. Product/Price. Do your numbers and your product line work for your customers? Take stock, compare yourself with the competition and make sure you’re still the best bargain out there. Go a step further and consider cutting your price on some of your more profitable items. Don’t turn winners into loss leaders, but make them more affordable and take quantity over margin.
2. Promos/Discounts. Dress the old deals up in new clothes. Sweeten the bargain with free shipping, 10% or other offers that work in your industry.
3. Shipping Cost. Is there a place where you can cut into your margin on shipping? Talk with your favored shippers and see if there is any room to trim. Every nickel counts with you and your customers. Find them!
4. Site Search. Is your search box working? Come to your site as a customer, navigate and shop. If there are any glitches in the process, fix them.
5. Ease of Finding Products. This is similar to #4, but narrows the examination to the tools your customers use to get around your site. Is the navigation clear? Do people understand it? Use a friend as a mock shopper for the best answers.
6. Ease of Ordering. Is ordering quick? Is it easy, or do you have to jump through hoops? The easier you make it, more of your browsers will make it to buyers.
7. Ease of Checkout. This is where too many shoppers jump ship. Common reasons for cart abandonment include forcing customers to register and log in before buying, including more than 6 steps in the checkout and restrictive payment options. Make it easy for them to buy, make it easy for them to pay and make sure you have a variety of payment options including PayPal, Visa, Mastercard, checks—whatever it takes to keep customers heading toward purchase.
8. Customer Reviews. Are your customers helping you sell? Make sure they can by providing product reviews and making sure they’re current.
No single suggestion above is going to solve all your cash problems. But taken together, they can generate some extra buyers who once were only shoppers. Turn enough of them and you’ll survive this tight economic period nicely, thank you…
Co-Founder, President & COO of Solid Cactus
All posts by Scott Sanfilippo | E-Mail the author