How e-commerce brands can achieve logistical efficiency with multi-customer fulfillment centers

Hit the ground running or get left behind – this is today’s D2C reality. In the era of high-speed commerce, a D2C brand’s success depends on its ability to quickly reach consumers. To achieve this, brands must efficiently handle orders (PO) placed through fast trading platforms, giving them unparalleled speed and convenience.

However, a single central warehouse can make this flexibility difficult. This is where third-party logistics (3PL) players such as Emiza, WareIQ, Pickrr and others offer multi-client warehousing and a host of other innovative technology-based services, from order fulfillment to efficient distribution, hassle-free shipping, fast delivery and quick returns (outbound and inbound), easy inventory management and more.

The goal is to ensure fast deliveries, deliver 24/7 operational excellence at competitive costs and discover a unique brand experience every time to impress customers. In this way, 3PL players are becoming more tech-savvy and pushing boundaries, exploring the frontiers of automation and artificial intelligence, and machine learning (AI-ML).

There are more than enough houses in India 5100 active e–trading start-ups and several incumbents in the industry, which will drive the growth dynamics. According to Mordor Intelligence, the country’s e-commerce logistics market size, estimated at nearly $4 billion in 2024, is expected to reach $7.2 billion by 2029growing at a CAGR of 12.7%.

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The proverbial “need for speed” this is just one element of logistics. Too many supporting elements such as fast order processing, proper packaging and labeling, tracking function and ETA (expected time of arrival) accuracy. are needed to put this model together and achieve this great mission.

The power of agility is the lifeblood of the 3PL business. Here’s a quick look at what 3PL providers deliver.

Best-in-class operations: According to Emiza founder and CEO Ajay Rao, a new crop fulfillment centers have emerged because traditional warehouses are no longer suitable for rapidly changing digital retailing.

“Brands today are looking for Class A warehouses with excellent infrastructure, dust-proof environments, advanced fire protection, flexible storage and strong security – including legal compliance. All this contributes to efficient operation and ensures quick deliveries,” he said.

Class B (and C) facilities, on the other hand, are older and may have larger storage spaces, but they are insufficient to meet the required demand

Rao emphasized the dynamic nature of modern warehouses, which also serve as order fulfillment centers. “Traditional warehouses are designed for bulk B2B and long-term storage. On the other hand, new-age fulfillment centers can handle high volumes of B2B transactions, marketplace standard operating procedures (standard operating procedures) for B2C purchase and delivery order fulfillment requiring complex, multi-step processes.

“Whether it’s picking, labeling, gift wrapping, quality control, scheduling multiple pickups per day, or seamlessly handling inventory pools, e-commerce warehouses and fulfillment centers handle every task well. Traditional warehouses are not adapted to this level of process complexity,” he added.

Because you need fast delivery becomes more and more important, new facilities meet this by scattered supplies By strategically placing goods near high-demand areas.

According to corporate commerce firm ESW, better distribution can significantly benefit online brands and increase their competitive advantage over 85%.

Additionally, they provide modern warehouses flexible storage solutions because e-commerce companies need extra storage space during holidays and seasonal sales. It is convenient to store inventory in a place where you can anticipate, plan and scale storage up or down, eliminating the difficulties of space constraints or excess.

Apart from, automation possibilities such as cloud-based warehouse management systems (WMS), shipment tracking and inventory management faster order fulfillment and fewer errors.

Fulfillment centers run by Emiza and its ilk also benefit state-of-the-art equipment such as free-motion floors (FM2) for greater durability, electric gates and dock ramps for efficient loading and unloading, fire sprinklers and hydrant systems, as well as stringent physical and data security for continuous operation 24/7 , 365 days a year.

Emiza operates over 27 fulfillment centers across 14 Indian cities including Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Indore, Chandigarh, Lucknow, Patna, Guwahati and more. The 3PL startup served over 160 brands, including consumer goods giants such as Cadbury, Cello and Milton, and prominent startups such as Mamaearth, Snitch and The Souled Store.

Cost benefits of the multi-client model, technological advantages: Traditional warehousing, often associated with higher costs, offers little room for flexibility. In turn, modern warehouse and logistics centers have adopted a pay-as-you-go business model based on the division of resources. Overhead costs are significantly reduced when warehouse fulfillment centers achieve economies of scale by serving multiple customers using the same real estate, technology infrastructure and staff.

Their ability to change storage locations as required can reduce costs for e-commerce players and help avoid fee increases during peak seasons. Generally speaking, businesses only pay for the storage space and services they use, and benefit from a transparent pricing structure with convenient options such as a flat monthly fee or a per-transaction fee.

All this can help e-commerce companies optimize logistics operations and benefit from cost advantages. Rao cited some impressive results showing the advantages of fulfillment centers over traditional warehouses. According to him, brands using logistics centers can expect a significant increase in efficiency, as 80% of orders are completed within 12 hours and 100% within 24 hours. Additionally, returns are processed and completed within 48 hours.

Choosing a fulfillment partner can make or break your e-commerce business

Choosing the right logistics provider can be a challenge despite the plethora of logistics outsourcing options. E-commerce brands are needed Down ask a few key questions before making a decision. For example, is the supplier located near major demand nodes? Can it guarantee seamless integration of the WMS system with the e-commerce platform for efficient order fulfillment? Does it have a reliable reverse logistics system? Will it provide contract flexibility and service level agreements (SLAs) to meet performance expectations?

Players like Emiza offer these standard procedures for many sectors including fashion & apparel, beauty & personal care, FMCG, electronic & electrical devices and more. When looking for a service provider, brands should also consider whether the 3PL player has adequate industry exposure.

Emiza fulfillment centers are equipped with temperature- and humidity-controlled warehouses (for consumables and fragile goods) and have a serial inventory management system for individual categories.

It also uses multi-level racking to cope with power surges and seasonal peaks, and uses a WMS system to streamline daily operations.

“We have 20-40 brands and employ an average of 150 people in each warehouse. They are trained across all companies and categories to deal effectively with peak seasons,” Rao said.

The 3PL startup claims to have developed a robust “return and renew” policy, allowing brands to recoup 8-12%f Inventory and market claim losses due to RTO.

In previous conversation with Inc42, Rao explained that Emiza conducts stringent quality control when the returned product arrives at its facility and scans it with a barcode scanner so that the brand concerned can quickly identify the product through the WMS. This helps speed up processing times when sorting, viewing and managing e-commerce returns.

Rao cited how Emiza’s processes and capabilities have had a real-world business impact. The children’s goods brand partnered with a 3PL player in 2023 and scaled its presence from one warehouse to 13 logistics centers within 18 months. Order volumes increased by 80%, while regional shipping increased from 28% to 72%.

Once again, the health and wellness brand partnered with Emiza and within 6 months, its presence grew from one warehouse to five and its order volume doubled.

Retail 4.0 to thrive through sustainable growth; Can 3PL players like Emiza help?

For brands, large and small, using the latest technology is no longer a choice, but a lifesaver to survive and thrive. However, given global headwinds and a challenging financing winter, sustainability remains critically important rather than cash-grabbing for growth at all costs. In this scenario, cost optimization remains the basis of all business strategies and decision-making processes.

That’s why brands defining the retail 4.0 revolution must leverage technologies including artificial intelligence and big data, automation and robotics. This is where the multi-customer service models adopted by companies like Emiza become crucial to brands and their pursuit of sustainability.

“When brands operate in a shared ecosystem, they will be resilient when it comes to labor and capacity availability to cope with surges. Again, if a brand chooses to stock in multiple locations, it can easily ensure business continuity if force majeure disrupts a particular area,” Rao said.

He added that AI-ML will be a key component of future-proof brands. “These technologies will help manage inventory and enable intelligent inventory placement to improve picking efficiency. This will go deeper and redefine the future of logistics for e-commerce and brands,” he said.

The 3PL segment is growing rapidly, driven by the aggressive expansion of e-commerce across the country. Technology-enabled fulfillment centers will continue to emerge to meet the newfound demand for faster, more efficient deliveries. This happened across the United States after the pandemic. And it’s happening in India too.