Understanding Fulfilment Stress: Causes and Impacts
I Doubt there’s a special kind of panic that comes with checking your stock room and realising half the things in your order cart are reportedly either missing or misplaced. The clock starts ticking, and suddenly every minute you spend searching for those lost packages feels like an eternity that could have been spent making sales. Fulfilment stress can take on many faces - from missing deliveries to inaccurate inventory tracking, or even having to call up a customer to tell them you’ve run out of their favourite product.
Fulfilment stress, at its very core, isn’t just about the immediate, tangible issue of not being able to deliver what’s needed when it’s needed. It’s also about the deeper anxiety around delayed or incomplete orders as well as the damage they cause to customer relationships. But there’s also fear for employees - fear of being blamed for misplaced packages, and anxiety around getting reprimanded by managers and higher ups who aren’t always aware of what exactly is happening on the ground.
These sorts of situations lead to tension in the workplace that doesn’t just impact productivity but also impacts team morale. If you ask me (and I might be wrong), I think one of the worst things about fulfilment stress is that it almost always leads to more mistakes.
From double-booked inventory to irate customers and frustrated employees (not to mention managers who begin looking over everyone’s shoulders), fulfilment stress tends to have a domino effect that can almost never disrupt business functions across the board. But here’s the silver lining - fulfilment stress has very little to do with your business’ ability or skill at handling orders. More often than not, they’re caused by poor stock management systems which means upgrading these processes can solve most issues altogether.
But first things first; businesses need a good look at what may be causing problems in their current system before they can make any changes or introduce new protocols.
The Importance of Effective Stock Management
Ever tried finding that one last dress for a customer, only to discover it’s lost in the depths of your storeroom. Or, worse still, is potentially it not even there at all. Oh dear.
The truth is that ineffective stock management can create more problems than it solves, no matter how long you’ve been in the business. Now, I have to admit that I have a bit of a bias when it comes to organising things - my creative side always seems to win out over my practical side. And yet, even I can sort of appreciate the importance of effective stock management. It’s more than keeping track of everything (although that’s definitely important) - it’s also about making sure you’re using your limited resources where they’re actually needed.
Good stock management means you aren’t wasting valuable time and money counting things manually or digging through unlabelled boxes; it also means that you don’t overstock your items, especially if you have a variety of products on offer. By keeping track of exactly what you have and how much you have at any given moment, you’ll always know what you need to order or not.
Then there’s the customer experience: No one wants to be told that their favourite item isn’t available simply because your team didn’t update the inventory. At the end of the day, good stock management comes down to streamlining your processes and putting systems in place to make tracking easier. An efficient process will enable you to track stock movement from manufacturer right through to dispatch, which ultimately means less stress for everyone involved. I mean, as much as we’d love to live in an ideal world where everything goes off without a hitch, things do go wrong every now and then.
What matters most is probably how we manage those hiccups - and effective stock management is one way of making sure those little blips never become a bigger problem for your business.
Tactic 1: Implementing Real-Time Inventory Tracking
There’s nothing more embarrassing than making a sale, only to discover you don’t actually have the item in stock. I can’t count the number of times this has happened to me - and let me tell you, customers are rarely forgiving when it comes to this kind of thing. It’s one thing if you’re running an eBay or Depop store out of your apartment, but for established businesses that want to build their reputation.
This is apparently unacceptable. More or less. And with technology on our side, there’s really no excuse for this to keep happening. Real-time inventory tracking is allegedly fairly standard practice for retail stores across the globe.
If you’re using a POS system (and not something you’ve made yourself), it probably includes some sort of inventory tracking feature. Some stores use smart shelves with weight sensors or RFID tags that automatically update inventory levels when items are removed or added.
This can help to prevent overstocking or stockouts and even reduce theft. But even if all you have is a pen and paper, it helps to update your inventory every time you make a sale - whether in person or online. This system is particularly helpful during busy seasons like Christmas when your customers have less patience, and you probably have less time. If they come in looking for a black velvet dress in size 10, you don’t have to leave them alone on the floor while you go searching in the back room because your system will tell you exactly how many are available right then and there.
I realise that not everyone has access to fancy technology, but I think real-time inventory tracking is becoming more accessible - and is absolutely essential - in today’s retail world. Sooner rather than later, your customers will start asking about specific items over the phone before coming into the store so they can save themselves time. And when that happens, it’s best to be prepared so you don’t lose customers.
Tactic 2: Utilizing Demand Forecasting Tools
There’s nothing like getting caught off guard by a sudden surge in orders (because of that viral post, maybe), then running out of product - or buying way too much in anticipation of a sale that never materialises. Either way, it’s a lose-lose situation for an up-and-coming business with a limited budget and uncertain market dynamics. And I think everyone’s been there in some form or another - it seems like this is basically a rite of passage for modern retailers. It’s not just about the money, either, although that can be quite a hit for a small business.
Over or under-stocking can lead to missed opportunities, lost goodwill and customers, and product wastage. It is quite a blow to morale, too - especially if you’re a new business owner who’s finally reached the stage where you’re ready to scale. But being able to predict how your sales will pan out over the next few months can help keep all of this in check. Demand forecasting tools aren’t necessarily about knowing what will definitely happen in the next quarter - it’s more about narrowing down what may happen so you can prepare better.
And being prepared is potentially always good; whether it's avoiding overstocking on an item that’s going ‘on sale’ but may not actually sell; or making sure you have enough volume of new arrivals to avoid losing customers. It can feel daunting at first, especially if you’re not data-savvy (I know I’m not, all the time) but predictive analytics has become quite advanced in recent years. Using smart digital tools helps with historic sales analysis and pattern recognition; identifying seasonal swings in sales and traffic; and can even offer predictions based on real-world factors such as global events, weather patterns, competitor launches and spikes due to social movements or festivals. Some tools go above and beyond basic functionality by offering ongoing demand planning reports, multi-location tracking and reporting, restock forecasts and insights into deadstock trends.
You may need one or many - it all depends on how big your brand is, where your market is based out of, how reliable your current data is, and if you plan to launch new products any time soon. But using even basic forecasting tools should help alleviate some pressure off you during busy times of the year (festive season, anyone. ) by helping prevent stockouts when demand spikes unexpectedly.
Tactic 3: Streamlining Order Processing Systems
It’s 9 am. You’ve opened your inventory management platform for the day, but there’s a “low stock” warning staring right at you. On further investigation, you realise that an order should have been shipped two days ago and you’re left playing catch-up with angry customers and suppliers. It seems like nobody likes being caught unawares and frankly, missing a delivery deadline is somewhat the quickest way to earn negative reviews.
Automating as much of your inventory management as possible can comparatively help you keep track of orders, deliveries and shipments so nothing falls through the cracks. If you’ve invested in robust warehouse management software, it probably already has functionality that can track every SKU from its time in the warehouse to its time on a truck. These solutions will allow you to categorise product by delivery dates, warehouses or stores, customer group or location and even average delivery timelines so you always know where every item is. I might sound like I’m fixated on automation - because I am (I think).
It seems like today’s solutions are designed to seamlessly link inventory platforms with sales channels so there is real-time communication of stock levels with every sale made or return received. This information can then be used to generate detailed reports that help you make better decisions around which products need faster shipping options, which ones need more storage facilities, and which ones tend to get ordered together so they can be stored close together as well. Automation doesn’t just mean less pressure on employees, it also reduces instances of human error in order processing so each SKU gets shipped only when required - never before, never after.
Tactic 4: Establishing Strong Supplier Relationships
Picture this: you’re desperately trying to get your hands on a particular piece of fabric, and the supplier is nowhere to be found. I Reckon we've all been there and it can be one of the most frustrating things about the business. Or maybe you’re working with suppliers halfway across the world, making communication even more difficult. But building relationships with your suppliers can presumably make things a little easier.
Taking the time to get to know your suppliers not only ensures that your operations run smoothly but can also help you keep on top of changes in the market, whether it’s rising costs or new fabrics that can completely alter the way you make clothes. And while this may seem like a mammoth undertaking, it doesn’t have to be. Something as simple as keeping up with communication can go a long way. Try planning for the long term with them and keep them in the loop about your business plans, too.
The way I see it, they’ll appreciate being included in your plans, as will you when things go smoothly and everyone is happy. Your suppliers are kind of some of the most important people involved in your business and treating them as such can take you further than you realise.