Consumer expectations are through the roof these days. Looking ahead to 2024, McKinsey & Company advises businesses to really get to know their customers—understanding who they are, what they want, and how they shop, both now and in the future. One big factor that can help small businesses keep up is speed. Companies like Amazon have set the pace with next-day delivery, and now that’s what many customers expect.
For small businesses, which make up nearly all U.S. businesses according to the U.S. Small Business Administration, meeting this demand might sound really challenging. But with the right strategies and tools, they can meet customer expectations and even compete with those bigger brands.
Retail sales showed a strong increase last winter, with December seeing a 5.6% uptick compared to the previous year, reaching $709.9 billion. This marked a high point in spending, proving that people are buying more. As we approach another busy season, this article dives into actionable strategies small businesses can use to fine-tune their supply chains, streamline operations, and use technology for next-day delivery, boosting customer satisfaction and driving growth.
Building an Agile Supply Chain
Having a reliable and flexible supply chain is critical for success in retail. Small businesses should work on establishing strong relationships with dependable suppliers to guarantee that materials and products are always on hand when needed.
One smart strategy is to diversify your suppliers. Putting all your eggs in one basket can be risky because any disruption or product issue with a single supplier could stall your business, especially during peak sales periods. By working with various suppliers, you reduce these risks and ensure you’re always stocked up. For instance, a small clothing retailer could collaborate with multiple fabric suppliers across regions to avoid supply chain bottlenecks. Last spring, companies scrambled to diversity when cocoa shortages hit, even tweaking recipes to use less cocoa.
Streamlining Warehouse Operations
Good warehouse management is key when you’re trying to meet tight deadlines for next-day delivery. Small businesses should organize their storage effectively to make picking and packing orders fast and accurate.
Take a look at your inventory to find out what items are in high demand and place them in easy-to-access spots in the warehouse to speed up order fulfillment. Using storage solutions like shelving units can help make the most out of your space and keep everything organized.
Implement consistent processes for picking, packing, and shipping, and train your team to follow them. Techniques like “zone picking”—where team members focus on specific areas in the warehouse—can improve efficiency and output.
Advanced Inventory Management
Keeping track of your inventory and using advanced tech is crucial for meeting next-day delivery needs and satisfying customers. Cloud-based systems give you real-time updates on stock levels, order status, and supplier info, helping you make swift, informed decisions. By using tech like barcode scanners and RFID systems, you can streamline inventory management, lessen mistakes, and ensure timely processing.
Just-in-Time (JIT) inventory strategies can help you keep just the right amount of stock, cut down on storage costs, and minimize waste by getting products just when you need them for production or sale. Plus, having a bit of extra stock can cushion against unexpected demand spikes or supply chain issues to prevent running out of stock and losing sales.
Advanced analytics tools also help forecast demand and plan inventory. According to a report on Shopify merchants, many face problems aligning their stock with how demand changes, highlighting the need for precise forecasting tools. Regularly review and tweak inventory levels based on real-time data to align with current trends, which ensures agile and efficient operations. Inventory Planning and Forecasting (PAF) solutions are game-changers for small-to-medium businesses with their data-driven forecasting abilities, helping meet customer needs consistently.
Partnering with Helpful Logistics Providers
Choosing the right delivery partners is vital to achieving next-day delivery. Small businesses should assess carriers based on speed, reliability, coverage, and cost.
Offering a variety of delivery choices at checkout, like expedited shipping, can boost customer satisfaction and conversion rates. Providing real-time tracking info keeps customers in the loop and reduces questions about order status. Strong relationships with logistics providers can lead to better service and terms. Regularly reviewing carrier performance using metrics like on-time deliveries helps you tackle issues early and maintain high standards.
Monitoring Performance for Improvement
Consistently tracking key performance indicators (KPIs) is crucial for spotting areas to improve and making sure your delivery strategies are working. At minimum, businesses should track metrics like order fulfillment time, delivery accuracy, inventory turnover, and customer satisfaction. Dashboards and reports from your inventory and order management systems can offer insights into how you’re performing.
Planning for High Sales Seasons to Succeed Year Over Year
While next-day delivery is indeed a tough challenge for small businesses, it’s definitely doable. By building a responsive supply chain, optimizing warehouse practices, leveraging technology, managing inventory well, streamlining order fulfillment, partnering with right logistics providers, and continuously monitoring performance, small businesses can meet and even exceed customer expectations during a busy season.
In a world where speed and efficiency are crucial, these strategies help small businesses compete with big brands. Adopting these practices not only pleases customers but also drives growth and long-term success.
Kristjan Vilosius is the Founder and CEO of Katana Cloud Inventory, a software offering real-time solutions for inventory, production, accounting, and reporting, helping businesses get their products out quickly. Since 2017, Kristjan’s team has raised over $51 million and expanded to over 150 employees worldwide. Ready to up your business game and excel in next-day delivery? Explore Katana’s cloud-based inventory management solutions to streamline operations, boost efficiency, and stay competitive.
