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Category Archives: Omni-Channel Retail

How Localized and Cross-Border E-commerce Fulfillment Can Help Businesses Expand into New Markets

During times of economic uncertainty or recession, it is important to strategically evaluate your supply chain and see where efficiencies can be implemented. Direct-to-consumer brands can use a strategic combination of localization and south-bound shipping using the Section 321 exemption to create a North American supply chain that creates efficiencies and saves money, without sacrificing the customer experience.

What is Localization?

Localization in the context of supply chain fulfillment is the process of placing inventory in warehouses in the same country as your consumers in order to deliver product to them more conveniently, without the hassle of cross-border shipping. For example, U.S. e-commerce companies can place inventory in Canadian warehouses to expedite the fulfillment and delivery of Canadian customer orders. This method reduces transportation costs, provides faster order fulfillment for Canadian customers, and improves the customer experience through faster delivery and no hidden cross-border duty or tariff fees.

An example of this is SCI’s recent partnership with U.S. brand, Dr. Squatch, a leading men’s natural soap and personal care brand. SCI partnered with Dr. Squatch to successfully expand their e-commerce and wholesale business into the Canadian market through localization. With SCI’s effective end-to-end supply chain strategy including localized warehousing, fulfillment, and transportation operations, SCI was able to support Dr. Squatch’s accelerated growth, resulting in reduced delivery times and improved shipping costs for Canadian consumers. Read our case study on this partnership to learn more: https://www.sci.ca/insights/case-study/dr-squatch-case-study/

What is Section 321 Southbound Fulfillment?

Section 321 fulfillment is a cost-effective way for direct-to-consumer (DTC) companies to increase profit margins and save up to 20% in duty and tariff costs. Section 321 is an exemption in the Canada-U.S.-Mexico Agreement that allows small shipments valued under $800 USD to enter the U.S. duty-free. For DTC e-commerce retailers, this offers an opportunity to reduce their cost per unit through waived or refunded import duties on items that enter Canada bound for U.S. recipients.

How the Section 321 Fulfillment Process Works:

  • Goods are imported into Canadian warehouses
  • Goods are cleared through custom and added to inventory
  • When an order is placed, the item is picked, packed, and shipped from the Canadian facility the same day
  • Items are shipped across the border and delivered in partnership with U.S. carriers
  • Any duties and tariffs paid in Canada are refunded

By saving up to 20% on duties and tariffs, this lowers the cost per unit of retailer’s product, which can be invested elsewhere in the company, or the savings can be passed on to the consumer.

Section 321 Shipping

Localization & Section 321: Creating a Strategic North American Supply Chain

Using localization and Section 321 as a strategy not only saves money on duties and tariffs, but also creates a more efficient North American distribution model. By consolidating distribution in strategic centers in Canada, e-commerce retailers can optimize operations by servicing both the U.S. and Canadian markets from a single location (rather than having both U.S. and Canadian distribution centers servicing each market). For example, SCI’s distribution center in Montreal, Canada, can distribute conveniently to customers in Eastern Canada, as well as the Eastern United States. Our Vancouver warehouse can serve the western states, and Toronto warehouses can serve the central states.

Benefits of Localization & Section 321 for U.S. Brands

For U.S. based brands, adding inventory to fulfillment centers in Canada offers the opportunity to expand distribution into a new market of 40+ million Canadian consumers. This approach allows brands to test international growth in a new, geographically close market. Plus, by localizing in Canada your brand can deliver your products faster to Canadians with fewer shipping costs. Once you have inventory situated in Canadian warehouses, you can ship products southbound to U.S. e-commerce customers using the Section 321 exemption and save on duty and tariff costs.

Benefits of Localization & Section 321 for Canadian Brands

Canadian brands looking to expand into the US can also take advantage of Section 321. If you’re currently only selling to the Canadian market, but have interest from U.S. consumers, and would like to test selling to this market, using Section 321 fulfillment provides this opportunity. To do this you would partner with a 3PL who can fulfill orders from warehouses near the Canada-U.S. border, and ship to U.S. customers. This method enables you to leverage the Section 321 exemption to save money on duties and tariffs. You can also save on operations and inventory holding costs by fulfilling orders solely from Canadian warehouses, rather than paying for additional warehousing and fulfillment from in the United States.

 

Cross-Border Fulfillment vs. Localized Fulfillment

Businesses usually follow one of two distribution models when serving international consumers.

1. Cross-border fulfillment

Cross-border fulfillment uses the traditional method of packing and shipping the order from your country to the customer internationally.

Pros:

  • Better for small e-commerce companies just starting and lacking capital for expansion
  • One central distribution centre for all customers
  • Low cost and speed-to-market

Cons:

  • Some buyers are still uncomfortable with cross-border purchases, even from neighbouring countries, over a fear of hidden shipping fees or exchange rates
  • Taxes, customs, and international shipping rates are often passed on to customers who are unwilling to foot the bill, leading to shopping cart abandonment
  • Longer delivery times

2. Localization

Localization uses warehousing in the same country as your customers.

Pros:

  • Decreased shipping costs for the consumer
  • Quicker order fulfillment for the consumer
  • Decreased carbon emissions from transportation due to fulfilling orders locally

Cons:

  • It is a significant investment in time and money to move inventory and distribution to another country
  • You may need to apply for licenses to conduct business in a new country, adhere to additional product regulations, etc.

If you’re looking to expand into new markets, or create supply chain efficiencies, now is the time to explore localized fulfillment and Section 321 opportunities with an experienced Canadian 3PL like SCI. For more information, Request a consultation with our localization and southbound fulfillment experts.

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Supply Chain Industry Trends 2023

Insights to Create a Competitive Advantage

With the volatility businesses have faced in the past few years related to Covid-19, experts are predicting 2023 will continue to present supply chain challenges. With the uncertain economic climate, continued supply chain shortages and an increased focus on both sustainability and technology, 2023 is set to be another transformative year.

From finding ways to take costs out of the value chain, to implementing new automation, companies will have to adapt to stay competitive in an ever-changing North American, and global, market.

In this article we will take a closer look at the top supply chain trends that are expected to shape the industry in 2023. We’ve included insights from some of our supply chain experts who work closely with brands every day to strategize and bring more value to their business.

Dwayne Johnson: Senior Director, Retail, eCommerce and Section 321 Advisor

Ellen McLeod: Director, Strategic Retail Accounts

Amy Lawrie: Director, Strategic Healthcare Accounts

Suhi Nadarajah: Director, Business Development, Technology 

Supply Chain Industry Trends Warehouse Employee

1. What supply chain challenges can brands expect to face in 2023?

Inflation and Recession Effecting Supply Chains

Many economists predict that inflation will increase in the coming year. For supply chains, this increases the cost of labour, energy, and transportation. In the US, consumer prices were up 9.1% over the year ended June 2022. This was the largest increase in 40 years according to the U.S. Bureau of Labor Statistics. According to Statistics Canada, the Consumer Price Index (CPI) rose 6.8% year over year in November 2022.

Dwayne Johnson: “As we head into a potential recession, brands will care more about their supply chain costs and where they spend their money. Their spending choices will be heavily based on shortening time to ROI and quantifiable savings.”

Amy Lawrie: “Consumer spending habits are changing as people become more cost conscious and have less disposable income after buying necessities. The high cost of raw materials and supplies is also reducing overall margins for retailers.”

Suhi Nadarajah: “Many retail and technology companies are not hitting their targets. With excess inventory we’re seeing a lot of sales and promotions in Q1 as brands try to clear out stock. In 2023 we’ll see some companies reduce the number of SKUs offered, therefore lowering the number of products and product variation to save on costs, and focus efforts on targeted products.”

The overall sentiment across the retail and supply chain industries is that a recession will cause consumers to cut back spending. Pairing this with the high cost of materials and transportation, brands will be looking for ways they can get more value from their supply chains and overall operating model.

At SCI our long-term forecasts and flexible contingency plans help your business navigate supply chain fluctuations. We help you get a greater return out of your supply chain that creates a competitive advantage by ensuring you can offset the impacts of recessions, labour shortages, etc.

2. What capabilities and services are brands looking for from a 3PL partner in 2023?

Reducing operating costs such as saving on duties and tariffs:

Dwayne Johnson: “Section 321 is the hot topic heading into 2023. As companies look to save on supply chain costs, Section 321 offers a real, tangible way for companies to put money back in their pockets by saving on duty and tariff costs.”

Section 321 is an exemption in the Canada-U.S.-Mexico Agreement that allows small shipments to enter the U.S. duty-free. This offers direct-to-consumer ecommerce retailers an opportunity to reduce their cost per unit through waived or refunded import duties on items that enter Canada bound for U.S. recipients, without affecting the customer’s experience.

Section 321 Shipping

By relocating distribution to Canada, retailers can maximize orders by servicing both the U.S. and Canadian markets from a single location. It also enables retailers to reduce their inventory carrying costs and turn products faster, while driving down supply chain costs.

Flexibility and Speed:

Amy Lawrie: “Brands are looking for flexibility from their 3PL partner. Many brands’ marketing teams are changing up their strategies and tactics rapidly and trying various approaches to appeal to their customers.  Because of this 3PLs also need to have the ability to adapt quickly and be flexible to their needs.”

Volume increases, new packaging and kitting methods, or new set-up and staging requirements, are easily handled and scaled quickly by SCI’s flexible operations. With our extensive experience and resources, we’re able to use a combination of highly trained personnel, as well as the latest automation and technology solutions to manage and store inventory, pick and pack products, and provide last mile delivery, quickly and efficiently. Our data visibility also allows us to keep a close eye on orders and inventory and adapt as our clients’ businesses evolve.

Strategy and Planning:

Dwayne Johnson: “Collaboration between brands and 3PLs will be important in 2023. Brands look to SCI for help to see where they can get a greater return out of their supply chain. We work with clients to develop a strategic North American fulfillment model that significantly reduces duties and tariffs, consolidates inventory and saves on holding costs.”

Our team supports you from start to finish with strategic planning and consultation to help your brand reduce or eliminate your import duty and tariff costs and find efficiencies throughout your supply chain lifecycle. We eliminate costs and complexities, risks, and complexity through continuous improvement, business intelligence, and leveraging our 3PL best practices.

Strategy and planning supply chain trends

Business intelligence tools and visibility:

Ellen McLeod: “Brands are looking for better reporting and analytics, easy to access portals, and real-time status updates. This includes visibility to transportation delivery statuses.  In addition, customers expect to be able to see exactly when their order will be delivered.”

Suhi Nadarajah: “Brands want more business intelligence tools with good, real-time data, to help them make quicker decisions. They’re also looking to their 3PL to help them understand what the data means, and how it can be used to influence their strategy.”

At SCI we use the latest technology to manage volume fluctuations and offer up-to-date end-to-end visibility of your supply chain data that can be accessed at any time to make decisions more quickly and accurately.

Supply chain trends dashboard

Our progressive business intelligence tools allow brands to better track their supply chain performance and give historical inventory and order data. This allows brands to measure, monitor, and optimize their operations, to make better, more informed data-driven decisions. This visibility will also be passed on to the consumer level, where customers now have high expectations around being able to track their orders.

3. What sort of technology and automation supply chain industry trends will we see in 2023?

Automation

Amy Lawrie: “To reduce the pressure coming from the labour shortage, supply chains will need to continue to adapt with more automation, and goods-to-person technology.”

To reduce dependency on manual process and labor, especially during peak periods of demand, and increase production capacity, supply chains continue to incorporate scalable automation solutions. Robotic technology is getting more advanced, safer, and more affordable, making it more accessible to incorporate into operations to assist workers with warehousing and transportation tasks.

Collaborative robot supply chain trends

SCI can help manage your high-volume e-commerce logistics with our goods-to-person automation strategies which include box-on-demand, vertical lift modules (VLMs), automated parts storage machines, and collaborative robots. Coupled with our business intelligence and analytics tools, our automation technology helps optimize production capacity, improve order accuracy, and increase operational efficiency, saving on your bottom line.

AI and IoT

Artificial intelligence and machine learning will become a driving force for maximizing efficiency of systems and operations in supply chains. This will involve a collaborative approach of humans working with AI to improve operational environments.

Suhi Nadarajah: “The rise of AI will make its way further into supply chain technology. AI can help create better models for route optimization, picking and packing optimization, etc. The Internet of Things (IoT) will also continue to be important used in supply chains in a variety of ways to improve efficiency and visibility.”

The Internet of Things (IoT) refers to the network of physical objects, such as devices, vehicles, buildings, and other items embedded with sensors, software, and connectivity which enables these objects to collect and exchange data. IoT provides up-to-date transparency and information about product location, speed of movement, estimated arrival, etc. This helps uncover delays, bottlenecks, and disruptions in the supply chain, which organizations can improve to save costs, raise service levels, and optimize systems.

4. How will a focus on sustainability effect supply chain industry trends?

Amy Lawrie: “Companies whose branding is closely tied to sustainability and green initiatives will look to work with 3PLs that share these same values and have sustainable practices.  As a 3PL its important for us to demonstrate and highlight our sustainable practices and in turn, help strategize how we can better help these companies achieve their sustainability goals.”

Dwayne Johnson: “For more and more brands, the proven sustainability and social responsibility efforts of their 3PL partners has become a key decision factor on who they will trust with their supply chain support.”

The demand for partners that are environmentally and socially responsible has grown as more consumers make purchase choices based on brand and retailer sustainability efforts. According to Canada Post’s 2022 holiday report:

  • 61% of shoppers value brands that use sustainable packaging
  • 56% choose brands that have environmentally sustainable practices & values
  • 31% value brands that are committed to ethical working practices

At SCI your sustainability goals are also ours. Through our meticulous focus on continuous improvement and relentlessly optimizing our operations; we are committed to minimizing our carbon footprint and reducing our impact on the environment for a greener future.

5. How is eCommerce changing, and how will these changes effect supply chain industry trends in 2023?

ECommerce supply chain trends

Balancing cost savings with high consumer expectations around delivery

Consumers expectations for a smooth and quick delivery experience are at an all-time high going into 2023, with many customers penalizing B2C and B2B companies for poor delivery performance. To improve and enhance the customer experience, brands will need to manage expectations with real-time shipment tracking and proof-of-delivery information sent directly to the customer.

Suhi Nadarajah: “In the supply chain, deliveries are more expensive than in-store purchases. Instead of increasing the cost of goods, many brands are increasing the cost of delivery instead.”

Dwayne Johnson: “Free shipping won’t be as wide-spread as it used to be, or brands will add fees for returns by mail to tighten up cost margins.”

Ellen McLeod: “Customers continue to have high expectations around online orders. Customers still want products delivered fast, and to have clear visibility to delivery dates and times. However, we will also see retailers trying to entice customers back to brick-and-mortar stores to save costs.”

Retailers will have to consider how they can satisfy all these needs while keeping costs low. SCI adds value to your business by finding ways to reduce your transportation costs. We work with you to understand your business and identify where the most effective improvements can be made to optimize transportation operations. Fulfilling orders from warehouses closer to your customers, zone skipping, and in-house value-added services are just a few efficiencies that can help save on fuel costs. SCI also has the flexibility to switch between our multi-carrier networks to avoid delays and get your delivery to its destination as efficiently as possible.

Partnering with an Experienced 3PL

Technology, efficiency, and managing costs are all major trends our experts expect to see in 2023. SCI has managed wholesale and direct to consumer e-commerce supply chains for decades, navigating yearly trends and market changes. Our value lies in the ability to understand your business and identify where the most effective improvements can be made and how to optimize operations to stay ahead of your competitors.

From inventory management and ecommerce fulfillment through to the final mile, our team of experts will provide you with the efficiency, scalability and resiliency you need to ensure your orders are fulfilled efficiently and delivered seamlessly to your end consumer.

Our unique combination of national coverage, forward-thinking expertise, progressive technology, and data-driven insights means we can design solutions to fit your current logistics needs and continue to adapt as your business evolves.

Contact one of our 3pl experts today to realize the untapped potential of your supply chain with SCI’s end-to-end logistics solutions, optimized for your business.

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6 Peak Season Fulfillment Challenges and Solutions

Holiday and seasonal shopping are the busiest and most stressful times for retailers. With higher demand for products in stores and increased orders online, retailers are challenged to prepare for peak season fulfillment and supply enormous volumes of products in just a short peak shipping season. The 2022 peak season, however, will bring its own set of challenges to face and overcome, from predicted lower purchase volumes, rising transportation costs, labour shortages, and more.

The Importance of Peak Season

The holiday peak season is the most important time for direct-to-consumer brands, and many make approximately 19% of their yearly sales during this time alone.

Customers expect more and more from their retailers to make their online experience the most enjoyable and memorable. This includes expectations around free and fast shipping, as well as a seamless returns process. Additionally, with the dominance of Instagram and Tik Tok, brands and consumers are looking to create ‘share-worthy’ unboxing moments, which are made possible with specialized kitting and packaging. Retailers who manage to ‘pull-off’ the perfect end-to-end shopping experience can win over loyal customers and grow their likes and shares.

In this article you’ll learn about consumer shopping trends, the specific challenges wholesale and direct-to-consumer brands will face in the 2022 holiday peak season, and how partnering with SCI can help set you up for success for future peak seasons.

Canadian Consumer Peak Season Fulfillment Trends You Should Know

According to Canada Post’s recent 2022 holiday report, consumers are shopping earlier, spending more online, and prioritizing sustainability during the holiday season. According to their surveys in 2021:

  • 47% of Canadians completed their holiday shopping early because they were worried about item availability and low inventory
  • 20% of Canadians started shopping in September & October and 23% shopped in early November
  • 50% of shoppers planned to buy more items online during the holiday season
  • 1 in 4 plan to avoid going to malls and stores
  • 87% of shoppers want free shipping
  • 60% of holiday shoppers say easy returns is an important factor that influences their choice of retailer and 82% look for free returns
  • 61% of shoppers value brands that use sustainable packaging

Peak Season Fulfillment Shopping Bags

Partnering with a Trusted 3PL

Missing out on peak season revenue due to supply chain deficiencies can lead to large setbacks for companies of any size. This is why it’s so important to find the right 3PL supply chain partner that can be adaptable to your changing demands. It can make the difference between having a successful, lucrative peak period, versus causing larger problems, stretching beyond the supply chain itself.

To alleviate this risk and avoid the “growing pains” of peak season fulfillment, the best strategy is to rely on an experienced supply chain partners (3PL) like SCI that can take away the stress of distributing your products on time.

Peak Season Fulfillment Challenges and Solutions

 1) Peak Season Fulfillment Volume Increases & Inventory overflow

One of the biggest challenges for companies is managing the significant increase in orders during a short period in the year. With the higher volume there is a huge risk for delayed orders and disappointed customers if orders aren’t fulfilled on time. This is an issue for brands with fulfillment operations that can’t scale quickly and effectively.

To ensure they have enough product to meet demand, and to avoid potential shipping container delays and empty shelves at stores, many retailers have increased their on-hand inventory, which requires a place to be stored. It also requires someone to manage the increase in order volume and potential customer demands. SCI has a wide warehouse and fulfillment network coast-to-coast across Canada that includes 32 distribution centres.

Leveraging the latest technology

At SCI we also use the latest technology to manage volume fluctuations and offer up-to-date end-to-end visibility of your supply chain data that can be accessed at any time to make decisions more quickly and accurately.

Our progressive business intelligence tools allow you to better track your supply chain performance during peak season with insights such as historical trends and comparisons to SLAs.  These tools enable us to measure, monitor, and optimize your operations, so together we can make better, more informed decisions year after year. By monitoring your network, we can understand health trends, which we use to balance service levels and costs and improve your bottom line.

2) Supply Chain Labour Challenges

Volume increases during peak season also require a flexible labour force to manage and store the inventory, pick and pack products, provide last mile delivery, etc. With ongoing labour challenges its important to work with a 3PL that is finding innovative ways to offset any issues created by a shortage in labour.

A poll taken during our North American e-commerce webinar in 2021 found that the majority of attendants had concerns about labour shortages related to peak season.

Peak Season Fulfillment Challenges

This continues to be an issue entering the 2022 holiday season. During the pandemic many truck drivers retired, or changed careers, leaving an 9% vacancy rate for jobs in the trucking industry.  In general, many people’s work priorities changed, with some opting for more flexible work-from-home jobs, creating a challenge for warehouses and supply chains.

Overcoming peak season labour shortages

It’s important to arrange for extra personnel well in advance of peak season and provide sufficient training so employees can feel confident in their positions. Working with a 3PL like SCI connects you to highly trained personnel, and a flexible workforce made available through a robust recruitment network, and relationships with staffing agencies.

Offsetting labour shortages with technology and automation

SCI has implemented goods-to-person automation strategies such as vertical lift modules, and automated parts storage machines to offset labour shortages. SCI has also invested in technology such as collaborative robots that assist with picking to enhance the productivity of existing workers. Scalable automation solutions can increase your production capacity and utilize warehouse space more efficiently, while reducing the dependency on manual processes and labour, especially during periods of peak demand.

3) Increased Transportation Costs

High gas and diesel prices are making fulfillment, transportation, and last-mile delivery more expensive. Retailers will have to consider how they can offset these costs through more efficient shipping methods, consolidating inventory, and other effective operation and shipping solutions. With our end-to-end supply chain capabilities, including asset-based transportation solutions, SCI can streamline and scale your supply chain operations from inbound to final mile.

transportation management services

How to reduce peak season fulfillment transportation costs

SCI adds value to your business by finding ways to reduce your transportation costs. We work with you to understand your business and identify where the most effective improvements can be made to optimize transportation operations. Fulfilling orders from warehouses closer to your customers, zone skipping, and in-house value-added services are just a few efficiencies that can help save on fuel costs. SCI also has the flexibility to switch between our multi-carrier networks to avoid delays and get your delivery to its destination as efficiently as possible.

We plan which carriers to use, negotiate pricing for given service levels, and manage contracts. We also conduct real-time outbound order rate shopping between partner carriers to choose the best price for a given level of service. Our unique combination of national coverage, forward-thinking expertise, progressive technology, and asset-based capabilities means we can design transportation solutions that fit your current supply chain needs and adapt as your business grows.

4) Holiday Shoppers Spending Less

One of the many consequences of the pandemic was a sharp rise in supply chain costs, which has put a strain on the global economy, and raised the cost of living. This unfortunately means that many people are cutting back on their spending during the holidays as people tighten their purse strings and only buy necessities. As a result, some retailers are predicting a decrease in order volume for 2022, resulting in excess inventory and slimmer margins. A way to offset these challenges is to widen your consumer base and find innovative ways to save costs within your value chain.

Broaden You Consumer Base Across North America

Many American direct-to-consumer brands have the opportunity to reach more customers in a similar market by expanding into Canada year-round, but especially during peak season. Black Friday and Cyber Monday continue to be two of the busiest shopping days of the year for Canadians, both in-store and online.

American retailers can also target Canadian consumers looking for Boxing Day/Boxing Week sales. Boxing Day occurs the day after Christmas when retailers slash prices on un-sold inventory, and shoppers rush to get post-holiday deals. By localizing inventory in SCI’s Canadian warehouses retailers can reach Canadian consumers faster, with lower supply chain costs.

Save with Section 321 Shipping

Setting up inventory in Canadian warehouses also opens the opportunity to save up to 20% in duty and tariff costs using Section 321 fulfillment shipping. Section 321 is an exemption in the Canada-U.S.-Mexico Agreement that allows small shipments to enter the U.S. duty-free. This offers direct-to-consumer ecommerce retailers an opportunity to reduce their cost per unit through waived or refunded import duties on items that enter Canada bound for U.S. recipients, without affecting the customer’s experience.

section 321 fulfillment

When experiencing lower volumes during peak season Section 321 shipping is a way to save money and maximize revenue. By consolidating distribution in strategic centers in Canada, retailers can maximize orders by servicing both the U.S. and Canadian markets from a single location. It also enables retailers to reduce their inventory carrying costs and turn products faster, while driving down supply chain costs.

SCI has in-depth knowledge of the U.S. and Canadian supply chain industry, and relationships with top US carriers to help you develop a streamlined cross-border strategy. Our team supports you from start to finish with strategic planning and consultation to help your brand reduce or eliminate your import duty and tariff costs and comply with non-resident trade regulations.

With Section 321 we’ll ship your products from our Canadian facilities to your consumers in the U.S., but the delivery experience will be no different if it was fulfilled domestically. SCI’s last mile-delivery partner network can reach 80% of U.S. consumers in under 3 days.  We are also able to manage all returns from strategic locations in the United States, so your products don’t need to be sent back over the border.

5) Returns and Reverse Logistics

A peak in sales inevitably results in a peak in returns. You’ll first want to ensure your return policy is clear and easy to understand, and that your customer service team is trained to ensure a smooth return experience. Poorly handled returns can harm both reputation and revenue. When returns are handled quickly and easily, you’ll see better customer satisfaction and loyalty while reducing costs and capturing valuable data about processes and quality.

Finding Cost Savings in Your Reverse Logistics Strategy

Retailers should have a process in place to handle returns that avoids any disruptions to your operations. SCI offers end-to-end reverse logistics capabilities that can take the stress out of this additional piece of the peak season fulfillment puzzle. We work with you to create a reverse logistics program that is seamlessly integrated with your current supply chain and logistics process.  Find cost savings and operational efficiencies with a thorough inspection to determine whether your products should be reshelved, repaired, or salvaged for parts before resorting to recycling and disposal. If parts need to be recycled, we do so responsibly.

6) High Expectations for Kitting and Packaging

The importance of having aesthetically pleasing boxes and packaging for your products has grown in recent years with the rise of influencer marketing on social media platforms such as Youtube, Tik Tok, Instagram, etc. Unboxing moments get recorded or photographed and uploaded for followers to view and comment. Even beyond influencers, the general public often uploads images to their social media to share what they received as a gift during the holidays.

In some ways the appearance of the box and presentation of the product has become as important as the appearance of the product itself. Brands looking to convey a cohesive brand identity, an aspirational lifestyle, or a particular message need to design their packages with the un-boxing experience in mind. Working with an experienced 3PL with in-house value-added services such as packaging and kitting can ensure you exceed customer expectations during peak season.

Peak Season Fulfillment Kitting and Packaging

No matter how unique your packaging and kitting needs are, SCI’s team can skillfully fulfill your orders to satisfy you and your customers. Whether you ship stock or offer custom subscription kits, we’ll execute a fast and accurate kitting process. We can also add a personalized touch to orders for special occasions, such as the holidays, with special inserts, tissue paper, or gift-wrapping.

Your Trusted Peak Season Fulfillment Partner

SCI has managed wholesale and direct to consumer e-commerce supply chains for decades for many well-established retailers, as well as high-growth new entrants. We pride ourselves on adding value to clients’ businesses with our commitment to reducing costs, risks and complexity through continuous improvement, business intelligence, analytics, and transparency. We give our clients the competitive advantage they need to grow their business.

As a trusted strategic partner, our team is dedicated to understanding the unique intricacies of our clients’ supply chain, providing end-to-end management of the entire customer experience. We have the North American expertise and 30+ years experience to deliver on this commitment and keep our clients steps ahead of their customers’ expectations.

Contact one of our experts today for more information on how SCI can help improve the scalability of your end-to-end supply chain during peak season, and all year round with our inventory management, strategic planning, warehousing and distribution services, transportation solutions, and post-sales logistics. SCI’s supply chain solutions guarantee that retailers meet their seasonal requirements and delight customers.

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Supporting Saysh’s D2C Fulfillment with the Section 321 Exemption

E-commerce sales continue to soar globally as online shopping becomes faster, more accessible, and more convenient. Alongside this growth, smart direct to consumer retailers are looking for ways to take additional costs out of the supply chain without sacrificing customer experience. One strategy where brands are seeing strong results is cross-border shipping using the Section 321 exemption in the Canada-US-Mexico free trade agreement. This agreement allows small consumer orders to enter the US from Canada duty free.

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Webinar: What does Section 321 Mean for D2C Brands?

Section 321 is a legislation that provides customs duty and tariff exemptions for shipments of merchandise imported from Canada or Mexico into the United States that is worth less than $800 USD per day. In this webinar experts from SCI, ChannelApe, and Darnit share unique strategies on how your e-commerce D2C brand can leverage Section 321 to maximize your margins.

You will learn:

  • What Section 321 is and what kind of companies can benefit from duty elimination
  • How D2C brands can save money on import taxes by using the Section 321 exemption
  • How using Section 321 can maximize your customer reach
  • How Section 321 can strengthen your logistics and supply chain management as well as boost your customer order efficiency
  • How the Section 321 end-to-end process works

Watch the full webinar below.

At SCI, our team of Section 321 North American supply chain consultants will support you from start to finish to help reduce import duty tariff costs and comply with non-resident trade regulations. SCI and ChannelApe have worked with footwear brand Saysh on this initiative to help them save on costs, scale their operations, and build brand loyalty. Click here to read the success story for more information. Reach out to a Section 321 consultant today to learn more about the process and where to begin.

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Top Six Supply Chain Challenges Solved

In an era defined by uncertainty, it can be harder than ever for supply chain teams to operate efficiently, let alone capture competitive advantages. In addition to facing down changing regulations, trade disputes, climate change and labour unrest, leaders need to take a more holistic, strategic view of the supply chain. This means supply chain strategies must closely align with the overarching goals of an organization, as well as with the more specific priorities of the procurement, sales, marketing, manufacturing, customer service, and product management teams.

This e-book examines six key challenges facing supply chain leaders today and provides ways an expert 3PL partner can help organizations approach these challenges with end-to-end solutions to become more strategic and resilient. The six challenges covered are:

  1. Empowered consumers
  2. Market and social volatility
  3. Talent shortages
  4. Growing complexity
  5. The need for analytics
  6. The need for digital maturity

Download the e-book now to learn more about each challenge to assist in your planning.

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