Brands tend to focus on cutting costs in logistics. However, quality logistics services can help brands lower order cancellations and, in turn, boost sales. Derek Wang, the Logistics Director of HH Galaxy, said “during the main campaign periods, the first 24 hours are critical for order shipments. If shipments postpone by one day, it could lead to a 5-10% cancellation rate.”
The logistics team at HH Galaxy had been gearing up for the annual buying spree as early as August, three months ahead of the 2022 Double 11 shopping festival. They outlined well-thought plans on logistics and accomplished the mission: shipping within 24 hours.
How did the team take preemptive actions and seamlessly deliver?
Derek Wang , Director of Logistics of HH Galaxy
3-month Preparation to Help Ship within 24 Hours
During the Double 11 festival, e-commerce platforms would launch different daily campaigns. When a customer places an order on platform A and sees another campaign (perhaps with better discounts) on platform B the next day, the customer will likely cancel their order on platform A. “The key task for an agency is to speed up package deliveries. Our goal is to ship within 24 hours after a customer placed an order,” said Derek. “Reducing order cancellation rates equals increasing sales for clients! ”
However, such a goal was easier said than done. The order volumes during the Double 11 event could be a hundredfold or thousandfold than usual. To help their clients drive better sales, the HH Galaxy logistics team had been preparing themselves three months ahead.
Derek shared the four pillars of effective logistics planning: inventory, equipment, warehousing, and workers. “First, we need to identify the sales target, and estimate corresponding order and inventory volumes.” With a number in mind, they would assess whether the warehousing is large enough and whether the pieces of equipment are sufficient.“Our assessment indicated this year we need to double the inspection lines and enlarge the shipping space by 1.5 times.” Ultimately, HH Galaxy increased its personnel by 2.5 times to accommodate high shipping volumes during the campaign.
These four elements were seamlessly organized, yet not every e-commerce agency could deliver such execution. The HH Galaxy logistic team, which only consists of 10 people, was responsible for all processes from inventory management to order shipment and customer service. Their mission was connecting all the dots whenever a customer makes a purchase, having the goods delivered to the customer in the shortest time possible. “During the Double 11 event, we were able to ship 80% of our orders within 24 hours, and completed 99% of orders within 72 hours,” said sincerely and proudly Derek. Such performance was a remarkable achievement in the industry.
Real-time Monitoring and Batch Orders
“In addition to planning and preparation, we communicate closely with the warehouse and make dynamic adjustments during the campaign periods. We conduct real-time monitoring on orders and make multiple batch orders to the warehouse within a day.”
The order volume during the Double 11 period is the highest in a year. Yet the arrival of massive orders generally overwhelms or even paralyzes the capacity of warehouses. Quality logistics management requires an extremely high shipment volume to be converted to smaller chunks that personnel can handle within multiple days. Otherwise, a single day of orders may take up to a month to be shipped and fulfilled.
Besides multiple batch orders, HH Galaxy conducted real-time dynamic adjustments on inventory arrangement in warehouses. “When we expect a surge in orders of a particular product, we will place the inventory near the picking area. We even make it possible to receive inventory and ship packages simultaneously.” With solid support from HCT logistics, HH Galaxy enabled stable and increasingly efficient warehousing and logistics capacity.
During the campaign, the HH Galaxy logistics team even provided customized packaging for their clients’ “value-added services.” “During the main campaign period, the volume of goods is measured in tens of thousands. Preemptive planning is the key. We surely don’t have the capacity to pack 30,000 items in a day, but we can process 3,000 items every day in 10 days. This way, every e-commerce platform can have items available for order, and warehouse personnel can complete the packaging and shipping within the deadline. ” Preemptive planning and workload distribution allowed the HH Galaxy team smoothly handle large orders during the Double 11 campaign.
Logistics: Reducing Cost and Boosting Sales
If logistics planning does not align with order forecasting, overtime pay for warehouse personnel will be the top concern. When there is not enough space for warehousing, no space for goods means no goods to sell. Finally, if inventory management does not go well, the goods will expire or perish, resulting in losses. “Some of our clients partner with us because they cannot handle large shipments during critical campaigns on their own. They appreciate the value of our work.”
Derek, who has 10+ years of experience in logistics, said sincerely, “Our team has abundant experience in the industry, and we understand the aftermath when such situations happen. We strive to smooth the logistics processes for our partners, reduce order cancellation rates and help increase sales. “
“This year, I expected a 30-35% increase in order volume over the same period last year, but it turned out to be a 43% increase!” Fortunately, adequate planning and preparation helped the team embrace the Double 11 event smoothly. With a belief that reducing sales loss equals helping clients increase sales, Derek Wang and his team are building up quality logistic service at HH Galaxy.
