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In the midst of the technological revolution that we are living in today, there is a possibility to significantly reduce inefficiencies and inefficiencies in the supply chain, through digital transformation, as many companies and institutions have committed over the past few years to implementing digital transformation strategies, and these strategies aim to bring about qualitative changes in Lots of corporate operations by applying business methods based on securing more analytical and collaborative capabilities; With the aim of developing an in-depth understanding of customer requirements and optimal service, achieving sustainable competitive advantages, enhancing levels of profitability, as well as reducing total costs, and in this article we will present to you the 7 most important techniques for digital transformation of the supply chain.

What is digital transformation?

Perhaps digital transformation is the most common sentence I heard during your meetings. The concept of digital transformation may be confused by some people. Some people think that as soon as one or two new programs are used, their company or institution is transformed digitally.

Digital transformation is the shift in the way of working in companies so that the chore decreases and the time of thinking increases, as it is the acceleration of the daily work method so that the great technology development that is taking place is exploited to serve your customers faster and better.

Digital transformation is the increase in efficiency in the workflow so that errors are reduced and productivity increased.

Digital transformation is increasing the number of your team members without the need to employ. Simply put, digital transformation is making use of technology for people to work.

Top Digital Transformation Technologies for the Supply Chain

Business organizations, regardless of their size, need to keep pace with the development in technology, because technology has changed the way consumers think and behave.

Digital transformation has a huge impact and huge importance in the supply chain, and here are the top 7 technologies for the digital transformation of the supply chain:

1. Using Smartphones to ensure operational transparency

Smartphones have now evolved tremendously and are still under development as well. Smartphones can work like a personal computer, thanks to their ability to simulate computer processors.

Smartphones also offer their users many strategic advantages, as they are an effective way to communicate with other advanced technologies.

The smartphone became a powerful non-stop navigation system.

Smartphones have also become a tool for generating reports and an intermediary for logistics management programs as well, and they are available in everyone’s hands.

2. Synchronizing work processes with Cloud technology

It has become possible to integrate business data and associated activities and upload them to the cloud, which can integrate and help users eliminate traditional information retention methods, and also facilitate the way to contact external transport partners.

3. Connecting physical devices to the cloud with Internet of Things solutions

IoT solutions are of great importance in supply chains, especially as they make managing transportation or manufacturing activities easier and more efficiently.

It now has the ability to define the location, along with the ability to send the operational status to the manager in real time.

Thus improving corporate visibility, enhancing efficiency while minimizing wasted cost in corporate logistical activities.

4. Analyzing Big Data to restructure business operations

The Internet of Things has enabled data from all sources to be accessed for up to 500 TB, and advanced predictive analytics is a new trend in big data science.

This technology works on making expectations about customer demand, depending on the data recorded in the past, and this technology helps greatly in ensuring profitability and enhancing competitiveness in the market.

5. Applying Artificial Intelligence and Machine Learning to support decision-making processes

The use of artificial intelligence technologies will play a prominent role in saving a lot of time in corporate planning and reducing human errors.

Where the use of transport management strategies enhanced by artificial intelligence will help in enhancing the company’s productivity, in addition to its contribution in supporting all activities related to business and production in the logistical activities.

6. Automating business operations using robotics and autonomous vehicles

With the tremendous development that e-commerce platforms are witnessing, the logistics services industry is facing a shortage of qualified manpower for delivery operations, and thus a severe need for supply chain automation has emerged to ensure service quality as well as reduce the burden on the workforce.

7. Ensuring professionalism with Software as a Service solutions (Saas)

SaaS solutions help ensure a return on investment (ROI) and increase the flexibility of the supply chain and logistical activities of companies and these solutions can monitor logistical processes in real time, ensuring productivity and transparency.

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Pickup & Delivery Logistics The supply chain consists of several levels designed to produce and distribute goods, ranging from the use of raw materials to the production of finished products. Without successful logistics, workflow can be hampered by delayed shipments and incorrect storage units, when the movement of materials is properly mapped throughout the supply chain. , Companies can improve the efficiency of their warehouses, thus companies can benefit from investing their time and efforts in ensuring that their logistics management can appropriately coordinate all transportation needs, and in this article we will address together Top 5 Metrics & Benchmarks to measure in Pickup & Delivery Logistics.

Pickup & Delivery Logistics

Pickup & Delivery Logistics Without metrics that you use to analyze the appropriate data for your business, the process of managing the work will be very difficult, and for the Pickup & Delivery Logistics, you will need a number of metrics and standards in order to be able to manage the process and evaluate the success of your organization.

Top Metrics & Benchmarks to measure In Pickup & Delivery Logistics

There are a number of important metrics used in Pickup & Delivery Logistics, which any company can use to measure its performance, thus knowing how well it can achieve its goals. Here are the Top 5 Metrics & Benchmarks to Measure in Pickup & Delivery Logistics :

1. On-Time Pickup Percentage

One of the most important metrics that is used, and in general, we calculate the percentages of receipts at a time by dividing the total number of receipts on time by the total number of shipments in a given period.

This criterion helps you to know the performance of the shipping logistics company and the extent of its impact on your operations and customer service, whether it affects positively or negatively.

An accurate measurement of unsuccessful receipt times will help you identify the most important problems that you may face early, thus preventing any potential obstacles from affecting the product’s delivery to the appropriate destination.

This standard also provides you with other benefits, for organizations, knowing the percentage of on-time receipt will help them give them the reason behind the problems that affect product sales.

Shippers will be able to see the timing of the carriers, and how this affects their delivery schedules.

2. Perfect Shipment Measurement

As for this scale, it is called the ideal metric for your request, because it measures the percentage of your requests that were completed without any errors.

The goal of this metric is to enhance your delivery process by gradually finding and eliminating defects, which will help managers know all the causes of failure.

3. On-Time Delivery Adherence

It’s called (MABD), and that’s because it commits to delivery on time, and this metric shows you the average on-time delivery versus the date customers order.

This metric is especially important to merchants, especially retailers, who pay fines for late orders.

This scale can also be used to determine the percentage of items that are delivered on time, as well as knowing their value and when they are available, early or late.

All of this will help you effectively increase the efficiency of your supply chain, by committing to on-time deliveries, and by continuously monitoring and monitoring deliveries.

4. Freight Bill Accuracy

You can measure the accuracy of a freight bill by dividing the total number of error-free shipping invoices by the total number of freight invoices in a period. Learn about : freight broker

And you must note that this scale is measured in general, and every shipping company has a scale for it, and this scale will help you in identifying any problems that may pass.

Its importance is highlighted in that it helps managers identify problems at an early stage, and thus take appropriate measures to solve them before the situation worsens.

All of this will avoid unnecessary fees and costs, and thus reduce transportation costs, which will positively affect your bottom line.

5. Transit Time to Distance

The last metric in our list, which expresses the time it takes for the shipment to leave from your facility and reach the customer, and that period may be in days or hours.

In general, transit times vary according to the shipping method used, the transportation systems themselves, and road conditions as well.

But this metric will help you monitor transit time, thereby improving that process and knowing the factors that may affect the transportation process while minimizing them as much as possible.

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Inventory control is one of the most important things in the fields of industry and production, and it simply and briefly represents all the methods or methods that ensure the existence of detailed lists of the (primary) raw materials necessary for manufacturing as well as the manufactured materials that aim to meet the needs of customers throughout the year, avoiding the freezing of cash flow and reducing Waste of resources.

Inventory control has a role in determining the quantity of inventory of a particular item, as well as when it must be requested from the Purchasing Department and determining the safety limit that does not fall below the minimum stock of this item, and in this matter we will get to know together what is meant by inventory control in some detail.

What is meant by inventory control?

At first glance, inventory control and inventory management look the same, and the reason for this confusion is that they both cover similar rules revolving around the famous question, “What is the ideal quantity of inventory a company should demand?”

But inventory control is a process that regulates and maximizes your company’s warehouse inventory, with the goal of increasing profits with minimal investment in inventory, without affecting customer satisfaction levels. The inventory control process includes the following:

• Barcode scanner integration
• Rearranging reports and adjustments
• Product details, date and location
• Comprehensive inventory lists
• Synchronize inventory in real time with sales orders and purchase orders

Objectives of inventory control

The most important objectives of inventory control can be summarized in the following points:

• Obtaining the lowest prices from raw materials that have a direct impact on increasing the profit margin of the manufacturer.
• There are many raw materials that are available during certain times of the year, that is, seasonally, and therefore quantities of them must be reserved to ensure that the consumer is not disconnected from the finished product.
• Not to freeze cash flow resulting from the increase in inventory, and improve productivity by reducing losses resulting from increased inventory, and managing cash imports and exports.

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How to practice inventory control 

Given the importance of inventory control and its role in increasing profitability, and ensuring that there is sufficient inventory on hand so that it does not run out,

There are a number of inventory control best practices that you should try and take advantage of, and here are the best practices for inventory control:

1. Use inventory optimization tools

Inventory optimization tools are of great importance, because they actually take into account the fluctuations of demand and the extent of supply variability. They also have a number of parameters that can help you determine how much inventory should be kept to meet the differences between demand and supply.

2. Use real-time analytics

Real-time analytics helps you identify inventory in real time, and it can help you track that stock in one form.

3. Avoid treating all stock holding units the same way

One of the most common mistakes in inventory control is treating all inventory holdings in the same way, which is wrong because every product differs from the other in terms of supply and demand fluctuation patterns, and in order to be able to increase your sales and profits, you need to focus on those who represent 80% of Your stock size.

4. Monitor your suppliers well

One of the best practices in inventory control is to follow your customers closely, so you can identify trusted people and untrustworthy people.

5. Try to take advantage of smart phones

One of the most prominent and best practices in inventory control is relying on devices and smartphones, thus providing the largest number of mobility solutions and thus providing greater accuracy and speed in work.

The Pareto principle

Did you know that 20% of the employees of some companies do 80% of the work? Did you know that 80 percent of some organizations’ profits come from only 20 percent of their clients?

This is due to the 80/20 rule or what is known as the Pareto principle, a principle that was developed by the Italian economist, Philfredo Pareto in 1896, and this principle states that 80 percent of the results come from only 20 percent of the causes of a specific event.

And the 80/20 rule helps companies stop trying to do everything at all times so that time, energy and money are directed to those things that yield the highest and best results with the greatest possible effort.

The more focused the inputs, the better the output, and for inventory control, you need to focus only on those 20% who statistically make up 80% of the volume and manage this inventory, which will enable you to maximize sales and profits.

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Inventory management software for better inventory control

Inventory management is one of the most important things that can affect the efficiency of any business. Inventory is one of the most important assets that the facility owns.

Therefore, attention must be paid to managing it well through the so-called inventory management system because it greatly helps in the inventory management process.

In addition to that it saves a lot of time and effort that traditional methods spend, inventory management software can help you effectively improve your inventory control, and Diggipacks can help you provide inventory management software to monitor your inventory.

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Safety stock is one of the important things that must be done in warehouses, which helps mitigate the risks resulting from running out of stock for a particular company, so until production does not stop, the Purchasing Department knows the amount of the factory’s daily needs of raw materials used in production, then measures the amount of time needed between The point of ordering the materials from the supplier and the point of arrival of these materials to the factory stores, and accordingly you determine the safety stock, and in this article we will show you everything you want to know about safety stock and how to calculate it.

What is meant by safety stock?

It is the stock that the company needs in order to mitigate the risks that may fall into it as a result of its depleted stock from warehouses, and in general, there are two types of inventory, namely:

• Core inventory, which is the stock of products that remain throughout the year.
• Seasonal inventory, which is the stock of products that remain for a specific period of time.

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How do I calculate safety stock?

There are two methods of calculating safety stocks:

The first method | Calculate security stocks using the basic formula

The basic formula for a safety stock is:

• Safety Inventory = {Maximum Daily Sales * Maximum Lead Time in Days} – {Average Daily Sales * Average Lead Time in Days}.

The second method | Calculate safety stocks using standard deviation

Although calculating safety stocks using standard deviation is the most complex method, in view of its complexity it is the most accurate and takes the following formula:

• Safety Stock = Level of Service Required * Standard Deviation of Lead Time * Average Request

*Note that:

• The required level of service is the likelihood that the company has sufficient available stock to satisfy the current customer, which you can obtain by balancing inventory costs against the cost of inventory.
• Standard deviation of lead time means the differences that may result in the agreed lead time and the delivery time itself.
• Average order, which means the average quantity of products that customers have purchased during a given period of time.

What is reorder point? 

Reorder point is one of the important metrics that help in determining delivery lead time, delivery options and it is closely related to security stock, as it indicates when the time is appropriate to place a new order for stock restocking.

In addition to determining the minimum order and displaying the quantities, this helps companies avoid the process of running out of stock, which saves them from many exorbitant costs, and thus the re-order point helps in:

• Provide temporary time for restocking goods.
• Reducing rush fees owed to suppliers.
• Reducing operational clutter.
• Use warehouse space more efficiently.

How do I calculate the reorder point formula?

The reorder point means the level of stock at which you will rearrange in order to be able to meet the demand and improve the control of the inventory, and you can calculate it by using this formula:

• Reorder Point = Timeout Order + Safety Stock

*Note that:

• Timeout Order = Lead Time * Average Daily Sales
• Lead time = the sum of the number of days from the date of the order until the date of receiving the goods in the warehouse

Inventory Management Software for Safety Stock

There is specialized software in stock management for safe inventory, which is one of the methods of automating the inventory management process, which helps reduce the potential for accumulation of raw materials and thus increase storage costs, and it also works to control orders, raw materials, etc. to meet the demand of your customers.

And sometimes it happens that your inventory runs out, which may be due to a defect in coordination between suppliers, manufacturers, customers, as well as sales representatives.

Inventory management software helps you track your inventory, check the availability of sufficient stock to meet customer demands, and it also works to know the amount of safety stock required.

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Supply chain resilience is a key component of business success. It refers to more than just an efficient supply chain network. The term also refers to a company’s ability to outperform anticipated threats and disruptions, besides the ability to recover quickly and efficiently, in this article we will show you 5 strategies to build Supply Chain Resilience in a Connected World.

What is supply chain resilience?

Before we start talking about the five strategies for building supply chain resilience in a connected world, we will first need to know what supply chain resilience is.

Supply chain resilience is the ability of the supply chain to anticipate and resist the unforeseen events, which result in supply chain disruption.

This is very important for e-commerce solutions ​companies, which need to establish a strong supply chain along with other plans and processes,

With the aim of satisfying customers, this ensures business continuity in light of unexpected disruptions.

5 strategies to build more resilient supply chains

Now after we know what supply chain resilience is, we can talk about the five strategies for building supply chain resilience:

1. Distribute your inventory across multiple locations

The first strategy is to distribute your inventory to more than one warehouse, in order to face the possibility of any natural disaster or emergency event that prompts you to close your warehouse.

The main advantage of this is the ability to reach customers faster and thus expand customer reach, as well as speed up shipping time and reduce shipping costs.

If anything unexpected happens that prompts you to close your warehouse, you will fail to fulfill customer orders with more delays and delays that customers hate so much, which will affect your reliability and subsequently your revenue and profits.

2. Understand your data

The second strategy is related to understanding the data of your facility. Gaining a real-time view of your supply chain will help you build resilience in several ways, the most important of which are:

• Better inventory control.
• Enhanced ability to track supply chain performance.
• Speed ​​up access to historical inventory and demand data.

By understanding the data well, you will be able to improve your inventory levels, by determining the amount of safety stock that you will be able to store, and this is very important if you know, especially that the buffer stock or safety stock can lead to a significant increase in costs.

So, you need to accurately plan the temporary stock levels, and in this case you can use the warehouse management system, which is one of the forms of modern technology, and you can also synchronize it with your inventory management software.

3. Partner with multiple suppliers

The third strategy is to partner with a number of suppliers, which will make you immune to risk, especially when the primary supplier cannot be delivered due to shortages or trade restrictions.

Therefore, the process of partnering with a different group of suppliers will help you greatly in reducing the risks resulting from lack of inventory, and thus avoid the problem of disrupting your supply chain.

This, in turn, will fulfill customer demand at any time, even if there is a shortage of e-commerce stock for example.

4. Leverage different carriers

The fourth strategy is to try to take advantage of different carriers, thus avoiding shipping delays, as by using multiple carriers, you have more flexibility in shipping.

You can turn to a third party to help you improve your shipping strategy without having to manage multiple partners yourself, which also saves you time, effort and money.

5. Rely on logistics experts

Fifth and final strategy, relying on logistic experts can help you build your supply chain’s resilience in an excellent way.

It is not just about providing a strong supply chain infrastructure, but also having a number of logistic experts will make a big difference.

These logistical experts will anticipate any potential disruptions, and thus the possibility of avoiding them before they occur, or plan ahead for them.

So you notice that there are a large number of companies, especially e-commerce companies cooperating with third party logistics (3PL).

Outsourcing your logistics has never been easier

The process of outsourcing logistics has become easier than ever, due to the great advances in technology and the adoption of the highest level of technology by a large number of parties.

Diggipacks can provide you with the latest technology and technology that you will need for your online store, from syncing your store to being able to track and manage inventory and orders from your dashboard

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Buffer inventory is one of the important things that helps you in maintaining high levels of customer service, as it is one of the essentials to face fluctuations in demand or future fluctuations in general, especially since delaying customer requests on time negatively affects customer satisfaction, and stock runs out suddenly or not. The ability to discharge inventory may incur more costs, and in this article we will talk about Buffer Inventory and how it can make or break a business.

What is buffer inventory?

It is your surplus inventory, which is stored in warehouses for use in the event of an unexpected emergency, such as a supply chain failure, transportation delays, or a sudden increase in demand.

It can also be defined as the limit within which the inventory of any item must not be less than this level, thus avoiding any other costs, such as the costs of running out of stock and the opportunity cost and other costs that the institution can control by providing the necessary solution from the inventory.

*Noting that this does not negate that “the quantity of safety stock should be reduced to the least possible because in reality it represents idle capital.

Buffer inventory vs. safety stock

In fact, the two terms are used interchangeably, both of which refer to the additional stock that resides in the warehouses of a facility, as a reserve in case of unexpected changes in supply or demand.

There are some who believe that ‘buffer inventory’ refers to the stock that is provided specifically for cases of unexpected increase in demand for a particular product, while the term ‘safety stock’ refers to the amount of inventory held in the event of any delays from the supplier itself.

But in general, both terms Buffer inventory & safety stock serve almost the same purpose, as their objective is to ensure business continuity with sufficient inventory to meet and fulfill orders in the agreed time.

Why you need to keep buffer inventory

You may be wondering why you might need to keep a buffer inventory. Quite simply, buffer inventory is very important, especially since inventory forecasting is never 100% accurate.

Therefore, buffer inventory helps you reduce inventory costs while also avoiding any delays in fulfilling customer orders and shipping.

Therefore, a buffer inventory is a contingency plan that helps you prepare for any unexpected events on the job.

How to calculate buffer inventory levels

After we have defined what is meant by buffer inventory, we will now need to know how to calculate buffer inventory levels. In general, your buffer inventory depends on a number of factors. There is no one buffer inventory size that fits all, and this means that you will need to do some calculations in order to arrive at the amount or your appropriate buffer inventory.

There is more than one way to calculate the right buffer inventory levels for you, and getting the right buffer inventory level is essential so that you can improve storage and ensure orders are executed on time, and thus customer satisfaction.

In order to calculate the appropriate buffer inventory level, you need to determine a number of things first and then use the appropriate mathematical formula. These things are:

• Average daily usage.
• Average lead time.
• Maximum daily usage.
• Maximum lead time.

After accessing the data that we mentioned in the previous points, you can now use this formula to find the optimal buffer inventory level:

• (Maximum daily sales*Maximum lead time) – (Average daily usage * average lead time)

Simplifying your inventory management

Warehouse management is not an easy task, but rather it requires a great deal of work and effort in order to manage the stores efficiently and effectively.

And when your business begins to grow and expand, you will start thinking about how you can simplify your inventory management, and here are some ways that can help you in simplifying inventory management.

1. Use of inventory management software

You can actually simplify your inventory management through the use of technology thus saving a lot of time and effort as well as money as well.

Inventory management software can help you track and manage inventory from multiple channels in real time, and there are a variety of inventory management software to help you analyze trends in your past orders.

It can also show you the entire inventory data, thus helping you to make the best decisions, and ultimately, all orders will be fulfilled on time and costs will be reduced.

2. Hire logistic experts

Partnerships with logistics experts can also help you simplify your inventory management, especially as they are experienced in the field and thus help you improve inventory levels while spending less time on logistics.

3. Outsource to a 3PL

Also, instead of using inventory management software or hiring logistics experts, you can also outsource a 3PL especially since supply chain management is a time consuming process.

This can help you improve inventory management as well as warehousing; order 3pl fulfillment and shipping on time, and this will save you a lot of effort, time and money as well.

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E-commerce depends on distribution centers, and in fact, businesses of all kinds need more than storage warehouses. In order for companies to compete with other brands in the market, they will also need a number of other ingredients and advantages, on top of which is experience as well as technology, hence the need for centers Distribution, which will be the alternative to traditional warehouses, especially since distribution centers provide their users with a strong infrastructure to fulfill all orders, which e-stores are looking for, where speed and accuracy in shipping orders as well as trying to reduce costs as much as possible, and in this article we will show you everything You want to know about distribution centers and their most important benefits and operations that you can benefit from.

What is a distribution center?

Before we start talking about the huge advantages that distribution centers can provide to you, we will first need to know what distribution centers are, and distribution centers are defined as:

The warehouses specialized in storing ready-made items in a simplified strategy, starting from facilitating the picking and packing processes, all the way to shipping items to the destination final.

The term distribution center is often used interchangeably with the term 3pl fulfillment center. Distribution centers also carry out the task of executing orders and other services that result in added value.

What are the differences between a distribution center and a warehouse?

There is a common mistake where a large number of people confuse the concepts of “distribution center” and “warehouses”,

But in fact there are differences between them, and the following are 4 differences between distribution center and warehouses:

1. Storage management

Warehouses are limited to storing items inside; as they are like a huge building with a number of shelves to store items in.

Distribution centers have a greater degree of flexibility, as they are operated by third-party logistics companies (3PL), which specialize in providing a number of innovative warehousing solutions that can reduce many of the non-essential costs,

It will also help you in optimizing the use of space, in addition to the fact that distribution centers simplify the process of shipping orders to customers, executing orders more efficiently.

2. Customer-centric processes

The second and also important difference is that warehouses in fact only provide customers with storage space, and make you pay for that space, so they do not provide any value-added services.

But distribution centers give you more, as they not only provide you with a warehousing service, but also help you improve your supply chain, in addition to providing a number of other services, such as direct shipping orders to customers.

Distribution centers provide their users with superior infrastructure and technology that provides you with best practices, helping you reduce costs and time, by taking care of logistical tasks that can make you take longer.

3. Shipping workflows

The third difference is that warehouses often cannot provide you with shipping solutions or services, that is, the warehouse is only to store your items or inventory, but if you want shipping services to customers, you must arrange the matter yourself.

This is in contrast to distribution centers that can take over the task of shipping operations to customers as well, in addition to the storage service,

Especially since distribution centers can integrate directly with e-commerce platforms, automatically sending orders to the nearest distribution center and then automatically picking and filling.

4. In-house processes

As for the fourth and final difference, warehouses lack in-house processes, as they are contained only for storing items in them.

This means that warehouses cannot help you save on storage costs or suggest, for example, some ways that you can improve your supply chain.

However, distribution centers address this point, as they focus on the accuracy and speed of orders as well as efficiency in execution by relying on modern technology, and thus providing the best ways to improve implementation processes continuously.

What are the essential distribution center processes?

After we got acquainted with the concept of distribution centers and the most prominent differences between them and traditional warehouses, we will now show you the most important basic distribution center operations,

Distribution centers in general are designed to process orders very quickly and accurately, and then ship them efficiently. The basic distribution center operations are described in some detail:

1. Receiving and storing stock

Distribution centers receive inventory and store it, after unloading and checking it well. Distribution centers provide you with easier, more effective and efficient inventory management, in addition to saving costs as much as possible.

2. Picking and Packing

Centers of Distribution improve picking and packing processes, because they are technology-enabled as technologies such as warehouse management systems are used, thus achieving more efficient workflow through improved speed and order accuracy.

3. Restocking

One of the major Center of Distribution operations is restocking, which helps you verify that you have sufficient inventory and are ready to run through.

Centers of Distribution offer you to avoid excess or shortage stock, through modern technologies such as inventory management software and various automation tools.

4. Returns Management

One of the most important operations of the major Centers of Distribution is return management.

Centers of Distribution provides you with excellent returns management, which helps in achieving customer satisfaction as well as significantly reducing logistics costs.

How diggipacks Centers of Distribution benefit ecommerce stores

Diggipacks technology is designed with the highest standards to serve customers better, through the modern technology that it follows, in addition to designing special applications for each customer as well as the customer control panel,

Giving customers the ability to follow up on the latest updates and reports anywhere or anytime, Diggipacks can also help you improve fulfillment and shipping. Below are a number of other services that Diggipacks can provide you with.

you may like:

What Online Retailers need to know about 5PL

Process returns quickly 

Returns to Inventory are a key feature of Diggipacks technology. As Diggipacks converts your online store revenue into a positive experience for you or your customer by quickly processing returned shipments to ensure customers get their refund as quickly as possible.

Same day processing of orders

All orders are processed and sent to shipping companies on the same day of the order, maximum at 1:00 pm of each working day,

Which means even if your order has been entered on Diggipacks systems at 12:58 pm Diggipacks will prepare it and send it to the shipping companies without any delay.

Automated API Integration

Diggipacks systems are connected directly with your website using one of your linking tools to be able to send requests to us automatically.

Once the order is made through your customers, you are not required to write to us or send your requests in excel.

Diggipacks systems are designed to send requests directly to our partners and prepare them as quickly as possible and Deliver it to your customers

Integration with other platforms

You can now integrate using our system with any e-commerce platform within 15 minutes using:

• Magento.
• OpenCart.
• Shopify.
• WordPress.

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Advances in technology have helped create effective solutions to deal with inventory and therefore limited opportunities for error, there is great importance to an order management system, as an order management system provides an overview of your inventory and helps you keep track of what is consumed, providing you with the information you will need to create insights on how to deal efficiently with Your money by highlighting the loopholes in your system and where you are losing money, and in this article we will show you Order Management and Order Processing, and why they are important to your business.

What is order management?

Order management is the process that organizes the delivery of orders to customers as well as the process of implementing and cargo tracking those orders.

Order management begins from the placement of the order until the customer receives his order successfully.

This process is large, so if you have a large business, you need to simplify the order management process by automating it, and thus save more effort resulting from the large number of incoming orders.

What is an order management system?

It is the system that provides you with an integrated store, where the ability to view and manage all customer orders in the same place, and some order management systems are equipped with bi-directional synchronization.

This two-way synchronization will assist you in ordering between your order management system and your e-commerce system, thus providing a complete view of the order passing process.

Order management systems have helped to automate the flow of sales order information to every part of the retail supply chain.

Thus, you can now track the customer’s order process from the beginning until the customer receives his order, even if there is a retrieval process that you will be able to follow.

What is order processing?

After we know what an order management system is, you will also need to know what order processing is, quite simply, the process by which the work flow is from placement of order to delivery.

In fact, order processing is one of the key elements in retail order fulfillment, which entails accuracy and reliability, and thus increases customer confidence.

The order processing can take one of two forms:

• Manual processes
• Highly technological and data-driven processes

The order processing goes through a number of basic steps, namely:

• Picking up.
• Sorting.
• Tracking.
• Shipping

Why your business needs accurate order management

In a small business, you may not need to strictly manage your orders, but when your business expands,

And the orders start to grow exponentially; you will need accurate order management in your business.

Here are a number of advantages that order management can provide to you in your business:

1. Reduce errors fulfilling orders

Order fulfillment errors occur when orders increase dramatically, as you find that you are bombarded with messages from customers inquiring about the status of their orders,

Along with a large number of complaints about delays in delivery times, these customers can even request a refund and cancel the order.

But with an order management system, you avoid that problem from the beginning, as automated systems help you completely reduce human errors,

Thus avoiding the problems of wrong delivery or delayed shipments.

2. Avoid under and over stocking situations

When the stock is less than what is required or more than what is required, this can cause you a lot of problems, on top of which is an increase in costs,

As well as problems in meeting customers’ orders and thus losing a percentage of customers.

But an order management system can help you avoid these issues from the start, as it provides you with an accurate view of seasonal trends in stock levels.

3. Reduce wasted time

Perhaps one of the most important advantages of order management systems is that they save time greatly, as these systems perform many tasks with great accuracy,

That saves your time and allows you to use it in other businesses to expand your business or develop your brand.

4. Providing the necessary information to make the right decisions

Unstructured data is difficult to understand and therefore difficult to benefit from, and data is the most important element for decision makers,

So it must be reliable and organized to make appropriate decisions.

This is what order management systems allow you to do, as you provide all your data and sales orders in one place,

Thus making it easier to analyze the available information and make appropriate decisions.

This will eventually lead to supply chain improvements, along with reduced shipping costs and faster delivery, thus positively impacting profits.

The order management cycle

Now it’s time to introduce the order management cycle, which is an integrated process, starting with the customer’s purchase of a product, and continuing through to delivery and sometimes returns.

Operations management goes through a number of stages, which can be controlled by more than one party, in order to provide an integrated experience for customers, and the following is the order management cycle:

1. Order placed

Customers’ requests are from different places and at different times as well, and therefore you need a specific tool to implement that process for you,

It collects the order and shipping details for you as well as the delivery address, and then puts it into the order management system.

2. Order received

The second stage is receiving requests, and then all information related to those requests is passed to the 3pl fulfillment centers to process the request, which helps reduce delivery time as well as costs.

3. Order is picked

The third stage is to pick up orders from the available stock and then deliver them to the packing moment, and here the role of warehouse management appears, which can greatly affect the way the inventory is arranged to be delivered in time.

4. Order is packaged

After selecting the customers’ requests, those requests are now packaged, and the packaging department fills those requests in a way that reduces the weight of the dimensions, in addition to choosing the packaging method that provides the greatest protection for customers’ requests as well.

5. Order ships

Here comes the stage of shipping orders to customers. After the orders are properly packaged, they are prepared for shipment, with a tracking number assigned to the orders and shared with the customer so that he can follow up on the status of their orders during the trip. This provides them with a measure of confidence and comfort.

6. Item delivered

Finally, the orders are delivered to the end customers, noting that effective order management will help you deliver the correct orders on time without any errors.

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Shipping different items or goods is full of different methods and terms, and one of the most important terms related to shipping is direct shipping and transshipment, and there is a big difference between each of them, and each method has a number of advantages that the other method does not provide, along with a number of disadvantages as well, and in This article will show you everything you need to know about direct shipping and transshipment, as well as what is the most appropriate shipping method between them and what are the factors for choosing the appropriate method.

What is Direct Shipment?

It means that the ordered items are shipped from start to finish through a direct route, which means that those items are transported directly from the port of origin to the port of destination.

Or in other words, direct freight means that the ship transporting the goods does not need to stop at any intermediate ports to unload its cargo, but rather moves directly to the final destination. Have you heard about Cargo Tracking ?

What is Transshipment?

It is not the same as Direct Shipment; it is a shipping method, in which items are shipped to an intermediate destination first before being shipped to the final destination,

Meaning that the ship that transports the items can unload those items or goods they are carrying through an intermediate port.

Usually, this method is used when the first method, direct shipment, is not available

Direct Shipment vs. Transshipment

There are a number of differences between direct shipping and transshipment, and here are the main differences between them:

• Direct shipping does not use any intermediate ports, but rather transports the required items directly to the final destination,
• As for the transshipment, it uses the intermediate ports before transporting the items to the final destination, and the following are the most prominent differences:
• Direct shipping reduces the time taken in transit, because there is no need to unload the cargo in an intermediate port, while Transhipment takes longer in transit due to the unloading and loading operations that take place while using an intermediate port.
• By using the direct shipping method, the risk of delay is avoided, as the shipment moves from the starting point to its final destination without using intermediate ports,
• Unlike transshipment, where this method is more prone to the risk of delay due to the additional time it takes to unload the cargo at an intermediate port. Diggipacks provides you with track shipment.

Which Shipping Method Should I Use?

After we got to know both direct shipping and Transhipment and the most prominent differences between them, you may now be wondering, what is the appropriate method that I can choose while shipping goods?

In fact, the answer to this question depends on the nature of the shipment, as well as your capabilities, as:

• Direct shipping method is most suitable if you want to ship the goods urgently i.e. you don’t want any delays, and also if you can afford direct shipping cost, because usually direct shipping is more expensive than transshipment.
• If you want a less expensive option, Transhipment is the most suitable for you, and it will also be suitable if you do not want to ship the goods urgently, or there is no other shipping method available other than transshipment, of course you will use it.

What are the benefits of direct shipping over transshipments?

There are a number of benefits offered by the direct shipping logistics, as:

1. Avoid any potential delays

As we talked about, the direct shipping method transports items from the starting point to the final destination without using any intermediate ports,

And therefore there is no time lost in the event of crowding of intermediate ports or during unloading and loading operations.

2. Save time

The direct shipping method also has the advantage of reducing transit time, because there is no need to use intermediate ports to unload the cargo in the middle of the shipping journey.

When should I use Transhipment to transport my cargo?

Here are a number of factors that indicate that you should use Transhipment method to transport goods:

1. If you want an affordable option

The direct shipping method is more expensive, so if you want an affordable and budget-friendly shipping method, then of course Transhipment is right for you.

2. If there is no direct path available

Sometimes you will need to use the Transhipment method if there are no other direct routes available, in many cases there are no direct routes especially if the desired destinations are far apart.

3. If you want to avoid customs duties and import duties

One of the most important advantages of the Transhipment method is that it is less expensive and helps avoid paying some tariffs and import duties.

What different documents are required if the shipment is not direct but transshipment?

As for the documents required in the case of transshipments, they are exactly the same as those required in the case of direct shipments.

There is no difference between them; you only need to submit the documents you need at the destination. The following are the most important documents required:

• Commercial Invoice.
• Packing List.
• Packing Declaration.
• Certificate of Origin.
• General Declarations.

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Product diversification is one of the most prominent strategies that help in the growth of the business significantly, so successful leaders know that if they want their business to grow and prosper in the long term, they will not be able to stick to the same old way of working, as they must find ways to reach customers Or new consumers and thus increase the profits that they always aspire to achieve, so one of the strategies to achieve this is diversification, and in this article we will show you everything you need to know about product diversification and the best product diversification strategies, and how successful diversification is.

What is Product Diversification?

Product diversification is a growth strategy that involves adding digital products, services, and markets to your company’s core business.

Business diversification can also mean expansion through new production lines or services, and you can use this strategy to take advantage of momentum in a new market, or to reduce the risk of a core market downturn.

Diversification Strategies

There are three types of product diversification strategies, which are as follows:

1. Concentric diversification strategy

Concentric diversification involves adding similar products or services to an existing business

2. Horizontal diversification strategy

Horizontal diversification involves offering new and unrelated products or services to existing consumers.

3. Conglomerate diversification strategy

It involves adding new products or services that are largely unrelated and without any technological or commercial similarities. And you can manage your products through e-commerce services in diggipacks .

What are the most risky product diversification strategies?

After we have presented the three strategies for product diversification, we can say that among those three types of diversification techniques, conglomerate diversification is the most risky strategy.

Conglomerate diversification requires a company to enter a new market and sell products online or services to a new consumer base.

This means that the company incurs higher research and development costs and advertising costs; in addition, the probability of failure is much greater in a conglomerate diversification strategy.

Risks in Product Diversification

The process of product diversification involves huge risks to the company or facility that applies it, because there is a possibility of increasing costs for it or not succeeding, and thus incurring additional costs.

Therefore, it is advisable to use product diversification strategies in the event that the market of that company turns into a stagnant market with slow opportunities or almost preparing for future growth.

Then, it is preferable to test the extent of the audience’s attractiveness to the products before starting the application of product diversification,

In addition to studying the costs so that the cost of entry does not eliminate the expected profits.

Product Diversification vs. Market Diversification

The alternative to diversifying your product is to diversify your markets, and that means attracting new customers using an existing product or format.

Companies with successful high-end products may offer a low-to-mid-range option to economic buyers to attract a new market.

This may not provide the same profit potential as high-end solutions, but it does provide access to a new market and higher sales volume.

Examples of Successful Diversification

After we talked about product diversification and its most prominent strategies as well as its weaknesses, there are a number of successful models in applying and using diversification strategies.

And the following is one of the most prominent successful models in product diversification:

1. Walt Disney

The Walt Disney Company has successfully implemented diversification strategies, diversifying its business, from cartoon business, to owning huge, popular theme parks.

It has also succeeded in creating brands, airlines, resorts, TV broadcasts and leisure activities that are among the most popular forms of entertainment today.

2. General Electric

We cannot talk about successful diversification models, nor do we mention General Electric, as it is one of the most successful companies in diversification, as it initially merged with two electric companies,

Then, it started working in a large number of fields, such as aviation, power cables, oil and gas, renewable energy, as well as transportation and healthcare.

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