From Local Kitchens to National Retail: How D2C Food Brands Can Fix 60% Fulfillment Bottlenecks

15:00 | 23 July 2024

by Meetali Ghadge

Modern warehouse team using automated Warehouse Management System software for D2C order picking and packing.

As D2C food brands move beyond their region of origin and begin to scale up their distribution, their challenges with logistics will also multiply. Handmade, artisanal, and purposeful food goods come with emotional meanings for customers, but dealing with their distribution across both B2C online channels and B2B orders is often the source of logistics problems.

That is why many rapidly growing direct-to-consumer food companies end up with on-time fulfillment of only 60%. Such difficulties stem from issues like inconsistent inventory monitoring, missed customer orders, and delays in wholesale orders, which may lead to the loss of customers’ trust in the brand.

The next step is to learn how modern food brands can turn a disrupted supply chain into a successful fulfillment ecosystem.

1. The Growing Pains of Multi-Channel Food Logistics

To successfully scale a food brand, it is necessary to somehow manage two separate tails:

  • B2C Micro-Fulfillment involves huge order volumes consisting of either single items or small baskets alongside fast delivery expectations and no mistakes in picking.
  • B2B Bulk Shipping involves palletized cargo and compliance rules for retail chains that need strict labels and fixed-time ways for delivery.

When inventory counts are conducted manually or with the help of spreadsheets that are not connected, there is no visibility whatsoever regarding inventory. Missing even a single stock might provoke cancelation of orders.

2. Implementing Real-Time Inventory Control via WMS

Implementing a state-of-the-art Warehouse Management System (WMS) is key to closing the connection between agricultural supply centers and city markets. A specialized set of technology allows for the real-time synchronization of the inventory status at stores, marketplaces, and local centers.

Companies that specialize in logistics such as Edgistify use WMS software as a part of the workflows of warehouses. As a result, discrepancies in stock may be avoided, and overselling can also be avoided, enabling stores to fulfill orders without failure even when there is an increase in demand.

3. Optimizing B2B and B2C Processing Pathways

Rather than using a single pick-and-pack workflow for all shipments, high-growth food brands partition their warehouse floor into dedicated fulfillment zones:

OperationB2C E-Commerce FulfillmentB2B Retail & Wholesale Fulfillment
Picking MethodBatch picking with barcode scanning verificationBulk pallet picking and cross-docking
PackagingBranded consumer packaging and temperature wrapsMaster cartons, pallet wrapping, and retailer ASNs
DispatchExpress courier networks and last-mile parcel servicesScheduled freight transport and appointment delivery
SLA FocusSame-day dispatch and low return-to-origin (RTO) rates100% On-Time In-Full (OTIF) compliance

Setting up custom workflows for each channel cuts operational friction, speeds up order dispatch times, and minimizes fulfillment errors.

4. Driving Scalable Growth and Higher Profitability

When manual tasks that are unrelated are replaced with automated processes for fulfillment, the benefits that brands get are immediate:

1. Boost in fulfillment rates: Transitioning from manual to automated warehouse operations results in fulfillment rates that go up from 60 to 99%.

2. Cut in stockout costs: Access to centralised data on stock prevents order cancellations due to stockout and reduces customer losses of customers.

3. Increase in profit margins: Optimization of order storage, order picking, and dispatch helps in better management of logistics costs.

Compliance

Streamline your pan-India expansion. We support in your APOB/PPOB, handling GST compliance and licensing for any industry.

Get Closer to Your Customers

Get 98% SLA Compliance with Edgistify

Deliver Same-day with Sonic

Ensure guaranteed reduced RTOs with Same Day Delivery

FAQs

We know you have questions, we are here to help

What causes low fulfillment rates in D2C food businesses?

Low fulfillment rates stem from fragmented inventory visibility, manual picking errors, lack of integration between online stores and warehouse systems, and delays in handling both B2C and bulk B2B orders simultaneously.

How does a WMS help prevent stockouts?

A Warehouse Management System (WMS) tracks stock levels in real time across channels. It automatically updates available inventory, triggers reorder points, and prevents overselling on e-commerce storefronts.

What is the difference between B2C and B2B order fulfillment?

B2C fulfillment handles high volumes of individual parcel orders delivered directly to consumers. B2B fulfillment handles bulk, palletized shipments sent to retail stores or distribution hubs with strict compliance guidelines.

Why should artisanal and regional food brands outsource logistics to a 3PL?

Outsourcing to a tech-enabled 3PL partner gives brands access to advanced warehouse infrastructure, automated technology, and logistics expertise without heavy upfront capital investments, letting founders focus on product quality and brand growth.