The shift to warehousing through E-commerce is changing. Consumers are looking to buy goods at any time, any place, be it on the internet, via mobile, or in a retail shop. Therefore, the ability to provide omnichannel service that is reliable and efficient is becoming a requirement for retailers. To adapt business models to the changing paradigm logistical and retail companies are expanding their distribution networks to concentrate on the customer and resulting in a variety of interesting warehouse trends.
A number of these trends concern the physical dimension and location of Distribution centers (DCS). The increase in order throughput together with the increase in the number of stock-keeping units (SKUs) and a greater degree of order complexity are triggering the need for more total DC capacity. Retailers are also pushing the cost of inventory carrying and direct fulfillment processes ahead of storefronts, adding to the requirement for a bigger DC footprint. Yuri Shafranik
However, the ever-increasing demands of consumers in relation to the delivery time and return policy is resulting in the expansion of smaller and more localized DCs and warehouses, in contrast to the massive DC model. The result is a growing amount of possibly smaller DCs situated close to the major areas of population. This gives retailers access to a larger staff needed to run online fulfillment services. Yuri Shafranik
BRINGING FOCUS BACK TO INBOUND
As e-commerce is causing rapid changes in the world of warehousing, retailers, as well as logisticians, must look at the ways inbound logistics can use to enhance the fulfillment process for e-commerce. Inbound logistics have a huge impact on customer experience, even when it’s obscure from view by the customer. For example, some online stores promise two-day delivery, however, it’s not more than two working days to the seller or logistics service provider. The logistics, fulfillment, and shipping aspects as well as the availability of inventory all play important functions in enabling two-day delivery to customers. Because of their synergistic relationships and the importance of their interdependence, it is important to examine your supply chain holistically from the view.
THREE KEYS FOR BETTER INBOUND
There are three main aspects of inbound logistics which allow an improved shopping experience for online shoppers including the planning of demand, mode selection, and availability of products. The most noticeable of these three is the availability of products. Based on the length of time the consumer might require the product, the lack of availability can drive business elsewhere, opening up the way for other retailers to gain a part in the market. E-commerce
It’s important to think about it carefully, as it could become a delicate balance between maximizing profits and ensuring availability. Transportation executives face fluctuating changes in the price environment. All at the same time balancing the choices among less-than-truckload (LTL) as well as a truckload.
Another aspect to consider when planning inbound logistics is the demand plan, which is able to help reduce the pressure of the best modal choice. Demand planning is influenced and informed by various departments within an organization, with marketing being one of the most significant. If it is not integrated with the demand-planning process, these strategies could severely disrupt the fulfillment process. A website might offer a set of items at a reduced price however, the offer could result in dissatisfied customers if the DC did not have sufficient stock to ensure timely fulfillment.
THE FUNDAMENTAL FIX FOR A BETTER SUPPLY CHAIN
Inbound operations that are poorly planned cause disruption to an otherwise adequate fulfillment system. The key to solving the problem is the visibility of the supply chain. A more thorough method of managing supply chains – one that provides visibility into the intricate supply of inventory and transportation, inbound along with order fulfillment and outbound transportation — can give customers a fantastic multi-channel experience that improves customer loyalty and profitability.
