FULFILLMENT [ INSIGHT ]
by Johannes Panzer Head of Product Strategy, E-commerce, Descartes jpanzer@descartes.com | 800-419-8495
Logistics Technology: The Unsung Hero of Convenience Commerce
As consumers embraced online ordering during the pandemic, e-commerce sales ballooned from $571.2 billion in 2019 to $815.4 billion in 2020—a 43% jump—according to a recent Census Bureau retail survey. Although online sales have cooled since the initial pandemic-driven fervor, consumers continue to drive convenience commerce, with e-commerce sales increasing 6.7% in Q1 2022. More than 20% of consumer spending from January to March occurred online.
accuracy and efficiency, reduce order lead time, and minimize shipping costs. Plus, retailers gain full visibility into warehouse operations and last- mile delivery. KEEPING PACE WITH SURGING DEMAND Forward-thinking retailers take advantage of combined WMS and e-commerce shipping solutions to keep pace with increasing consumer demand and grow shipping volume. By creating a scalable, efficient fulfillment workflow, they are able to increase warehouse productivity through, for example, multi- order picking strategies. They also can cost-effectively ship the right items with help from rate shopping capabilities, avoid overselling existing inventory, and deliver shipments on time—entirely independent of order volume spikes or dips. Unfortunately, heightened consumer demand and mounting sales are mirrored by increased product returns that can catch retailers off guard. Market leaders are turning to technology, such as returns portals or preprinted return labels, that can support reverse logistics practices to optimize the returns process on both the operational and customer experience fronts.
One solution lies in the combined power of warehouse management systems (WMS) and advanced shipping technology specialized for the e-commerce industry to seamlessly execute fulfillment. An under-performing warehouse has a crippling effect on fulfillment performance, especially during order volume spikes—whether from traditional peak seasons, social media-driven sales activity, or unforeseen events such as shifting consumer shopping habits during the pandemic. By adopting an integrated WMS and shipping solution, e-commerce retailers can scale and execute fulfillment seamlessly from receipt of the order to point of delivery (POD). Automated logistics workflows improve warehouse
How does the rise of the convenience economy impact retailers’ ability to create a positive customer experience that drives repeat business and continued revenue growth? With today’s customers expecting on-time and cost-efficient delivery, shipping transparency and choice, and responsive communication across the order lifecycle, successful retailers recognize that customer satisfaction and top- and bottom-line growth hinge on a high-performance logistics workflow. As they grapple with ongoing supply chain disruptions, staff shortages, and rising transportation costs, e-commerce merchants must optimize fulfillment operations to keep pace with sales growth and meet delivery promises to consumers.
24 Inbound Logistics • December 2022
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