The need for speed in ecommerce distribution, driven largely by Amazon Prime’s two-day promise, is behind increased investments in distribution center technology as well as a trend toward more smaller, forward-based facilities closer to the customer, according to a new report. Find out what other topline results came from the survey of 1,400 IT and warehouse professionals around the globe.
While there are many clear advantages to using a third-party fulfillment (3PL) partner for outsourcing some or all of your operations, the majority of merchant companies still opt for keeping these functions in house and firmly within their control. According to respondents to the MCM Outlook Survey, 26.5% of respondents said they use a 3PL in 2016, up from 21.2% in 2015, while the rest said they handle fulfillment internally. Of those who said no, only 2.9% said they are considering use of a 3PL, down from 6.2% in 2015.
A good vendor compliance policy will help your organization improve its on-time performance and reduce the time and money spent on warehouse rework (e.g. prepackaging, correcting vendor errors, etc.), while reducing time spent on vendor disputes, claims and chargebacks. Here are some tips to help you create a vendor compliance policy that will ensure smoother working relationships while eliminating costly issues.
The Amazon effect is still having a major impact on DTC and ecommerce operations and fulfillment, judging by the results of the MCM Outlook Survey 2016. This impact is seen in the increasing frequency of same-day and next-day delivery offerings – and providers – as well as the growth in omnichannel operations, now seen as table stakes by many retailers. Find out more about the survey results and how they reflect industry trends.
For a growing number of merchant companies, automated systems have become a way to address the issues of increasing throughput and order accuracy while decreasing returns. In addition to accuracy, often the biggest driver of automation decisions, the ability to achieve higher throughput per headcount, increasing efficiency while keeping down labor costs, is also paramount.