Oversized fulfillment for ecommerce remains a black hole for many. Pickup/delivery schedules, assembly and costs all friction factors. How do you find more efficiency by reducing costs and what are the customer expectations? Retail executives discuss the issue in our inaugural Think Tank Forum, “Solving for Oversized Fulfillment.”
Fabric, maker of automated systems for on-demand micro fulfillment in urban settings, has raised a fresh $200 million, bringing its valuation above the vaunted $1 billion mark as it looks to expand to new markets beyond its current operations in Washington, DC, New York and its launch site of Tel Aviv.
For the first time, Amazon Logistics surpassed a major carrier in domestic parcel volume, edging out FedEx in 2020, according to Pitney Bowes annual shipping index, although FedEx had substantially more revenue. Pitney Bowes is also predicting domestic parcel volume will nearly double between 2020 and 2026.
DHL eCommerce, the U.S. unit of logistics giant Deutsche Post, is investing more than $300 million in facilities and automation over the next five years, increasing its square footage here by 70%, automating distribution centers and upgrading IT systems. This includes dedicated export gateways in New Jersey, Illinois and California.
UPS announced it was acquiring last mile platform Roadie for an undisclosed sum, thrusting it front and center into a space that has spiked in the pandemic era, providing a way to service demand that doesn’t fit into its existing network, including groceries and bulky items. The deal is expected to close in the fourth quarter.
Now that we’re looking toward a fast-approaching peak and 2022, what has changed about last mile constraints, and how can supply chains retain a competitive advantage through last mile operations? Here are some thoughts, looking at the issue through the lens of spend management, cost to serve and capacity constraints.
