Analyst Insight: Suppliers competing in a global market grapple with several factors that are pushing them to redesign their distribution footprints. A boom in mergers and acquisitions, increasing delivery demands, and a shift in the locations of supply sources are all converging, requiring reconfigurations of the single or multi-echelon networks of warehouses and cross-docks used to "hub and spoke" products in a cost-effective manner to customers while ensuring the appropriate level of required customer responsiveness. - Michael Albritton, Director, AlixPartners
E-commerce giant Amazon handled the warehousing, packing and shipping of 1 billion items last year for merchants that are part of its fulfillment program.
Consumers' demand for ever faster service and the overall rapid pace of change in today’s markets will force companies to completely rethink their supply chains over the next few years, says Thomas Craig, president of LTD Management.
Analyst Insight: E-commerce continues to grow by double digits and many companies are striving to achieve omnichannel success. A successful omnichannel strategy means having the capability to meet customers' increasingly high expectations by enabling them to buy anywhere, take delivery where they want to take delivery, and make returns where they choose. While today's leading retailers understand the need for omnichannel success, the majority are falling short of meeting their objectives. – Kelly Reed, Executive Vice President, Tompkins International
Analyst Insight: The rise of omnichannel fulfillment and e-commerce is having a dramatic impact on distribution network design. As omnichannel fulfillment becomes the new normal for consumers, distribution and logistics professionals are increasingly reassessing their fulfillment networks, the attributes of their distribution facilities and the expectations placed on their partners. This reassessment is leading to more innovative fulfillment options, but uncertainty remains on the profitability of additional customer service solutions. – Barry Blake, Vice President, Research, SCM World
Ever tried purchasing something online from a Chinese merchant and realized that it takes weeks to deliver your product - which sometimes doesn't even arrive after all that waiting and may lead to an argument with the merchant?