After the pandemic dramatically accelerated the evolution of e-commerce fulfillment, there’s no going back.
Shoppers have embraced the web like never before, and as the pandemic recedes, the pressure is on retailers to offer a seamless experience that meets new consumer expectations. Supply chain managers are also working to fill in gaps of processes that were put in place over the last couple years.
This year is about catching up with the astounding growth that the industry experienced. The good news is customers tend to be quite understanding in the face of the pandemic, but that empathy will only last for so long.
U.S. shoppers will spend a record $843 billion online this year according to researcher EMarketer Inc., while retailers continue to face swings in demand, delivery delays and other e-commerce disruptions. To compete, they need diverse and nimble fulfillment operations.
A flexible fulfillment strategy means having multiple options for every part of the supply chain, like shipping carriers and inventory locations, as well as technology that can support complex partnerships. This way, retailers are able to leverage those relationships and pivot when barriers arise.
Many retailers saw supply chain resiliency wasn’t built into their operations. It's difficult to predict everything; being able to react is more important.
Having the right technology systems – order management, warehouse management, transportation management and e-commerce platforms – in place, and integrated with each other, can provide the data needed to react and pivot in any situation. Additionally, a digital platform for real-time visibility and collaboration across your entire supply chain arms retailers with the ability to make decisions and take actions on exceptions at any point in the supply-chain journey.
When shippers, carriers, and service providers can easily see across the entire supply chain and collaborate instantaneously, decisions and process changes that previously took months, weeks and days to complete can drop to minutes. As a result, companies can achieve cost savings by reducing redundancies, driving efficiencies and improving customer satisfaction.
This kind of virtual ecosystem can be a game changer for smaller retailers in particular, who gain access to enterprise level technologies and services at a fraction of the cost as if they were trying to implement themselves.
Companies that already had that supply chain technology in place are relying more heavily on data analytics to optimize inventory placement, delivery options and overall supply-chain management. You can't overlook the importance of technology and e-commerce operations.
The underlying technology needs to adjust to consumer needs and support their future needs — which show no signs of easing up soon.
