Ecommerce is “on fire” – expanding at a 15-percent compound annual growth rate, according to the 2017 State of Logistics Report published by CSCMP. This dramatic growth has had a significant impact on direct-to-consumer (DTC) supply chains.
DTC is certainly shaping the way companies approach order fulfillment, explains Jeff Jones, vice president of business development at Saddle Creek Logistics Services, in the latest issue of Inbound Logistics.
Following is an excerpt from the article . . .
DTC is all about customer expectations, Jones says. “In a world where social media plays a dominant role in how people shop, they have unspoken expectations—I will get my order quickly and I will not pay for shipping and handling,” he says. “Manufacturers and retailers have to adapt.”
Zurvita, a Houston-based manufacturer of wellness and healthcare products, recently selected Saddle Creek to provide direct-to-consumer fulfillment services. The company operates as a “direct seller” with consultants across the country selling products directly to the public.
“We work with two layers of customers—the consultants as well as the customers who purchase the products,” says Jones. “That adds another dimension to work through. The plan calls for Zurvita corporate to process the orders, and then pass them on to us to fulfill.”
While operations will initially be handled from Saddle Creek’s 1.54-million-square-foot Fort Worth facility, the 3PL’s nationwide network of 43 distribution centers gives Zurvita the option to add locations in the future.
“Over the past five years, we’ve grown from $3 million to $100 million in revenue, and we’re planning for significant growth in 2017,” says Tanya Frantz, vice president, supply chain and distribution at Zurvita. “Stepping up our fulfillment game is critical.”
To learn more about DTC’s impact on the supply chain, read the full article.