Blog Posts New Study Examines Ecommerce Fulfillment Trends
Ecommerce growth has significantly impacted order fulfillment operations. A new research study released today by Saddle Creek Logistics Services examines how retailers and brands are adjusting to the new fulfillment landscape.
Based on an online survey of nearly 300 industry professionals who are personally involved with or have influence over ecommerce fulfillment, the report provides a close look at the current state of the industry as well as companies’ near-term plans.
Going forward, retailers and brands will take a more strategic approach as they continue to expand distribution nodes and fulfillment technology. Warehouse automation, labor management, and transportation optimization will be critical for improving scalability and service performance.”
– Perry Belcastro, Vice President, Fulfillment, Saddle Creek Logistics Services
A follow-up to Saddle Creek’s 2020 study, the report identifies trends related to network configuration, inventory management, fulfillment technology, shipping, and outsourcing.
Research highlights include:
— The majority of respondents (59%) saw an increase in ecommerce order volume in the past year.
— Approximately half of respondents (51%) say their fulfillment costs increased somewhat or substantially. Labor was the biggest factor.
— Free shipping is offered more widely than fast shipping. Free shipping is offered for all orders by 43% of respondents while just 25% offer one- or two-day shipping.
— Companies are utilizing multi-node distribution networks. For example, 17% of respondents have two distribution centers and 22% have three DCs while many have more.
— Over half of respondents (57%) utilize a third-party provider for some or all of their ecommerce fulfillment, and another 20% plan to begin outsourcing in the next 12 to 18 months.
— The aspect of fulfillment operations that respondents would most like to improve in the next 12 to 18 months is mechanization/automation/robotics.
“Going forward, retailers and brands will take a more strategic approach as they continue to expand distribution nodes and fulfillment technology,” said Perry Belcastro, Vice President, Fulfillment, Saddle Creek Logistics Services. “Warehouse automation, labor management, and transportation optimization will be critical for improving scalability and service performance.”
Read the full report for more insights.
Related to: DC Network Configuration, Fulfillment Technology, Omnichannel, Parcel Shipping, Selling Online