E-commerce Fulfillment Major Challenges
E-commerce is powerful growth engine across the logistics landscape. Businesses ranging from retailers to manufacturers to distributors are all adjusting their supply chain accommodating for the E-commerce dynamic.
With this type of growth comes additional challenges:
Capacity Planning: With a steady upward trajectory, E-commerce is putting a strain on existing resources and forcing companies to consider significant new investments. At the same time, week-to-week demand can be volatile, stretching scarce human resources to the breaking point and reducing customer service. E-commerce fulfillment must be able to both flex with short-term fluctuations and scale with sustained growth.
Customer Expectations. Today's e-commerce customers have higher expectations than those of even a few years ago and those expectations. Two-day delivery will almost certainly be compressed to next-day or same-day delivery. Organizations struggling to meet today's requirements risk being left behind by competitors who are able to consistently meet these changing expectations.
Complexity. Inventory management, order processing and shipping all get more complex when e-commerce is introduced. In addition, integrating e-commerce fulfillment into traditional distribution operations to provide multi-channel distribution further adds to the complexity in support of omni-channel retail sales.
Many organizations have the experience and expertise to understand the new dynamic but need the resources to efficiently manage the speed, volatility and complexity of e-commerce fulfillment. Optimization processes and smart use of emerging technologies simplifies e-commerce management, reduces order cycle times and shortens the time order clicks can be fulfilled for targeted delivery expectations.