How E-commerce Is Changing The Modern Supply Chain
Supply chain strategies have become very complex in recent years. Moreover, it becomes more complicated when companies start doing e-commerce. It is difficult to fulfil the needs efficiently, especially for those who are unaware of the expectations struggle to meet the shipment and customer demands. In addition to having a steady seller because demand changes with trends.
Whatever the reason, you are swamped with consumer trends that require you to diverge from traditional commerce.
Traditional Supply Chain Management
Traditional supply chain management is very straightforward. Fulfilment processes are based on the brand’s demand. Furthermore, most brands have well-established models for the determination of their consumer demands. They are based on seasonal shifts, advertisement channels, retail reports and projection of sales.
E-commerce and Modern Supply Chain
The rapid growth of e-commerce has tremendously changed the marketplace globally. Online consumers are in more demand today. Moreover, retailers and logistics are servicing those demands, trying to adjust to the market of online consumerism and modern supply chain management trends.
Warehousing and Shipment of Goods is Transforming
Some of the world’s biggest retailers, for example, Walmart may start using drones for their label inspection and inventory. Traditional retailers fear competition with online businesses, hence they are turning towards technology to speed up the delivery of goods. Moreover, one of the key elements to improve is inventory management software at the retail level. It will help retailers understand what is healthy and what isn’t. Additionally, retailers are experimenting with all options needed to deliver goods to customers.
Larger Fulfilment Centers
Since e-commerce is growing rapidly, it is no surprise that demand for e-commerce warehousing has resulted in an increase in the number of national fulfilment centres.
Moreover, the size and height of the structures have also increased. Approximately fifty years ago, the average height of a warehouse was twenty-four feet and by 2017, it had increased to thirty-three feet.
It is indicated that bigger and better warehouses will be formed in the future. Some companies will seek warehouses with forty feet high ceilings, which are mostly of mezzanine level. It is no surprise that e-commerce businesses are buying warehouses at a pace faster than mortar companies. According to the statistics, in 2016, e-commerce purchases grew by twenty-five percent in contrast to the six percent decline in brick-and-mortar purchases. Moreover, e-commerce companies need spaces that are three times bigger than traditional retailers.