E-COMMERCE FULFILLMENT
E-commerce fulfillment is a key competitive advantage and a pivot to success Over the last few years, as e-commerce sales have increased and customer expectations have shifted, there has been a steady race to move fulfillment closer to the customer, affirms Alain Kaddoum, General Manager, Swisslog Middle East.
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oday’s consumer has a four-pronged fulfillment mandate: fast, free, sustainable, and branded shipping. Globally, 64% of consumers want their orders shipped for free, while peak-level ecommerce and strict same-day shipping cutoff times have made it difficult to meet rising customer demands.
Something once as innovative and de rigueur as two-day delivery has led to next-day delivery, which is quickly becoming obsolete as consumers demand same-day delivery. In a recent survey, 67% of U.S. consumers expect the same-, next-, or two-day delivery, while 72% of global consumers want brands to use sustainable packaging. With the cost to fulfill orders soaring, brands must turn fulfillment into a strategic asset. Fulfillment must be smarter, closer to the consumer, and automated. 54 FEBRUARY 2021
Free shipping at a premium Proprietary data from Shopify shows the number of brands offering free shipping has increased 5.3% since the pandemic began. To answer consumer demand while maintaining profitability, brands are setting free-shipping thresholds. A full 65% of consumers check free-shipping thresholds before adding something to their cart. Interestingly, free shipping is just the tip of the iceberg: 39% of U.S. shoppers expect two-day shipping to be free, while the same-day shipping market in the U.S. is forecast to top US$ 9.6bn in 2022. This trend has accelerated during the Covid-19 pandemic, especially as more consumers become comfortable with online ordering of perishable items and groceries. One of the significant changes in supply chain strategies we are seeing
Swisslogs work on the site in East Midlands will commence in March 2021
as a result of this is the rise of fulfillment centres that bring fulfillment closer to the consumer.
Warehouse / Distribution Centres Typically, one of the dominant components in a company’s supply chain is the large warehouse or distribution centre that acts as a central hub from where products are shipped to retail outlets. These are now being joined by a network of fulfillment centres that focus on localized, direct-to-customer service. They are designed to primarily get online orders to the customer quickly. These facilities have become a powerful tool in conquering the last mile and helping maintain a pleasant, seamless customer experience.
