How E-Commerce is Shaping Warehouse Strategies
E-commerce has been on the rise for years, with the U.S. Department of Commerce estimating that more than 15% of all retail sales in the U.S. come from e-commerce. Naturally, this has led to companies adapting their business models to account for this shift. This has especially impacted how warehouses must plan their operations.
Warehouses have always played a vital role in retail order fulfillment, but their role is evolving even more in recent years. As the e-commerce marketplace becomes more competitive for retailers, the pressure also shifts to warehouses to seamlessly and efficiently handle fulfillment. As a result, warehouses have increasingly adopted omnichannel fulfillment strategies.
Due to the ease of online ordering, consumers have become more accustomed to flexibility and options when it comes to their orders. Consumers are now used to having the option to schedule their delivery to fit their timeframe and location preferences, leaving the warehouse to find out how to deliver on those expectations. The best warehouse and 3PL partners have successfully adapted to this shifting landscape to provide a seamless ordering experience for consumers.
But recently, a new trend has forced warehouses to adapt again: the rise of reverse logistics. As the name suggests, reverse logistics is the process of returning products from consumers back to warehouses or manufacturers. With more than 15% of retail sales being returned, it is becoming more imperative than ever that warehouses have a system in place to effectively manage the return process.
Just like with the ordering and delivery process, providers are viewing a positive return process as a critical part of the customer experience. As more consumers factor the return process into their decision to purchase a product, warehouses must also consider their role in the process.
To keep up with this trend, more 3PL providers are adopting technology solutions like Warehouse Management Systems (WMS) to facilitate returns. By offering real-time tracking and processing of returns, these systems can help reduce handling times, minimize storage costs, and enhance overall efficiency for warehouses and 3PL providers.
Amazon’s self-serve kiosks are an example of how a company can cater to consumers to simplify returns. These allow customers to initiate returns, print labels, and drop their items off at their convenience.
Processes like these tend to be mutually beneficial as they can help build customer loyalty by providing a positive experience from start to finish. But they also allow for more efficient tracking and inventory management for the warehouse or 3PL provider by taking advantage of the technology available.
As e-commerce continues to grow and evolve, the importance of a quality 3PL warehouse provider cannot be overstated. Quality 3PL providers possess the appropriate labor and expertise necessary to execute seamless omnichannel operations, helping build customer loyalty and increase satisfaction. For companies looking to stay competitive in the global marketplace and navigate the growing complexities of logistics, having the right 3PL warehousing partner can make all the difference.
If you think your business could benefit from a more robust omnichannel fulfillment operation, reach out to Scarbrough today to talk about 3PL and warehousing solutions.
