Master Fulfillment to Protect Margins in 2023

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2023 is an uncertain year. Supply chain bottlenecks are beginning to ease, but disruptions to supply chain operations ongoing issue Geopolitical conflicts, adverse weather conditions, and economic instability hamper fulfillment performance, last-mile delivery, and revenue growth.

Due to unstable product prices, labor costs ascending trajectoryRise in warehouse rent 30% Retailers in 2022 are keen to reduce operating costs to strengthen their bottom line. Five% Retail sales growth will be slowed by 6.4% inflation, further squeezing profit margins.

Fulfillment agility takes center stage

With the aim of balancing operational costs with a differentiated customer experience, forward-thinking e-commerce retailers are responding to the trends, challenges and uncertainties that will shape the e-commerce landscape of 2023. We are improving our mentoring strategy.

1. Staff shortages hamper fulfillment performance

U.S. unemployment is at its lowest (3.4%) in 54 years, attracting workers to low-wage warehouse jobs has been a challenge. Shift to automation Streamline and accelerate warehouse fulfillment workflows and improve inventory management.

Barcode-based scanning helps e-commerce retailers leverage picking efficiencies to easily scale fulfillment in response to order volume peaks and troughs. Additionally, barcode scanning can trigger a background process to notify the customer that the item has been picked and is being shipped, while also updating the sales channel with inventory status. This can lead to more sales.

Not only can retailers improve productivity by replacing inefficient and labor-intensive paper-based processes with cloud-based technology, they can also increase automation in their warehouses to simplify the role of their employees and Accelerate onboarding and offer attractive employment opportunities for potential employees. Additionally, artificial intelligence (AI) and machine learning (ML) have the potential to further streamline the role of warehouses in the future.

2. Supply chain disruption shifts focus to cost containment

Many brands are rethinking their fulfillment strategies in response to rising costs and inflationary pressures. In an increasingly competitive environment, price sensitivity is increasing and margins are shrinking as consumers tighten their belts. 96% We plan to adopt cost-cutting actions in 2023.

Given that labor costs are a significant cost for warehouses, leveraging a software-as-a-service (SAAS)-based scalable technology platform to consolidate warehouse and shipping performance without increasing staffing requirements is a challenge. , is a cost-effective method. Multi-order picking and multi-order tote picking improve walk efficiency and reduce packing and shipping time. And technology that automatically considers shipping factors, such as customer preferences for cost and delivery time, enables retailers to select the best carrier for on-time delivery and storage. Delivery promise provided at checkout.

3. Customers seeking sustainability and convenience

as a consumer, especially Millennials and Generation Z, increasingly prioritizing the environment in purchasing decisions, retailers are adapting in different ways to meet evolving expectations. Offering customers the option to choose environmentally friendly shipping methods can play an important role in a retailer’s sustainability strategy. 50% Percentage of consumers who say they are very/very interested in environmentally friendly shipping methods.

More and more consumers are prioritizing sustainability, but some still prioritize the convenience and speed of online shopping and delivery services. Indeed, in a world of chaos, today’s customers demand a frictionless online buying experience that is only possible by leveraging technology automation from point of sale to delivery.

Ongoing challenges to 2023 are forcing retailers to rethink their e-commerce fulfillment strategies and technology investments. By leveraging logistics technology to reduce costs without compromising the customer experience, retailers reap the ultimate rewards of customer satisfaction, brand loyalty and fruitful long-term relationships. can.

Johannes Panzer, Head of Industry Solutions for eCommerce, Descartes

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