Here’s a fact: seamless shopping experiences are no longer the exception these days; they’re the rule. Truth is, it takes a great deal of knowledge, expertise and data-driven decision-making to deliver the “Buy it Now, Get it Tomorrow” omni-channel distribution experience today’s consumers have come to expect. Without a competent, forward-thinking Third Party Logistics (3PL) provider who knows your customer markets and sales channels, it’s almost impossible to pull off. After all, it only takes is one poorly executed transaction to lose a customer for good.
While consumers actively seek out merchants who offer free shipping, readily available inventory and guaranteed fast delivery, the best 3PL providers are busy honing their data so that the entire supply chain process runs as smoothly as possible. They’re constantly evolving at the speed of consumer expectations while anticipating what’s next in the ever-shifting world of eCommerce. A 2017 Capgemini study showed that 72 percent of merchants plan to boost their use of third-party logistics over the next few years, and there’s no signs that this trend is flagging.
Of course, speed is only part of it. Businesses are also turning to 3PLs to reveal customer insights that allow them to reduce operating costs while increasing their responsiveness in an effort to retain customers over the long haul. Case in point: an Aberdeen Group study showed that companies employing a sound omni-channel supply chain strategy retain a whopping 89 percent of their customers while those without such strategies keep only 33 percent of customers.
In 2018, LEGACY Supply Chain Services teamed up with Adelante SCM to research the habits and opinions of 100 retail and manufacturing supply chain pros. Two-thirds of those surveyed rated their omni-channel performance at or below average. One of the main reasons for this was poor visibility across their supply chain segments as well as not taking advantage of key inventory metrics available to them. The study found that companies with high visibility into inventory across their supply chain were more likely to leverage 3PL fulfillment centers, and also had a comprehensive understanding of the impact of inventory costs on their overall landed cost structures. These companies had another thing in common: they all used integrated distribution centers for both eCommerce and traditional order fulfillment, rather than separate centers for each.
Improving Omni-Channel Distribution
With these eye-opening statistics in mind, here are five ways to improve your omni-channel distribution:
About LEGACY Supply Chain Services
For nearly five decades, LEGACY has provided dedicated logistics to clients across the United States and Canada in both B2B and B2C industries including retail, CPG, industrial manufacturing, electronics, technology and distributor networks.
We believe omni-channel success goes far beyond just order fulfillment. We understand that each step of the supply chain is equally important – from inventory to distribution to transportation. We provide direct-to-consumer eCommerce fulfillment, direct-to-store order replenishment, big box retailer compliance, center-to-center distribution and returns management along with reverse logistics.
When you need a full-service distribution and eCommerce fulfillment solution, consider LEGACY Supply Chain Services for unmatched, world-class supply chain experience.
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