BY CLINT REISER
WAREHOUSE IMPROVEMENT STUDY
specialreport
IF YOU’VE BEEN INVOLVED IN ORDER FULFILLMENT FOR A DECADE
or more, there’s a good chance you’ve seen a wholesale change in your facility’s
picking patterns. Over the last 15 years, many DCs—particularly in the retail
sector—have found themselves picking far fewer pallets or cases and a lot more
individual items or pieces.
As for what’s driving this trend, a big part of the answer is e-commerce and
the consequent rise in consumer-direct shipping. And the growth of e-commerce shows no sign of slowing. Prior research by ARC Advisory Group and
DC VELOCITY showed that companies expect an average of 40 percent growth
in online sales over the next five years. Meanwhile, Amazon, the 800-pound
gorilla in the market, has achieved annual North American growth of over 20
percent in each of the last five years.
With this substantial growth comes rapid change and fierce competition,
stimulating widespread changes to warehouses and fulfillment operations. To
How are rapidly changing
fulfillment requirements
affecting warehouse
operations? According to
a recent survey, they’re
triggering widespread
changes in everything
from facility footprints to
long-standing value-chain
partnerships.
E-commerce and
the warehouse
of tomorrow
