BY BEN AMES, SENIOR EDITOR
ARC WAREHOUSE TRENDS STUDY
Strategy
RAPID GROWTH IN E-COMMERCE IS PLACING BIG DEmands on fulfillment networks. That pressure has been a constant
for years, but the fallout is ongoing, as retailers and third-party
logistics service providers (3PLs) scramble to find ever-faster and
more efficient ways to fill small multiline-item orders.
The pressure shows no sign of abating; just witness e-commerce
megalith Amazon.com Inc.’s announcement in April that it would
ratchet up its Amazon Prime subscription plan’s service terms from
standard two-day delivery to one-day delivery. The announcement
sent ripples throughout the industry, with retailers and carriers
alike predicting the change will lead consumers to demand even
faster fulfillment.
“The development of raised customer expectations for ‘
one-day’ business-to-consumer (B2C) delivery capabilities could create additional headwinds to parcel providers’ [profit] margins,”
Benjamin Hartford, a transportation analyst for investment firm
Robert W. Baird & Co. Inc., said in a note to investors. “Amazon’s
creation of customer demand and expectations for B2C led to
Online shoppers continue
to demand fast, accurate
fulfillment, putting
enormous pressure on retail
DC operations. A new study
looks at the lengths retailers
are willing to go to
accommodate them.
All hail the e-commerce
consumer
