Future of Sourcing - E-commerce https://www.futureofsourcing.com/tags/e-commerce en What is on the Horizon for Micro Fulfillment Centers? https://www.futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png" title="What is on the Horizon for Micro Fulfillment Centers?" class="colorbox" rel="gallery-node-2068-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png?itok=k8gLr4Wr" width="624" height="325" alt="What is on the Horizon for Micro Fulfillment Centers?" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>What is on the Horizon for Micro Fulfillment Centers?</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-supply-chain-flexibility-will-meet-an-uncertain-future">How Supply Chain Flexibility Will Meet an Uncertain Future</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As we are hopefully moving beyond the pandemic, one positive trend that began during the height of 2020 supply chain upheavals was the emergence of the Micro Fulfillment Center (MFC). Supply chains made swift seismic shifts to accommodate new business models during pandemic and have gained a new attitude toward flexibility and fixing what remains broken. Technology exists to accomplish additional changes that will help manufacturers, brands, retailers, and supply chains meet a new and uncertain future.</p> <h2>The Decline of the Mall</h2> <p>A report done by Credit Suisse in 2017 estimated that by 2022, 20% to 25% of&nbsp;malls&nbsp;would be shuttered. By 2019, retailers had already announced more than 8,600 store&nbsp;closures and when COVID-19 hit in 2020, that number escalated exponentially. Retailers in every category have either disappeared or become shadows of their former powerful brick-and-mortar selves.</p> <p>There is hope on the horizon as savvy retailers begin to breathe new life into their brands &ndash; and storefronts - by turning mall stores into Showcase Centers.</p> <p>The mall of the future may look very different to consumers and retailers. Giant anchor department stores and branded shops will give way to Showcase Centers. These stores may have one of each item in a range of sizes for customers to select. Although it may take a few beats for consumers to get used to not getting the item to take home, they will instead have an easy opportunity to visit a nearby MFC to pick up their item. MFCs located nearby the Showcase Center may even ship the item directly to the customer, perhaps even the same day &ndash; given their shortened last mile.</p> <h2>The MFC of the Future</h2> <p>The MFC in retail environments is already a reality and supply chain managers need to keep it top-of-mind because COVID accelerated the trend. Retailers have resources to make simple changes and will immediately benefit from moving away from doing fulfillment in their stores. They also have options: set up their own MFC or contract with an MFC company that has an operation in proximity to the store location and has the technology to handle the retailer&rsquo;s inventory and fulfillment.&nbsp;</p> <p>An automated, hyperlocal MFC has a unique ability to lower e-commerce costs for retailers by reducing such costs related to storage, retrieval and picking, as well as last mile delivery and real estate.</p> <h2>Automating the MFC</h2> <p>The key benefit of MFCs is that automation can be accomplished at the end of the supply chain, and this can be done seamlessly by deploying with RFID technology. Put simply, MFC processes focus on the basic metric, &ldquo;do I have the right product to fill that order?&rdquo; Whether by a person, via a bar code or utilizing vision automation, there is always a stop that must occur to answer that question. RFID automatically verifies having the right product for the right order without necessitating that stop.</p> <p>Automation with RFID also solves front end replenishment problems. The fact is replenishment of items from the manufacturer or local Distribution Center can still be manual today. However, widely used technology like RFID can unlock an automated mechanism to pick items from a warehouse and &ldquo;follow&rdquo; it through to the MFC and ultimately, the customer.</p> <h2>Implementing a Total Supply Chain Solution</h2> <p>An end-to-end RFID solution addresses the number-one challenge of knowing where every product is physically located, at every point of the entire supply chain.&nbsp; The industry understands RFID solves the visibility problem in inventory, whether in stores, in a Distribution Center or through a contract with an MFC.</p> <p>The language of supply chains is changing, and there is new focus on what the industry calls &ldquo;Interpretation Tools.&rdquo; In an RFID Solution, these tools encompass:</p> <ul> <li>RFID labels to tag products at the item, case and/or pallet levels</li> <li>RFID readers such as tunnels, chambers, portals, undermounts, overheads and handhelds</li> <li>Software systems that enable product data capture, interpretation, storage, sharing and connectivity (MFCs are likely to have systems in place that are adaptable to read RFID tags)&nbsp;</li> </ul> <h2>Key Advantages of RFID in MFCs</h2> <p>RFID optimizes fulfillment for the retailer and is essential to meet omnichannel demands for localized distribution in e-commerce. The advantages of employing RFID in MFCs are significant, allowing accuracy, immediacy and speed for localized distribution. Importantly, an RFID solution eliminates the need to validate orders through legacy processes, because RFID automates those processes. The best news is that with RFID, decentralized MFC distribution and last mile processes generated by the retailer, same day delivery becomes an achievable goal.</p> <p>RFID in the MFC also supports sustainability goals. Less distance travelled in the last mile requires less gas, and by reducing error, necessitates fewer returns, which in turn means less use of fuel, paper boxes and other resources.</p> <h2>What&rsquo;s Next for MFCs</h2> <p>Get ready to see more and more MFCs in locations where customers are likely to reside. As e-commerce continues to take on a more central role for consumers, retailers will be tasked with shipping to customers&rsquo; homes or opening MFCs that are convenient to customers. As MFCs gain importance in the omnichannel race to retain customers, a total RFID Solution will get retailers across the finish line.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/micro-fulfillment-centers" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Micro Fulfillment Centers</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/avery-dennison" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Avery Dennison</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/rfid-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">RFID Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="What is on the Horizon for Micro Fulfillment Centers? - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 15 Oct 2021 02:00:00 +0000 Ryan Yost 2068 at https://www.futureofsourcing.com https://www.futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers#comments The Top 3 ERP Transformations that Support Buyers https://www.futureofsourcing.com/the-top-3-erp-transformations-that-support-buyers <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Here%20are%20the%20Top%20ERP%20Transformations%20That%20Support%20Buyers.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Here%20are%20the%20Top%20ERP%20Transformations%20That%20Support%20Buyers.png" title="The Top 3 ERP Transformations that Support Buyers" class="colorbox" rel="gallery-node-2027-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Here%20are%20the%20Top%20ERP%20Transformations%20That%20Support%20Buyers.png?itok=BfgrJZ7s" width="624" height="325" alt="The Top 3 ERP Transformations that Support Buyers" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>The Top 3 ERP Transformations that Support Buyers</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-future-of-payments">The Future of Payments</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>B2B companies are currently up to their necks in &ldquo;digital transformation.&rdquo; They&#39;re moving at a rapid clip to enhance the customer experience through technologies that automate processes while focusing on marketing, sales, and e-commerce. While this was percolating before COVID-19, it&rsquo;s now all-encompassing and tied into the overall business strategies. On the back end, ERP providers and their VARs are scrambling to keep up. Maybe, just maybe, it&rsquo;s time to take a step back and look at this through a different lens.&nbsp;&nbsp;</p> <p>Recently, software providers such as Infor and SAP, along with industry leaders like MDM and NAW, have all published white papers or held forums on the &ldquo;what&rdquo; and &ldquo;when&rdquo; of digital transformation elements. Strategy, roadmap, commitment and continual investment are the keys to staying ahead of the curve. What we have not heard is, &ldquo;How are my customers going to fund these projects&rdquo; or &ldquo;Which project has the most immediate financial impacts to my business.&rdquo; But the most important question is which project has the lightest internal lift, is the easiest to deliver and doesn&#39;t require change management to drive adoption from internal customers.&nbsp; &nbsp;&nbsp;</p> <p>As the brain and central nervous system for a business, ERP systems are very complex and can be challenging to maintain, especially older legacy systems. Most ERP solutions and resellers create additional revenue streams by providing customers with value-added technology, integrations and professional services. That&rsquo;s especially true right now when new systems are increasingly harder to sell.&nbsp;</p> <p>From the buyer perspective, implementing a new ERP is like open-heart surgery. Similarly, new technology projects are feared as a drain on internal resources, and who wants to part with cash in uncertain times? The risk appears too great in the current market climate, while the need to upgrade, enhance and automate is paramount. In short, they want an attractive, simplified facelift of functionality to the ERP that improves their agility in virtually serving customers.&nbsp;</p> <p>The focus is primarily on the external customer and often neglects areas within their customers&rsquo; business where change is not perceived as immediately necessary.&nbsp;&nbsp;</p> <p>Supporting their customers&rsquo; digital transformation efforts has stretched many ERP companies too thin for them to take on major integrations. If their professional services organizations aren&rsquo;t already tapped out by working on e-commerce, they&#39;re doing projects such as CPQ (configure, price, quote), mobile order entry or other customer-facing applications.&nbsp;</p> <p>Partnerships are a proven strategy for obtaining solutions without having to buy and build them internally. By partnering with industry-leading businesses with a back-end operational focus, ERP providers can offer add-ons that complement their newly digitized front-end processes, deliver them more rapidly and to a democratized customer base. With that in mind, here are three relatively easy back-office automation plays that ERP providers should consider right now.</p> <h2>Order Management Automation&nbsp;</h2> <p>Automating order management is a no brainer in the &ldquo;order-to-cash process.&rdquo; As businesses build eComm into their revenue organizations, they still need to accommodate all customers and their preferred transacting business methods.</p> <p>While expanding online order acceptance, any manual processes will consume resources and present error risks for businesses that grandfather in older processes like accepting orders via fax. That said, the result is a smooth and versatile system that speeds up back-office processes without causing undue strain on internal teams.</p> <h2>Accounts Receivable Automation</h2> <p>Accounts receivable automation pairs well with e-commerce upgrades. Customers may already accept payments online. However, for those who still need to invoice, accounts receivable automation can support efficient workflow creation. Such a move could improve cashflow and shorten DSO (days sales outstanding).</p> <p>However, it may require them to rethink how they submit invoices to their customers: via EDI, paper, PDFs or CD-ROMs, which (believe it or not) are still in use. AR automation requires standardizing and automating invoice transmission. That could require some change management and internal resources on the part of the ERP provider, working in conjunction with the technology provider to get customers set up.&nbsp;</p> <h2>Payment Automation&nbsp;</h2> <p>All businesses are already making payments to suppliers, maybe some of them through an ERP module, but there&#39;s still likely significant manual work involved. <a href="https://www.nvoicepay.com/solutions/" target="_blank">Best-of-breed payment automation solutions</a> take four payment modes&mdash;check, ACH, card and wire&mdash;and put them into one streamlined interface. When using this type of system, the buyer decides which invoices they want to pay and they don&#39;t even need to keep track of how each supplier wants to be paid. The payment service provider handles all the supplier enablement, and the software intelligently directs funds to approved suppliers in their preferred method.</p> <p>The concept of payment automation adoption is now over a decade old. In that time, payment automation providers have perfected the implementation process only to take a few weeks and minimal internal effort to get started. That means it can happen concurrently with front-end projects. The time and money saved (and potential rebates earned) by utilizing such a system enables businesses to allocate excess funds for other transformation projects.&nbsp;</p> <p>Overall, <a href="https://www.nvoicepay.com/resources/blog/financial-transformation-breakthrough-thinking-too-big/" target="_blank">digital transformation acceleration</a> is a positive thing for ERP providers and partners. Their customers, who are in an &ldquo;innovate or die&rdquo; situation, are open to more outside-the-box solutions than before and are leaning on their ERP providers as a result. They have the opportunity to make a mark on their customer&rsquo;s future success and garner recognition for their work.&nbsp;</p> <p>At the same time, they have to adopt innovation themselves. Every day, one ERP or another is coming out with a new module or integration. The day of the monolithic tech stack is gone. Customers want to pick and choose what works best for their business. To retain their customers, ERP providers have to connect to as many different solutions as possible.&nbsp;</p> <p>Right now, the back office is the best focus for improvements. Partner up and offer connected solutions, like automated order management, accounts receivable and payments. If you&rsquo;re looking for a place to start, I recommend automating payments first. That type of scenario creates a win-win situation because you create another revenue stream right out of the gate, and your customers generate a profit from something that used to be a drag on their bottom line. The revenue saved or generated from that initiative can pay forward into other automation options, creating a simplified system that pays your efforts forward.&nbsp;&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/enterprise-resource-planning-erp" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Enterprise Resource Planning (ERP)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/nvoicepay" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Nvoicepay</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Top 3 ERP Transformations that Support Buyers - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/the-top-3-erp-transformations-that-support-buyers"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 18 Jul 2021 17:00:00 +0000 Matt Mindrum 2027 at https://www.futureofsourcing.com https://www.futureofsourcing.com/the-top-3-erp-transformations-that-support-buyers#comments Data is Key to Latin American E-Commerce Logistics https://www.futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png" title="Data is Key to Latin American E-Commerce Logistics" class="colorbox" rel="gallery-node-2021-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png?itok=EhkYh_Lm" width="624" height="325" alt="Data is Key to Latin American E-Commerce Logistics" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Data is Key to Latin American E-Commerce Logistics</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/logistics-outsourcing-explained-defining-the-3pl-4pl-and-5pl-models">Logistics Outsourcing Explained: Defining the 3PL, 4PL and 5PL Models</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As has happened everywhere in the world, shopping and buying habits in Latin America have been profoundly affected by the still ongoing COVID-19 pandemic. Once a laggard in e-commerce, it is now the fastest-growing regional e-commerce market in the world; last year, total retail e-commerce sales in Latin America grew 36.7%, to $84.95 billion.</p> <p>Among the larger individual economies in the region, Argentina&rsquo;s was the fastest-growing, with a retail e-commerce increase rate of 79%; Brazil&rsquo;s e-commerce growth rate was 35%, and Mexico&rsquo;s was 27%. This skyrocketing growth, coupled with the region&rsquo;s size&mdash;Latin America has a population of more than 650 million people&mdash;has attracted the attention of e-commerce marketers all over the world.</p> <h2><strong>Many Challenges</strong></h2> <p>There remain, however, significant challenges to doing business in that part of the world. Latin America consists of 33 individual countries and an additional 15 dependencies and territories, ranging in population size from Brazil&rsquo;s 212.6 million to 3,480 people in the Falkland Islands. Most of these entities have their own currencies and taxation and customs authorities, which can cause a variety of problems.</p> <p>One of which is misinformation. For several years it has been said it is forbidden to import cosmetics into Mexico. This is not true. What is true is that the head of the customs office at Mexico City&rsquo;s Benito Juárez International Airport (MEX) decided to change procedures for cosmetics importation. Instead of applying the previously used simplified carrier clearance, MEX now requires a much more laborious and costly customs entry procedure.</p> <p>However, this did not reflect an actual change in Mexican law; it reflected an arbitrary decision by one head customs official at one airport. The simplified courier clearance procedure still exists, and is applied to cosmetics importation at Quetzalcoatl International Airport in Nuevo Laredo. This involves a little trouble, and some big global shipping companies don&rsquo;t want to bother with it&mdash;hence the ongoing belief that Mexico prohibits the importation of cosmetics.</p> <h2><strong>Logistics</strong></h2> <p>In addition to regulatory problems there are logistical challenges, not least of which is simply getting a package delivered. When merchants try to ship to Latin American customers via the United States Postal Service, they encounter delivery times of three weeks and sometimes longer&mdash;if the package gets delivered at all. USPS international service, whose rates are quite reasonable, works very well for mail to places like western Europe or Japan, but badly for Latin America, where most countries are plagued with bankrupt and dysfunctional postal authorities that provide unacceptable service.</p> <p>In addition to reliable delivery service, another logistical challenge is the requirement by a number of destination countries&mdash;among them Chile, Peru, and Brazil&mdash;that any package being delivered bear the recipient&rsquo;s tax ID number. Brazil also requires a World Customs Organization Harmonized System (HS) code for the merchandise being shipped.</p> <h2><strong>Data</strong></h2> <p>Many online merchants do not require this information at checkout. Moreover, they have no desire to. The smoother and easier the checkout process, the fewer the number of abandoned carts and lost sales. To avoid that, the shipper should provide the client with API links that coordinate their own checkout systems with all the necessary delivery data.</p> <p>It is of the utmost importance that any delivery provider operating in Latin America have the ability to provide an HS code for any item, as well as verify against a database the tax ID numbers.</p> <h2><strong>This Is For keeps</strong></h2> <p>The Latin American e-commerce boom is going to be permanent. Before the pandemic, there was a trust barrier: many Latin Americans were afraid to put their credit card information online. Then COVID came, the stores closed down, and Latin Americans had no choice: if they wanted something, they had to order it. So, they did, and a level of trust was established.</p> <p>To retain that level of confidence, logistical managers throughout the supply chain will need to be prepared to meet escalating merchant and customer expectations. Meanwhile, Latin America will continue to be, governmentally and geographically, a complicated place. Given this, and the attendant constant rate of change, merchants will need to continue to rely on specialists in Latin American logistics to handle their shipping.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/logisitics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Logisitics</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/mexico" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Mexico</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Data is Key to Latin American E-Commerce Logistics - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/latinamerica-caribbean" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Latin America/Caribbean</a></div></div></div> Thu, 08 Jul 2021 02:00:00 +0000 A.J. Hernandez 2021 at https://www.futureofsourcing.com https://www.futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics#comments E-Commerce Growth Makes Effective Packaging Procurement Critical https://www.futureofsourcing.com/e-commerce-growth-makes-effective-packaging-procurement-critical <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Packaging%20Procurement%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Packaging%20Procurement%20%281%29.png" title="To manage packaging procurement effectively and efficiently, an e-sourcing solution needs to provide three core capabilities" class="colorbox" rel="gallery-node-1863-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Packaging%20Procurement%20%281%29.png?itok=I_bT-hiJ" width="624" height="325" alt="To manage packaging procurement effectively and efficiently, an e-sourcing solution needs to provide three core capabilities" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/managing-marketing-procurement-through-a-kraljic-lens">Managing Marketing Procurement Through a Kraljic Lens</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Every year, companies spend billions on packaging for their products. According to a recent research report by Smithers, the value of the global packaging market was $917 billion in 2019. It will grow to $1.05 <em>trillion</em> by 2024.</p> <p>The cost of packaging depends greatly on the types of products a company sells. Packaging costs also vary based on the types of materials used and complexity of packaging designs. Because of these differences, <a href="https://www.logiwa.com/blog/reduce-packaging-costs" target="_blank">packaging costs can range from less than 2% to 10% or more of total product cost.</a></p> <p>Frequently, companies invest substantially in packaging because of a widespread belief that effective packaging drives improved brand performance. In L.E.K. Consulting&rsquo;s <a href="https://www.lek.com/insights/ei/unwrapping-results-leks-2020-brand-owner-packaging-study" target="_blank">January 2020 survey</a> of brand managers and other packaging decision makers at CPG companies, roughly 80% of respondents said they believe packaging is important for the success of their overall brand. In addition, nearly half of the respondents (48%) expected to increase their packaging spending in 2020.</p> <h1>The Online Shopping Cart is a Packaging Game-Changer</h1> <p>The COVID-19 pandemic is having an undeniable effect on packaging. As with business generally, the impacts have been uneven. The economic recession has decreased the demand for packaging by companies in some industries. Simultaneously, however, changes in consumer shopping and buying behaviors are driving increased demand for some packaging types.</p> <p>One of the more significant drivers of increased demand for packaging is the explosive growth of online shopping. It&rsquo;s not surprising consumers turned to online buying during the economic lockdowns triggered by the pandemic. Currently, there is an emerging consensus some of these changed shopping behaviors will &ldquo;stick&rdquo; long after the pandemic ends.</p> <p>The shift to e-commerce is clearly shown in the most recent quarterly earnings of large retailers. For example, Walmart reported in August that its U.S. e-commerce sales were up 97% compared to the same fiscal quarter of 2019. In July, Amazon divulged online product sales were up 40% compared to the same quarter of last year.</p> <p>E-commerce sales are also growing because more companies are using a direct-to-consumer (DTC) strategy, either as their sole or primary go-to-market model, or as a complementary approach to their traditional distribution model. <a href="https://www.emarketer.com/newsroom/index.php/us-direct-to-consumer-ecommerce-sales-will-rise-to-nearly-18-billion-in-2020/" target="_blank"><em>eMarketer</em> recently estimated</a> U.S. DTC e-commerce sales reached $14.28 billion in 2019 and will grow by 24.3% to $17.75 billion this year.</p> <p>The impact of e-commerce&rsquo;s expansion on the packaging market is substantial. Recent research by Smithers uncovered the total volume of packaging for e-commerce (globally) was $37.5 billion in 2019. Smithers predicts the value of e-commerce packaging will reach $63.3 billion in 2023. (Note: This research report was published in 2019, before COVID-19, and therefore may well underestimate the growth of e-commerce packaging.)</p> <h1>Effective Packaging Procurement is Essential</h1> <p>The growing investment in packaging has elevated the importance of this spend category for procurement professionals, but packaging is often a difficult category to manage effectively. For one, many companies, particularly CPG companies, are continuing to expand the varieties of products they offer. This proliferation of product SKUs usually results in a proliferation of &ldquo;packaging SKUs.&rdquo;</p> <p>The rise of e-commerce adds complexity to the packaging category because companies that ship directly to customers must typically add various forms of &ldquo;protective packaging&rdquo; to withstand the rigors of the fulfillment process.</p> <p>Given the characteristics of the packaging category, many companies would benefit from using an e-sourcing solution to manage packaging procurement. In my experience, however, the majority of companies still rely on email and spreadsheets to manage much of the day-to-day work required to procure packaging materials.</p> <p>To manage packaging procurement effectively and efficiently, an e-sourcing solution needs to provide three core capabilities:</p> <ol> <li><strong>Product Description: </strong>Packaging materials often require detailed (and sometimes highly technical) specifications to adequately describe the finished &ldquo;product.&rdquo; Therefore, a robust e-sourcing solution for packaging will enable buyers to enter all the specifications relevant for a wide range of packaging materials (e.g., boxes, sleeves, bags).</li> </ol> <ol> <li value="2"><strong>Competitive Bidding:</strong> Many packaging materials are essential for the daily operations of a business and, as a result, are often sourced using longer-term contracts with trusted suppliers. However, a variety of packaging materials are available from numerous qualified suppliers. Companies can benefit from obtaining competitive bids when establishing longer-term supplier relationships. A capable e-sourcing solution for packaging will allow buyers to easily seek bids from prospective suppliers and manage the competitive bidding process.</li> </ol> <ol> <li value="3"><strong>Order/Project Management:</strong> A robust e-sourcing solution for packaging will permit procurement professionals to manage the individual orders placed under long-term supply contracts. It will also provide tools for managing communications and other aspects of the buyer/supplier relationship.</li> </ol> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/packaging-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Packaging Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/skus" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">SKUs</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="E-Commerce Growth Makes Effective Packaging Procurement Critical - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/e-commerce-growth-makes-effective-packaging-procurement-critical"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 02 Oct 2020 16:39:08 +0000 Sarah Scudder 1863 at https://www.futureofsourcing.com https://www.futureofsourcing.com/e-commerce-growth-makes-effective-packaging-procurement-critical#comments Autonomous Last-Mile Delivery in E-commerce https://www.futureofsourcing.com/autonomous-last-mile-delivery-in-e-commerce <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2840%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2840%29.png" title="Autonomous Last-Mile Delivery" class="colorbox" rel="gallery-node-1759-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2840%29.png?itok=Vt-CErVm" width="624" height="325" alt="Autonomous Last-Mile Delivery" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/6-best-practices-for-successful-last-mile-delivery">6 Best Practices for Successful Last Mile Delivery </a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>It must be an amazing feeling to get your online order delivered the next day or on the very same day itself. You would not only feel special but would also develop trust and reliability for the respective company. Nevertheless, the scenario used to be quite different. But, in the last few years, high-end innovation in technology has boosted the logistics industry in more than one way, while driving the e-commerce industry with the same spur.</p> <p>With the significant surge in the e-commerce business, organizations worldwide have turned out to be highly subtle as well as delicate in yielding consumer preferences. Especially in a scenario where instant satisfaction has come to epitomize our generation in large, independent and self-directed technologies are meant to make a significant impact.&nbsp;</p> <h1>Benefits of Last-mile Delivery</h1> <p>As the name suggests itself, <a href="https://www.gofordelivers.com/blog/what-is-last-mile-delivery" target="_blank">last-mile delivery</a> can be considered or defined as the last move of the delivery course, which betides from the shipping hub to the users&rsquo; doorsteps. And, here, it&rsquo;s worth mentioning that the last-mile delivery can range just within a few blocks. The distance can just be between fifty and a hundred miles. The main objective of this system is to distribute the packages among the customers at the earliest note. This way, the last-mile is, quite naturally, deemed to be the most vital part in the supply chain and logistics business. A key to the customer consummation and fulfillment, last-mile is again the most time taking and exorbitant part of the whole shipping process.</p> <p>So, if done correctly, it can save a significant amount of money and time, which, in turn, can make your business both competent and lucrative. However, all last-mile deliveries are not of the same nature. When some are simple and pretty facile involving just a trip on freeways and expressways shoring up a certain number of deliveries, the others are somewhat a bit complex, which includes course-plotting. In such a case, the system has to traverse through all the nooks and crannies of the rustic area to make the delivery.</p> <p>Here, the feature of route optimization tends to&nbsp;play an important role in curtailing down the total delivery time by detecting the most effective directions. It takes several crucial factors like stream of traffic, location, size, etc. to turn up with the most efficient paths or courses. Besides, it also permits you to make any final changes by conveying a real-time update to the driver.</p> <p>Finally, the last-mile delivery system makes your delivery process translucent by doling out real-time status updates of the shipments to the customers. This way, customers would know precisely when their shipment would be taken round to their doorsteps. They will also be acknowledged if there is any postponement. The customers can also interact with the delivery service mediators, in case they want to put up an issue.</p> <h1>Autonomous Last-mile Delivery</h1> <p>According to Allied Market Research, the global <a href="https://www.prnewswire.com/news-releases/autonomous-last-mile-delivery-market-to-reach-75-64-billion-globally-by-2030-at-23-7-cagr-allied-market-research-300991260.html" target="_blank">autonomous last-mile delivery market</a> is projected to grow at a considerable CAGR from 2021&ndash;2030. The top market players have played a significant role in driving the growth of the industry. For example, Amazon has reportedly launched a delivery robot named Scout. Coming up with a size as trivial as of a small cooler, the robot can wheel across the walkways and hand over packages to the customers. When this innovative initiative by Amazon has made the industry come across a new concept of last-mile delivery service, the other top ventures have also not laid back from showcasing their flairs in this regard.</p> <p>As people have become more dynamic, their demands for fast delivery of packages have also increased to a significant extent. Furthermore, developments in the shipping vehicles and several effective, as well as top-notch ways to dispatch packages, are the prime reasons fueling the growth of the autonomous last-mile delivery market. On the other hand, inadequate infrastructure to prop up advanced delivery services is anticipated to restrain the growth to some extent. However, the advent of aerial delivery drones has almost modulated the impeding factor and seemed to pave the way for an array of thriving opportunities in the industry. To conclude, it can be asserted that the market has started growing quite abundantly, and in the next few years to come, it&rsquo;s projected to tumefy yet more.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/autonomous" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Autonomous</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/last-mile-delivery" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">last-mile delivery</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Autonomous Last-Mile Delivery in E-commerce - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/autonomous-last-mile-delivery-in-e-commerce"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 14 May 2020 18:24:13 +0000 Koyel Ghosh 1759 at https://www.futureofsourcing.com https://www.futureofsourcing.com/autonomous-last-mile-delivery-in-e-commerce#comments 6 Best Practices for Successful Last Mile Delivery https://www.futureofsourcing.com/6-best-practices-for-successful-last-mile-delivery <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Last_Mile_Delivery.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Last_Mile_Delivery.jpg" title="6 Best Practices for Successful Last Mile Delivery " class="colorbox" rel="gallery-node-1492-4ylN5J38s6A"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Last_Mile_Delivery.jpg?itok=rZQVEFQM" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>The continued growth of e-commerce is fueling the parcel delivery market. Millions of parcels are delivered daily in the U.S. alone. <a href="https://futureofsourcing.com/patterns-of-innovation-in-business-and-biotechnology" target="_blank">E-commerce</a> and delivery companies have optimized most of the supply chain to deal with the higher workload. For example, businesses have started to process orders in minutes instead of hours. However, many companies fail to optimize their last mile deliveries, which can result in unnecessary expenditure.  &nbsp;</div> <div>&nbsp;</div> <div>Last mile delivery is the final link in the supply chain. It is the delivery of parcels from the carrier facility (hub) to the requested destination, or the last leg of the journey. &nbsp;</div> <div>&nbsp;</div> <div>A successful last mile delivery strategy can help reduce costs and deliver goods faster. In this article, we discuss the best practices to form a winning last mile delivery strategy.&nbsp;</div> <div>&nbsp;</div> <div><strong>The Importance of Last Mile Delivery </strong></div> <div>Last Mile delivery is the most crucial step in the supply chain, as the shipment is completed once the goods are delivered. Customers form opinions about a carrier and e-commerce businesses based on the quality of the service they receive at the delivery stage.&nbsp;</div> <div>&nbsp;</div> <div>E-commerce businesses rely on shipping services to deliver their products to end-users. The bigger these companies are, the more users they serve, often at a national or global scale. Thus, they require a delivery service that can handle their workload and delivery standards.&nbsp;</div> <div>&nbsp;</div> <div>The e-commerce market is estimated at $3.3 billion and some <a href="https://www.shopify.com/enterprise/global-ecommerce-statistics" target="_blank">predict </a>that the market will grow to $4.5 billion in 2021. Around 22% of the world&rsquo;s population purchases online, and <a href="https://www.nasdaq.com/article/uk-online-shopping-and-e-commerce-statistics-for-2017-cm761063" target="_blank">studies</a> indicate that by 2040, e-commerce will account for 95% of all purchases. &nbsp;</div> <div>&nbsp;</div> <div>Retailers and e-commerce companies compete to offer faster and more flexible shipping options to attract consumers. Consumer expectations and demands are rising, with about 25% of consumers willing to pay extra for same-day delivery. For example, <a href="https://futureofsourcing.com/the-unstoppable-‘amazonification’-of-sourcing-and-procurement" target="_blank">Amazon</a> offers its U.S. Prime service members same-day delivery for over 10 million items.&nbsp;</div> <div>&nbsp;</div> <div><strong>The Need For a Successful Last Mile Delivery Strategy&nbsp;</strong></div> <div>Last mile delivery might seem straightforward, but last mile delivery presents many challenges, such as inefficient delivery routes and other end-user issues like inaccurate data and order cancellations. &nbsp;</div> <div>&nbsp;</div> <div>Last mile delivery also swallows up a significant portion (around 30%) of the shipping fee. When companies commit to same-day deliveries, it can lead to excessive fuel and labor costs for the transportation of just a few items along a specific route.  &nbsp;</div> <div>&nbsp;</div> <div>Many shipping services choose to outsource last mile delivery services to local carriers. While companies usually benefit from better cost efficiency, these carriers often don&rsquo;t deliver the same level of customer service provided by a retailer or online store. &nbsp;</div> <div>&nbsp;</div> <div><strong>Best Practices for Successful Last Mile Delivery &nbsp;</strong></div> <div>Incorporate this list of best practices into your last mile delivery strategy to ensure that it is both cost-efficient, well optimized and successful.&nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #1: Increase Visibility and Provide Real-Time Tracking&nbsp;</strong></div> <div>Consumers are often anxious to receive their orders, but carriers tend to give a wide delivery window that can leave their customers frustrated and impatient. A smart <a href="https://www.bringg.com/platform/modules/smart-tracking/" target="_blank">last mile tracking</a> system that allows consumers to view the current location of their parcel, and provides notifications on its Estimated Time of Arrival, can help alleviate the stress and uncertainty of waiting in the dark.&nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #2: Smart Outsourcing&nbsp;</strong></div> <div>Companies can outsource the last mile delivery to local third-party carriers with operation centers closer to the residence or workplace of their customers. Outsourcing to local providers can cut costs and improve delivery speeds. However, the provider you choose will be the face of your operation, so choose wisely. &nbsp;</div> <div>&nbsp;</div> <div>Study the local providers to see what services they offer, if it is the best fit and ensure they can manage your workload. Establish efficient means of communication and create a behavior code for couriers to ensure that your reputation remains intact. &nbsp;</div> <div>&nbsp;</div> <div>Consider employing multiple carriers. It can be challenging to find multiple carriers that you can trust with your deliveries and spreading the workload between them, but you can use a centralized Transport Management System (TMS) to help you.&nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #3: Use Local Stores as Distribution Centers&nbsp;</strong></div> <div>Many local shop owners have transformed their stores into delivery distribution centers. You can use these shops as distribution centers to increase the number of same-day delivery items you offer. &nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #4:  Data Analytics&nbsp;</strong></div> <div>Use a smart tracking system to track deliveries and provide customers with more accurate data transparency. You can use data analytics to analyze the best delivery routes and to optimize your delivery strategy. &nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #5: Update Customers on Delivery Status&nbsp;</strong></div> <div>Provide frequent notifications on current delivery status to keep your customers informed. You can make the notifications interactive by including functions that let your customers tweak the time and place of delivery.&nbsp;</div> <div>&nbsp;</div> <div><strong>Practice #6: Automation&nbsp;</strong></div> <div>Companies can use autonomous vehicles or drones to provide last mile deliveries. For example, Amazon is offering <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;ved=2ahUKEwiFhuWZ44rjAhVCUKwKHfaMAOMQFjAAegQIBRAB&amp;url=https%3A%2F%2Fwww.amazon.com%2FAmazon-Prime-Air%2Fb%3Fie%3DUTF8%26node%3D8037720011&amp;usg=AOvVaw2EeVulIP48Ln4DKS8LRP5q" target="_blank">Prime Air</a>, a futuristic drone delivery service that&rsquo;s designed to get parcels to customers in under 30 minutes. Using drones to deliver goods has many benefits: they are faster than cars; they can save on operational costs, and they can reduce the amount of fuel needed. Also, drones do not require parking spaces.&nbsp;</div> <div>&nbsp;</div> <div>You can get your drone workforce to complete complex delivery tasks as soon as they receive the order, and they can operate 24/7. If there is a single delivery to be made, sending a drone can be much cheaper than sending a driver. &nbsp;</div> <div>&nbsp;</div> <div>Consumer demand is a driving force behind the development of the e-commerce industry. The growth of e-commerce is, in turn, shaping the parcel delivery industry. Additionally, e-commerce businesses are offering fast processing and shipping speeds to attract consumers. To help meet consumer demands and optimize company operations, you should incorporate the right practices to build a winning last mile delivery strategy.&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/automation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Automation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="6 Best Practices for Successful Last Mile Delivery - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/6-best-practices-for-successful-last-mile-delivery"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 27 Jun 2019 23:07:46 +0000 Gilad Maayan 1492 at https://www.futureofsourcing.com https://www.futureofsourcing.com/6-best-practices-for-successful-last-mile-delivery#comments