2020 Ecom Fulfillment Trends - Saddle Creek Logistics Services

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2020 ECOMMERCE FULFILLMENT TRENDS REPORT2020 Ecommerce Fulfillment Trends ReportU.S. ecommerce sales are expected to grow 12.8% to 666.28 billion in 2020, according to areport by eMarketer. Consumers are making online purchases anytime, anywhere.To accommodate their evolving shopping habits, merchants of all kinds are scrambling to make their wares even moreaccessible – adding online stores, introducing mobile apps, selling on marketplaces and social platforms, offeringsubscription programs, and more.This trend has created a sea change in ecommerce order fulfillment operations. Merchants are utilizing a variety ofstrategies to satisfy consumers’ expectations for an outstanding customer experience.To help characterize ecommerce fulfillment today and understand where the practice is headed, Saddle Creekconducted an online survey of industry professionals in January 2020. The following report is based on data from 154respondents who are personally involved with or have influence over e-fulfillment functions and whose companiesutilize one or more online sales channels.Key TakeawaysFollowing are just a few of the highlights of the research:› Today, 86% of merchants selling online use more than one ecommerce channel.› Approximately one-third or more sell via third-party marketplaces, social platforms and/or mobile apps.› Ecommerce fulfillment operations have become more complex – with multi-node networks, sophisticatedtechnologies and a variety of transportation strategies.› The five biggest challenges facing merchants today include: transportation, scalability, inventory management, orderprocessing speed & accuracy, profitability.› One-third of merchants outsource order fulfillment for ecommerce orders and more plan to do so.› The vast majority of those who currently use a 3PL (77%) plan to increase outsourcing.› Looking ahead, 69% of merchants plan to add sales channels in the next 12 to 18 monthsContinue reading the full report for more detail.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com

2020 ECOMMERCE FULFILLMENT TRENDS REPORTTable of ContentsECOMMERCE PRACTITIONER PROFILE . 3ONLINE SALES CHANNELS . 4OPERATIONS OVERVIEW . 5DISTRIBUTION NETWORK CONFIGURATION . 5TRANSPORTATION MANAGEMENT . 6TECHNOLOGY . 6FULFILLMENT CHALLENGES . 81. TRANSPORTATION . 82. SCALABILITY . 83. ORDER PROCESSING SPEED & ACCURACY . 84. PROFITABILITY . 95. INVENTORY MANAGEMENT . 9ECOMMERCE FULFILLMENT OUTSOURCING . 10OUTSOURCING PRACTICES . 10ADVANTAGES OF OUTSOURCING ECOMMERCE FULFILMENT . 11MOVING FORWARD . 12CHANNEL EXPANSION . 12IMPROVING DELIVERY OPTIONS . 13INCREASED ADOPTION OF TECHNOLOGY . 143010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com

2020 ECOMMERCE FULFILLMENT TRENDS REPORTEcommerce Practitioner ProfileCompany TypeThe research reflects the wide variety of businessesselling via online channels today. More than a third ofECOMMERCE COMPANY/ONLINE RETAILER5%respondents work for ecommerce companies, including8%SUBSCRIPTION-BASEDCOMPANYomnichannel retailers, digitally native brands, andthird-party marketplace sellers. Traditional retailers,36%15%wholesalers/distributors, manufacturers, subscription-RETAILERDIRECT SELLERbased businesses, direct-selling companies andMANUFACTURERconsultants also are � companies span a variety of industries,4%including apparel/accessories (29%), consumerCONSULTANT3%16%electronics (20%), health/beauty (18%), toys/hobbies/OTHERsports (15%), home improvement (13%) and more.The data illustrates the expansion of ecommerce forbusiness-to-business (B2B). While 31% of respondentssell direct-to-consumer (D2C), just over half (56%)ship products both B2B and D2C, and 13% sellexclusively B2B.Total Annual RevenueCompanies of all sizes are selling online, with totalannual revenue ranging from less than 1 million toLESS THAN 1 MILLIONmore than 1 billion. Approximately two-thirds (65%)5%report revenue of 50 million or less. The prevalence 1 – 10 MILLION12%of smaller companies is to be expected as the relativelylow barrier to entry makes ecommerce especiallyappealing for entrepreneurial activity.31%4% 10 – 50 MILLION 50 – 100 MILLION8% 100 – 500 MILLIONWhile 19% of respondents’ companies are relativelynew to ecommerce (three years or less), the majority6% 500 MILLION – 1 BILLIONhave significant experience with 60% involved inecommerce for seven years or more.3010 Saddle Creek RoadLakeland, FL 3380117%MORE THAN 1 BILLION17%DON’T KNOWSales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com3

2020 ECOMMERCE FULFILLMENT TRENDS REPORTONLINE SALES CHANNELSToday’s merchants are utilizing a variety of online salesSmaller companies with less than 50 million inchannels. Online stores/websites are, by far, the mostrevenue, also are more likely to utilize marketplacescommon for respondents overall (87%). However,and social commerce probably because there is lowermost respondents are embracing multiple ecommercecost to entry.channels. In fact, just 14% of respondents utilize anTraditional retailers appear to be slower to adoptonline store exclusively.additional online channels, perhaps needing toA remarkable number are selling via newer channels,maintain focus on brick-and-mortar business.including third-party marketplaces such as AmazonHowever, they, along with subscription-basedand eBay (56%), social platforms like Facebook andcompanies and direct sellers, are most likely to sellInstagram (39%) and mobile apps (31%).through mobile apps.“With 70 percent of U.S. consumers frequenting socialsites and recent reports of 112 million Amazon Primemembers, it makes sense for merchants to target theseaudiences,” says Perry Belcastro, senior vice president,fulfillment services, at Saddle Creek Logistics Services.“They offer the potential for increased sales volumewith relatively minimal barriers to entry.”Channel usage varies by merchant type and size. Notsurprisingly, ecommerce companies are most likelyto expand beyond web stores. However, wholesalers/distributors aren’t far behind in utilizing other onlinechannels, particularly favoring third-party marketplaces.Manufacturers also gravitate toward marketplaces aswell as social commerce.A remarkable number of merchants are sellingvia newer channels, including third-partymarketplaces such as Amazon and eBay (56%),social platforms like Facebook and Instagram(39%) and mobile apps (31%).3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com4

2020 ECOMMERCE FULFILLMENT TRENDS REPORTHow Fulfillment Operations are Handling EcommerceTo accommodate the needs of a variety of ecommerce sales channels, fulfillment operations are becomingincreasingly sophisticated. Merchants must take a variety of factors into account.DISTRIBUTION NETWORK CONFIGURATIONNearly half of respondents (47%) utilize a multi-nodeEcommerce companies, subscription companies anddistribution network.direct sellers could also benefit from expanding theirdistribution network, Belcastro says. “A multi-nodeSmall companies with less than 1 million in annualnetwork helps merchants to get closer to the endrevenue are more likely to utilize a single distributioncustomer, move products through the supply chaincenter (86%) – understandable given their financialfaster and minimize transportation costs,” he explains.limitations. However, as revenue increases, it appears,“This allows them to achieve competitive customerso does the number of DCs. Two- to four-nodeservice using economy shipping options.”networks the most common for larger companies.Retailers are most likely to use one distribution facility(64%); however, 20% say they use more than 10“A multi-node network helps merchants to getdistribution nodes, perhaps signaling the use of retailcloser to the end customer, move productsstores as fulfillment centers.through the supply chain faster and minimizeApproximately three-fourths of wholesalers/distributors(78%) use a multi-node network, with a variety oftransportation costs,” Saddle Creek’s PerryBelcastro explains.network configurations.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com5

2020 ECOMMERCE FULFILLMENT TRENDS REPORTTRANSPORTATION MANAGEMENTCurrent Delivery Options OfferedEfficient, cost-effective deliveries are a priority forrespondents. Merchants are offering a variety ofoptions in response to increasing consumer demandfor free shipping. Free delivery with a minimum order ismost common (57%), with the vast majority of retailers12%BUY ONLINE, PICK UPIN STORE6%24%FREE DELIVERY FORALL ORDERS24%34%and ecommerce companies offering this option. TheseFREE DELIVERY WITHMINIMUM ORDERmerchants are also most likely to provide free deliveryFREE DELIVERY WITHPROMOTIONS (HOLIDAYS)on a promotional basis (i.e., during the holidays).TWO-DAY DELIVERYApproximately one quarter of respondents (24%) –57%ONE-DAY DELIVERY55%primarily ecommerce companies and wholesalers/distributors – offer free delivery for all orders.SAME-DAY DELIVERY32%Delivery speed also is a priority. More than half ofOTHERrespondents (55%) offer two-day service. It is worthnoting that nearly all marketplace sellers offer twoday deliveries, no doubt focused on meeting therequirements for Prime shipping.A surprising number already offer one-day (34%) andeven same-day delivery (12%, the majority of whomare retailers).Roughly half of retailers offer buy-online-pickup-instore (BOPIS), leveraging their brick and mortar facilitiesto provide near immediate gratification for consumers.Naturally, reverse logistics are a critical part ofecommerce with ease of returns widely recognized asessential for long-term customer loyalty. Almost halfof all respondents (and an even greater percentage ofretailers specifically) offer free returns and another 12%plan to do so in the next 12 to 18 months.“With 20 to 30 percent of online orders returned,merchants need to master reverse logistics if they’reoffering free returns,” Belcastro says. “They need toensure that their information systems, distributionnetwork and transportation capabilities are up tothe challenge.”3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com6

2020 ECOMMERCE FULFILLMENT TRENDS REPORTTECHNOLOGYCurrent Technology Solutions UsedTo support ecommerce fulfillment operations, merchantsare utilizing a wide variety of technology solutions. Well1%over half of respondents (61%) use an order managementsystem (OMS) or distributed order management system14%(DOM). Customer relationship management systemsCUSTOMER RELATIONSHIPMANAGEMENT SYSTEM (CRM)51%18%(CRM) are also widely used (49%). NTORY MANAGEMENTSOLUTIONSplanning (40%), inventory management solutions (44%)and warehouse management systems (40%) round outORDER MANAGEMENT SYSTEM(OMS)/ DISTRIBUTED ORDERMANAGEMENT SYSTEM (DOM)40%the top five technology solutions for respondents overall.40%WAREHOUSE MANAGEMENTSYSTEM (WMS)TRANSPORTATION MANAGEMENTSYSTEM (TMS)In general manufacturers and wholesalers/distributorshave higher adoption rates for technology solutions,perhaps because these companies tend to have higherINTERNATIONAL SHIPPINGCOST CALCULATOR61%44%annual revenue.NONE OF THE ABOVEOTHER“Robust technology is a virtual necessity today, thanksto the increasing complexity of ecommerce fulfillmentoperations,” Belcastro observes. “Merchants needa deeper understanding of their customers, betterreporting and analysis, greater visibility over theiroperations, and the ability to pull from multiple fulfillmentsources to provide the fastest, most economical service.Unfortunately, the required technology demands asubstantial overhead investment.Popular Technology Solutions›Customer relationship managementsystem (CRM) – Used to managerelationships and interactions withcustomers and potential customers.›Forecasting/demand planning – Helpsto predict future demand based on pastperformance; often used in developingaction plan.›International shipping cost calculator –Estimates the landed cost ofinternational shipments.3010 Saddle Creek RoadLakeland, FL 33801›Inventory management solutions – Usedto track inventory across the supply chain.›Order management system (OMS)/Distributed order management (DOM) –Optimize fulfillment by managing all aspectsof an order’s lifecycle across a network ofsystems and processes using a single view ofinventory, regardless of the number of saleschannels or fulfillment locations.Sales: 888-878-1177Main: 863-665-0966›Transportation management system(TMS) – Used to plan, execute and optimizethe shipment of products.›Warehouse management system (WMS) –Designed to support and optimizewarehouse functionality and distributioncenter management.sales@sclogistics.comsclogistics.com7

2020 ECOMMERCE FULFILLMENT TRENDS REPORTEcommerce Fulfillment ChallengesOverall, respondents view their ecommerce fulfillment operations quite favorably with 71% rating them “very good”or “excellent.” That being said, respondents do experience numerous challenges that impact ecommerce fulfillmentoperations. The top five include:1. TRANSPORTATIONBiggest Ecommerce Fulfillment ChallengesWith so many companies offering fast, free shipping,TECHNOLOGY LIMITATIONSit’s only logical that one-third of respondents view4%reducing delivery time and cost as one of theirINVENTORY MANAGEMENTACROSS MULTIPLE FACILITIES6%biggest challenges.11%Transportation is the challenge most commonlyORDER PROCESSING ACCURACY,TURNAROUND TIMES17%SCALABILITY TO ACCOMMODATEGROWTH/FLUCTUATIONS25%27%identified by retailers and ecommerce companies andNEED FOR CUSTOMIZATIONtied with scalability for top rank for manufacturers.“We all know that someone has to pay for shipping,”32%33%TRANSPORTATION DELIVERYTIME, COSTBelcastro points out. “To offset rising delivery costs,PROFITABILITYmerchants must reevaluate their transportationmanagement practices. Establishing relationshipsSELLING PRODUCTS THROUGHBOTH B2B AND B2C CHANNELS16%REVERSE LOGISTICS36%16%with a variety of carriers, reconfiguring distributionCUSTOMER SERVICEnetworks and upgrading technology are just a few ofthe strategies that merchants can use to help controlOTHERtheir freight costs.”2. SCALABILITY3. ORDER PROCESSING SPEED & ACCURACYOverall, 36% of respondents cite scalability toOrder accuracy and turnaround times challenge 32%accommodate growth/fluctuations as a majorof respondents, particularly ecommerce companieschallenge. As noted, it is a top challenge forand wholesalers/distributors.manufacturers and makes the “top three” forecommerce companies, retailers andwholesalers/distributors.“Adapting to the ebb and flow in ecommerce ordervolume requires flexible resources, including space,staffing and technology,” Belcastro says. “To beresponsive to customer demand, merchants need tobe prepared for peak order processing, even duringslower periods.”When asked which operational areas they’d mostlike to improve, 31% of respondents selected “orderprocessing speed” while 20% chose “improvingquality control.”“When it comes to providing an excellent customerexperience, merchants are recognizing that gettingorders fulfilled quickly and accurately is table stakes.Continuous improvement methodologies like LEAN canimprove processes and help uphold quality standards,”Belcastro says.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com8

2020 ECOMMERCE FULFILLMENT TRENDS REPORT4. PROFITABILITYChange in Fulfillment Costs in Past YearProfitability is definitely a pain point for ecommerceoperations, with 27% of respondents rating it as one of7%their top challenges.One key reason is rising fulfillment costs. More thanINCREASEDhalf of respondents (53%) say their costs have increasedin the past year. By far, the biggest reason they cite forDECREASED33%the increase is the cost of shipping, closely followed by53%labor costs. Customer service, the current competitiveSTAYED THE SAMEDON’T KNOWlandscape and inventory costs also are concerns.7%5. INVENTORY MANAGEMENTManaging inventory across multiple facilities posesdifficulties for 25% of respondents overall, rating fourthamong manufacturers specifically.This issue is closely tied to technology limitations, citedas a top challenge by 17% of respondents overall andparticularly vexing for retailers. Merchants are especiallylooking for ways to improve inventory availability/visibilityas well as reporting and analysis for their ecommercefulfillment operations.These concerns signal a need for more sophisticatedtechnology, Belcastro says. An OMS can be particularlyvaluable for companies selling through multiple channels.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com9

2020 ECOMMERCE FULFILLMENT TRENDS REPORTEcommerce Fulfillment OutsourcingNearly one-third of respondents (29%) outsource order fulfillment for ecommerce orders. In addition, 21% of those whodo not currently outsource plan to begin outsourcing in the next 12 to 18 months.Interestingly, companies of all sizes utilize third-party providers. Those with 1 million to 100 million in revenue areslightly more likely to outsource. This suggests that they have reached the point at which they need to expand theirfulfillment capabilities but do not have the financial resources or expertise to do so in-house.Approximately two-thirds of respondents handle fulfillment in-house. They say they choose not to outsource because theyhave sufficient resources and experience internally (46%), believe it is less costly to handle themselves (32%) or feel theircompany is too small to do so (18%).OUTSOURCING PRACTICESCurrent Ecommerce Outsourcing PracticesOf those who outsource, 36% look to their 3PL to2%handle all of their ecommerce fulfillment while 61%manage some fulfillment in-house and outsource therest to one or more providers.23%OUTSOURCE ALL FULFILLMENTTO 3PLEcommerce companies and manufacturers are morelikely to outsource all of their fulfillment. This may36%be because traditional retailers and wholesalers/SOME FULFILLMENT IN-HOUSE &SOME OUTSOURCED TO SINGLE 3PLdistributors tend to have more complicatedSOME FULFILLMENT IN-HOUSE& SOME OUTSOURCED TOMULTIPLE 3PLSsupply chains.DON’T KNOWThose who opt to outsource a portion of their39%ecommerce fulfillment may ask their third-partyprovider to handle a particular subset of theirproduct line – heavy or bulky items or those requiringcustomization, for example.Respondents outsource a wide range of services.The most frequently used capabilities include:77% of those who now use a 3PL plan to increase› Pick/pack/ship (59%)outsourcing in the next 12 to 18 months.› E-commerce website development and hosting (41%)› Marketplace fulfillment – i.e., Fulfillment byAmazon (36%)› Call center/customer service (27%)Third-party providers get high marks, with 75% ofrespondents rating their provider as “excellent” or“very good.” Even more telling, 77% of those who now› Returns processing (25%)use a 3PL plan to increase outsourcing in the next 12› Parcel management and carrier negotiation (16%)to 18 months.› Packaging (18%)3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com10

2020 ECOMMERCE FULFILLMENT TRENDS REPORTADVANTAGES OF OUTSOURCINGECOMMERCE FULFILMENTBiggest Advantages of OutsourcingRespondents identify a wide range of benefits ofACCESS TO EXPERTISEoutsourcing. They find greatest value in having accessto their 3PL’s expertise (36%), the ability to focus onADVANCED TECHNOLOGYtheir core competency (32%), having an alternative toIMPROVED CUSTOMER SERVICE30%investing in overhead/infrastructure (30%), improved36%HANDLE MULTIPLE CHANNELScustomer service (27%), having the ability to “right16%size” or scale their scope of operations (25%) and11%9%opportunities for cost savings (18%).“RIGHT SIZE”/SCALESCOPE OF OPERATIONS11%27%“Merchants are often surprised to discover that their16%reduce capital expenditures,” Belcastro says. “TheyMEET SPECIAL REQUIREMENTSOPPORTUNITIES FOR COST SAVINGS18%fulfillment provider can help them to control costs andFOCUS ON CORE COMPETENCY9%can leverage their 3PL’s resources, buying power and25%continuous improvement initiatives and benefit from32%GREATER BUYING POWERAVOID LABOR MANAGEMENTCHALLENGESEXPAND DISTRIBUTION NETWORKtheir expertise and best practices.”ALTERNATIVE TO INVESTMENTIN OVERHEAD/INFRASTRUCTUREBelcastro points out that outsourcing also can helpto address many of the other fulfillment challengesoutlined earlier, including the need for scalability, fasterorder cycle times, transportation management andquality control. Experienced 3PLs will have the space,staff, technology and expertise to support merchants’ecommerce fulfillment needs.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com11

2020 ECOMMERCE FULFILLMENT TRENDS REPORTMoving ForwardNew Sales Channels Planned within 12 — 18 MonthsThe survey data helps to illustrate how ecommerce will2%shape fulfillment practices going forward.BRICK-AND-MORTAR STORESONLINE STORE (WEBSITE)18%CHANNEL EXPANSION31%MOBILE APPLooking ahead 12 to 18 months, 69% of respondents21%plan to add additional sales channels.THIRD-PARTY MARKETPLACESSocial commerce (26%) and third-party marketplacesSOCIAL COMMERCE17%13%(23%) are the most widely planned channels, as mightSUBSCRIPTION BOXESbe expected given the size and scope of the potential12%DIRECT SELLINGtarget market, as discussed earlier.23%NONE OF THESE26%Perhaps most surprising is that 18 percent ofOTHERrespondents plan to add a brick-and-mortar retail store.“Merchants may be interested in physical retail spaceto enhance their presence offline – giving consumersthe opportunity to experience their products firsthand,”Belcastro says.Looking ahead 12 to 18 months, 69% ofrespondents plan to add additional sales channels.Adding a direct-selling (multi-level marketing) channelis on the agenda for a number of respondents,particularly wholesalers/distributors.Ecommerce companies appear to be exploring a fullrange of options. Roughly a third plan to add a socialsales channel. They are also most likely to add asubscription channel.“The subscription model intrigues merchants becauseit gives them a new way to sell existing productsand generate a steady revenue stream,” Belcastrosays. “However, it’s important to note that there aresignificant differences in the fulfillment requirementsfor subscription boxes. You simply can’t handlethem in exactly the same way you treat standardecommerce orders.”3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com12

2020 ECOMMERCE FULFILLMENT TRENDS REPORTIMPROVING DELIVERY OPTIONSWhen asked to identify the “next big thing” inJust 14% of respondents say they plan to focus onecommerce fulfillment in the next 12 to 18 months,parcel management. This could be a serious oversight,nearly one-third of respondents’ predictions wereBelcastro says. “With ecommerce growth driving parcelrelated to fast and/or free deliveries. In fact, 17delivery costs through the roof, merchants need tocomments specifically mentioned “same-day shipping.”better understand – and manage – the key factors thatcontribute to these costs,” he explains.With fast, free delivery top of mind, it’s only logical thatmany respondents are planning changes to improveParcel analytics software can help high-volume shippersdelivery options in the next 12 to 18 months. Over halfidentify opportunities to increase efficiencies and(51%) are upgrading technology to improve delivery,better manage parcel spend. Rate shopping, usingwith retailers and wholesalers/distributors leadingmulti-carrier shipping software, can give merchantsthe charge.the ability to offer consumers faster shipping at a moreeconomical price instead of simply sending all theirNew delivery options are in the works for 40% ofpackages via an express/air service.respondents. Free delivery on all orders is in the plansfor 16% of respondents (all of whom are ecommerceAnother shortfall, Belcastro points out, is the lackcompanies and wholesalers/distributors).of focus on postponement strategies. With just 4percent of respondents planning to delay productMarketplace sellers are most likely to add new deliveryconfiguration/customization, merchants may beoptions (especially free delivery) and offer dropoverlooking an important opportunity to improve theshipments from vendors. Digitally native brands arecustomer experience. “Moving product customizationlikely to add two-day delivery and upgradecloser to the consumer allows merchants to be moretheir technology.responsive to customer demand,” he says.Some respondents intend to offer same-daydelivery (13%).New Delivery Options Planned within 12 — 18 MonthsWhile enhancing delivery options is certainly laudable,Belcastro cautions against attempting to competehead-to-head with industry giants like Amazon.BUY ONLINE, PICK UPIN STORE5%10%FREE DELIVERY FORALL ORDERS“Shipping every order at no cost and/or with expedited13%service is simply not economical for most merchants.FREE DELIVERY WITHMINIMUM ORDERMake sure the cost of that service is warranted bycustomer demand,” he says. “Whatever your shipping16%FREE DELIVERY WITHPROMOTIONS5%strategy, make sure you can execute it consistentlyTWO-DAY DELIVERYand at a manageable cost while keeping yourONE-DAY DELIVERYcustomers happy.”15%13%Other plans include changing or expanding5%distribution network configuration (20%) and offeringSAME-DAY DELIVERYOTHERdrop shipments from vendors (21%), both of which canhelp to increase delivery speed.3010 Saddle Creek RoadLakeland, FL 33801Sales: 888-878-1177Main: 863-665-0966sales@sclogistics.comsclogistics.com13

2020 ECOMMERCE FULFILLMENT TRENDS REPORTINCREASED ADOPTION OF TECHNOLOGYMore than half of respondents overall (54%) plan to addArtificial intelligence was most widely predicted totechnology solutions in the next 12 to 18 months.be the biggest source of innovation with mentions by29% of respondents.An OMS/DOM is the most widely planned technology“Moving forward, we expect to see the continuedsolution – on the docket for 23% of respondents.blurring and expansion of sales channels and even“An OMS can be a valuable tool for most ecommercegreater complexity and velocity of fulfillment operationsfulfillment operations,” Belcastro says. “It givesas a result,” Belcastro suggests. “Solutions will requiremerchants the ability to view inventory across multiplecareful process engineering, greater scalability, morefulfillment sources, share information with consumers,support a variety of delivery options and manage a highvolume of returns and exchanges.”Material handling mechanization/automationtechnologies (such as robotics, sortation syste

sales@sclogistics.com sclogistics.com 3010 Saddle Creek Road Lakeland, FL 33801 Sales: 888-878-1177 Main: 863-665-0966 3 2020 ECOMMERCE FULFILLMENT TRENDS REPORT

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