Remember a few years ago when you paid extra to have something delivered in two days?
That’s no longer the case, and now companies like Amazon offer same-day delivery on a wide variety of items.
This focus on making faster deliveries to the customer at no additional charge is changing the way that supply chains operate – and more changes are expected in 2018 as companies ramp up their focus on customers, says Brian Hodgson, executive vice president of business development at MP Objects.
“Retailers are transforming their supply chains in two ways: building stronger and more integrated relationships with suppliers; and changing their distribution network to be closer to their customers,” he says.
He explains the stronger relationships with suppliers provides the ability to offer a broader catalog without carrying the inventory. At the same time, more advanced integration can enable the retailer to decide whether the shipment is sent from the supplier or its warehouse based on inventory, consumer proximity and transportation costs, he says.
“With respect to the distribution network, in addition to leveraging suppliers, retailers are moving fulfillment close to the consumers, and often will leverage third-party logistics companies for this coverage,” he says.
He adds that retailers also will require a broader carrier mix to cover (read more here)