6.16.2016


US ecommerce sales growth year-over-year provided by Internet Retailer

A recent DCVelocity story offers a very helpful overview of how ecommerce is reshaping Distribution Centers.  According to the authors:
Customer expectations and competition from e-commerce are driving widespread changes to warehousing and distribution operations. Direct-to-consumer growth is not only affecting retailers, but also manufacturers, wholesalers, and 3PLs. Warehouses and warehouse fulfillment operations are increasingly playing a greater role in commerce due to disintermediation and a reduction in retail sales through stores. On top of that, the relationship between retailers and upstream partners is changing, as wholesalers have increased their presence in retail and retailers have pushed direct-to-consumer responsibilities back onto their suppliers. As a result, warehouse footprints are expanding, responsiveness and adaptability have become more important, parcel shipping has grown, and labor efficiency remains as important as ever.
The authors make the case that many of the efficiencies supporting the last generation's supply-and-demand networks are counter-productive to the speed and specificity of ecommerce.  We may be making a turn from pallets to pieces.

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