During this era of the COVID-19 pandemic, consumer behaviors are changing right before our eyes. In real-time, consumer expectations have become stronger than ever. We consistently want faster and faster speed with lower delivery costs. These expectations have set a new precedent that holds online retailers to a higher standard, and likely one that will last well past the current crisis.
Online retailers are now facing extreme unpredictability that include less warehouse space, truck unavailability, staffing availability and a shortage of packaging materials. Given these immense fulfillment challenges and the disruption of e-commerce business models, a need for an efficient supply chain has become even more clearly apparent.
The enVista 2020 Supply Chain Survey unveiled key findings that covered every aspect of the supply chain. Recognizing the state of the economy and consumer needs, compounded by the competitive landscape, the following provides an overview of the results as it relates to evolving a solution for optimizing customer retention.
65% of consumers indicate that the ability to buy anywhere and ship anywhere is an important service to be offered. At a close second, 64% of shoppers also want the ability to choose shipping speed vs. shipping cost. For some customers, depending on circumstances, receiving their purchase fastest will dictate which online retailer to choose. To others, free or low-cost shipping will be the deciding factor. Yet consumers will really expect both – free and fast. With endless options for buying merchandise, if their needs aren’t met, they will most likely opt to purchase from a competitor.
KEY FINDINGS (enVista 2020 Supply Chain Survey)
The overall top 3 supply chain challenges focus on optimizing inventory placement throughout the retail network, enterprise order fulfillment, and last-mile delivery, to quickly and cost-effectively fulfill orders and customer expectations.
Supply Chain Challenges
Challenges by Topic
The retail supply chain has always been a complicated process. With multiple, simultaneous moving parts that need to seamlessly work together, COVID-19 has amplified logistics disruptions. Online retailers have quickly recognized that digital commerce must be supported by physical distribution capabilities such as optimizing warehouses, aligning inventory, enhancing transportation, and expanding multichannel fulfillment. In today’s unpredictable business climate, supply chains must be optimized to reduce volatility, and improve agility and speed – while continually balancing service and cost. The two most impactful influences today are customer expectations and competitive pressure.
Existing online retailers have adapted very quickly to change over the last six months. Their goal has always been to meet the needs of consumers while increasing efficiencies and reducing costs. As we move into the next phase of this pandemic, (and hopefully the last), it’s imperative for brick & mortar businesses to employ similar practices. What’s needed now is to improve supply chain capabilities in order to improve customer experiences.
While supply chains continue to evolve and retailers look for innovative ways to meet rising demands, competing on price and terms of service are still proven methods. With LJM’s help, businesses can continue to meet customer expectations offering their best products at the best possible price.
And LJM can ensure that your business has obtained the most optimal cost-saving parcel Carrier contract for your requirements with our timeless negotiating expertise. You too will get the best service and the best rates from the Carriers when you partner with LJM for Carrier contract negotiation.
You really do need LJM Group, now more than ever.
Source: enVista 2020 Supply Chain Survey – envistacorp.com/2020-supply-chain-survey/