E-commerce Changes Multi-channel Retail Logistics
Only a decade ago, no one could have expected the retail landscape we live and work in today. Laptops and smartphones are now important tools for shopping – no longer is the shopping cart king.
People can buy anywhere. Waiting for lunch, at the train stop or even walking down the street. Oh how things have changed for multi-channel retail logistics. In fact, 80% of retailers report online sales have increased in the past five years, some even reporting more than a 25% increase.
With change, there will probably be even more to follow – a kind of a domino effect. Since multi-channel retailers can no longer rely solely on their brick and mortar locations, they need to adjust their distribution models accordingly.
We have seen a sharp increase in the amount of space a client needs in a distribution center due, in part, to the growth of e-commerce. We’d estimate that around 15% of our clients have had a 25% or higher need for space in the past five years. Now talk about exponential growth! If they were housing the items themselves, gains or drops in product demand could present their own challenges.
Using a 3PL provider for multi-channel retail logistics also removes the need to invest in machinery and staff in your own warehouse space. As many of you know, owning warehouse space is expensive. There are costs associated with upkeep and insurance. In the event that your warehouse space no longer makes sense in its physical location, moving presents a wide variety of challenges, like staffing issues and the actual sale of the building.
The truth of the matter is, because of e-commerce, distribution has changed forever. We are never going back and those with a forward thinking approach will be the ones to thrive.
At Clark Logistic Services, we know that you’re always looking to the future and for ways to be cost effective. We have a commitment to quality and we want to share that with you. We release regular articles and blogs about the third party logistics industry, and information about our company. Stay in the know by signing up for our newsletter. It is free, easy, and we promise to only use your information to better help you with your 3PL needs. Sign up today!
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