Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
It wasn’t too long ago that companies painted clear dividing lines between their brick-and-mortar and e-commerce distribution operations and relied on a “never the twain shall meet” philosophy. Their respective divisions handled order taking, fulfillment, customer service, and returns; and software platforms were dedicated to one side or the other—rarely both. Given their own physical space and systems or outsourced to third-party logistics providers, e-commerce operations had yet to prove their long-term value and, as such, were looked upon as being temporary and fleeting.
Fast-forward to 2016 and those sentiments and assumptions have flipped, and done so rather dramatically. With U.S. e-commerce sales expected to reach nearly $500 billion by 2018 (up from $304 billion in 2014), according to eMarketer, the race is on to develop integrated omni-channel distribution strategies to effectively manage both on-line and off-line transaction growth. To find out how companies are tackling this lofty goal, Commonwealth Supply Chain Advisors recently surveyed 18 of the world’s top retailers to learn about their omni-channel strategies and practices. Here are the nine conclusions we came to, based on the survey’s results.
1. They Manage e-Commerce Internally
For starters, omni-channel companies are pulling away from third-party logistics providers (3PLs) as partners in e-commerce and bringing this component of their distribution operations in-house. Fourteen of the 18 companies surveyed currently manage their own e-commerce operations. The other four organizations plan to discontinue their 3PL relationships and bring e-commerce distribution in-house within the next 24 months.
 |
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
SC
MR
Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
|
|
Download Article PDF |
It wasn't too long ago that companies painted clear dividing lines between their brick-and-mortar and e-commerce distribution operations and relied on a “never the twain shall meet” philosophy. Their respective divisions handled order taking, fulfillment, customer service, and returns; and software platforms were dedicated to one side or the other—rarely both. Given their own physical space and systems or outsourced to third-party logistics providers, e-commerce operations had yet to prove their long-term value and, as such, were looked upon as being temporary and fleeting.
Fast-forward to 2016 and those sentiments and assumptions have flipped, and done so rather dramatically. With U.S. e-commerce sales expected to reach nearly $500 billion by 2018 (up from $304 billion in 2014), according to eMarketer, the race is on to develop integrated omni-channel distribution strategies to effectively manage both on-line and off-line transaction growth. To find out how companies are tackling this lofty goal, Commonwealth Supply Chain Advisors recently surveyed 18 of the world's top retailers to learn about their omni-channel strategies and practices. Here are the nine conclusions we came to, based on the survey's results.
1. They Manage e-Commerce Internally
For starters, omni-channel companies are pulling away from third-party logistics providers (3PLs) as partners in e-commerce and bringing this component of their distribution operations in-house. Fourteen of the 18 companies surveyed currently manage their own e-commerce operations. The other four organizations plan to discontinue their 3PL relationships and bring e-commerce distribution in-house within the next 24 months.
|
|
SUBSCRIBERS: Click here to download PDF of the full article. |
SC
MR
Latest Supply Chain News
- AI, virtual reality is bringing experiential learning into the modern age
- Humanoid robots’ place in an intralogistics smart robot strategy
- Tips for CIOs to overcome technology talent acquisition troubles
- There is still work to do to achieve supply chain stability
- Blooming success: The vital role of S&OE in nurturing global supply chains
- More News
Latest Resources
Explore
Latest Supply Chain News
- AI, virtual reality is bringing experiential learning into the modern age
- Humanoid robots’ place in an intralogistics smart robot strategy
- Tips for CIOs to overcome technology talent acquisition troubles
- There is still work to do to achieve supply chain stability
- Blooming success: The vital role of S&OE in nurturing global supply chains
- Supply chain salaries, job satisfaction on the rise
- More latest news
Latest Resources
About the Author
Sarah Petrie, Executive Managing Editor, Peerless Media
I am the executive managing editor of two business-to-business magazines. I run the day-to-day activities of the magazines and their Websites. I am responsible for schedules, editing, and production of those books. I also assist in the editing and copy editing responsibilities of a third magazine and handle the editing and production of custom publishing projects. Additionally, I have past experience in university-level teaching and marketing writing.
Follow SCMR on social media.
@SupplyChainManagementReview on Facebook
@SCMR on Twitter
SCMR on Linkedin
Subscribe
Supply Chain Management Review delivers the best industry content.
Editors’ Picks
