By 2020, worldwide retail e-commerce sales are projected to exceed $4 trillion, more than double 2016 results. So it’s no surprise that companies are asking if there is a best business model to compete in a growing digital world.
While there is no one single way for companies to succeed in driving ecommerce growth, there are some fundamental ecommerce and supply chain strategies that many successful companies follow. Here’s a summary of those best practices:
Focused on Improving Supply Chain Efficiency with Right-Sized Packaging
Optimizing the entire supply chain requires companies to have the right process and people at every step, from building an order to final drop off at a customer’s doorstep. Common sources of supply chain waste include unnecessary movement, empty box space and lack of repetition and ergonomics.
In many cases, it takes a company just 20 minutes to process an order. The rest of the time the order may be held up in the system, or on a pallet, truck, or conveyor. Nothing is done with the order for a solid 23 hours and 40 minutes.
A lean manufacturing process will focus on breaking down the components of individual product into the smallest quantity possible and as fast as possible. With the change in dynamics with e-commerce logistics and packaging, there are opportunities to drive new efficiencies, such as a smarter use of labor resources.
Another issue is not accounting for void and sending out boxes that are only half full or less. This practice can drive shipping costs higher and minimize order fulfillment capacity.
Simply put, consumers know waste when they see it. And they don’t like it. Consumers are increasingly aware of the excess…