If you’re new to the game, logistics can seem overwhelming. You might think that you’re not big enough to be throwing around terms like supply chain management.
However, if you’re experiencing growing pains like delayed fulfillment times, high fulfillment costs, and the inability to offer competitive shipping options and prices, then you’re ready to optimize your supply chain.
Your retail supply chain is the processes you use to get your products to your consumers. It encompasses everything from obtaining the raw materials to make your product to delivering that product into your shoppers’ hands.
Retail supply chain management therefore is how you optimize those processes to maximize both speed and efficiency. You should deliver your products into a consumer’s hands as fast as you can. However, you don’t want to pay outrageous amounts to do that. You must optimize your processes to be as efficient and affordable as you can manage.
Many retailers use shipping software, 3PLs, and integration companies to automate their processes and increase efficiencies.
It’s easy to overlook the importance of supply chain management and undervalue its effect on your business operations. However, retailers can no longer afford to do so.
Online shoppers thoroughly research and compare products and processes before purchasing.
According to the NRF, 65% of consumers say they look up free-shipping thresholds before adding items to their online shopping carts. Further, 39% expect two-day shipping to be free. And, if you don’t offer it, consumers will shop somewhere else. 29% of consumers have backed out of a purchase because two-day shipping wasn’t free.
Retailers of all sizes are falling short on meeting customer’s expectations. Those who provide the best shipping experience will see a big impact on their costs and will gain a competitive advantage. If you’re looking for a way to stand out in your competitive retail space, your fulfillment process and ability to deliver can set you apart from others.