Flexibility in Fulfillment: Adjusting For A New Landscape
2020 was an unprecedented year that caused many businesses to break away from tradition and meet intensified demand from their customers. The pandemic drastically shifted purchasing behaviors in commerce, forcing years of digital transformation to happen seemingly overnight. According to the latest Digital Commerce 360 analysis of U.S. Department of Commerce data, in the first six months of 2020, consumers spent 30.1% more online than in the same period 2019 - with all indicators pointing to that number continuing to rise.
Those wary of automating supply chain resources were awakened to a new reality. It became very clear that warehouses would need to automate and innovate to meet demand, or shutter their businesses. Organizations that moved quickly to implement flexible, agile solutions to enable rapid delivery and built lean fulfillment operations are surviving the pandemic and seeing growth in the new normal.
At the Ready
Traditionally, industries like retail prepare for an onslaught of orders around the holiday season, but COVID-19 demonstrated a new reality - with peak levels of demand starting in March and continuing throughout the year online, offline and across markets. Fulfillment businesses realized they needed to be prepared at a moment’s notice and looked for automation solutions that would allow them to meet demand generation and drive profit throughout the year.
Collaborative mobile robots (CMR) can provide warehouses an agile and flexible solution that supports associates during demand surges. More robots can easily be added to a facility to assist with peaks or removed when demand is lower. They have a quick implementation time with minimal training for associates. Warehouses that leverage collaborative robots can realize a 2-3X increase in productivity, reduction in errors and happier associates.
New Playbook
While demand increased, the way in which consumers were shopping also shifted. The boom in e-commerce came with more businesses offering BOPIS (buy online, pick up in store) and BOPAC (buy online, pick up at curbside) services to accommodate customers trying to safely procure items during the pandemic. Businesses can no longer focus on one chain of fulfillment, there became a need for a holistic approach to develop a cohesive strategy across all channels.
Customers have come to expect on-demand, quality service. As such, businesses need to adapt their fulfillment channels to meet those needs. A successful strategy with properly developed supply chains and warehouse tracking can enable quick implementation of BOPIS and BOPAC services, as well as “concierge” fulfillment efforts like deliver-to-trunk or deliver-to-garage strategies.
Democratizing Fulfillment
Consumer demand during the pandemic gave independent 3PLs and fulfillment centers the ability to step up and prove themselves as lifelines for small and medium sized businesses struggling to keep up. Fulfillment networks can help businesses deliver fast fulfillment to their customers and enable them to grow. This democratization of fulfillment,
granting a small business access to flexible, affordable automation is revolutionary, and allows them to compete against retailer behemoths and thrive in the digital economy.
Solutions
By implementing flexible wall-to-wall solutions at warehouses, such as collaborative mobile robots, or working with trusted 3PLs to meet their fulfillment needs, businesses of all sizes have the power to grow their businesses. CMRs are a powerful, nimble tool that can double pick rates while providing a safer work environment for employees. Though consumer habits have changed, demand will only increase, and those prepared to meet those needs with innovative, automated solutions will be best positioned in the years ahead.
For more information please visit: https://6river.com
Written by: Fergal Glynn, VP Marketing, 6 River Systems