Simplifying the Shipment Journey
The Fast Lane: Increasing Expectations in the Supply Chain
The shipping industry is facing new challenges.
Fueled by consumer demands, e-commerce sales have continued to increase while last mile deliveries have grown more complicated. Customers expect faster shipping times and more convenient fulfillment options.
The result is that warehouses, distribution centers, and 3PLs are expected to grow their businesses as they run operations faster, cheaper, with 100% transparency,while achieving 99% accuracy.
Rising Costs: Mistakes can get expensive
- The annual cost of chargebacks due to mistakes in shipping: $36B
- The annual cost of mis-picks to the average warehouse: $389K
- How much pick time increases with every error: 2X
- How much shipping costs increase when re-shipping and expediting late items: 4x
Need for Skilled Workers: Good help is hard to find
- More than 50% of warehouse labor resources are involved in order pick-pack-ship activity
- Labor costs constitute roughly 65% of most warehouse facilities operating budgets
- Demand for skilled warehouse workers outpaces supply by a 6:1 ratio
What can decision makers do to successfully navigate these challenges?