How can E-commerce Create New Trends in Supply Chain Management?

Businesses are beginning to shift toward new approaches to order fulfillment; statistics show that nearly half of corporations intend to implement a hybrid approach to order fulfillment, combining both in-house and outsourced methods.

Fremont, CA:  It's no surprise that e-commerce has been booming in recent years, not only playing an important role in the global retail industry, but also in the growth of the mobile robotics market. As it turns out, an increasing number of warehouses and distribution centers are incorporating automation solutions into their operations.

• Warehouse Automation

Robotic warehouse solutions have already proven to be beneficial, with more than 70 percent of warehouses and order fulfillment operations reporting double-digit growth since deploying autonomous mobile robots (AMRs) in their warehouses and fulfillment centers, particularly in terms of the organization's overall efficiency and productivity.

Clearly, and as a result of the positive outlook for global e-commerce, many warehouses and distribution centers continue to invest in robotics and AMRs. In fact, where there were only 4,000 robotic warehouses in 2018, it is now estimated that there will be more than 50,000 by 2025, with approximately 23,000 of these expected to be in the United States alone, representing a 20,500 unit increase over 2018.

• Hybrid Order Fulfillment

With order fulfillment being one of the most important ways to retain customers, it has become a fundamental yet difficult part of e-commerce. Not only are shipping speed, simple delivery processes, and abundant product information listed as the top three contributing factors to achieving happy customers, but it also turns out that inventory or order fulfillment issues are primarily caused by human error.

Businesses are beginning to shift toward new approaches to order fulfillment; statistics show that nearly half of corporations intend to implement a hybrid approach to order fulfillment, combining both in-house and outsourced methods. Furthermore, of the 40 percent of businesses that are currently in sourcing their order fulfillment, 6 percent will opt for an outsourcing solution, and 18 percent will most likely outsource their entire order fulfillment.