The dramatic growth and stunning scope of eCommerce proves that service matters. Time matters. Customers buy online because they save time. They shop at their pace, buy when they’re ready and get their purchases delivered largely when they want them. Service in general and time specifically are powerful drivers accounting for double digit eCommerce growth rates.
This essence informs eCommerce supply chain design. They have to be responsive, quick. Frequently this means multiple fulfillment centers or warehouses to supply customers—often the general population.
In the US you get the biggest benefit in going from one to two warehouses. It takes three warehouses to get 90% Second Day coverage and five to get 80% Next Day coverage. Of course those warehouses have to be well-located; best to locate them optimally.
In addition to a smart warehouse network, your supply chain processes have to be effective. You have to deal with customers on their terms, in ways they want to shop, to buy and get their products. This takes design and engineering.
Chicago Consulting has designed and engineered supply chains for 30 years. We’ve pioneered eCommerce supply chain design. Call us at (312) 346-5080; let’s talk about your eCommerce objectives.