Logistyx President Ken Fleming Launches New Logistics Column for Forbes Technology Council
Every executive representing an e-commerce seller, a manufacturer or a retailer needs to have a vested interest in the effective fulfillment of customer orders. The profitability and customer service stakes are too high to ignore, and technology advancements are making the once-impossible possible when it comes to keeping step with the evolving needs and desires of customers in this increasingly competitive “same-day” market. With the right strategic plan and technology in place, shippers can address the need for fundamental-but-complex operational changes to get closer to customers, and as e-commerce sales, fulfillment and returns continue to grow, executives are making a more concerted effort to know what it takes to be successful.
In his first contribution for the Forbes Technology Council, Ken discusses the important trend of needing to be closer to customers to provide better service more cost-effectively and its impact on all of e-commerce fulfillment. Ken provides insights for shippers to help them determine what effects related to new carrier rate hikes will have on their own operations so they can effectively forecast the impact of the changes and take immediate steps to reduce their distribution costs.
In the Amazon era of next-day delivery and in-store pickups, many businesses have made great progress to get goods into customers’ hands quickly. They increasingly fulfill e-commerce orders from diverse distribution networks, casting aside the old model of using a single distribution center to cover wide territories. Behind the scenes, companies have been taking steps to stock and deliver their products from locations closer to customers to reduce the distances products must travel.
With major carriers like UPS, FedEx and DHL Express increasing rates for 2020, it’s getting more expensive at a faster rate to deliver goods over longer distances, giving sellers another incentive to get closer to customers. For shippers to provide the right level of service in a cost-effective manner, they need to establish a wider geographic footprint through their own distribution centers, converting stores into distribution nodes or contracting with third-party logistics providers.
Read Ken’s first Forbes article: “As Shipping Rates Hike, Sellers Can Get Closer to Customers to Minimize Impact,” and look for more in the future.