SCDigest Says: |
When developing e-commerce plans it is important to remember that selling products in cyberspace still comes down to the physical movement of product through the DC to the final customers.
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As overall sales continue their gradual climb out of the recessionary hole, e-commerce sales are expected to keep rising at a strong pace in the coming months as busy consumers are increasingly attracted to the convenience of internet purchasing.
Up until a few years ago most medium to small distributors did not give much attention to planning for an e-commerce sales channel while the large brick & mortar distributors like Target, Walmart, Kohl’s and even manufacturers like Levi Strauss & Co embraced it. That has left many traditional consumer goods retailers and catalogers playing catch-up. While once dominate storefront chains such as Borders and Circuit City, who did not adapt well to the Internet, have disappeared and Blockbuster closed over 6,000 of its stores over the past few years.
As the e-commerce phenomenon gathers critical mass, the very power of its possibilities has accelerated change. It has happen across both the B2B and the B2C supply chains. I am currently working with a small (less than $100 Million per year) private regional B2B that is automating its 50K sq. ft. DC to accommodate this year’s launce of its new e-commerce sales channel. Once up and running the Company will be able to leverage its new e-commerce Continuous Order Processing (COP) system to tap into the national (even global) B2C market place. The possibilities are huge.
There is an element of risk though; if you can't fill every Internet order promptly, accurately, and completely - don't bother to promise it in the first place. Bad performance spreads throughout the web at blazing speed. Criticism on social websites, while often not justified, is especially damaging when there is a reoccurring history of it.
Incorporating a Business within a Business
The traditional mechanized/automated distribution center material handling picking and sorting systems are designed to handle medium to large orders, with the occasional processing of small orders. However, the internet consumer typically orders across one or two lines and in small quantities. But, with thousands of internet customers, the frequency of these smaller orders can potentially be astronomical, especially when promotions are in play, choking a traditional system – it’s a whole new ball game. (Distribution/Materials Handling Story Continues Below) |