Barrett Distribution Centers’ Senior Vice President of Customer Solutions, Scott Hothem is featured as a panelist on the Memphis Business Journal’s 2019 Table of Experts for Logistics and Distribution.
The consumer electronics sector is growing with rapid developments in technology, product innovation and falling prices, it has become a more competitive industry than ever before. In the United States, consumer electronics sales forecasted to have a compound annual growth rate (CAGR) of over 6% between now and 2024.
The beauty industry is a $532 billion sector of the economy that is experiencing rapid growth. This growth is largely due in part to the rise of e-commerce and omni-channel sales with projections to reach $863 billion by 2024. Such growth of B2C and B2B sales makes manufacturing supply chain management and order fulfillment more important than ever before.
Opting to outsource you warehousing and logistics needs can be a smart decision. Leveraging the resources and expertise of a third-party logistics company can be a significant strategic advantage. However, like with any major business decision, making the best choice is important. Here are a few things you need consider when choosing a third-party logistics partner.
The most labor and cost intensive action in your distribution center is order fulfillment, specifically manual fulfillment. According to Martin Murray’s “Order Picking in the warehouse”, the cost of order picking can be as much as 55% of a warehouse’s total operating cost. Furthermore, manual fulfillment can consume 65% of an employee’s time. Understanding the impact this has on your bottom line can lead to making some new investments and changes to relieve the costs that go into these tasks.
For 83% of warehouse managers’ their top priority is to lower operations costs. This is not unusual when you consider the massive shift occurring from brick & mortar retail to e-commerce. The footwear industry is a prime example. No longer is going to the mall for a pair of shoes a consumer’s first choice. Many consumers now prefer shopping from the comfort of their home or the convenience of a mobile device.
As an e-commerce company, leveraging a streamlined supply chain is a crucial advantage over traditional brick-and-mortar outlets. Leveraging data and visibility technology can have a direct impact on pricing strategies as well as fulfillment and delivery optimization. Using the data your customers provide allows you to stop estimating shipping quotes or offering options you “think” they want. Here are five ways your distribution data can make your supply chain stronger.
Home electronics manufacturers are making strides in technology, affordability, and accessibility, reaching record revenue levels. In 2018, sales were up 3.9% from 2017, exceeding $318 billion. However, this uptick in sales has not come along without its challenges. In addition to increased competition, consumer demands are also on the rise. Creating a supply chain that keeps costs low, products moving and customers happy has become more difficult. Here are a couple of ways to increase the efficiency of your home electronics supply chain.
In 2018 apparel increased 14.7% to over $103 billion. It was largest single e-commerce product category, making up 19.7% of total retail ecommerce sales. And although revenue across apparel categories is only expected to rise in the future, consumer demand and increased competition is making it more challenging to increase profit margins.
The cosmetic industry was valued at $532 billion in sales in 2017, according to Globe News Wire. It is projected to $863 billion globally by 2024. This upward trend proves cosmetic companies are generating great demand for their products. The challenge in the health & beauty supply chain is to produce and provide the supply when and where it is needed. As companies compete for this growing revenue stream, product fulfillment management is separating itself as a strategic advantage.