E-Commerce Supply Chain Barriers Revealed in DHL Report
A research report titled, “The e-commerce supply chain: Overcoming growing pains” released by DHL Supply Chain this week reveals insight on the current situation in e-commerce supply chains and how global companies are balancing implementation and meeting customer demands.
Survey responses from approximately 900 global decision-makers in a variety of industries including retail, consumer goods, life sciences, high tech, and manufacturing revealed that although e-commerce is commonly viewed as “Very important” or “Extremely Important,” more than half of the companies revealed they are still working towards fully implementing an e-commerce strategy, specifically, 70 percent of B2C companies and 60 percent of B2B companies.
“E-commerce is a primary driver of business growth. Companies know they can no longer afford to operate without a comprehensive omni-channel strategy that develops a deep personal relationship with each individual customer, but many are at a loss for how to continue to keep up with customer demands,” said Jim Gehr, President, Retail, DHL Supply Chain, North America.
“Both B2B (61%) and B2C (65%) respondents rated e-commerce as having the biggest effect on customer retention and satisfaction, and the number is only expected to increase in the next 3-5 years. That is why it is mission critical for supply chains to provide greater predictability, flexibility and speed to continuously maximize service levels,” he added.
Barriers identified in the report include a shift in customer expectations, pace of delivery, and limitations within existing infrastructure. These barriers in combination with the demand for more e-commerce offerings is expected to bring material changes to company distribution strategies. According to the report, a total of 50 percent of business will implement such changes in the next 3-5 years. Additionally, businesses are projected to further utilize 3PL partnerships in an effort to optimally scale opportunities in e-commerce intiatives.
“At DHL Supply Chain, we have the benefit of two decades of e-commerce experience across some of the most demanding supply chain applications,” said Gehr. “Our expertise and experience enable our ability to seamlessly respond to fluctuating demand with proven labor solutions and flexible capacity that ensure our customers always have what they need to meet the requirements of theirs,” Gehr said.
“Even though every company is at a different place along the e-commerce strategy implementation continuum, it is always about delighting the customer. And partnerships with a 3PL are able to deliver the productivity, visibility and agility customers demand,” he concluded.
Source: DHL Supply Chain