《Extensiv:全渠道履约的未来白皮书(英文版)(12页).pdf》由会员分享,可在线阅读,更多相关《Extensiv:全渠道履约的未来白皮书(英文版)(12页).pdf(12页珍藏版)》请在三个皮匠报告上搜索。
1、The Future of Omnichannel F|833.983.6748Table of ContentsA Battle for SurvivalThe Emerging Face of Fulfillment Consolidation:Mega Scale 3PLsAggregated3PLNetworks(4PLs)Building a Plan for the Future Designing a Competitive Fulfillment Offering As Adaptable as the Internet Market Opportunity:Support f
2、or Specialized NetworksConclusions and a Look AheadThe Solution Is Here:Extensiv Network ManagerNext Steps About E|833.983.67483In the world of ecommerce,consumer expectations are higher than ever.Amazon has trained shoppers that next-day,free shipping is the price to be competitive.And while Amazon
3、 has invested hundreds of billions of dollars building out their fulfillment network,for most brands,this type of investment is impossible.The result is that most brands are either losing money on fulfillment or are delivering packages slower than customers would like.Simply put,historical fulfillme
4、nt strategies are no longer going to work.Single-or even two-warehouse fulfillment approaches force brands to choose between paying exorbitant prices for next-day or second-day air shipping for many of their packages,which means most of those orders will be unprofitable,or shipping everything via gr
5、ound,which results in slow delivery times and disappointed customers.A Battle for S|833.983.6748The Emerging Face of FulfillmentTraditionalthird-partylogisticsproviders(3PLs)arefacingnewcompetitionfromanarrayof well-funded competitors that aim to take advantage of these rising expectations.While man
6、y of these competitors currently need to utilize the services of traditional 3PLs,in the long run,their success will be at the expense of the 3PLs that they claim to partner with.New entrants are taking market share and stealing customers from 3PLs that fail to evolve.This trend of customer relation
7、ships being owned by these highly funded competitors means the 3PL no longer controls their own destiny.Not only do these providers take a“my way or the highway”approach,telling 3PLs how to operate their warehouses,3PLs lose all pricing power.If they try to raise prices,the big 4PLs move their capac
8、ity to the lowest priced warehouse,even when that warehouse may offer inferior service.In the long run,warehouses that no longer own their customers will be subject to the whims of the big players,who already use their massive funding to compete against their partners,taking competitive actions like
9、 bidding against 3PLs on advertising channels.As an example,in the six most important logistics cities when searching for“3PL services,”less than 20%of the paid search results were from small or mid-sized 3PLs.The rest were for companies with hundreds of millions of dollars of funding,seeking to out
10、spend traditional 3PLs to acquire customers that otherwise would have contracted directly with a 3PL.Before looking at how a 3PL will be able to compete,its important to look at the emerging threats to their |833.983.6748The Emerging Face of FulfillmentConsolidation:Mega Scale 3PLsThere are a handfu
11、l of 3PLs that have raised hundreds of millions of dollars to build out multi-node fulfillment networks.Unfortunately for their customers,rather than investing in technology,most of this investment has gone into marketingto sign new brandsand acquiring warehouses,which is incredibly capital-intensiv
12、e.Because their investment is primarily focused on physical infrastructure,the software they use to operate their networks is underdeveloped,meaning brands lack adaptability,visibility,and control.Aggregated 3PL Networks(4PLs)Recently,ecommerce fulfillment companies have raised hundreds of millions
13、of dollars to fulfill out of many different warehouses,run by different companies,and in many cases,running different software inside the warehouse.Rather than operating their own warehouses,they sign up the customers and leave the 3PLs to do the hard work of fulfilling orders.There are many reports
14、 of uneven service quality and a lack of visibility into real-time order status.Because they are operating across a range of facilities using varying software,it is difficult to ensure consumers have a consistent experience.5For 3PLs,staying alive requires acting before its too late.Rather than stak
15、ing their future on a stream of less and less profitable commodity business provided by“partners,”3PLs need to build an adaptable fulfillment strategy.They need a fulfillment strategy that allows them to provide a more compelling offering that their sales teams can use to win more business directly
16、from brands by offering cheaper,faster fulfillment.Most importantly,by strengthening their offering,3PLs will remain in control of their customer relationships.Designing a Competitive Fulfillment OfferingThe question remains,what does a competitive fulfillment offering look like?For 3PLs,there are a
17、 few key features of a fulfillment offering that can compete in the modern age.These offerings should be designed for,at a minimum,nationwide second-day delivery,but be scalable enough to add distribution nodes to cost-effectively deliver to more than 95%of US locations next day.Geographic Diversifi
18、cation:To cost-effectively deliver second day,ground shipping must be the default mode of transportation.While the specifics of warehouse locations matter,generally this means fulfilling out of three or more locations.High-Quality Service:Regardless of the number of fulfillment nodes,consumer expect
19、ations are that every order is accurate and timely.Building a network where some nodes deliver accurately and others are unreliable is a recipe for a damaged reputation.A 3PL looking to build a distributed fulfillment network needs to ensure consistent,high standards for execution across every wareh
20、ouse.This includes coordinated communication across warehouses to effectively manage changes to order fulfillment.Consistent Experience:Brands have different expectations for the fulfillment experience.Some brands prioritize fast delivery,while others are looking to minimize costs.In the modern tech
21、nology enabled supply chain,this consistency of service requires all the warehouses serving the needs of customers to operate on a common technology platform,with an identical configuration and shipping |833.983.6748Building a Plan for the Future6As Adaptable as the Internet The Internet was designe
22、d by the defense department to survive a nuclear war,without the need to rewire connections when things go wrong.The Internet adjusts and evolves automatically as more capacity is needed,nodes come online,and sub networks are shut down.The Internets level of adaptability may never be achieved in shi
23、pping physical goods.However,brands expect a higher level of resiliency from their fulfillment network than is available today,and 3PLs must build their networks with that in mind.To reach that level of adaptability,next generation fulfillment networks need the following characteristics:Multiple Nod
24、es:Its impossible to achieve cost-effective,next-day fulfillment out of a single warehouse.Additionally,there needs to be a way that brands can add or remove fulfillment nodes quickly as demand fluctuates.Adaptable Order Routing:Once a brand is fulfilling out of multiple facilities,it is critical th
25、at orders get routed to the“best”warehouse,but determining the best option is not always easy.When all items are in inventory at every warehouse,this is usually a matter of routing the order to the closest warehouse.When one or more SKUs are not stocked in the closest warehouse,software should decid
26、e whether to fulfill from a more distant node or to split theorder(whichwillincreaseshippingcosts).Softwarewillalsodetermine whether related disruptions should be expected and if orders need to be re-routed when they occur.Support for B2C and B2B Fulfillment:Brands that sell wholesale,retail,and eco
27、mmerce should not have to support different networks for each of those channels.Any modern fulfillment strategy will be built on 3PLs that support omnichannel fulfillment.Global Visibility:When fulfilling out of multiple facilities,consumers still expect to know the status of their orders in real-ti
28、me,regardless of what software is being used in the warehouse.An adaptable network provides visibility across often disparate systems,all the way to the warehouse floor using real-time mobile |833.983.6748Building a Plan for the Future7 Intelligent Inventory Allocation:When shipping from multiple wa
29、rehouses,where goods are located is important.Many factors must be considered when allocating inventory,including different demand from different parts of the country.For example,very few ski jackets are sold in the southwest United States,and not many air conditioners ship to Alaska.Analysis of his
30、torical order distribution,as well as consideration of stock levels,are key to making good decisions on inventory placement.Multiple Product Types:If all of a brands products are relatively uniform,building a comprehensive fulfillment network is much simpler.Where there is a diversity of products to
31、 be fulfilled,the challenge is much greater.Bulky products such as golf clubs require special packaging.Products requiring lot and serial number tracking and cold storage are particularly challenging.The fulfillment network will need to be able to handle not just the current product sets but also fu
32、ture new product introductions.Open Platform:In an industry as large,diverse,and rapidly changing as omnichannel fulfillment,software must be built on open ApplicationProgrammingInterfaces(APIs)inordertocommunicatetoeverysoftware provider a brand requires.These systems can be as simple as shipping l
33、abel providers but can also connect to systems used to operate a warehouse,such as mobile scanning and/or conveyor systems.A closed system cannot compete.Robust Integration Capabilities:Given the challenges in implementing warehouse management software,the ability to utilize 3PL warehouses running a
34、 range of software will allow networks much more flexibility in how they can be configured.A platform with a wide array of integrations between order sources(shoppingcartsandmarketplaces)andorderdestinations (order management systems and warehouse management systems)is critical to building a resilie
35、nt fulfillment strategy.Billing:3PL software needs to capture all the activities for a customer and should allow accounting staff to review and send automated invoices.Additionally,when participating in a collaborative network,intercompany charges should be supported.Regardless of which warehouse sh
36、ipped a package,all the activities need to appear on a single customer |833.983.6748Building a Plan for the Future8Market Opportunity:Support for Specialized Networks The incredible diversity of products being sold online has created an opportunity for 3PLs with specialized handling capabilities.The
37、se 3PLs have an opportunity to build highly differentiated 4PL offerings that will reduce fulfillment time and lower costs to fulfill on behalf of brands with these needs.A few of the opportunities that exist to build specialized 4PL networks include the following:3PLs that have these capabilities a
38、nd others have a great opportunity to build industry leading 4PL networks.If they want to establish early leadership,they need to act |833.983.6748Building a Plan for the Future9While the expectations for next generation fulfillment networks may seem daunting to build from scratch,most of the fulfil
39、lment capabilities required are already available via todays 3PLs.However,whats been missing is the advanced software to allow these companies to collaborate with peers to build next generation 4PL networks.Not only does the new market for 4PL services present an incredible opportunity,the survival
40、of any 3PL with fewer than three warehouses will be in doubt in the years ahead.3PLs that choose to collaborate with peers to build cooperative fulfillment networks will be able to win more business by offering a higher level of service for a lower cost to brands.Should 3PLs choose to work with the
41、highly funded companies that are currently competing for their customers,they will be facilitating the end of their direct relationships with brands.Their services will progressively become more and more commoditized,and they will lose control of their ability to price their own offerings.They will
42、end up in a“race to the bottom”where the lowest cost providers,even when they offer lesser service,will service the needs of 4PLs,while the 3PLs offering a high-quality offering will be outspent by those same companies to acquire |833.983.6748Conclusionand a Look Ahead10Extensiv Network Manager is t
43、he first software platform built to allow 3PLs to build a 4PL network offering without deep software development expertise.Third-party logistics providers have built their business on excellent warehouse operations,customer service,and selling those services to brands.Now they have a chance to build
44、 a next generation business without investing millions of dollars in software development.An understanding of how to build a fulfillment network,a strong sales team,and a customer service orientation are enough to compete when their business is built on Extensiv Network Manager.Extensiv Network Mana
45、ger is the first system to allow a 3PL to build and manage their own collaborative 4PL network.Delivering the key software capabilities requiredincluding global order visibility and management across different companies,comprehensive billing,intelligent order routing,and the ability to manage a 3PL
46、business from the front office to the warehouse floorExtensiv is the only solution that will allow 3PLs to compete in the evolving world of highly funded companies looking to steal business from todays 3PLs.Most importantly,unlike the highly funded mega 3PLs and 4PLs that are looking to steal small
47、and mid-sized 3PLs business,Extensiv does not own or operate any warehouses,nor does it sell fulfillment services.It is a company committed to helping its customer 3PLs run their business better by providing the industry-leading software they |833.983.6748The Solution Is Here:Extensiv Network Manage
48、r11If you are a 3PL looking to better compete in todays rapidly evolving fulfillment market,please contact Extensiv()tolearnmoreaboutourtechnologyandtobepaired with other 3PLs that are also looking to grow their partner network.About Extensiv Extensiv is a visionary technology leader focused on crea
49、ting the future of omnichannel fulfillment.Through our unrivaled network of more than 2,000 connected 3PL warehouses and a suite of integrated,cloud-native warehouse,order,and inventory management platformswe allow modern merchants and brands to fulfill demand anywhere with superior flexibility and scale without painful platform migrations.For more information,please call us at |833.983.6748Next Steps12REQUEST A DEMO HERE 2022 Extensiv I All rights reserved.FOLLOW US