Orchestrate the supply chain of your clients and provide multichannel fulfilment services.
For logistics service providers things will change. On the one hand, turnover in e-fulfillment will continue to grow since many manufacturers and e-tailers outsource their direct-to-consumer logistics. On the other hand, a portion of fulfillment activities shifts to wholesalers and stores. All in all, omnichannel logistics leads to smaller orders, which creates opportunities for logistics service providers who are able to do this properly and efficiently.
Multichannel fulfilment centres
In addition, if logistics service providers specialize in certain industries, then they can set up multichannel fulfillment centers where both suppliers and retailers lay down their stocks. In this way, clients can easily draw from each other’s stocks and deliver directly to retail and consumers.
CB is an example of a multichannel fulfilment centre. From the highly mechanized warehouse in Culemborg (NL) 300,000 to 500,000 books are shipped each day to stores and consumers on behalf of publishers. Among others, bol.com draws from the same stock. Through economies of scale, standardization and specialization, logistics service providers can provide reliable and efficient services and become unbeatable in certain markets.
Opportunities for logistics service providers
Opportunities for logistics service providers are:
- Growth in e-fulfillment and value added services
- Strategic collaboration opportunities and new business models
- Consolidation of goods flows of manufacturers and retailers
- Lower threshold for outsourcing through standardization and specialization