Given the continued supply chain uncertainty, increased customer expectations, and a tidal wave of competing brands, how can you prepare for success this peak season? By revamping your inventory and distribution methods while shifting your focus to micro fulfillment centers (MFCs). I want to talk a little bit about how MFCs have been redefined, and how they can be a key to your brand’s differentiation and success.

Like many other retailers and shippers around the country (and the globe), you might be lamenting the additional FedEx surcharges that began June 21st. After supply chain disruptions due to COVID-19, the recent round of surcharges felt like a slap in the face. The increased costs for additional handling, peak season delivery, and residential delivery packs a financial punch when you’re sending thousands of packages a month. But where do you turn when other national (and sometimes even regional) carriers are following suit? 

Are micro-fulfillment strategies the key to peak season success? Short answer: yes! Long answer: yes, when properly implemented—and that requires expertise.

In 2020, stay-at-home orders changed the culinary landscape, causing foodies to explore new avenues for daily dining. Among them were meal kit delivery services—subscription-based ready-to-eat meals or pre-packaged ingredients used to create gourmet recipes in one’s own kitchen. With its rapid growth during the pandemic combined with customers’ increased desire for convenience, meal kit delivery is poised to become an $11.6 billion industry by 2022.

As you prepare for peak season, don’t lose sight of a key brand differentiator: sustainable sourcing. Sustainable brands are surging in popularity, but responsible sourcing is more than a trend. It’s a necessity for the environment and for your branding as well. From your manufacturing processes to your last-mile delivery and returns practices, your corporate responsibility profile can make a huge difference in how your brand is perceived. Your supply chain logistics and delivery plan are a crucial part of responsible sourcing.

As you prepare for peak season, don’t lose sight of a key brand differentiator: sustainable sourcing. Sustainable brands are surging in popularity, but responsible sourcing is more than a trend. It’s a necessity for the environment and for your branding as well. From your manufacturing processes to your last-mile delivery and returns practices, your corporate responsibility profile can make a huge difference in how your brand is perceived. Your supply chain logistics and delivery plan are a crucial part of responsible sourcing.

Why would retail fashion innovators make last mile delivery services an integral part of their business plans?

Why would retail fashion innovators make last-mile delivery services an integral part of their business plans?

The rapid increase in e-commerce has placed extra pressure on the supply chain and especially logistics providers. An exceptional delivery experience can turn a regular shopper into a brand ambassador. But what happens when a delivery experience is negative? Let’s explore the costs of failed deliveries—and how to mitigate them.

In the past year, many of us have been personally affected by product shortages resulting from unprepared supply chains. As the retail landscape continues to change and evolve, here are a few reasons why I think organizations will increasingly integrate supply chain executive positions into their C-suites.

The holiday season is right around the corner, and the peak season for last mile delivery is getting underway as retailers and supply chains prepare for the influx of demand. According to a recent Statista report, ecommerce sales are expected to reach $4.5 trillion in 2021, once again reinforcing the need for rapid and reliable delivery services to bring home the entire customer experience for brands.

Imagine this: a day when drones are delivering self-administered COVID-19 test kits right to our front door. That’s right, the future is now and it’s knocking on your front door.  But it isn’t THE singular answer to reliable last mile delivery 

If ecommerce and retailers were already concerned about the growing surcharges placed on high-volume shipments this holiday season, then they definitely won’t be happy to hear that these same national carriers are also capping shipments for many. 

Today, market conditions within the highly competitive parcel market have climbed to unprecedented levels, thanks largely to increasing customer demand. This has resulted in higher rates, tighter capacity, port congestion, and difficult service conditions--despite elevated customer expectations.

Fast shipping was once considered a luxury, but in 2021, consumers demand it. E-commerce experts call this the Amazon Effect—the retail giant’s disruption of the industry that has set the standard for online shopping and delivery. In fact, nearly 90% of consumers confirm that because of Amazon, they have greater shipping expectations from other retailers.

Like many markets, the sports retail industry has seen ups and downs throughout the pandemic. According to a recent McKinsey report, while the 2020 sporting goods market as a whole fell amid closed gyms and scaled-down team sports seasons, areas like personal fitness equipment, digital workout devices and athleisure saw success as consumers found new ways of staying fit and dressing comfortably as they stayed at home. Sportswear retailer Lululemon struck the best of these winning worlds through its acquisition of fitness tech startup Mirror, allowing for further extension of the brand’s already strong omnichannel experience. 

From item selections to the returns process, the entire shopping experience as we have known it has changed. 2020’s Black Friday and Cyber Monday sales officially broke all records for e-commerce shopping, and as more consumers adapt and embrace the ease of online shopping, these numbers are forecasted to have accelerated ahead roughly five years. 

In a world where e-commerce is booming, brick-and-mortar stores are decreasing, and home delivery is faster than ever, the retail landscape is noticeably changing by the day. In this environment of constant change, an outstanding customer experience (CX) can be a brand’s best competitive differentiator. One of the best trends I’ve seen to enhance the shopping experience leveraging the last mile is called clienteling.

While it may seem like there’s ample time for retailers to prepare for the next peak season, the reality is that there is less time for supply chain recovery than ever before. 

While it may seem like there’s ample time for retailers to prepare for the next peak season, the reality is that there is less time for supply chain recovery than ever before. As brands finally caught their breath from the holiday season, they moved right into the returns season with little to no reprieve. And now they find themselves about to enter the planning phase for the next peak season, and these preparations are unlike any that have come before. 

Consumers have come to expect same-day delivery for nearly everything they purchase. Retailers have responded by using crowdsourcing providers and their applications. But solely relying on crowdsourced services for same-day deliveries has proven to be a risky move for some large retailers. How can your brand avoid crowdsourcing-related pitfalls and still offer the convenience of same-day delivery?

The rise of e-commerce has created new opportunities for retailers worldwide, but it has also had significant repercussions on shipping emissions. As a leader in global transport and logistics, GEODIS understands that our business has an impact on the environment. That’s why we invest in the future.

It’s a common misconception that the automotive parts industry supply chain is linear, pumping out the same products day after day in the same order. But much like the complexity found in a vehicle’s composition, there’s a significant pressure on manufacturers to produce error-free consistency with these automotive parts and deliver them just in time for the car’s next service appointment. 

2020 was the year the global personal luxury goods market bled more than $79 billion in sales, a 23% decline from the year before, and the greatest year-over-year drop on record in more than twenty-five years. After all, when stores abruptly closed across the globe and discretionary travel slowed to a halt, this very traditional marketplace had not yet substantially adopted e-commerce channels. The effects from the global pandemic have shifted the luxury goods market in some permanent ways and have been the impetus for significant updates in the way luxury goods are marketed and sold, as well as in customer demands and expectations. Here’s a little cheat sheet on what luxury brands must do to pivot and make an impact in the coming months and years:

Omnichannel distribution networks are intricate and complex and no two are alike. Once you negotiate your omnichannel network, you need to continue optimizing it to meet consumer demand for faster and cost effective shipping solutions.  

It’s time to re-invent the automotive parts supply chain. Consumers are spending more of both their personal and discretionary income on automotive parts and accessories than ever before. In the summer of 2020, automotive parts revenue skyrocketed to reach an all-time high of $50.303 billion, with continued upward trajectory as the pandemic stretches on. Why? People are spending more time at home, they have less income to purchase new cars, and the current social distancing rules mean public transportation isn’t being used as much as in the past. 

Retailers know better than most the true cost of returns management: the average retailer’s reverse logistics costs for consumer goods equal an average of 8.1% of total sales. And return rates continue to increase each year, spiking shortly after the peak holiday season and ranging anywhere from 20% to 30%.

This year, national parcel carriers are estimating a 23% increase over the highest week of returns in the 2020 post-holiday season. With rising costs across the board for returns management, some retailers are looking for creative workarounds for long-term solutions.

Some brands are avoiding returns altogether, particularly luxury brands and big box retailers who have decided to skip the added expense and improve their customer experience all in one motion. This somewhat of a win-win situation has multiple benefits for retailers who can afford to do so, as there are a variety of reasons the company may choose to forgo the returns process completely. 

The fashion industry will see huge innovation in 2021 as new technology, changing customer trends, last mile solutions and demand for urban fulfillment will transform the industry.

The holiday season has finally come to an end, but that doesn’t mean retailers and national parcel carriers are getting any reprieve from this year’s record peak season. Now, both brace for a returns peak season with U.S. holiday shoppers expected to return around 1.9 million packages by National Returns Day on January 2. But this year’s unique conditions foretell unusually high returns which will require major changes to the traditional retail return process. 

GEODIS City Delivery offers retailers a proven path for filling gaps throughout their traditional logistics network. By utilizing an integrated network of existing A-rated malls as distribution centers, GEODIS City Delivery fulfills the need for mall-based retailers and other brands to keep their packages closer to the consumer.

As you know, 2020 presented some incredibly difficult challenges for e-commerce shippers and retailers, especially during peak season. After all, Adobe predicted https://www.post-gazette.com/business/money/2020/12/18/Retail-ecommerce-deliveries-carriers-usps-ups-fedex-covid-19-shipments-christmas-holidays/stories/202012200039 that U.S. online holiday sales will total $189 billion, breaking previous records with a 33% year-over-year increase — equal to two years’ growth in one season. 

The retail sector underwent some huge transitions in 2020, both good and bad. Across the globe, consumer brands have been forced to rethink their operational strategies to store, sell, and fulfill customer purchases, all while being cognizant of the rising price of delivery. 

Shipping costs go up each year, but for 2021, some will be increasing more than others. As national parcel carriers continue to see high volume demands extend into the new year, some have decided to extend surcharges to meet increased operating costs after the holidays. 

For many medical device manufacturers and healthcare systems, a proven path to better sales and strengthened physician relationships lies in improving control of the medical device journey. Mareo McCracken, the Chief Customer Officer at Movemedical, recently shared his insights on how to address these problems by fundamentally reimagining the medical device supply chain. 

Most if not all the retail world has some catching up to do in 2021. Topping the To Do list: assessing the change in buyer behavior so retailers can effectively adapt. To succeed in the coming months and years, all consumer brands--regardless of market--must embrace five crucial new facts of retail life and create strategies to take advantage of them. 

The global pandemic has changed the way people are spending time and money, even when it comes to shopping for luxury goods. The pandemic has also shifted the way luxury brands deliver premium services. Many brands are still shifting their operations to address the next normal and ensure that the store experience as well as last-mile delivery are each pivotal to the customer delivery experience.

National carriers have been warning both retailers and consumers that there will likely be massive shipping delays throughout the month of December. Those predictions have painfully come true, leaving many major retailers frustrated by their own poor efforts to build a last mile contingency plan. 

Connecting Brands, Packages, Drivers & Deliveries Through Innovative Last Mile Technology

Clearly consumers today expect a seamless and speedy online ordering and delivery process--one that would have been unimaginable just a few years ago. Industry-leading retailers like Amazon have made same-day or next-day delivery a given--with a few retailers aiming for even shorter delivery times. In the wake of this demand for accelerated delivery, digital retailers have had to become creative to stay competitive--and GEODIS City Delivery is right there with retailers to accelerate their success.

The season of giving is upon us. And, as we know from experience, the season of returning is soon to follow. But be of good cheer, because GEODIS City Delivery and KIOSK have entered into an alliance that will keep merchandise returns frictionless, safe, and certain even in this unprecedented season for retail.

Retailers are banking on Buy Online, Pick Up in Store (BOPIS) and Curbside Pick-up to save the day this holiday season. In fact, eMarketer’s recent survey shows that the US may see a 60% YoY growth in BOPIS sales, thanks to it being a contactless shopping experience. 

Each year, U.S. parcel volumes surge during the peak season, forcing national carriers to implement surcharges in order to offset these logistical increases. What makes this year unusual is that the United States Postal Service (USPS) is also experiencing the surcharge phenomenon for the first time.

As e-commerce retailers know, free shipping is never truly free. Instead, the buck gets passed from the consumer to the retailer, making it difficult for smaller brands to compete. For example, direct-to-home supply chains will cost retailers upwards of three times more than a store-based model--costs that many smaller brands simply can’t absorb. In some quarters, even Amazon, one of the most revolutionary and successful retailers of our time, only recovers about 55% of its shipping costs. That’s a lot of cost for any brand to carry, even for a single quarter. 

Evolving consumer demands are disrupting nearly every part of the supply chain. From a lack of logistical real estate for warehouses, to the shortage of seasonal labor, to increased click-to-door speed, online retailers are seeking innovative solutions for their fulfillment and last-mile delivery requirements. Since two-day shipping - once considered a luxury – has become an industry standard, many retailers have turned to micro-fulfillment centers to leverage a forward stocking network strategy that will allow them to keep up with the increased demand and delivery timelines, all while saving their overall bottom line.

Luxury brands are being forced to adapt to e-commerce and to innovate for online shoppers. The longtime concern among luxury brands is that moving the shopping experience online will hinder the ability to deliver a personalized, luxury experience. That fear is legitimate because online shoppers have more control of the sales process, and a brand’s signature shopping experiences can fall flat in a virtual setting. 

No doubt experienced shippers have come to expect annual carrier rate increases, but this year’s influx of surcharges has revealed just how dependent a supply chain can be on its carriers, especially the giants like FedEx and UPS. So this year’s shocking rate hikes have encouraged quite a few retailers to reexamine their current delivery solutions.

Earlier this year, three of the most recognizable names in the freight and logistics shipping industry , UPS, FedEx, and USPS, announced their plans to incorporate seasonal surcharges and increased pricing ahead of the busy holiday season. Key leaders from these carriers announced retailers should expect surcharges to continue beyond just this fiscal year - some implied that this trend will trigger a structural shift in the shipping market. 

It’s no surprise to anyone that Amazon has fundamentally changed how customers expect their online shopping experience to look, from start to finish. In fact, experts have coined the term “Amazon effect” to refer to the ongoing evolution and disruption of the retail market, both online and offline. 

The COVID-19 pandemic has pushed consumers outside of their typical routines, making them adapt to new habits and behaviors that many predict will continue long term. A recent McKinsey survey reveals several key shifts in consumer shopping trends, and unsurprisingly, the growth of online shopping will keep affecting all retail categories, especially in essentials and home-entertainment sales.