A study by Jones Lang Lasalle finds that multichannel commerce is creating a need for retailers to redesign their distribution networks. As competition with purely online retailers continues to escalate, multichannel retailers have to become more repsonsive and ship faster from store to store, store to doorstep, warehouse to store, or warehosue to doorstep!
The attached article points out that:
"Retail chains are finding it more cost-effective to increase online logistics operations rather than open more traditional stores, which requires an entirely different kind of distribution model. Therefore, retailers are evolving their regional distribution networks with the addition of e-commerce distribution centers.
"Traditional warehouses that support stores require less investment and machinery and fewer staff. The new e-commerce distribution centers, which involves direct order fulfillment, can cost three times as much and involve three times as many employees."
Is it best to build it yourself or to develop a solid partnership with a third party fulfillment provider?
http://www.supplychainbrain.com/content/nc/logisticstransportation/single-article-page/article/growing-e-commerce-forces-transformation-in-distribution-networks-report-finds/
