Complexity of e-commerce supply chain raises the stakes for manufacturers
With 131,447 U.S. businesses selling their products online, revenues near $298 billion and an annual growth rate close to 6 percent, the e-commerce supply chain’s growing volume is complemented by increased complexity, according to the “E-Commerce Market Assessment” published this year by PMMI, The Association for Packaging and Processing Technologies, the owner and producer of the PACK EXPO portfolio of trade shows. With jumps in volume and complexity, however, come challenges manufacturers must address. PMMI also produced an infographic highlighting the study’s key findings, now available at packexpolasvegas.com.
Keep the Product Safe
Replacing a destroyed item can cost up to 17 times as much as shipping, and overcoming negative online reviews stemming from such an incident can take months. Each step in the delivery chain only increases the risk of damage to packages and that makes engineering essential. Ultimately, manufacturers must ensure packaging remains undamaged throughout the delivery process, regardless of the shipping scenario. Another, related challenge is eased with the effective use of warehouse management systems, which help make rightsizing feasible.