E-tailers are Scrambling for more Warehouse Solutions – Are You Among them?

In addition to struggling with issues related to logistics management expertise and software, many ecommerce businesses are stymied by the physical limitations of their facilities – so much so that the demand for major warehouse improvements is on the rise.
    
A recent survey from Zebra Technologies Corp, which polled 1,400 warehouse IT and operations management professionals, indicated that the worldwide demand for warehouse space and inventory management solutions is increasing. According to the study, 48% of participants said that they are currently working to increase their number of warehouses – while 76% plan to increase warehouses by the year 2020. Other interesting takeaways from the survey include:

• More than 40% of respondents said their primary reason for investing in more warehouses is to decrease their delivery times by having distribution centers closer to customers.
• In 2015, 50% planned to upgrade to a more robust warehouse management system. For the year 2020, this figure increases by 25%.
• Similarly, 51% anticipated investing in real-time inventory tracking systems in 2015, with 76% asserting the same for 2020.

Another study from CRBE also found an increasing demand for warehouse space, mostly due to a desire to improve reverse logistics efficiency.

In ecommerce, the sale often goes to whoever has faster, cheaper, and easier shipping options – and improving your distribution network through size and efficiency is a solid strategy for maintaining a competitive edge. If you haven’t done like the respondents to Zebra Tech’s survey and imagined what your warehouse needs will be in 5 years, you may get left behind. If you’re not sure where to start or what factors to consider, we’re always happy to help.