Groups Propose Joint Ventures to Rebuild Order Delivery Networks

Retailers and consumer products companies aren’t capable of meeting consumers’ expectations for fast home delivery, said a Tuesday report from the CMO Council and Business Performance Innovation Network, saying 97% of survey respondents would consider new joint venture approaches to rebuilding supply and fulfillment. Some 42% already expect adoption of shared models to counter outdated supply delivery chains, a lack of order fulfillment centers near customers and the high cost of fixing order fulfillment issues. Better automation of picking, packing and sorting; closer proximity of fulfillment centers to customers; and more-efficient last-mile delivery are considered the top requirements for supply chain transformation, the report said. “Efficient delivery is now the key to winning and keeping customers in the era of ecommerce," said Dave Murray, BPI Network director-thought leadership: "The increasing dominance of Amazon and [a] very short list of other retail ecommerce giants is placing intense pressure on retailers and consumer products companies to find profitable and effective solutions to the home delivery dilemma." Same- and next-day home delivery is “attainable for retailers and consumer brands of all types and sizes,” said Julien Seret, Attabotics vice president-network supply chain, saying a new system of shared, multi-tenant micro-fulfillment centers in key population centers can make that happen.