Outsourcing e-commerce logistics: pros and cons.

While traditional retail sales are increasing by around 4–5% per year, growth ratios in e-commerce are at least three times higher.1 Growth is even stronger in some countries. Such as China and India, which experienced growth of 43% and 30% respectively in 2015.2 But online consumers have high expectations, and retailers must offer flexible delivery options to keep them happy. One in two online shoppers abandons the transaction before completion due to dissatisfaction with the available delivery options.3 Above all, consumers want insight into the delivery process. Many retailers are still lacking in this area.4 However, in recent years, there has been lot of investment in track-and-trace solutions, enabling the status of orders to be monitored online.

Spotlight

Saks Fifth Avenue

Saks Fifth Avenue is a world-renowned retailer and an international fashion authority. We offer our customers the finest assortment of designer apparel, as well as extraordinary handbags, shoes, jewelry, cosmetics and gifts. Our collections include exciting designs, modernized classics and exclusive treasures not found anywhere else. Whether New York, Paris, Milan, or any of the fashion capitals of the world, Saks Fifth Avenue attends more than a thousand runway shows annually in our pursuit of the best collections in the world. Saks Fifth Avenue caters to a variety of dedicated fashionistas, special occasion shoppers, global travelers and people who simply love beautiful things. Being part of this legendary organization is a source of great pride for our Associates – and has launched many inspired careers.

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The retail landscape is experiencing unprecedented change in the face of disruptive forces, one of the most recent and powerful being the rapid rise of automation in the sector. The World Economic Forum predicts that 30-50% of retail jobs are at risk once known automation technologies are fully incorporated. This would result in the loss of about 6 million retail jobs and represents a greater percentage reduction than the manufacturing industry experienced. Using Osborne and Frey study1 with the Bureau of Labor Statistics, the analysis suggests that more than 7.5 million jobs are at high risk of computerization. A large proportion of the human capital represented by the retail workforce is therefore at risk of becoming “stranded workers.”

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In retail, change is always right around the corner. As technology continues to develop, there are more and more opportunities for the improvement of a core pillar of commerce: the value chain. Basically, a retailer’s value chain can involve five main parts–raw materials, manufacturing, distribution centers, logistics, and finally, the retailer. Each link plays an important role in getting products into the hands of customers.

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Spotlight

Saks Fifth Avenue

Saks Fifth Avenue is a world-renowned retailer and an international fashion authority. We offer our customers the finest assortment of designer apparel, as well as extraordinary handbags, shoes, jewelry, cosmetics and gifts. Our collections include exciting designs, modernized classics and exclusive treasures not found anywhere else. Whether New York, Paris, Milan, or any of the fashion capitals of the world, Saks Fifth Avenue attends more than a thousand runway shows annually in our pursuit of the best collections in the world. Saks Fifth Avenue caters to a variety of dedicated fashionistas, special occasion shoppers, global travelers and people who simply love beautiful things. Being part of this legendary organization is a source of great pride for our Associates – and has launched many inspired careers.

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