Research & Trends: Retail Logistics: Key Cross-Channel Realities In The Present Economy

By Sahir Anand, Aberdeen Group

Multitier, multichannel, and multisite retail logistics is now a reality in the face of an aging warehouse logistics infrastructure, as is the rapid growth in sales volume of digital sales and service channels, such as online and mobile. According to 2011 Aberdeen data, 46% of retailers currently support shipping and fulfillment for online and call center orders using a direct-to-consumer/or store delivery model. Moreover, 56% of retailers possess the ability to make supplierdistribution network realignments (sourcing, mode, or routing shifts) when required. This shows that retailers are beginning to respond to the demand and supply factors associated with cross-channel retail logistics. The complexity of retail logistics has grown as brick-and-mortar, online, catalog, and call center inbound and outbound logistics requirements have increased overtime, as 58% of retailers are reporting some form of cross-channel operations. Data shows that retailers are enabling direct-to-store drop shipments (51%) and direct-toconsumer deliveries (47%).