Led by Amazon, big retailers such as Macy’s, Target, Walmart, and others are rapidly expanding their distribution footprints. The big guys are building more large regional fulfilment & sortation centers, delivery stations and micro-fulfillment centers. As a result, consumers are receiving packages faster than ever, with same day delivery now available in many markets. In addition, more customers are becoming accustomed to error free delivery, real time tracking and reliable delivery estimates.
The standards being set by major retailers are continuing to influence consumer expectations. This is having an effect on suppliers large and small. And because Amazon and others are offering such a wide range of product types, many product manufacturers, fulfilment centers, and 3PLs are feeling the effect, and looking for ways to stay competitive.
Shipping speed is one of the most significant competitive advantages that large retailers gain by having sophisticated and widespread distribution networks. But this is only part of the equation. Bigger operations use automated parcel sorting systems that are equipped with a range of technologies that help reduce shipping errors and allow customers to more accurately track packages.
Facilities relying on manual sorting, dimensioning and labeling are hard pressed to compete with the throughput speed of the automated parcel sorting systems that big retailers are using. When the demand for more processing increases, manual setups often run into processing delays and bottlenecks. And all the while the labor costs have a significant impact on the bottom line.
The negative effects associated with manual processing are accelerating as the delivery expectations of today’s consumers have shifted from nice to have to expected. Customer dissatisfaction can lead to loss of future business. Returns and reshipments, as a result of a shipping errors, are expensive and often result in lost customers.
Even a small automated parcel sorting system can help keep operations competitive. The first advantage is increased throughput. By accelerating the rate of parcel processing, organizations can help move packages to consumers faster. When adding technologies such as automated weighing, dimensioning, and labeling, speed increases that much more.
Automated parcel sorting systems leverage barcode scanners, automatic labeling machines, dimensioning equipment and integrated software platforms to improve shipping accuracy and package traceability.
With these technologies, parcels are automatically scanned, measured, sorted, and tracked as they move through the facility. This help significantly reduce errors associated with manual processing while creating a complete digital record of the shipment journey. The result is improved order accuracy, and the ability for customers to effectively track their order. Tracking is a high priority for today’s online purchasers.
Although Amazon, Walmart and Target are doing extremely high volumes, smaller operations can remain competitive on the delivery experience. Automated parcel sorting systems help make this possible. By combining higher throughput, reduced shipping errors and improved trackability, ecommerce companies, 3PLs, and fulfilment centers can deliver the experience that customers have come to expect. Reach out the ID Parcel & Mail Solutions team to learn more about automation.
