The Omnichannel Supply Chain
This year, online shopping tops the list as the most popular destination to buy gifts, with 59% of shoppers planning to purchase online and 64% indicating that they will research and/or purchase gifts by a smart phone or mobile device. This shift in buying behaviors are forcing retailers to blend virtual and instore shopping experiences. This trend, known as omnichannel, adds additional complexities to sourcing and transporting products in a cost-efficient and timely manner.
Today’s buyers have high expectations of retailers. Shoppers expect a seamless buying process between online and brick and mortar stores. According to the National Retail Federation, this year’s shoppers expect a high degree of service, including free-shipping (94%); purchasing online and picking up in store (49%); and expedited shipping (19%).
As shoppers look for reduced or free shipping while expecting faster shipping times, retailers have to identify other ways to offset these incremental expenses and preserve the bottom line. According to the Council of Supply Chain Management, over 60% of supply chain costs are transportation related, so any reduction in transportation expenses can have a large impact on overall supply chain expenditures and the bottom line. Leveraging rail upstream, for less time sensitive moves from manufacturing sites to distribution and fulfillment centers, lowers transportation costs and allows retailers to position products near consumers. Improving efficiencies and reducing transportation costs on the front-end, allows retailers to meet buyers expectations and offset the higher costs associated with same or next-day delivery.
39% of shoppers this year will be adding toys to their shopping cart as part of their holiday gift buying. The new must-have toy completed quite the journey, including a ride on the rails, before ending up in an online shopping cart and arriving at the door. A popular kids’ movie once shared the secret life of toys. Now is your chance to go Behind the Freight Move to see what those toys are up to before landing in the kid’s toy box, inevitably heading to infinity and beyond.
See below for how the omnichannel supply chain relies on rail transportation upstream to move goods cost effectively between manufacturing and distribution centers, equipping retailers to ship orders quickly from fulfillment centers to consumers’ doors.