E-Commerce is Booming and Changing the World of Warehousing

The convenience afforded to consumers through online shopping has changed not only the way that customers are shopping, but it has forced businesses to have become more creative in their approach to meeting consumer demand. The trajectory of the trend in ecommerce was already on pace to put increasing pressure on businesses to be able to meet customers' expectations that their orders be delivered quickly, accurately and undamaged, but in light of the pandemic we are facing globally, that pressure has never been greater.

How E-Commerce is Impacting Warehousing 

Unpredictable Buying Patterns

The increased online shopping and direct-to-consumer shipments create an unpredictable shipping and shopping pattern causing the material handling industry to have to evolve to meet the increasing demands brought on by ecommerce. Business owners understand that one of the most critical pieces of handling the demands brought about by ecommerce on supply chains occurs in warehousing.

Shift from Bulk Orders to Individual & Smaller Orders

With the boom in e-commerce, warehouses and distribution centers are seeing change in the shopping habits of consumers.There are fewer bulk orders being processed and the trend is moving toward individual items or small batch orders.

In an effort to compete in the world of e-commerce, warehouses and distribution centers are going to have to be able to pick, pack and ship single items and small batch orders to consumers in the most efficient way possible. Customers expect their orders to arrive quickly, accurately, and safely. There is little room for error or delay.

Increased Returns

Not only do consumers expect speedy delivery of their orders, but they also expect a hassle-free return process in case they wish to return items.Not all warehouse operations are prepared for reverse logistics, the process of handling returned merchandise, because it is a fairly new phenomenon in warehouses and distribution centers brought on by the advancement of e-commerce.

There are additional costs associated with processing return orders, as well as, the need for additional employees to process the returns.This will also mean that additional equipment may be needed to assist workers with the return of merchandise.

Evolving Warehouse Configurations

The move away from large bulk order processing to small orders of individual items means that there are less orders requiring the use of pallets; therefore, businesses are having to reevaluate their process and method of handling inventory.In addition, they are having to transform warehouse space to maximize storage and inventory accessibility capabilities.This creates a need to assess current warehouse configurations to organize the space to provide the most efficient system for order fulfilment.

As a result, we are seeing warehouse aisles that are longer and narrower, and the shelves are getting higher. There is a greater demand placed upon the equipment required to maneuver within these tighter spaces to enable speedy, accurate order picking and processing.

There will also need to be space devoted to handling the return of merchandise and special attention will need to be paid to configuring a space to allow for the most efficient return and possible exchange of an order.

Changing Forklift Demands

Narrower aisles and higher shelves are resulting in the need for smaller, more compact forklifts due to the tighter warehouse spaces.Forklifts are playing a more important role in warehouses, and there is an increasing need for equipment that allows for speedier, precise item picking and for forklifts that are better equipped to navigate and travel within the warehouse space to permit more efficient loading processes than manual labor capable of providing.

Madland Toyota-Lift Has Your Warehouse Solutions to Meet the Demands of E-Commerce

Showing no signs that it is slowing down, e-commerce is challenging warehouse managers to adjust to the changes brought on by the convenience oriented, click-and-go shopping trend. Madland Toyota-Lift understands the importance of meeting the challenge and are here to help you choose the proper equipment to maximize and optimize your warehouse space.