Cyber sales season guide to overcome warehouse capacity constraints & provide faster delivery
Demand spikes created by cyber sales and other peak seasons makes scalability essential. Logistics providers need to offer online ordering, streamlined order fulfillment, and faster dispatch. CartonCloud provides seamless WMS/TMS software for SMEs.
It’s the most anticipated sales season of the year. For logistics operators, the cyber sales online shopping frenzy brings increased demand, warehouse capacity concerns, and accelerated last-mile dispatch expectations.
According to Shopify’s recent report, the Future of Commerce, 60% of global consumers expect same, next, or two-day delivery — and with online sales across Black Friday and Cyber Monday expected to soar for another year, this trend means 3PLs are expected to handle their highest volume of the year, with their fastest delivery timeframes.
For many direct-to-consumer brands, the cyber sales season accounts for the majority of their yearly sales. In the USA, cyber sales between Black Friday and Cyber Monday alone account for 20% of online sales from November to December 30th. The stakes are high, and those partnering with a 3PL provider to outsource their logistics will be looking for a 3PL provider who can offer online ordering, order tracking, and fast fulfilment.
Logistics providers need to offer online ordering, streamlined order fulfillment, and faster dispatch, while coping with increased demand. Many brands will anticipate higher-than-usual sales for the season, and will be looking to increase the stock on hand, requiring increased warehouse capacity. They need the ability to accept integrated online orders, train their team easily, ensure accuracy, and optimize their processes for faster order fulfillment. Here’s how.
Meet demand, delivery expectations, and omnichannel ordering this cyber sales season, with an integrated cloud-based WMS.
All growing 3PL warehouses need a scalable system, allowing them to easily ramp up operations without compromising accuracy, quality or speed. Demand spikes created by cyber sales and other peak seasons makes scalability essential.
Online ordering must be integrated from their customer’s Shopify or other online stores, directly to their WMS, allowing instant order updates and accurate order placement without middle handling. There are estimated to be 12-24 million e-commerce sites in the world, with new online stores opening each day, the majority of which are powered by Woocommerce or Shopify.
Their warehouse system also needs to be easy to use, and easy to train new employees. This way, seasonal workers can come on board for peak demand seasons, and pick up processes with ease. They can begin fulfilling orders faster, with higher accuracy — allowing the warehouse to be reactive in taking on new business. (An easy-to-use system is also a huge benefit towards staff enjoyment and can even help with warehouse staff retention.)
Finally, order tracking and system integrations with transport partners is essential to ensure seamless dispatch and delivery. Cloud-based 3PL software like CartonCloud also provides greater oversight for 3PLs and their customers, with automated data tracking in real-time.
This peak season, don’t reduce prices— win business by giving your customers more for less.
This cloud-based WMS software gives the ability to integrate directly with online ordering for faster and more accurate orders, transparency and order tracking, and simplified reporting they can access at any time, from their own customer portal.
You can also use your WMS software to help overcome warehouse capacity issues with clever storage options (FIFO, or high racking storage for low-volume goods), identifying stock replenishment for faster picking, or implementing wave picking for fast-moving goods.
Warehouses looking to increase their use of space may also offer cross docking for faster handling and dispatch, or use multiple warehouses or storefronts as stock depots to reduce last-mile distance. After the last two years of restrictions, this cyber sales season in-store footfall is forecast to increase, rising gradually back to pre-pandemic levels. Not only this, but storefronts can be used as local warehousing depots as well, allowing faster last-mile dispatch, or in-store pick-up, for those who use integrated cloud WMS systems for omnichannel ordering.
A report of Shopify store merchants found between January 1, 2021 and September 30, 2021, app installs for warehouse management grew by 198%, while app instals for order and shipping reporting grew by 53%, compared to the same period in 2020.
With greater digital adoption, software integrations between retail and logistics providers is essential. CartonCloud is a cloud-based warehouse and transport management system software provider, delivering easy-to-use systems to 3PL warehouse and transport operators globally. The powerful platform has built over 10k integrations for their customers, allowing seamless data flow between systems for transparency and accuracy across automated workflows.
With over 23,000 active daily users, the software company is expecting to see major spikes in warehouse order fulfillment and transport consignments over the next two months.
“It’s about equipping our customers to have the ability to offer more, with lower overheads, less time, and with the resources they have on hand. Our system simplifies complex logistics, doing the heavy lifting with data and workflow automation, to make their lives easier,” CartonCloud CEO Vincent Fletcher said.
“Our user-friendly mobile app is so intuitive, they can bring on new staff and train them in minutes, with ensured accuracy through barcode scanning, and order tracking transparency delivered directly to their customer’s portal. It removes tedious admin, reporting and data entry, and literally gives them the ability to increase what they offer, without any headaches.”
With the rise in e-commerce continuing, and more brands looking to outsource logistics, a gap in the market is opening for 3PLs who can offer more to customers.
To find out more about CartonCloud’s powerful, integrated WMS/TMS, visit www.cartoncloud.com
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.