We have been following DROP SHIPPING right from the first time we heard the term. We have heard many definitions and at first it sounded great. Then we realized that we still had an expensive distribution center between the factory and the customer. “Drop shipping” seemed like a synonym for “middle man”. Let's review where we are at, then propose a bold new strategy.
According to eMarketer, the number of smartphone users worldwide will surpass two billion in 2016. Moreover, the company says not only will tablet users number more than one billion in 2015, it projects that figure will reach 1.48 billion by the year 2018.
According to a December 2014 article in the Wall Street Journal, Uber Technologies was valued at a staggering $41 billion. That’s an amazing statistic, especially considering the freelance taxi service owns no inventory to speak of. And, according to Ken Jones, the Director of Education and Applied Solutions at the Western Michigan University Center for Integrated Supply Management, if Uber plays its cards right, it could interrupt supply chain logistics in ways not previously contemplated.
Processing the order is just the first step in the getting products to their markets. Some will say that getting the order to the loading dock is the easy part while moving it to its final destination has become increasingly complex. If you’re running in-house EDI systems you already know that it isn’t the truck that is the issue but tracking the order through the chain of events between docks.
Simply filling orders is not enough to ensure retailers their customers are pleased with the products and services they receive from a company. In addition to fulfilling customer demands, retailers need to be concerned with the timeliness and accuracy of the orders they fill. Sales lost due to the shipment of incorrect or damaged products or even delayed delivery can lead to red ink coloring a bottom line. Certainly, that’s not an ideal situation.