A recent study by Retail Systems Research (RSR) reveals that while more retailers are employing cross-channel distribution models, retailers are still not fully leveraging perhaps their biggest source of inventory - stores.

Google the term “third-party logistics providers” and you’ll get way more than you bargained for – to the tune of thousands upon thousands of links. Estimates on the number of 3PLs – whose services include warehousing, fulfillment and supply chain management to suppliers and manufacturers -- ranges somewhere between 15,000 and 16,000 in North America. So trying to differentiate yourself in such a highly fragmented market is no easy task, to put it mildly.

For years innovation and integration in supply chain software was limited to the Global 1000. They purchased multi-million dollar ERP and supply chain apps,  drove integration between trading, partners, demanded EDI connectivity, vendor managed inventory (VMI) , etc.. The ability for small and medium businesses to profit from these strategies was limited. It was simply too costly. Smaller companies simply had to react.  However, cloud computing, e-commerce, and edge integration are changing the game in the most profound way.

The world is changing, and consumers’ ability to get information and buy products from their mobile devices anywhere, anytime, is having a trickle down effect on the supply chain—they want their items delivered quickly and at a competitive price. So retailers now have to re-examine how they are sourcing their products and where to get them cheaper in order to bring something more to the table.