e-commerce emergence
By Staff -- Modern Materials Handling, 12/1/1999
"When compared to other, older media, the Internet has taken the world by electronic storm," suggests Susan Rider, vice president, sales and marketing, Real Time Solutions. Businesses based on web orders-e-commerce, in general, or e-tailing in the retail sector-are growing at an amazing pace, she adds.But there's a double-edged sword to this revolution. Many web-based companies are very adept at the media side of their enterprises. They may be less informed, however, about logistics, she observes. Some even "perceive logistics as something antiquated or unnecessary for e-commerce."
That perspective may work if the web firm just provides a service or electronically "ships" its products. But what many of these firms new to retailing that do provide goods to consumers will have to quickly learn is that logistics is vital to success, Rider says.
"They'll have to rely upon pre-digital age concepts of inventory, warehousing, order picking, trucks, and aircraft. The e-tailer may not own them, but these logistical functions still have to be performed."
Next year and beyond, Rider anticipates her own role to be one of helping both traditional retailers and some in e-commerce find new ways to cope with expanding consumer demand and changing distribution patterns, forced by e-commerce, in part. Many of her efforts will focus on order fulfillment issues; in particular order picking multiple single-line items instead of cases or pallet loads.
"We can't just throw additional labor at the problem," Rider says, "especially in current tight employment markets." Instead, it's an opportunity to use materials handling technologies to boost productivity-through hardware and/or software solutions-she adds. New equipment designs can double picking rates, for example, in some distribution applications. SKU slotting and profiling software can increase rates, too.
Rider also sees the materials handling industry responding to the challenges to increase the efficiency of order picking in the years ahead. "If we're not looking to add new technologically advanced product lines and new equipment and systems, we will be left behind just selling dumb steel."
View All Blogs
