Is eCommerce affecting ordering patterns throughout our industry?

Current Climate in the World of
Ecommerce
Ecommerce trends are making order
fulfillment more complex. In general, consumers are placing smaller orders more
frequently. With the ease of online ordering, it is not unusual that someone
places an order, then a few hours later, places another order with an additional
item they forgot. With a just few clicks, a passing thought can become a
purchase. Seamless operations provide the ultimate convenience for the purchaser,
but behind the scenes with each order, inventory has to be managed, picked,
packaged, and shipped.

These demands may strongly relate
to eCommerce, but they are arguably becoming the expectation for the many
businesses operate under different business models. For example, at Stellana,
we have limited 24-hour ship parts and 72-hour ship parts available, but many of
our products are made to order. The time it takes us to produce a finished
product differs based on numerous variables. In most cases, we cannot pick a
part from the shelf, box, and ship it. Businesses with entirely different
business models feel pressured to fit the order fulfillment molds created by
the world’s largest online retailer.
Challenges for the Material
Handling Industry
The acceptable timeline to complete
order fulfillment and delivery seems to be stuck on fast forward,
and
operations in warehousing and manufacturing have to keep up. This time of year,
a seasonal ramp-up is in full swing. In addition to the annual flux, “shopping
holidays” such as Black Friday, Cyber Monday and Amazon Prime Day leave no room
for the interruption of downtime. Serving major OEMs and dealers within the
material handling industry, we understand how crucial it is to have a fleet up
and running every day, but especially at these times. Forklifts play a role in
the warehouse and inventory management, picking, packing, and shipping or
nearly every unit sold. While this creates an excellent opportunity for
companies like Stellana, the pressures put on the eCommerce supply chain
trickle down to each level involved. Companies turn to us to keep their
equipment moving. For your Cyber Monday orders to be delivered to your home by
the expected ship date, forklift parts need to be produced and delivered on
time as well.
Aftermarket Stock Orders
To avoid prolonged downtime or
delays, equipment dealers must formulate a plan or agreement with their parts
manufactures to maintain fulfillment schedules best and accommodate any
emergency requests. When it comes to serving our forklift dealers, Stellana
offers 24-hour shipping and 72-hours shipping for select parts. When routine stock
orders are expected to be filled and turned immediately, it is a more
significant challenge to get an emergency part into production and shipped
within a timeframe that could help a down machine.
To better manage this, we are evolving
our aftermarket order requirements to find the best of both worlds. Starting in
January 2020, stock orders placed by Friday at noon (CST) will be shipped the
following Wednesday. Making this change will allow for better scheduling and
on-time delivery of our parts, keeping more orders on track!
About Stellana
Stellana is the leading global
manufacturer of VULKOLLAN®, polyurethane, rubber, thermoplastic, and TPU
wheels. With more than 60 years of industry experience, we are the material
handling industry's largest global supplier of polymer wheels. Strategically
located in Sweden, Germany, the United States, China, and Sri Lanka, we offer a
comprehensive range of wheels and tires. Learn more at www.stellana.com.
Sources:
Modern Materials Handling
Article by Jeff Berman: Amazon Prime Day Creates Logistic
Challenges and Opportunities Alike
Kerry Stilling
Marketing Coordinator
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