Miami, FL, May 4, 2015 – APS Fulfillment, Inc. (www.APSFulfillment.com), one of the nation’s leading cost-effective fulfillment and integrated direct mail marketing companies, is weighing in on a study that shows omnichannel sales are unprofitable. The company also discusses the benefits to outsourcing warehousing and fulfillment operations.
According to a recent study, the industry’s top retailers are not benefiting financially from having omnichannel sales funnels. The study notes that retailers and consumer goods manufacturers have spent large amounts of money, energy, and time to improve their omnichannel sales capabilities. Yet only 16% of brands say they can fulfill omnichannel demand profitably. (Source: Chapman, M., “Only 16% of global retail chiefs say they fulfill omnichannel orders profitably,” RetailWeek web site, April 15, 2015; www.retail-week.com/topics/international/only-16-of-global-retail-chiefs-say-they-fulfil-omnichannel-orders-profitably/5073886.article.)
“Retailers from around the world concede that the high cost of fulfilling orders is cutting into profit margins as they sell and deliver products across multiple channels,” says Charles Aultman, president of APS Fulfillment, Inc. “In fact, 71% of respondents said handling returns from online and store orders represented the biggest growing costs followed by shipping directly to the customer at 67%, and shipping to the store for customer pick-up at 59%.”
Aultman explains that while many retailers continue to invest in business improvements, most have been neglecting the costs of improving their logistics and warehousing needs. Interestingly, Aultman points out that the majority (57%) of brands maintain creating new customer experiences is their top initiative for improving business operations. When it comes to growth, expanding the e-commerce business was the top choice of 53% of CEOs.
“To improve fulfillment and warehousing issues, cut costs, and enhance their customer’s experience, businesses need to coordinate the flow of products with an outside company,” Aultman adds. “When a retailer receives an online order, they can fulfill it by pulling the product from a local store, send it from a warehouse, or ship it directly from a supplier.”
“Outsourcing to an experienced warehousing and fulfillment company like APS Fulfillment, Inc. will improve on-time delivery, fill rates, and inventory management while also reducing costs, improving efficiencies, and supporting profitable delivery,” Aultman concludes. “Thanks to our prime location, state-of-the art facilities, and our efficient, accurate, and fast pick-and-pack, businesses can have their products received, inventoried, and shipped in just two days.”
APS Fulfillment, Inc. is one of the United States’ leading cost-effective fulfillment and integrated direct mail marketing companies, offering affordable and real-time fulfillment services to small, medium, and large companies. Its state-of-the-art technology provides turnkey solutions for high-volume perfect-match mailings, personalized direct mail, snap-pak mailers, postcards, and triple-tabbed booklets. More information on APS Fulfillment, Inc. is available by visiting the firm’s web site at www.APSFulfillment.com or by calling 954-582-7450.