As most retailers will admit, the return is the Achilles heel of the supply chain. Historically, five to ten percent of in-store purchases return each year. However, for online shopping this increases to 15-25 per cent. The microfilament center can also be used in product sorting and processing products that can achieve significant efficiency at equip2go.com.au.
Built in supply chain
The trend of large, center-based regional distribution centers has always made sense to deliver stores. Labor and efficiency benefits have always eliminated the risk of a natural disaster or other incident that could cripple a company’s supply chain. However, by implementing a microfilament strategy, companies have now created flexibility for their supply chain.
Then whether you exit one or 50 microfilament centers, you will have to spend money. Automation, software upgrades and the cost of labor and the cost of microfloment can actually increase. The building is not included; the cost of the microfilament center will be two to four million dollars. There will also be internal costs associated with transferring inventory from distribution centers to catering centers.
Added supply chain complexity
Something about managing the supply chain and adding nodes will only complicate things. Inventory distribution and balance between microfilament centers will be important as the microfilament center is only helpful when it can fulfill orders. There are many software and automation solutions that can help manage this couple's complexity.
Location is key. If you set up a microfilament center in an area that does not allow you to improve your delivery time, then you have spent a lot of time and money. The population is still changing today and even a good place may not be good for five to 10 years from now. It is important that a lot of time and analysis is done to keep your microfilament centers in the right place.
It is important to point out that the microfilament center is just one tool that companies can use to improve delivery times. Alternative options include placing orders online from physical stores commonly known as ship-to-stores, as well as negotiating with freight carriers for better discounts. Each of these has its own set of pros and cons, and it does not provide the same overall effect as a single microfilament center strategy.
Now with the holiday season in full swing, many think retailers and manufacturers can hold their breath and start focusing next season. However, not all retailers and businesses online businesses know that there is one more hurdle to overcome before this season closes and that means processing returns!
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