Friday, January 22, 2016

To the Skies: How Drones Will (or Won’t) Change Order Fulfillment

If you’ve been keeping up with the news, you’ve likely heard some news about using drones to make package deliveries. This initiative has been pioneered by Amazon, your local neighborhood ecommerce giant, in a quest to use airborne drones to deliver parcels to paying customers quickly and automatically. If achievable, this feat has the capability of revolutionizing the world of order fulfillment. However, there are some restrictions and implications to keep in mind. Today, we’re going to discuss these implications and what they might been for the fulfillment warehouses of the future.

FAA Limitations
While Amazon’s technology is not yet fully development, this seems to be the least of their worries. Currently, the Federal Aviation Administration (FAA) has been hard at work trying to get a handle on the rapid increases in drone use.



In order for drone delivery to get underway, Amazon needs a few permissions from the FAA. The first, which Amazon has already secured, is called a Section 333 Exemption, which allows for the training in the use of unmanned drones. In addition, however, the FAA mandates that drones must stay 500 feet for people during operation. Getting exempt from this rule is difficult, but not impossible, as evidenced by a recent exemption grant for Kansas State University Polytechnic.

Weight Limits
In order to fly quickly, efficiently, and legally, Amazon’s drones of choice must weigh less than 55lbs. At that weight, Amazon is able to transport parcels weighing no more than 5lbs. Fortunately, this accounts for the majority of Amazon’s order fulfillment. However, this leaves a significant portion of items unaccounted for.

Open Field for Competitors
When (and if) the FAA opens the floodgates and allows Amazon to follow through with their drone-powered, 30-minute order fulfillment strategy, competitors are sure to follow suite. In fact, Wal-Mart has already begun research of their own. How Amazon plans to account for potentially crowded skies remains to be seen.

What Does this All Mean?
For consumers, it means that some of your lightweight packages will arrive quickly should you be in an approved and supported area. However, on a B2B level, moving large amounts of freight is likely to remain grounded. Regardless of your delivery needs, this is certainly an exciting time for logistics.


With the landscape looking ready to shift, you need to find a 3PL provider that embraces new technologies and is able to stay competitive in a developing market. Vision Consumer Products Fulfillment has always and will continue to adapt and develop the latest and greatest technologies to make sure everything finds its rightful place—quickly.  

---
Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Vision Consumer Products Fulfillment
Fulfillment Warehouse Services

Friday, January 8, 2016

The Biggest Day in E-Commerce You Didn’t Know About

If somebody asked you, “What’s the biggest single day for e-commerce sales?” you’d probably come up with one of two responses. Both Black Friday and Cyber Monday are great choices—billions of dollars move through online channels on these days and, for many retailers, these represent the peak of online sales for the year.

However, what you might not know about is the single biggest day in e-commerce sales volumes that happens, primarily, across the Atlantic, in China. November 11th is “Singles Day,” and it’s on this day that fulfillment warehouses the world over are in a frenzy shipping packages out to paying
customers.

So, just how big is Singles Day?
The holiday weekend that spans from Thanksgiving Day (11/26/15) through Cyber Monday (11/30/15) is known for bringing in massive volumes of sales. Last year, the online sales total for the entire weekend was roughly $11 billion dollars.



The total value of goods transacted through Chinese e-commerce giant, Alibaba Group Holding Ltd., during Singles Day 2015 was a staggering $14.32 billion. In a single day. That means a single company moved more than the entire 2014 GDP of Jamaica in one day. And while the amount of commerce done is impressive just by looking at the numbers, we can’t help must wonder about the amazing logistics and order fulfillment that goes on behind the scenes.

Singles Day in the US?
For all of you wondering if this means there’ll be yet another day in November in which you’re encourage to spend, spend, spend—don’t worry. Chances are, Singles Day won’t translate into a holiday in the US to any sort of magnitude near China’s. Retailers here plan all year long for Holiday Weekend special events and sales. The odds that they’ll want to prepare another sale for just a few weeks previous are slim.

---
Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Vision Consumer Products Fulfillment
Fulfillment Warehouse Services