Ecommerce Fulfillment for Consumer Packaged Goods
Ecommerce sales continue to climb, and even consumer-packaged-goods, which have been on a more subtle growth path, are gaining steam. What’s more, CPGs have strong growth potential as more and more consumers purchase everything from laundry detergent to packaged foods online.
“Traditionally CPG items have been something you would drive to the store for, but that is shifting,” said Kasia Wenker, director of distribution sales for ITS Logistics.
Konrad Gerszke, president of lead markets at Nielsen, said the path to purchase for CPG-related items is evolving rapidly and retailers and manufacturers have new opportunities to reach shoppers in an ecommerce environment. Click Here to read more from Nielsen
Neilsen reported that although ecommerce represents roughly one-third of category sales, it’s growing so rapidly across fast moving consumer goods that it’s contributing significantly to ecommerce sales. For edible categories, more than half of all growth is coming from ecommerce. For personal care, ecommerce is driving more than 80 percent of growth. Plus, pet care shows even more promise, with 90 percent of total growth coming from ecommerce.
Amazon is experiencing large growth in CPG sales via new subscription services. Shoppers can not only buy their CPG products online but also set up their orders so they automatically receive soap, pet food, or their favorite foods and beverages at pre-set intervals. What’s more, Amazon has put shopping in context with its Amazon Dash buttons that allow shoppers to order items with a single push of a button.
Wenker said that to succeed in the ecommerce market, CPG manufacturers have to meet consumers’ high expectations, and the right logistics partner can help them meet retailers’ and customers’ demands. “ITS Logistics provides end-to-end operations support from the order placement to order delivery and returns,” she said.
Here are five ways ITS Logistics can help CPG customers succeed in an ecommerce environment.
1. Multichannel Fulfillment
ITS’s ecommerce fulfillment services can help manufacturers with multichannel fulfillment, including ship to store, in-store pickup and direct to consumer.
2. Inventory Accuracy
No matter which pick-up method customers select, it is crucial that inventory is in stock when they order. Any online ordering platform must have accurate inventory information. ITS Logistics can integrate inventory levels with online stores to ensure customers aren’t promised items that are out of stock. ITS offers real-time feed-based integration with order management systems, live interaction with inventory management system for in stock/out of stock feedback, and integration to remote ERP systems.
3. Varied Shipping Options
Shoppers expect to have several delivery options available to them, including same-day shipping. To ensure fast deliveries, distribution centers need to operate on a continuous fulfillment schedule and have the infrastructure to deliver those items quickly and affordably.
ITS Logistics’ strategic location in Reno, Nevada, allows for 1-to-2 day Over The Road shipping to 12 Western states, which makes it easy to reach locations throughout the West. The Reno-Sparks area is close to California, and it is possible to reach major ports within three hours. It is also just hours away from California’s Bay Area and Silicon Valley.
In addition to shipping throughout the United States, ITS provides international shipping. ITS can work with shippers to create customized shipping programs to minimize costs.
4. Order Accuracy
At ITS Logistics, all orders can be scanned to provide near 100 percent shipping accuracy. In addition, Radio Frequency Identification can track and trace products throughout the supply chain, improving the quality and transparency of data. RFID can also increase the accuracy of inventory counts, ensuring shippers have the right products in the right places at the right time.
Consumers want to know where their products are and have live visibility into their order status. ITS Logistics can provide branded customer order and shipping confirmation emails as well as online access into order status, so consumers can get updates with the click of a mouse.
Contact ITS Logistics today to see how we can help you.