星空传媒

Service Providers Must Step Up to Facilitate & Scale Omnichannel Retailers

Scott Hothem • Feb 21, 2012

星空传媒 星空传媒Centers COO, Tim 星空传媒, provides 3PL perspective to concept presented in Dec. 2011 Harvard Business Review (HBR), “The Future of Shopping.”


A decade after the dot-com implosion, e-commerce is living up to its initial hype. For consumer goods manufacturers and retailers, morphing traditional brick and mortar and e-commerce retailing has become imperative to the success of their brands and companies. 

World class third party logistics providers (3PLs) should be investing now in systems, processes and team training to provide the integrated solution these companies will need to fully leverage the advantages of selling in both channels. To succeed, this process must be seamless to the end consumer, the manufacturer, and the retailer.


We are early in the curve of e-commerce growth. Forrester Research estimates that e-commerce in theUnited Statesalone is nearly $200 billion, or 9% of retail sales. Five years ago, this number was 5%. E-commerce is likely to reach 15-20% of total sales within the next few years. And the business model is now highly profitable, unlike during the dot-com bubble of the late 1990’s: Amazon’s five year return on investment is 17%, whereas traditional discount and department stores average 6%.


Soon it will be hard to even define ‘e-commerce’ and harder still, to clearly delineate e-commerce sales and returns from brick and mortar sales and return activity in our facilities. Retailers and customers will be interacting simultaneously through multiple channels – websites, physical stores, kiosks, direct mail catalogs, call centers, and mobile devices. According to Darrell Rigby of Bain & Co in a recent Harvard Business Review article, unless conventional retailers adapt to these changes, integrating disparate channels into a seamless experience, they are not likely to succeed. Rigby coined the term, ‘Omnichannel retailing’ for this new retail environment.


Integrating the logistics backbone for these Omnichannel retailers requires collaboration and detailed planning. A critical first step is to provide the technology to manage one inventory for the entire enterprise. For example, the manufacturer or retailer may want to allocate certain SKUs or volumes of inventory for each segment of the business. In order to successfully support this strategy, the third party logistics provider must be able to dynamically manage these various inventory segments behind the scenes for the customer. Inventory will need to move seamlessly “on the fly” between segments in order to optimize the sell-through for the 3PL’s customers.


High levels of integration are required between segments to optimize sales. The systems of the third party logistics provider must communicate inventory levels real time to the customer’s websites and enterprise resource planning (ERP) systems. Sophisticated 3PLs are also able to manage fill rate rules, back orders, and replenishment functions on behalf of the client. These systems will optimize order fill rates and ultimately sales volume.


Successful 3PLs are also an asset to an integrated returns and reverse logistics operation. Cross-channel returns must be seamless to the client and the end consumer. Warehouse Management System (WMS) returns modules need to be adept at not only accounting for the return, but communicating in a timely manner to the client so that the end consumer is satisfied with a refund or replacement item the same day the return is received. After accounting for the return, inspecting and dispositioning the item, and satisfying the end consumer, theReturnsCenter should be accumulating returns data and reason codes, and converting this information into actionable reporting for the manufacturer or retailer. From these reports, market-driven companies can spot patterns, and make changes to ultimately improve the front end sales experience for their customers, improving satisfaction levels for the consumer with the first purchase and improving customer brand loyalty and reducing returns. For the manufacturer, this type of actionable knowledge can lead to improvements in product quality, or simply better information on the product that is provided to the consumer in their purchase process. Both improved product quality and consumer expectations will lead to higher brand loyalty and lower returns over time.

Taken together, these strategies will lead to increased sales and lower costs for our customers – really the ultimate goal of a world class logistics provider, and trusted partner to the innovating retail segment.锘�

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Custom Engineering: The Key to Optimizing Your Supply Chain Process

By Katherine Wroth • 11 Nov, 2024
What were your supply chain processes, goals and challenges in 2025? What has worked in the past and what's falling short now? Custom-engineered solutions deliver exactly what your automation process requires. Solutions implemented by 星空传媒's engineering team are tailored to meet your company's unique needs and designed for your long-term objectives. Major benefits of custom engineering include: Quality control Expert advice and guidance Enhanced user experience Resource management Cost reduction Reduced engineering overhead How 星空传媒's custom-engineered solutions enhance efficiency and productivity for clients Every solution we design at 星空传媒 is unique and personalized to meet each client's specific needs. How do we achieve this? We begin by deeply analyzing your data to understand SKU counts, product sizes, movement speed, goals, and peak periods. This insight allows us to create designs tailored to maximize efficiency while keeping costs low. We compare various models, considering options like robotics, pick-and-pass, cluster picking and ASRS (Automated Storage and Retrieval Systems). Each model is assessed for its ability to meet service and quality standards, aiming for optimal cost-effectiveness without compromising timely order fulfillment. Incorporating the latest technologies to stay competitive in the 3PL industry With labor costs rising and peak seasons demanding more, our team stays at the forefront of technology by attending trade shows and collaborating with industry integrators. These efforts keep us up to date with emerging tools that lower costs and improve fulfillment quality. Many clients face high retail peaks, especially during the holiday season, so having flexible, scalable solutions is essential. By leveraging the latest technologies, we offer clients solutions that meet operational demands and reduce costs, ensuring a competitive edge in the dynamic 3PL landscape. A tailored design process to meet each client's specific needs Our design process is data-driven. We start by understanding the client's needs and goals, followed by an in-depth analysis of their outbound orders, item master, dimensions, weights and inbound data. Whether a client has a high SKU variety with shallow stock or a deeper inventory of fewer items, we identify the best-fit solution based on these metrics. Sometimes, multiple solutions are possible, allowing the client to choose the best option with their objectives. Focusing on data and consistent communication ensures each solution is finely tuned to the client's operations. How 星空传媒 overcomes common challenges in creating custom solutions Cost is a significant hurdle in custom solution design. Clients seek the best solution at the lowest cost while maintaining high standards and meeting SLAs. With expenses rising, finding ways to reduce costs without sacrificing quality is essential. We work creatively to cut costs in areas like space and asset usage, aiming to provide sustainable, budget-friendly solutions that meet clients' operational needs. Balancing quality, functionality and budget is challenging but vital to delivering value. The importance of collaboration between the engineering team and other departments Collaboration is central to 星空传媒's approach. The solutions team sits at the intersection of sales and operations. Sales aims to secure new business, while operations needs to run these deals efficiently and profitably. Solutions must balance both interests, creating designs that win clients while being viable for operations to execute. Close cooperation with these teams helps us develop realistic, effective solutions that meet business and operational goals. This collaboration ensures that 星空传媒's solutions are not only effective but also sustainable for the long term. Ensuring scalability and flexibility of engineered solutions to accommodate client growth Scalability is built into our solutions from day one. Many of our clients are rapidly growing startups or e-commerce businesses or have varying demands over time. Our solutions are designed to adapt, with year-one solutions flexible enough to evolve into year-two or year-three solutions, depending on the client's growth and any shifts in business focus, like introducing omnichannel capabilities. By avoiding rigid structures, we provide the flexibility clients need, whether in a multi-client environment or a dedicated setup, to support them as they expand and change. Delivering sustainable success through customized engineering 星空传媒's approach to custom-engineered solutions empowers clients with logistics processes built specifically for their needs. By focusing on data-driven insights, cutting-edge technology, and collaborative design, we create solutions that are effective today and scalable. With a commitment to cost efficiency, quality, and operational flexibility, 星空传媒 partners with clients to optimize their supply chains, address key challenges, and support sustainable success. Through tailored engineering, we're proud to specialize in a competitive advantage for each client we serve. Facing supply chain challenges? Get in touch with us now to explore solutions designed for long-term success.

4 Last-Minute Tips to Boost Your E-commerce Sales During Peak Season

By Katherine Wroth • 07 Nov, 2024
We all know the holidays are the Super Bowl for e-commerce brands. You've been juggling everything from managing orders and tracking inventory to running operations smoothly. The heat is on (cue the mic). Here's the good news: there's still time to make a few quick adjustments and closeout 2024 with a boost in sales. Here are four last-minute tips to maximize your e-commerce sales this holiday season: 1. Feng-shui your e-commerce store Before making any big money moves, treat the shopping experience on your e-commerce site as if you were walking into a retail store. For example, why do we ( and I mean myself) love shopping at Whole Foods? The shopping experience is organized and fun compared to traditional grocery stores and easy to navigate. Whole Foods brings in billions a year (from me alone) because most consumers don’t mind spending a little extra for convenience. With this tip in mind, type your store’s URL and explore your website as a first-time walk-in. Use a pair of customer lenses to check on: Your website’s loading speed – Online shoppers expect instant results. Make sure your site loads quickly to avoid losing potential customers who won’t wait for a slow page. Your checkout process – Go through the entire order process yourself. Note how long it takes and how simple it feels to complete a purchase. A smooth, quick checkout can make a substantial difference in conversion rates. Site layout and navigation – The easier it is to navigate your store, the better. Top questions to ask yourself: Does your website clearly state what you’re selling? Does it strategically highlight your offers on the homepage? 2. Display your holiday bestsellers Showcasing your bestsellers reduces the customer's overwhelm during the shopping process. Think about how much easier it is to land on a site, and the work is already done for you. There's no need to spend hours researching products when your site can showcase the best sellers. This strategy also avoids abandoned carts. It makes it easier for customers to add items to the cart and follow through to checkout. However, if you’ve recently started your e-commerce business and don’t have a history of seasonal faves, here’s a few top suggestions: Apparel & Footwear – Cozy loungewear sets, beanies, scarves, boots, hoodies, and holiday-themed pajamas. Beauty & Personal Care – Skincare gift sets, holiday make-up palettes, perfume sets and self-care bundles and hair care sets. Electronic & Gadgets – Wireless earbuds and headphones, smart home devices (voice assistants, smart bulbs, thermostats), fitness trackers and smartwatches, portable chargers and power banks, and gaming consoles and accessories. 3. Time's ticking on holiday promos It’s no secret customers are hunting for the best deals and will always gravitate toward retailers offering a bit extra. 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Here are some tips for effective social media ads: Focus on reach and traffic objectives – These options help you reach a broad audience at a lower cost, boosting visibility. Make your ads pop – Simple visuals with strong, clear messaging increase the chances of catching attention and driving clicks. Fine-tune your ad sets – Once your campaigns are live, monitor them. Analyze performance, adjust and see what resonates best with your target audience. A quick email never hurt anybody If you have your customers’ email addresses, you hold one of the most valuable assets in digital marketing. Email is still a powerhouse, delivering an impressive 122% average ROI. Consider sending a newsletter that highlights your holiday promotions and special offers. Keep it simple, visually appealing and direct. Use a strong call to action (CTA) and link directly to your products. 馃挕 星空传媒 ProTip: Don’t forget to target abandoned cart customers! Platforms like Shopify offer apps to automatically send reminders to customers who left items in their carts. It’s a great way to recover potential sales. Host a social media giveaway Giveaways are an excellent way to engage your audience, attract new potential customers and increase sales. Create a holiday-themed bundle or offer a selection of limited-time products as a prize. Ask people to participate by following your account, tagging friends in the comments and sharing your post. Once the contest ends, select a random winner and send them the prize. It’s an easy, interactive and effective strategy to create buzz and drive engagement. Wrap it up It's time to implement these strategies and make the most of the holiday season. Think about which tips best fit your brand and start taking action. Small moves like fine-tuning your ads, sending a well-timed email, or running a fun giveaway can significantly impact your year-end results. Here's to finishing strong and setting yourself up for a great start to 2025! Are you looking for a 3PL partner that gets your e-commerce needs? Contact us now to connect with a seasoned 3PL expert.

Trust and Transparency in 3PL: How 星空传媒 星空传媒Builds Lasting Client Relationships

By Katherine Wroth • 04 Nov, 2024
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