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Escalating order fulfillment costs driven by higher frequency of small orders

from Distribution Digest

According to recent surveys, most consumer wholesale and retail operations are seeing a trend toward smaller customer order size while at the same time experiencing a significant increase in order frequency. This trend is forecast to continue and with it businesses can expect to see a higher order fulfillment labor component. Relative to B2C orders this trend is for the most part being driven by Internet and catalog purchasing. For chain store operations it appears that store managers, who no longer have sufficient space to accommodate the proliferation of products, are placing smaller orders more frequently. more

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