How Brick and Mortar Firms can Compete with E-Commerce Giants




Traditional Businesses and Internet Businesses
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Anthony Jackson
Professor, Korea (South)

How Brick and Mortar Firms can Compete with E-Commerce Giants

The role of logistics in retail is always changing with new technologies and trends, though none have impacted the structure of warehousing and distribution more so than the emergence and rapid expansion of e-commerce. The demand for online marketplaces with fast delivery and accurate service has dramatically changed the business models of much traditional brick and mortar companies, which, in turn, has transformed order fulfillment requirements for logistics providers. As this trend continues to grow across the world, supply chains and distribution channels become increasingly complex and more expensive to maintain with manual processes. What happened to the retail industry to make them insignificant to e-commerce? In the past, before the emergence of e-commerce giants like Amazon and eBay, retail distribution centers were primarily working with bulk orders and very large online orders, and automated technology focused on pallet orders of goods. Fast forward to the present. With ...

   

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