The future of fulfilment: evolution, trends, and innovations
Our industry has undergone significant digital transformation over the years. It’s safe to say that today, fulfilment is a highly automated, technology-driven sector, propelled by increasing customer demands, competitive market pressures, and the rise of e-commerce.
In this blog, Hallmark Consumer Services explores the journey of fulfilment, the current state of the industry, and how businesses can adapt to stay ahead of the curve.
How has fulfilment evolved?
Hallmark was established in 1992, and back in those earlier days, it was perfectly normal for customers to mail us paper order forms from magazines or brochures, with cheques included as payment. Orders would typically take up to 14 working days to be processed and delivered.
This manual process has been superseded by digital integration, with many orders now coming through via social media channels, single-click purchasing, and online payment gateways. Today’s customers expect next-day delivery as a standard service, reflecting the industry’s shift towards speed and efficiency.
Innovation has played a crucial role in this evolution. Automation and technology have streamlined processes, with Electronic Data Interchange
(EDI), real-time reporting, and real-time tracking becoming standard. The emphasis on customer experience has also increased, with innovations such as conveyors and robotics improving efficiency and accuracy.
Driven by the booming e-commerce sector, which continues to grow, the fulfilment industry is now highly competitive. As customers demand immediate services and flexible delivery options, including the ability to make inflight changes to their orders, businesses now seek flexibility and adaptability from their fulfilment partners, requiring on-demand storage and fulfilment solutions.
Emerging trends
Several trends are shaping the future of the fulfilment industry:
- Drone delivery: Although still in the experimental stage, drone delivery promises to be a faster and more efficient transportation option for the future.
- Last-mile delivery: Offering customers a choice in delivery methods, ensuring convenience and satisfaction.
- Sustainable delivery choices: As environmental concerns grow, there is an increasing demand for eco-friendly delivery options.
- Subscription Services: More businesses are adopting subscription models, requiring consistent and reliable fulfilment services.
How should sellers adapt to the changing landscape?
To stay competitive, businesses should consider adapting to new sales channels, for example Temu, TikTok, and Tesco Marketplace. The fulfilment industry is crowded, and customers now expect personalised experiences and high levels of service. Sellers need to ensure their third-party logistics (3PL) partners are flexible and capable of meeting these high expectations.
Customers’ demands continue to evolve. They now seek:
- More delivery options, such as a safe place, collection points, and post boxes
- A hassle-free returns process
- Fast turnaround – next-day delivery is quickly becoming the norm, and we’re now seeing an increasing demand for ultra-fast, same-day delivery
- Simplified buying processes like single-click purchasing
- Environmentally friendly packaging options
This means sellers also have growing needs from their fulfilment partners, including flexibility for seasonal orders and storage, real-time reporting and insights, and technological advancements. They also want more ‘just-in-time’ stock availability, meaning receipt of stock needs to be fast and accurate.
Future-proofing fulfilment at Hallmark
At Hallmark Consumer Services, we are committed to staying ahead of industry trends and meeting our clients’ evolving needs. We have invested in and continue to invest in:
- Additional storage sites: expanding our capacity to handle increased demand
- Sophisticated forecasting models: ensuring we can predict and meet client requirements
- Automation and conveyors: streamlining our processes for greater efficiency
- IT investments: enhancing our technological capabilities
- EcoVadis sustainability: focusing on sustainable practices
- Contact centre innovation: providing comprehensive customer service solutions
The fulfilment industry will continue to evolve, driven by technological advancements and changing customer expectations. At Hallmark, we are dedicated to innovation and flexibility, ensuring we remain at the forefront of the industry and are ready to meet the demands of the future.