The need for more investment in supply chains has been a common conversation in the C-suites of retailers, distributors and wholesalers for the better part of the last decade. As consumer brands advance their e-commerce ambitions, competitive and efficient home-delivery capabilities become a requirement.
Even with a step down in the macroenvironment, supply chain costs remain on the rise. Higher inventory carrying costs — the product of elevated labor costs, interest rates, warehousing rents as well as an overhang of unsold goods — have been some of the catalysts. Throw in record transportation and fuel costs throughout the COVID-19 pandemic and the expense line has jumped to new heights.
