On top of that, smaller retailers and brands have become accustomed to logistics and supply chain management that derails supply chain planning capacity planning with constant and unexpected rate increases from transportation providers compounded by a seemingly endless drumbeat of capacity and labor issues that continues to chip away at their bottom line.
The good news is that retailers are grabbing a lifeline: each other. While competing for the hearts, minds, and wallets of consumers on the front-end, they are discovering that they can gain real economies of scale in fulfillment and shipping by co-operating on the back-end of retail logistics. The goal of this model of “co-opetition” is to aggregate relationships and bring scale and efficiency to the business of moving products through the supply chain.
Co-opetition isn’t new; decades ago, brands began to shift product sourcing offshore to contract manufacturers, often right alongside direct competitors utilizing the same facility. This move allowed those brands to manage their cost of goods and selling price points by leveraging the economies of scale.
Today, retailers and brands are deploying co-opetition at the other ends of the supply chain – sourcing and shipping. After all, supply chain sourcing co-opetition is already in play in last-mile delivery as competing brands’ parcels ride side-by-side on national carriers’ delivery vans to reach the customer.
AirTerra is an innovative parcel shipping and supply chain company that solves ecommerce challenges in a unique way so retailers and brands of all sizes can compete on a level playing field. Embracing co-opetition with AirTerra, small and midsize retailers can implement a diversification strategy for capacity planning and supply chain planning. The result is logistics and supply chain management that provides access to more capacity, greater flexibility, and benefit from simplified pricing, contracts, onboarding, and carrier management, all without the additional cost required to manage multiple carriers. It’s Diversification Simplified.
Brands that embrace “co-opetition” take control of their collective destinies to meet ecommerce challenges, banding together on all stages of shipping retail logistics—from the fulfillment center to the customer’s door.