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10062016 C.H. Robinson Reports Growing Demand for Container Consolidation and E-Commerce Solutions

10/6/2016

E-COMMERCE SPARKS GROWING DEMAND FOR SHIPPING SOLUTIONS

"Consolidation helps rug companies maximize volume and minimize shipping costs." -- Francois Wolberg, C.H. Robinson

ATLANTA -- With logistics and reliable delivery seen as key components in the ever-growing e-commerce sector of home furnishings retailing, importers of rugs and textiles are looking for solutions to help them better compete in an increasingly high-tech global economy. 

In this exclusive interview, RugNews.com talks with Francois Wolberg, director, global textile logistics at C.H. Robinson to hone in on two increasingly important ways this global logistics company is using its rug industry expertise to help rug suppliers reduce costs and become more valuable to customers. 

CONTAINER CONSOLIDATION 

"In the past three months, we have seen an uptick in requests for consolidation by rug companies who want to maximize volume and minimize their shipping costs," Wolberg said, noting that container consolidation was first offered by C.H. Robinson after the 2008 recession, when importers needed liquidity. "Now, the program's growth is directly correlated to the changing dynamics in rug retailing, which has moved significantly toward e-commerce," he explained.

Located in all major export centers, C.H. Robinson is able to achieve economies of scale for importers by helping companies in major rug-making regions consolidate shipping and merchandise into one container, he said. 

E-COMMERCE LOGISTICS SUPPORT SYSTEMS 

C.H. Robinson's expertise in this industry has grown exponentially as consumers have become more and more comfortable buying rugs and other home furnishings items online. "E-commerce is huge and it is changing the culture of shipping," Wolberg said. "Amazon Prime offers next day delivery. The question is, 'How does that relate to the rug company?'"

Indeed, back in 2008, retailers and rug importers needed to have ample storage and warehouse space. Wolberg recalls that after the recession the model shifted to drop-shipping from the manufacturer, and he says today e-commerce is largely about free shipping to the consumer.

"The business went from having inventories, to not having, to having again," he noted. "Rug companies are looking to us for technology to help them with visibility and reporting that is critical to internet retailers. 

"We work with key performance indicators to manage their supply chain, and we have a way of embedding a tracking system into a customer's website so they will know where the carpet is at any given time. Each SKU can be tracked from the start of production through to delivery to the customer.

C.H. Robinson's Purchase Order Management system can also track real time production versus certain standards, alerting importers and retailers if the factory is not on target to meet expected deliveries. "We can then go in and push the factory, and give the buyer an opportunity to make adjustments.  We invest in our Navisphere® technology to empower and enable our customers to streamline their supply chains and have the visibility they need into their global shipments, " Wolberg said.

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