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White paper spotlights path ahead for fulfillment

05 March 2024

THG Ingenuity has launched a white paper highlighting five key challenges for fulfilment companies to overcome in 2024.

THE WIDE-RANGING and insightful report spots trends to watch in 2024 and offers advice based on the company’s success in rapidly building a leading position in the competitive world of fulfilment in the UK.

Not surprisingly money and investment are key aspects of the picture.

The paper looks at common challenges with capital allocation, such as overleveraging, poor investment decisions, the market dynamics that come with economic downturns and industry disruptions, and more. This all makes it crucial to allocate capital wisely, particularly when it comes to the crucial software and automated warehouse technology that powers fulfilment operations.

THG Ingenuity chief operating officer Tom Killeen, says: “Our guide within the world of Fulfil by THG is that any operational investment needs to pay back within 24 months, maximum.”

The white paper also highlights the importance of choosing the right automation and software, particularly with regards to customisation capabilities. THG advises companies to prioritise automation tools that allow customisation to meet specific business processes and requirements.

Tom adds when speaking about the crucial matter of choosing a vendor. 

“As a rule of thumb you should speak with at least 2-3 current users of the operational solution you wish to deploy without the vendor present as they are not likely to tell you warts and all if a vendor is hovering over your shoulder. We have been quickly turned off from certain forms of automation by speaking to existing customers, yet we have also been fuelled with confidence when we meet current users and they confidently speak highly about their solution and ROI periods. This can also be just as important if you have different forms of automation expecting to work with one another, with different layers of software responsibilities. It’s not easy to find the customers and arrange meetings without vendors present but if you can, it could be one of the most important things you do in the decision-making process.”

The Hut Group (THG) has broad experience both in eCommerce and, via its Ingenuity brand, fulfilling deliveries for e-tailers. The Manchester-based company’s white paper is called Overcoming Fulfilment Complexities in 2024 and identifies five key challenges:

1 Labour cost inflation

2 Capital allocation

3 Choosing the right automation and software

4 Increasing customer lifetime value (LTV) and retention

5 Continual improvement - raising the bar

To download the free white paper click here

Hear THG speak

You can hear more from THG at the Tomorrow’s Warehouse Event on 20 June at the CBS Arena Coventry.

Stay on top of fulfillment trends

John Gallemore, Co-Founder and Chief Operating Officer, The Hut Group (THG), and Tom Killeen, Chief Operating Officer, THG Brands.

The Hut Group (THG) will share its thoughts on the future of fulfillment. Don’t miss this great opportunity for an inside view on the fast-changing world of fulfilment and how the warehouse must adapt to meet these challenges. THG is a global digital brand builder operating ecommerce brands including Myprotein and Lookfantastic supported by their global operations infrastructure.