Channel-Free Logistics Growing as Fulfillment Alternative

A seamless customer experience might be the biggest e-commerce trend of 2024. The need for smooth transactions, whether in-store or online, has never been more important, and retailers that don’t focus on this will be left behind. Customers want to browse, research, buy and return goods wherever they are, and they must be able to do it without disruptions.

Nearly three-fourths (73%) of retail consumers shop across multiple channels, and retailers who use three or more channels increase customer engagement 251% more than single-channel retailers, according to data from CapitalOne Shopping Research.

Retailers who are successful in creating a unified customer experience across the shopping journey are focused on more efficient, cost-effective, and sustainable logistics solutions.

Logistics platform Fillogic is one provider growing in this space, with an alternative to omnichannel fulfillment they’ve labeled as “channel-free fulfillment.” This model, Fillogic said, “takes multiple steps out of the supply chain and focuses on the connected infrastructure that simplifies the whole order-to-delivery process.”

Instead of looking at each checkpoint in the process as a channel, channel-free fulfillment ensures the infrastructure is there and operational by removing the silos and integrating each step through technology. A retailer’s ordering systems, a warehouse’s management systems, and a carrier’s transportation management systems all work in the same platform to provide a seamless transaction.

Additionally, Fillogic focuses on bringing inventory closer to the customer by converting under-utilized retail space in shopping malls into middle-mile fulfillment and reverse logistics hubs.

“Consumers today don’t shop by the old omnichannel model,” said Bill Thayer, Fillogic founder and CEO. “They shop channel-free and just want their stuff. They want their items shipped and returned faster, at a lower cost, with a focus on sustainability.”

Modern luxury footwear brand Koio recently announced a partnership with Fillogic, who will manage its e-commerce and store fulfillment, reverse logistics and transportation optimization. Using its proprietary Connected Technology Platform, Fillogic will integrate with Koio’s existing systems and allow it to ship to 98% of the mainland U.S. in three days or less. Retailers and brands using Fillogic improve service and reduce costs by up to 60%, improve return-to-stock by up to 70%, and increase full-price sales by 180%, the company claims.

Sustainable logistics is another shared value between the two companies. Koio hosts a recycling program for customers to minimize the environmental impact of their shoes and is developing a regenerative leather supply chain. This means its making shoes that are 100% sourced from regenerative farms and also 100% biodegradable. In tandem, Fillogic helps its customers use 5x less warehousing space, which saves 80% on warehousing emissions and 20% on transport emissions.

With 60% of U.S. consumers stating they think companies are just pretending to be sustainable, proven results can offer a real competitive advantage.

“After having gone through a few logistics partners that did not keep up with their promises, trust and reliability were key for us in choosing a new 3PL,” said Koio CEO Chris Wichert. “The Fillogic team impressed us with their organization, proactivity and direct communication.”