Archive for June, 2017

Did you know that the spending in the logistics and transportation industry totaled $1.48 trillion in 2015 and accounted for 8% of the annual GDP of the United States? This fact published by SelectUSA, points to the growing importance of the logistics sector in the American economy, largely because of the growth being witnessed by the e-commerce industry.


Trends to Watch Out for in the Logistics Industry

  • Evolving Customer Expectations – Supply chains will remain under constant strain to meet customer expectations of faster deliveries. An urgency will have to be shown in reducing delivery defect rates, since this will have a direct bearing on the profitability of these companies.
  • A Shift to Digital is Inevitable – The logistics industry has been slow in adopting new and emerging technologies to their advantage. A digitally integrated value chain can help in the better planning of routes, scaling or ramping down capacity based on real-time data that can be generated by implementing artificial intelligence techniques to data analytics.
  • Collaboration for Improved Efficiency – “Horizontal collaboration is already happening, especially in last-mile delivery,” says a report by PwC. Many e-commerce companies and major national courier delivery services, like DHL and FedEx, have already started collaborating with national postal services for faster deliveries. One can also expect a lot of joint ventures and mergers & acquisitions in the logistics industry for improved efficiency and higher profitability. One example could be the sharing of assets, such as fleet trucks, between companies.
  • Moving Towards Automation – Third party logistics service providers, or 3PLs, have a lot to gain by moving towards software automation. For instance, a courier software solution for tracking dispatch can automate the flow of valuable, customizable and time sensitive information ensuring accuracy, accountability and greater profitability for the service provider, according to Key Software Systems.
  • New Business Models – A large number of companies in the industry have started to experiment with new business models with the intent to gain competitive edge and improve customer experience. From considering 3-D printing at customer locations to introducing warehouse robotics, new business models will turn out to be a win-win for both the supplier and the customer in the future.

While e-commerce will continue to be the engine of growth for the logistics industry, how fast the industry reinvents itself will play a major role in determining the scale of its growth. Companies will have to constantly evolve their capabilities in order to become lean, efficient and competitive.

At the moment, Omni-channel is perhaps one the hottest trends in supply chain management. CPG (consumer packaged goods) manufacturing is one of the areas where omnichannel fulfillment has had the most significant impact. With more manufacturers looking to sell directly to the consumers, the line between B2B and B2C is getting blurry with each passing day. Manufacturers can now reach consumers directly, thanks to the emergence of additional commerce channels such as Omni-channel.


By definition, Omni-channel is a multi-channel way of selling merchandise aimed at providing a seamless shopping experience for the customer. Whether they are making a purchase from a brick-and-mortar store or online via a smartphone or computer. Omni-channel differs from multi-channel in that the Omni-channel experience integrates many channels in the back end to provide an overall smoother, more seamless experience.


The growth in popularity of Omni-channel in e-commerce is attributable to shoppers’ increasing desire to do their shopping how, where, and when they want. Omni-channel allows businesses to deliver this experience. Consumers are increasingly spending time interacting with brands at a personal level on social media platforms. Marketplaces like eBay and Amazon are able to provide quick, reliable shopping experience with additional perks such as free shipping and fast processing.


The emergence of e-commerce solutions and technologies such as courier tracking software and courier dispatch software facilitates the delivery of a seamless experience. Consumers want to take advantage of this, and they won’t be sticking to a single channel. Freedom of shopping will be the key driver of the future of Omni-channel in e-commerce.


Multiple communication channels allow companies access to several data streams. Big data analytics help businesses to understand, quantify, and review communication with their clients. Companies can track the preferences of their customers over multiple channels through their Omni-channel strategy. This helps them deliver a more personalized, high-quality shopping experience.


The development of an Omni-channel strategy helps a business to increase efficiency. This, coupled with the adoption of a courier software or a courier management system, helps improve clients’ experience. With such software, a business can provide additional perks — free or faster shipping of merchandise — on top of the seamless shopping experience provided by the omnichannel approach. This allows these businesses to sell their products everywhere without the complexities or added costs that would typically accompany the provision of services at this scale.

Any company can take advantage of Omni-channel, just as long as it has the technology to roll it out. However, this approach requires a deep understanding of the target market and their shopping habits. Find out the channels that your clients favor the most and then come up with a plan to achieve Omni-channel personalization.


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