Transportation Management and E-Commerce are revolutionizing by these 5 interesting trends.
Table of Contents
E-Commerce and Transportation Managment
With internet gaining momentum and influence in all functions of daily lives, in the past 15 odd years, parcel shipping too has received a boost in its outreach and influence. Popularity of Ecommerce means that an increasing number of people are purchasing goods online, as opposed to going to brick and mortar stores. This dramatic shift into Ecommerce market is making shippers adapt their supply chains to new technologies, and to new ways of consumers buying goods online.
Traditionally, parcel shipping was considered as a challenge that most companies isolated themselves from, and managed separately with other modes and types of freight.
An old “rule of thumb” routing guide states that, if it is under 150 pounds, then it will ship via parcel carrier, and if over 150 pounds, then it will ship via freight or common carrier. This is an old concept that works for smaller shippers even today, primarily because of its simplicity and efficiency. It has been proven safe and reliable, even if it is not economical, to keep parcel packages and processes separate from other transportation modes.
The sudden and dramatic growth in Ecommerce market has given an unprecedented impetus to the demand for parcel delivery via online vendors. This has completely changed the landscape of freight management.
The new dynamics of freight management and parcel shipping reject the old “rule of thumb” with regard to the traditional divisions between parcel and non-parcel freight. Spreadsheets and routing guides are good and get the job done fairly well. However, the supply chain is subject to innumerable variables, specially when it comes to large volume shippers. Hence a simple spreadsheet or routing guide is not enough to optimize a supply chain to perform to its maximum.
There are potential benefits of using technology to integrate parcel with traditional freight management. Today, the supply chain industry is at a juncture where many more shippers can successfully execute this concept. The new dynamics of technology supported freight management is based upon-
- Affordability: The new cloud-based solutions have opened a whole new vista of affordable, optimized, technology supported freight management processes. This is a boon, considering the prevailing concern that a multi- modal, enterprise-level transportation management system (TMS), is generally cost
- Better Technology: The best-of-breed enterprise transportation management system (TMS), has enabled the classic optimization techniques to be merged with advanced data analytics, to break down the walls between parcel and other
- Competition: When the same product is offered by different vendors, and hits a pricing “floor”, consumers can choose where they can purchase an item, based on the next lowest part of the total price equation, with shipping
- Defragmentation: Technology allows Shippers to manage an entire transportation chain, using only one single
- Economics: The recent economic turbulence has led to a boost in the Ecommerce market and unfolded an atmosphere of great competition, and is squeezing profit margins for shippers like never
- Fast and Future Results: Technology empowers shippers. Not only can shippers now achieve a rapid ROI (immediate hard savings), but they can also realize improvements in areas such as labor reassignment, strategic inventory management and partner
5 Intresting trends that make Logistics come up as the top revenue earning sector.
1) ARTIFICIAL INTELLIGENCE POISED TO REVOLUTIONIZE LOGISTICS
Artificial Intelligence and other derived technologies like machine learning, promise before and after brands in Ecommerce logistics.
Artificial Intelligence is not about robots working hard in a warehouse.
Artificial Intelligence is the applications of AI technology, which include the recognition of gestures instead of keyboards and mouse, or the use of autonomous vehicles that function without human intervention.
Artificial Intelligence and Automation are different concepts. However, despite being different, AI and Automation are connected technologies. Without AI there can be no Automation. AI technology is the future and is set to revolutionize the logistics sector by eliminating all tasks that are redundant, or very tiring in the management of logistical shipments.
The basic idea behind AI trends in retail logistics is not to replace workers. Instead it is to help them improve their performance for the benefit of the Ecommerce market and supply chain management.
2) ECO LOGISTICS AND REINFORCEMENT OF SOCIAL MARKETING
Environment and Eco friendly way is the future of the world. Social marketing (not social media marketing) has gained popularity amongst brands. All brands claim to be advocates of equality, sustainability, civil disobedience or social justice.
For many Ecommerce stores, eco sustainability is an important value for their consumers, and this is where ‘eco’ logistics makes its entry.
The transport sector accounts for approximately 10% of polluting emissions, according to Greenpeace.
The big players, like Amazon, AliExpress or Zappos, indirectly contribute to this problem. Hence, more and more Ecommerce stores are opting for eco-friendly logistics providers, for their supply chains, and also for sustainable packaging.
Environment related causes are important for Ecommerce stores, especially so in the current scenario and in the coming years. Adding a little ‘green’ in their curriculum, in order to appease the most demanding consumers is advantageous.
3) BLOCKCHAIN TECHNOLOGY AND LOGISTICS
Blockchain technology has applications that exerts influence beyond crypto dynamics. Logistics industry is set to be one of the main beneficiaries of Blockchain innovations, which will happen through smart contracts.
Smart contracts can be understood as digital contracts that have the capacity to execute themselves and operate with greater autonomy, speed and transparency, as opposed to traditional contracts.
A great advantage of smart contracts is the absence of third parties, necessary to validate the document. Smart contracts do not need this third party verification.
The intelligent Smart Contracts are just one of the many solutions offered by Blockchain technology for commercial logistics.
4) SAAS AND CLOUD COMPUTING
SaaS software has become greatly popular and widespread amongst logistics companies. Year 2019 and year 2020 opened the gateway to cloud computing technology, a technology still in the process of spreading its wings.
The security and protection of SaaS software, as a service, adds to the flexibility, scalability and cost savings of cloud services, making Saas and Cloud Computing great allies. This undoubtedly is a most interesting trend in logistics for year 2019.
5) THE LAST MILE IN LOGISTICS
Logistics sector is evolving dramatically at exponential levels. However, many of its problems and challenges still persist. The many frictions during the final delivery is a major challenge that needs solution. Last mile or last mile logistics is the final delivery segment of the logistics supply chain.
The aim of this Last Mile trend is to deliver products to the final consumer, as quickly as possible, on time.
Last mile management requires planning and clean execution.
Omni-channel requirements have forced Ecommerce stores to assess the current capacities of the transport, to optimize it to the maximum. Most online stores no longer use a single general supplier. Instead, they have multiple local suppliers.
The goal of last mile logistics is as simple as transporting a product from the warehouse to the customer’s hands.
Ecommerce market and logistics is evolving on the fast track. It is not enough to know these trends in Ecommerce logistics. The best online stores must take the step and implement them before their commercial rivals.
Can a competitive advantage in deliveries be gained, and what is the final link in the value chain of any Ecommerce dynamics, these are interesting twists to understan
Blog: Transportation Management and E-Commerce are revolutionizing by these 5 interesting trends.
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