How Can Logistics Prepare for The Growth of E-commerce?

The logistics industry has its hands full. The pandemic has changed customers’ shopping habits, and the range of online delivery is steadily increasing. The popularity of Chinese online shops, which generate most of the estimated 2024 e-commerce business volume of US$1,469bn, is a significant growth component.

However, the world is looking for balance, and further challenges overshadow growing reasons for satisfaction in the logistics industry. Rising fuel prices and inflation are prompting logistics service providers’ clients to seek savings on product transportation and find shorter routes. Also, the actions of government organizations and the public’s expectations are forcing a change in approach and action towards lowering the carbon footprint. To cope with an intractable situation, logistics service providers must equip themselves with tools to help them remain attractive in the market.

If you want to stay side by side with the best logistics companies, data is your ally. Your customers who are shipping and receiving their packages expect you to base your daily operations on data and share important metrics with them. According to MIT Technology Review, 54% of organizations have modernized numerous elements of their data infrastructures or are in the process. Another 23% intend to tackle modernization in the next two years.

What are the most critical digital logistics solutions that guarantee industry competitiveness? Freight and shipment tracking is essential. You can also remotely control the temperature or air quality of the products transported in multiple vehicles to transport temperature-sensitive products safely. Data collection and detailed analysis will help you reduce expenses, identify unprofitable routes, and enhance customer experience. According to WNS and Corinium Intelligence, as many as 50% of logistics companies believe that by 2025, all client-facing business processes will be entirely digital.

What do e-commerce business owners expect from logistics management companies? Explore the vital aspects of the logistics process that will help you build a trusted partnership with e-commerce companies.

Waiting more than two business days for a shipment negatively affects customer satisfaction and the retailer’s reputation. The new standard is to receive the order the day after it is placed.

To guarantee your customers that all shipments will be delivered ASAP, you must have a network of distribution centers in strategic areas to streamline the fulfillment process. The centers should be highly automated to speed up the receiving, sorting, and releasing of parcels for further journeys.

Product storage is the most expensive part of the supply chain. Your warehousing capabilities will, in many cases, prevail in deciding whether to work with you as a logistics provider. The more solutions you can find to unusual challenges (e.g., distance from end users or storage of unusual products), the more likely clients will choose you. The advanced warehouse management systems will simplify the way you control the conditions set by the suppliers.

Do you know what your current inventory levels are? Inventory management solutions allow you to check the filling of shelves with specific products in real time. They can also track shipments sent between distribution centers and inform you about running out of particular products.

Recent technological advancements offer a myriad of solutions to streamline the work of logistics companies. But which ones will bring you the most profitability and allow you to remain one of the leading logistics partners for e-commerce companies? Review the top trends of logistics automation.

Are you still keeping most of your data on paper? Start the digital transformation of logistics infrastructure by moving all your records into digital formats. This will make them readable for IoT solutions, AI, blockchain, and more. You can securely store digitized data in the cloud and access it anywhere your company operates.

How is AI expanding the capabilities of the logistics sector? By upgrading freight handling through automation, optimizing shipping routes, recognizing the packages, and even performing back-office operations. AI capabilities are effectively filling the gaps created by the shortage of warehouse workers.

Modern technologies allow tracking every supply chain step without leaving the office. All information, such as the route length, delivery time, or difficulties, is available in real time. Along with AI-based solutions, location intelligence allows you to predict results based on current conditions and adjust future routes using historical data.

In the age of social media, the popularity of some products can soar to unimaginable proportions in a matter of hours. This is a breakneck task for logistics companies, which need to handle all online orders quickly to meet shoppers’ expectations. Robotic solutions for logistics provide this flexibility, as they can dynamically adapt to increased order processing and guarantee an equally high quality of service.

Product deliveries generate a lot of pollution that enters the environment. That’s why there is an increasing emphasis on the carbon neutrality of deliveries. One way to successfully achieve sustainability will be the modernization of legacy software and IT infrastructure elements to solutions that increase efficiency while saving energy.

Global e-commerce sales are expected to reach $6.3 trillion by the end of 2024. If you want to grow as vigorously in the logistics industry in the following years, take advantage of the best practices and trends mentioned above. Improving your business and taking advantage of the opportunities presented by modern technology will help you build resilience to unexpected changes in the global market.

Not sure where to start? Contact Scalo professionals and get comprehensive support in the digital transformation of logistics processes.