As the world grew accustomed to the use of e-commerce to find those obscure products, it presented new challenges for shippers, explains Datex. In fact, 12% of world retail sales are business-to-business e-commerce, and with returns rates of up to 30%, it is simply impractical to manage everything from a single distribution center or warehouse. E-commerce attracted customers from around the globe, and regardless of region, customers expect Amazon-like service. If your company cannot deliver, Amazon will. At the same time, the challenges of final mile logistics have been exemplified through the actions of those with malicious intent, seeking to rob customers of their paid packages. Shippers need to understand these challenges, including those arising from necessary changes to stay competitive with Amazon, how e-commerce and final mile logistics allow for faster, direct-to-consumer (DTC) shipping and a few best practices for using this combination to drive sales.
Challenges in E-Commerce and Final Mile Include Problems With Shipper-Initiated Changes to Inbound Logistics
Significant difficulties in e-commerce in the final mile continue to plague the industry. Consumers want their products today, not tomorrow, and shippers are turning to every trick in the book to increase speed to market. Unfortunately, the primary tactics used by shippers to achieve this feat, such as drop shipping, further increases the complexity of supply chain management. Shipper-initiated changes to inbound logistics management in this manner will result in additional trials with maintaining visibility and accountability within the supply chain. In addition, disruptors within the industry, such as Uber and Doorman, will continue to drive more customers back toward OEMs and wholesalers, explains Supply Chain 24/7. The industry is changing significantly, and shippers must focus on non-traditional ways to increase both efficiency and speed within final mile programs.