E-commerce shows excellent promise and growth, and its impact will resound throughout the logistics industry. Unfortunately, the rate of growth remains inconsistent with the growth of logistics, and it rests on a tipping point. Unless shippers learn what customers really want and how to create a successful, satisfying delivery experience, they risk ruin at the hand of Amazon and those that offer final mile service.
In fact, a survey conducted in 2018, published by Trucking Info, found significant changes in how customers respond to shipping availability and costs. The information collected within the study alludes to the ongoing influence of Amazon, not to mention the ways consumers believe their shipments arrive. In other words, customers simply believe anything is possible, and they are willing to pay for it in some cases. However, shippers that take the time to understand the challenges spurred by e-commerce growth and the trends affecting final mile logistics can apply the survey results to win in the final mile.
E-commerce growth shows no signs of stopping, and customers are willing to pay for better, faster service. The sharp rise in Amazon Prime membership reiterates this need. Unfortunately, the growth of e-commerce contributes to critical challenges within final mile logistics, such as:
The survey also identified a few trends that influence the final mile. These include:
Developing a successful final mile strategy requires knowing what trends are taking the market by storm. Customers want fast, free shipping, but the emphasis must be placed on fast. Ironically, customers care about much more than just their costs, so it is up to the shipper to apply survey results and work with customers to explain what they can achieve and what its real cost will be. To simplify things, shippers need to follow the steps:
The final mile needs to scale, and with e-commerce growth continuing, final mile needs fast scalability. The days of managing final mile with a simple “out for delivery” notification is over. Shippers must understand the top trends for free, fast and urbanized, i.e. nearby, final mile delivery. Of course, using an integrated, dedicated TMS, such as the Cerasis Rater, can achieve these goals in a single bound.
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