Evolving Consumer Demands Prompt Continued Changes in Logistics

Twenty years ago, no one would have imagined for a second that they could order a product online in the morning and have it on their porch before they got home from work. Today, it’s all but expected that delivery occur within very small timeframes, even the same day.

The battle amongst large players in the e-commerce segment like Amazon and WalMart for fastest delivery times appears to only be escalating, meaning consumers are becoming more and more used to getting their packages within a couple days. This means changes in logistics operations must continue to evolve in order to support these demands. Note: Download our whitepaper, Walmart: The Retail-Supplier Relationship for even more details.

In order to keep up with consumer demand, logistics must evolve.

Today’s consumer demand means that buyers expect more from suppliers. They need the right merchandise delivered at the right time in precisely the way they need it delivered. When these expectations aren’t meant, suppliers may be faced with penalties that can be crippling. The drive for on-time delivery can also lead to unexpected accessorial fees. In order to keep up with consumer demand, logistics must evolve.

Logistics Technology Evolves to Meet Demands

Many logistics divisions are turning to technology to help meet evolving demands. Without the technology, keeping up is a pipe dream for many operations. Here are some of the technologies logistics operations are falling back on in order to serve their customers better:

  • Demand Planning– It’s critical to stay ahead of the game when delivery timeframes are so short. Demand planning software is changing to make sure suppliers are ready to meet demands.
  • Smarter Analytics– Top notch analytics are being implemented across logistics operations, from warehouses to transportation, to give logistics providers a leg up. Analytics are used to support many arms of the logistics operation, as well as keeping stakeholders informed.
  • TMS– Comprehensive transportation management systems are critical to getting loads out the door and ensuring on-time delivery. Improved routing, load tracking, cost control, and reporting are critical to helping companies meet consumer demands while working within their operational budget.
  • IoT– The Internet of Things has major potential to help suppliers meet stringent demands. Load tracking (i.e., real-time GPS tracking) and monitoring (i.e., atmospheric conditions, handling sensors to detect impact to parcels) are two major IoT applications being implemented by cutting-edge suppliers to improve delivery.
  • Blockchain– Blockchain is a technology being implemented to improve traceability and accountability in supply chains by recording data in a way it can’t be tampered with or changed. 

Demands for Faster Delivery Mean Demand for Better Visibility

A transparent supply chain is one of the most important factors in meeting deadlines. Consumers and retailers alike insist on knowing where their merchandise is, when they’ll get it, and how they’ll get it. 

Supply chain visibility is a top priority at most companies, but only 6% of companies say they’ve achieved full visibility. While supply chain visibility ranks behind OTIF and delivery issues in a 2017 Geodis survey, it may hold the key to solving those problems.

Staying one step ahead is critical to supplier success, and stagnation simply won’t do in the current logistics

Consumer and retailer demand will inevitably continue to evolve and put more pressure on the logistics industry. Staying one step ahead is critical to supplier success, and stagnation simply won’t do in the current logistics market. Wondering how your logistics operations can keep up with ever-hastening delivery expectations? Contact one of our representatives at 800.MY.SHIPPING or fill out the form below to get a free supply chain analysis from one of our experts!