They say that every crisis is an opportunity. E-commerce has seized that opportunity with both hands as E-commerce demand is expected to reach a mind-boggling 5 trillion dollars worldwide in 2021, as per the BCG consumer survey. In many ways, we have seen a single year depict a decade of E-commerce growth. Everything from essentials, pharmaceuticals, to high-end electronics are being ordered via the E-commerce route in an era of social distancing. The promise of quick door-step deliveries, speed, quality, and reliability at competitive prices is hard to match.
Demand patterns have changed and brands are forced to place an emphasis on e-commerce channels for business continuity today. E-commerce players find themselves in a unique position today. Based on insights, let’s take a look at the key logistics trends that will enable E-commerce players to tip the scales, further in their favour, in 2021.
Last-mile delivery
Despite the E-commerce industry improving by leaps and bounds over time, the nature of increasing demand has made last mile delivery a veritable challenge. There can still be multiple frictions in the last mile delivery stage that E-commerce players ought to handle adroitly. Omnichannel fulfilment can often be a good solution as the customer can choose that makes sense to their needs and requirements. E-commerce players today are highly competitive and are taking measures to analyse their present logistics operational capacity while optimizing the entire supply chain process to its highest potential: Achieved by leveraging multiple local suppliers to resolve last-mile delivery bottlenecks. Leveraging technologies like automated transport can also go a long way towards making last-mile delivery more seamless in the near future.
RFID
Radio Frequency Identity (RFID) has seen a growth spurt among E-commerce players in recent times. For a long time, RFID has held a lot of promise because of its potential to relay real tracking information. It’s only in recent times that companies garner value from a RFID set-up: The basic technology for file-integration, ability to connect multiple devices, and the advent of edge computing are helping unlock the true potential of RFIDs. Today, the companies that are able to implement RFID well are those that blend RFID with conventional line-of-sight technology such as bar code labels.
Implementing RFID alone can be an expensive proposition for logistics supply chains. In comparison to conventional bar codes, RFIDs can be as much as 10 times more expensive. It is owing to the high entry cost that many E-commerce players are blending approach. Many logistics companies and manufacturers are using a mix of legacy technologies with cutting edge advancements to enable better supply chain visibility. This is a balanced approach that helps remedy the age-old problem of logistics visibility while containing costs.
Leveraging Big Data
Analytics is changing the game for even the somewhat technology averse logistics industry. A great example of this is UPS, who has unlocked significant cost savings and improved operational efficiency with Big Data. This has been achieved by placing more than 200 onboard sensors on its large fleet of 80,000 plus vehicles. These sensors measure the idling time, speed, braking, backing up, and real-time-location that enables UPS to add a new dimension to their supply chain endeavours. In certain instances, vehicle diagnostics are carried out on the tire pressure, battery, and other component checks for preventive maintenance. This enables UPS to get the best out of their transportation systems while maximizing their on-road utility. Predictive modelling can lead to small tweaks for better route optimization and consequently significant savings.
The road ahead
E-commerce is having a profound impact on logistics operations. The strict mandates and expectations from the E-commerce logistics supply chain has enabled its drastic transformation. Key players like Amazon are experimenting with new technologies and innovative ideas to unlock further value in the E-commerce logistics domain.
