Tackling Modern Logistic Issues: How E-Commerce & Tech Enhances Shipping

Over the past 100 years, things have changed a lot in the world of shipping. Market demands and trends constantly change, and supply chains have had to adapt. E-commerce retailers need to keep up amid a shipping environment as volatile as it is relentlessly demanding, and logistic issues are more visible than ever.

But how did we get here? And how can we adapt to the back-breaking speed of change?

Read About Wayfindr’s 4PL Logistics Solutions

Why are we still tackling inefficiencies in supply chains?

Modern shipping really kicked into gear after World War II. What put it to the test? Massive amounts of boxes of supplies had to be sent to troops overseas. At that time, these individual shipments took four weeks to cross the Atlantic. Packing and unloading boxes from trucks, then getting them all securely onto a ship for transport across the ocean was an enormous amount of work. 

But in the 1950s, the introduction of containers changed everything. Transporting high volumes of goods all over the world was suddenly possible — and affordable. 20th-century retail relied on sending large quantities to stores and stocking them on shelves; customers then did the last mile of legwork themselves by actually stepping into stores. (Sounds pretty old-fashioned, right?)

Nowadays, this large retail model still exists, but it makes up a smaller and smaller piece of the pie. E-commerce retail sales, on the other hand, have has exploded in the last few years.

But with the rise of e-commerce comes a new challenge to shipping efficiency: Delivering countless small packages all over the world. The earlier stages of your supply chain processes may be pretty efficient, but that all goes out the window once the final parcels leave the warehouse. This so-called “last mile logistics” — from the warehouse to the end customer —  is by nature incredibly inefficient.

So the question becomes, how do we make this extremely inefficient delivery process better? You need to closely manage every last aspect of your shipment, and interact with your end customer all the while.

Tech to the Rescue of Logistics Issues

Managing hundreds of moving parts is impossible without the right technology. Technology is essential to solve today’s logistic issues

Below are just some of the options you have to choose from in terms of tech:

• Warehouse management systems
• Integrated shipping platform
• ERP
• Autonomous pick and pack systems
• Internet of things
• AI and Machine learning

The time is now to deploy tech and keep up with customers’ ever-changing expectations. But, like anything, you need to be careful to only bite off what you can chew when it comes to adopting new supply chain tech.

Enhanced customer service as a solution

What’s different about consumer tastes now compared to 20 years ago?

Preferences change with every season, every year, and every catalyst event in the world. This has always been the case, and something the market has always had to both plan for and react to. Yet the differentiator for modern consumers is the sheer amount of options at hand. In such a crowded market, how can individual retailers stand out? Consumers shopping online are likely to choose one shopping experience over the other based on two factors:

• Ability to immediately contact someone who can assist them with any product or logistic issues
• How quickly they want their package to arrive at their doorstep

The high level of interaction today’s customer expects when they order something online means that e-commerce companies have shifted focus to customer service. To provide personalization, online retailers have had to reimagine how their customer service operations are structured. Specialized teams of marketing, e-commerce fulfillment, web design, and tech development professionals are needed just to see to it that customers receive their shipments on time — and that those customers can return the product if not satisfied.

Turn Logistics Issues Into Competitive Advantages

Today, pretty much anyone can become an online merchant. And the expectation is that if you can find a product on the web, you can have it shipped from anywhere in the world.

This means that e-commerce retailers need to decide how to price shipping, which presents an important tradeoff. While the inexpensive carriers are unreliable and may lose packages, pricier options may cause potential customers to balk at shipping costs and abandon their cart at the last minute. 

Offering the right options is key. Moreover, knowing who your customers are (not to mention knowing your options for carriers) is paramount to success.

Related: What is COGS and how to calculate it?

Ripples are causing waves in today’s global supply chain

The containerization revolution in mid-20th century shipping ushered in a new era of global commerce. The nature of today’s interconnected global supply chain also makes it much more vulnerable to widespread crises than in the past.

Let’s look at why modern supply chains are so sensitive to shocks. Consider the three following examples of events causing huge ripples, all stemming from COVID-19.

High competition for space on container ships

Assets like containers ships are filled to high capacities even during normal times. This is because there aren’t many operators worldwide and ocean shipping is still a driver of global trade.  So when demand spikes to even higher levels than usual, securing space on that ocean line  — particularly when they don’t die down as expected.

Unexpected port closures

You can’t get goods across the ocean without a starting point; when port availability is in flux, the consequences add up quickly. Take the Ningbo Port, for instance. China’s zero-COVID policy meant that this major shipping point, which serves Shanghai, closed after a single case of covid-19 was found among the workers. 

Labor shortages remain a major logistics issue

Shortages of truck drivers and factory workers mean that products may sit in ports or factories simply because there are not enough hands to push them out

Pair all these events with an ever-rising demand spike and you get a shipping environment that’s uncertain and messy.

Making the best out of a shipping crisis

Volatility and challenges surround today’s shipping industry, but those obstacles also highlight an opportunity. From port delays to last-mile inefficiencies, logistic issues are more visible than ever — and solving them can set you apart. There’s never been a better time to establish close lines of contact with your end customers. With better service capabilities, shipping no longer needs to be impersonal.

If managed correctly, this retail environment has enormous benefits for retailers and customers alike. But it can still be difficult to manage all the steps while adopting the right technologies and keeping up with new demand in real-time.

That’s why you need a strategic partner to get it right. At Wayfindr, we help all kinds of online retailers by providing them with tailor-made logistics services that directly address common logistic issues. With an integrated online platform and on-the-ground staff around the world, we help you expand while maintaining full visibility.

Ready to find out how Wayfindr can help you level up your shipping this year? Give us a call today and chat with one of our experts.