How the Logistics Industry is Responding to Challenging Consumer Demands

Until recently, brick and mortar stores were a mainstay for consumers. For a very long time, this was the only option out there. But with the rise of the internet, customers’ attitudes have changed completely. Physically going to a shopping center or mall is simply not convenient anymore. As a result, many retailers that were once considered immortal – such as Toys ‘R’ Us – have been forced to close their doors.

While physical shops struggle to manage overhead and keep their prices competitive, online retailers are growing at a rapid pace. This means that the logistics sector has had to adapt along with this shift. Logistics can serve both models, but it has had to make some adjustments to do so.

Personalizing the Customer Experience

Customers want value for what they spend but they will also want a good experience during that process. Organizations like Amazon have an array of products readily available in one place, with options for 2-day, next-day, and even same-day delivery. These shipping methods are clearly labeled, and you can even get benefits for choosing no-rush delivery. This flexibility is something consumers adore.

Retailers using the “total retail” model, which incorporates bricks and mortar, online space, and mobile retail operations (apps), have made the role for the logistics practitioners more important than ever. This opens the door for personalized shopping options under the umbrella of one core brand.

Nike, for example, currently allows shoppers to customize footwear online. Customers can add their name, favorite numbers, or a message, and their delivery options range from home deliveries to Click & Collect pick-up points. This type of system has enabled logistics to become a key player in the digital supply chain.

Utilizing Technology

Consumers’ expectations for instant access to products continue to grow. So, logistics practitioners must meet the demand for more flexibility, more speed, and lower costs, all by utilizing the existing technology. Cloud computing makes it possible to get the most from platform solutions, like warehouse management systems (WMS), and align them with customer data analytics. The data is already starting to help improve transportation performance and customer delivery service, but getting a firm understanding of the data long-term will also help those within logistics to accurately forecast.

Logistics practitioners will need to continue to update their existing tech just to keep up with the advancements that are sure to come. Amazon has already started using drones to deliver their goods, offering shoppers the chance to collect their products from pick up points. Automated cars are also in development. The one thing that these automated delivery options have in common is that they are a lot cheaper to run than paying a delivery team a monthly wage.

Collaborative Partnerships

More partnerships and collaboration will help the logistics practitioners to flourish with insights, innovation, and market expansion opportunities. However, more accountability needs to be achieved to eradicate misalignments, such as inconsistent service levels. The fragmentation also must be lessened for practitioners to fully utilize the collaborative process and partner with more last mile operators.

Overall, logistics has a big part to play. Utilizing technology to manage product and delivery data is a key component in personalizing the customer journey. Getting the core retailing right by using integrated systems, extending partnerships, and understanding customer needs in the designated product areas is key for the logistics industry to fully take advantage of retail’s next evolution.

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