Morai-Logistics-Blog-diverse-supply-chain-business-growth

In a globalized world of changing markets, Morai Logistics represents a business model that views supplier diversity in the workplace as a top priority.

There is a growing urgency for Canadian businesses to incorporate supplier diversity programs into their own models. Not only do these initiatives build a social, economic and sustainable brand, they also help companies thrive in changing markets. The Conference Board of Canada describes these programs as the added value small and medium-sized businesses owned by women and minorities give to organizations and the economy.

Over the last month, media has placed the spotlight on the advancements women are making in various industries, including technology and supply chain.

London web developer named rising star of women in tech

Walmart’s sourcing from women-owned suppliers drives business

The above headlines identify the importance women play in accelerating the industry, and their positive impact on business growth. This article outlines the benefits of supplier diversity programs and why Canadian businesses should work diligently toward adopting them into their models.

Supplier Diversity in Canadian Business

According to the Conference Board of Canada, supplier diversity programs are currently implemented into 39% of organizations throughout the country. In comparison to small enterprises, large organizations and companies within the private sector are more likely to implement these initiatives.

In a featured article for EBN online, Kelli Saunders spoke about supplier diversity, and the liberal government’s proposed investment into diverse suppliers. There is a push for the Canadian and U.S governments to increase procurement support for diverse suppliers including businesses owned by women and minority groups.

Procurement Leads to Change

Although procurement programs are currently available, there are reasons why women-owned businesses have yet to leverage procurement opportunities. These include:

  • Lack of awareness
  • Cost and administration
  • Lack of confidence in contract opportunities

However, the Governments proactive support in procurement of supplier diversity is a huge step forward. According to Conference Board of Canada, it’s important that large municipalities recognize and address the benefits of supplier diversity

Benefits of Supplier Diversity Programs

The benefits of implementing supplier diversity programs include building strong supply chains, increasing competitiveness and establishing corporate social responsibility.

1. Corporate Social Responsibility

One of the most beneficial outcomes of implementing a supplier diversity program is establishing corporate social responsibility (CSR). Global Affairs Canada defines CSR as “the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.”

Large scale companies, such as TD Bank Group, have implemented supplier diversity programs as a CSR effort. Diversifying business portfolios help companies leverage ‘shared value and social licence’ in global markets.

2. Competitive Advantage

A key competitive advantage for any business is having a socially diverse and inclusive business model. Working in conjunction with CSR, Forbes also proposes that promoting diversity differentiates a company’s brand while increasing consumer engagement. In comparison to brand names, Customers are increasingly attracted to companies that give back to their communities and the environment. As a business diversifies, their relationship with stakeholders and markets diversify, developing price and service level competition as well.

3. Economic Growth

Investment into social diversity programs also has a tremendous impact on the growth of the economy. In fact, the Conference Board of Canada states that ‘nearly 1 million Canadian women business owners’ contribute to ‘more than $117 billion annually to the Canadian economy’. In addition, engaging in business with diverse suppliers means opening up to new markets which translates into economic development.

Moving forward, the investment into social diversity programs is an integral component to the business model of any company. The procurement of funding into women and minority-owned businesses would create positive change and contribute to social and economic success.

Morai-Logistics-Blog-omnichannel-intermodal

Omni-channel strategies prove to be an effective method for meeting on-demand delivery for consumers and providing efficient solutions for shippers.

On February 22nd, 2018, Morai discussed the exponential growth of the Canadian ecommerce market. Research presented supports an industry shift from traditional to Omni-channel strategy, finding that it enables third party logistic (3PL) providers to offer all distribution initiatives. By facilitating a customer-focused supply chain, companies can effectively meet the growing demands of their consumers.

Current issues facing the supply chain and logistics industry include the capacity crunch, an increase in freight rates and the impact of government regulations. Globalization and the expansion of markets, pushes 3PLs to implement intermodal transportation solutions that ensure efficient processes are available.

This article identifies the benefits of implementing Omni-channel strategies and intermodal transportation, and how this enables 3PLs to deliver optimized solutions.

Omni-Channel Strategy

The accessibility of global ecommerce markets has transitioned Omni-channel strategies from an ideal concept to a necessary solution. According to Statista, the number of digital shoppers is expected to rise from 19.5 million in 2013 to 22.5 million this year. Reports show that 54% of Canadian shoppers participate in ‘cross-border ecommerce’. The top two reasons for an increase in Canadian international purchases include cheaper online pricing and a wider selection of goods.

How does this impact the supply chain? While an increase in revenue is the end goal of any company, the supply chain and logistics industry recognizes that an increase in consumer demand for immediacy should be a primary focus. Leading ecommerce platform, Spotify, outlines the top benefits of implementing an Omni-channel strategy as :

  • A reduction in shipping times and costs
  • An efficient management of inventory
  • Delivering a seamless experience throughout the shipment lifecycle

They comment on the importance of offering a tailored experience to consumers, stating:

By optimizing the locations, sourcing, and fulfillment of your products…Omni-channel logistics ensure reduced costs, faster delivery, and a better customer experience.

Companies should establish an effective approach that focuses on the customer journey by choosing third party logistics providers offering intermodal transport options.

Intermodal Transportation

Capacity crunches increase the need for companies to have appropriate partners in supply chain management. Harsh weather seasons and a reduction in drivers can cause inefficient deliveries and poor customer service. 3PLs understand the unpredictability of the supply chain and logistics industry and steer companies from making costly decisions.

To offset these inconveniences that ultimately affect the end-to-end user, 3PLs utilize intermodal transportation. Intermodal transport is defined as the integration of different modes of transportation, including rail, truck, air and sea. Inbound logistics identifies the top benefits of using intermodal transportation for shippers:

  • Alternative methods of shipment
  • Lower freight rates
  • Predictable pricing
  • Reduction in handling costs

Research identifies that in comparison to road transport, “rail transportation is more energy efficient”. The implementation of an intermodal fleet has been found to be an eco-friendly and environmentally sustainable solution. This approach also ensures that shippers pay less, while optimizing the safe-handling of goods.

Companies looking to provide seamless, efficient and affordable options for their customers should understand the demand of ecommerce markets. By implementing Omni-channel strategies into business models, consumers will have alternative options that reduce wait times at affordable costs. 3PLs who offer optimized, intermodal transport options, can help shippers meet consumer demands while reducing expenses.

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-3pl-canada-capacity-crunch

The Canadian transportation industry is currently facing a capacity crunch, causing small businesses to question what their mitigation strategy should be.

In late January, the Wall Street Journal spoke about the ‘nationwide truck shortage’ causing turbulence for shippers. They identified that the only two options available to offset current inconveniences were shipper’s willingness to postpone deliveries or pay higher rates. Causes trail back to the aftermath of severe weather seasons and the new regulations on electronic logging in 2017, and lingering increases in gas prices.

Third Party Logistics (3PL) providers have maintained a reputation of providing optimized solutions for those small business owners vulnerable to shipping capacity crunches. Their network connections, competitive volume rates and ongoing integration of information technology, are few of the many reasons to outsource logistics.

As a capacity crunch challenges Canadian markets, 3PL providers continue to leverage technology to fulfill the needs of their customers. Research proposes that concrete data provided by predictive analytics could help offset the stressors faced by shippers and 3PLs.

Overview of Shipping Capacity Crunch

As the demand for immediacy increases and ecommerce markets continue to emerge, a capacity crunch can put pressure on both SME’s and large corporations.

On February 8th, 2018, Forbes discussed four trends facing the transportation industry this year. A capacity crunch and an increase in freight rates were at the top, with a lack of drivers and the 2017 electronic logging devices mandate (ELD) as primary causes.

The ELD mandate and the implementation of electronic stability control technology are two initiatives that aim to improve road safety. These processes achieve the following:

  • Help driver maintain control
  • Prevent rollovers
  • Improve navigation

In addition, ELDs are also being installed into trucks to monitor driving time across the shipment lifecycle. This is a positive move to ensure the health and safety measures for drivers and the roads, while also limiting the paper administration associated with logging. Forbes reports that,

By law, drivers are only allowed to drive for 11 hours with a mandatory, continuous rest period of 10 hours, daily.

However, compared to larger corporations with the infrastructure to implement large scale devices, smaller companies are finding this to be costly. Thus, in conjunction with capacity crunches, an increase in freight rates has also said to impact the industry.

Freight Rates

With ecommerce enabling consumers to make immediate buying decisions, the trucking industry is seeing a different pattern in demand. Although this time of the year is low-tide for truck deliveries, research describes an alarmingly high ‘desperation of brokers to move freight’. In fact, freight rates in 2017 remained the highest they had ever been.

Research has also attributed the increase in rates to the ELD mandate, which could cause more problems for smaller companies. While it may cause an inconvenience for divers, it has also meant higher rates for companies looking to ship. A decrease in drivers means an increase in prices, and these projected rates will only get higher.

Forbes also adds that spot rates – or the spot quotes – are the highest, following contract rates. With immediacy following in line with more on-the-spot deliveries, 3PLs may be a wise strategy.

Mitigation Strategy for Small Businesses

As technology platforms continue to advance the processes of the supply chain industry, 3PLs utility in combating the above issues show promise. With the recent implementation of the ELD, a 3PL will have the resources to provide a reliable fleet. In addition, 3PLs also have a large network that go beyond local borders, which can help cut costs. Linkage to competitive volume rates would also help mitigate risks associated with capacity crunches and increased freight rates.

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-international-womens-day

The Morai Logistics team would like to wish everyone a Happy International Women’s Day. We’re so proud of all the accomplishments that has been achieved leading up to this point, especially in our industry, and are excited to see the progress that the future holds for women everywhere.

To all women out there, whatever you are doing, this day is for you!

According to the report Digital Supply Chain: Creating Skills for the Future, the Canadian supply chain and logistics industry currently employs 878,000 people. Digital technologies is stated to be a contributing factor to the increase in job creation expected to happen over the course of the next five years.

However, research also identifies Canada’s ranking as the 14th nation in the World Bank’s Logistics Performance Index.

While the country’s investment in research and technology remains high, less than 41% of Canadian industries actually utilize advanced communication technologies. The report further identifies that as the integration of emerging platforms continues to rise, the need for an advanced workforce is critical.

Unceasing technological advancements in the form of artificial intelligence, the Internet of Things (IoT) and Big Data, are necessary to help companies keep up with consumer needs and demands. They’re also key to improving the countries performance in trade logistics.

This eBook takes a look at current technology trends that will have a direct impact on the transportation supply chain and logistics workforce.

What does an Advanced Supply Chain look like?

ebook-supply-chain-logistics-a-transforming-workforce

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-3pl-canadian-ecommerce

With the retail e-commerce market projected to reach CAD$29 Billion by 2021, businesses are urged to partner with third party logistics (3PL) providers to satisfy end-to-end customer experiences.

Supply chain and logistics companies recognize the increasing demands of customers across a variety of industries. From retail to pharmaceutical markets, to in-store and online ecosystems, the need for optimized solutions is key to driving revenue and customer loyalty. In response to an accelerating Canadian ecommerce market, 3PLs prove to be the most effective and efficient catalyst for achieving these initiatives. This article identifies current trends within the ecommerce market and the top three benefits 3PLs bring to the shipment lifecycle.

Canadian eCommerce Market

Over the next ten years, projections show that online verticals will generate 35% of Canadian retails sales. Consumers are no longer purchasing on a singular platform, pushing companies to shift from traditional to omni-channel strategies. In addition, consumer loyalty has gravitated from brand names to companies that offer immediacy and low cost.

Although online buying in Canada has progressed slower than the US and the UK, there is optimism that our market will now flourish. Contributing factors outlined by BCG include the following:

  • Young consumers (ages 18 to 44 years) have an increased level of online activity, with 50% of those under 35 purchasing at least once a month.
  • Online research precedes 60% of all purchases.
  • eCcommerce sites are improving their product availability and shipment options.

Today, ecommerce businesses meet the growing demands of consumers by providing platforms that deliver immediacy and convenience. By breaking barriers associated with geographic limitations, consumers are able to purchase globally and at lower costs. In addition, online platforms give access to information with the click of a button, making research and comparison shopping easier.

While the benefits for online shoppers remain high, ecommerce businesses must ensure they have the appropriate processes in place to meet customer expectations and fulfillment. Third party logistics (3PL) provider’s become an integral component to optimizing supply chains for the retail ecommerce industry.

Top Three Benefits Proposed by 3PLs

By 2024, 3PL market share is expected to be well over USD$1,100 billion, according to Global Market Insights. A contributing factor to market growth will be attributed to an increased need for ecommerce businesses to meet the growing demands of their consumers. Immediacy and efficiency must translate into “fast delivery, efficient inventory management, freight forwarding, and individualized shipping time” (Cision, 2017).

3PLs provide solutions that facilitate flexibility and scalability to businesses looking to create efficient and specialized processes for their customers. Aside from the management of supply chain processes, there are three benefits 3PLs offer that contributes significantly to the ecommerce ecosystem.

1. Consolidation

As mentioned above, ecommerce sites break geographical limitations and enable online shoppers with purchase options across the globe. However, on the retail side this may propose an issue as multiple orders create complex supply chains. 3PLs break this barrier by offering freight consolidation solutions that streamline shipments using a single point of contact and stable operation procedures. This also cuts costs for businesses as consolidation enables effective use of shipments.

2. Order Fulfillment

Business Dictionary defines order fulfillment as a “sequence of steps involved in processing an order to the satisfaction of the customer and making the necessary changes in the inventory records”. Online businesses need efficient processes in place to ensure all steps of the shipment lifecycle are carried out efficiently and effectively. 3PLs help satisfy customer experiences by guaranteeing the accuracy and handling of shipments are exceeded. This in turn, nurtures the relationships between business and customers, which translates into growth and positive ROI.

3. Warehousing and Distribution

Businesses that operate online require dependable warehousing and distribution solutions, which can sometimes pose concern. 3PLs help ecommerce sites carry out omni-channel strategies by supporting all distribution initiatives. Whether items are shipped to retailers or directly to customers, a 3PL utilizes technology such as transportation management systems (TMS), to deliver results. This removes the burden of integration from businesses, reduces operation costs and improves visibility for customers.

Based on the figures above, significant projections indicate that Canada is progressing forward as a leader within the global ecommerce market. To meet the growing demands of online customers, ecommerce businesses must partner with 3PLs that offer a resume of optimized solutions.

If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-predictive-analytics

Global supply chains fear the possibility that technology will disrupt. But the ability for emerging platforms to help SME’s achieve competitive differentiation remains strong.

There is no denying that digitization of the supply chain has evolved at an exponential rate. It has caused many industries to remain on their toes when it comes to increasing consumer demands. From autonomous vehicles to Smart homes, companies must strive to meet the growing need of immediacy. This is combined with 24/7 service by investing in innovative technology.

The supply chain and logistics industry continues to monitor the impact digitization has on current and future production, operations and the overall management of transport. On January 11th, 2018, Morai Logistics reinforced the need for the industry to pay close attention to demand as globalization is making demand difficult to quantify and predict.

AI & Predictive Analytics

Artificial Intelligence (AI) and predictive analytics are two emerging platforms that are receiving positive consideration from supply chain and logistics. Their benefits range from supporting SME start-ups to optimizing transport management systems, and even improving transparency with customers.

This article identifies how leveraging these technologies can yield lucrative results for supply chain and logistics companies. It will also cover how to create competitive differentiation.

Artificial Intelligence & Supply

In March of 2017, a $125 million Pan-Canadian Artificial Intelligence Strategy was proposed by the Government of Canada in an effort to support academics and research. The country’s continual effort to be a leader in AI has positioned this emerging platform as a top investment for many industries, supply chain and logistics included. Research confirms that the market could reach $47 billion within the next two years. These predictions provide an encouraging figure that pushes investigations toward the benefits of AI.

The Information and Communications Technology Council explains that integrating AI “enables machines or the in-build software to behave like human beings which allows these devices to perceive, analyze data, reason, talk, make decisions and act.” For the supply chain and logistics industry this can translate into many benefits in relation to forecasting, inventory and transparency.

How Does a TMS Come Into Play?

InBound Logistics also speaks to the integral role AI will have in optimizing transportation management systems (TMS) to a more efficient level than in the past. Their article details three areas that they believe AI will have a positive impact:

  • Improve the ‘shipment lifecycle’ by simplifying the real-time exchange of Big Data
  • Provide actionable intelligence = Business intelligence + Consulting Intelligence
  • Accurate and efficient mitigation strategies facilitated by assessment, analysis, counsel and execution

Based on the above areas, supply chain companies can expect to see a reduction in operation delays and be able to manage risks using these so-called ‘expert systems’. Although AI is offering a more advanced method to manage logistics, another emerging platforms that will change the game in terms of efficiency is predictive analytics.

Predictive Analytics

A predominant outcome of advanced technology is an unceasing source of Big Data. Yet, a large quantity of data is only useful when there are appropriate tools in place to assess patterns and predict actionable results.

The concept of predictive analytics is best described by global leader in technology, IBM. They identify its capabilities as encompassing:

Ad-hoc statistical analysis, predictive modeling, data mining, text analytics, optimization, real-time scoring and machine learning [implementing this technology] helps organizations discover patterns in data and go beyond knowing what has happened to anticipating what is likely to happen next.

Predictive analytics is adopted by companies, such as Amazon and Oracle, to create efficient processes such as forecasting and real-time visibility. However, how does this create transparency and efficiency in the supply chain? The ability for companies to forecast (predict) possible disruptions in the shipment lifecycle is imperative for devising appropriate mitigation strategies.

In addition, it helps organizations improve customer service by assessing shipments based on previous patterns. Research also indicates that predictive analytics helps 3PLs optimize their solutions. The more insight a company has on their shipments the more visibility they can guarantee to their customers.

Integrating artificial intelligence and predictive analytics has proven to help companies keep up with the increasing demands of consumers. This article has identified only two emerging platforms that are currently being leveraged by the supply chain and logistics industry. With continued investments in innovative technology across the globe, the future of the digitized supply chain will continue to evolve.

If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Industry 4.0, also referred to as the Fourth Industrial Revolution, has initiated a lucrative transition for transportation supply chains. Research on future trends of supply chain management found that over the next five years about 80% believe ‘digital supply chain’ will be the leading industry model and 72% of global companies will invest over US$900 billion each year on digitization.

Why the need for digital implementation? Well, customers want lower prices, demand immediacy, and expect operations to ‘always be on.’ A highly efficient chain is achieved when innovative technologies are used to boost productivity and operations, lower costs and improve transparency. The benefits associated with building highly efficient digital supply chains are considered to be extremely important.

2,000 companies have already started to digitize their supply chains. How are supply chain and logistics companies implementing new technologies to achieve end-to-end results? This week we thought we would focus on the Fourth Industrial Revolution and how it impacts the logistics and supply chain industry.

The Fourth Industrial Revolution in Supply Chain and Logistics

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If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-2018-supply-chain-strategies

This post highlights three strategic areas which many companies overlooked in 2017; strategy, security & interaction, and how to best achieve improvements in these areas.

It’s the second week of January. This means that roughly 30% of people have already stumbled on their New Year’s Resolutions. While many of these resolutions are weight, money or relationship related, for us in the supply chain industry, we have different priorities.

Our goal as supply chain specialists is to get the right items to the right places at the right time. Moreover, we need to be aware of the delicate balance that can be easily disrupted in logistics.

2017 has been an interesting year. Specifically in the major technological, economic and market-driven shifts. This means that being successful in 2018 will require adjustments.

For this reason in today’s blog post, we’ve highlighted some important developments in the world of supply chains and how to best tackle these new challenges.

Paying More Attention to Demand

Given the name of the field ‘supply chain & logistics’, a person could be forgiven for thinking all we’re concerned about is supply. However, supply and demand are intricately tied, which is why it exists after all.

After all, globalization, international business markets, marketing spend, weather, etc. makes demand difficult to quantify and predict. But, that doesn’t mean it isn’t possible.

On this topic, Jeff Metersky, VP of customer success strategy at LLamasoft, writes:

Supply chain professionals should absolutely strive to better understand demand; after all, demand is one of the most important factors impacting your overall supply chain design. You need to make sure your business has a solid grasp on future demand to ensure sufficient capacities are in place and products are deployed appropriately.

Metersky says that properly predicting demand starts by asking yourself these important questions:

  • Do you have challenges getting internal approval of or buy-in for strategic supply chain initiatives due to lack of visibility into long-term future demand?
  • Are you able to provide insights into company management about how evolving demand trends might impact your supply chain?
  • Are you able to model the long-term impact of demand based on internal company strategic decisions (new product design, current product life cycles, expansion into new markets)?
  • Do you have a solid understanding of and ability to quantify the factors driving changes in demand over the long term?
  • Do you need more reliable long-term demand projections to support strategic decisions about changes in your network design?

Improving Data Security

Many high-profile cyber attacks happened in 2017. They took a heavy cost on both the global economy and consumer confidence. To get ahead this year, organizations need to take advantage of emerging trends in technology and cyberspace to better handle high-risk security risks.

The Information Security Forum recommends that businesses focus on the following security topics in 2018:

  • Crime-As-A-Service (CaaS)
  • Expands Tools and Services
  • The Internet of Things (IoT) Adds Unmanaged Risks
  • Supply Chain Remains the Weakest Link in Risk Management
  • Regulation Adds to Complexity of Critical Asset Management
  • Unmet Board Expectations Exposed by Major Incidents

Take a look here for a comprehensive explanation of each security topic.

Improving Our Everyday Interactions with Other People

This one may seem like a no-brainer, but saying things like “please” and “thank you” tends to get lost once peak time rolls around. While supply chain & logistics continues to be a hot industry, that doesn’t mean that it’s zero-sum with manners. Striving towards being more personable is something we should all aim for in 2018. Whether it be with clients or coworkers.

2018 represents an opportunity to deep dive and find ways to improve the way we do things. Whether those improvements be strategic, technological or just a commitment to being more kind. Properly laying out and adhering to goals is what matters. Let’s be part of that 10% who achieve their resolution.

If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-porch-piracy

A viral video opens up discussions of how private and public sectors are coming up with their solutions to stop package theft at the doors of people’s, deemed ‘Porch Piracy.’

You may have experienced a package being stolen from your porch at some point in your life. It happens. It’s a relatively simple form of thievery for opportunistic miscreants as the risk of getting caught is low; people aren’t always home, etc. Front porch thievery, deemed “porch piracy” by some, was put into the attention of people all over social media as a video by Jaireme Barrow taking measures into his own hands became viral.

Consequently Barrow, an Acoma, Washington man rigged a fake package with fishing wire and a 12-gauge shotgun blank.  Deemed “The Blank Box,”  it was built to (safely) scare off would-be thieves.

Funny as the video is, it highlights a problem that’s been growing recently—package theft. According to a survey by Ring, a home security company, up to 1 in 5 U.S homeowners were victims of package theft in the last year.

More Deliveries Means More Opportunities for Thieves to Ruin Someone’s Holidays

The growing number of package deliveries correlates to the continued rise of online shopping. In fact, as of this year, roughly 80% of the U.S population have purchased something using the internet. Total US ecommerce sales is estimated to be $353.7 billion. That number is expected to rise to $485.3 billion by 2021. As for deliveries, the average American homeowner receives on average, nine packages between Black Friday to New Year’s Day.

Unfortunately, the number of delivery thefts has also grown. A NBC News article quoting a insuranceQuotes.com report puts the number of Americans impacted at 23 million. Most people are either working late or staying with friends & family during the holidays. This gives the ‘porch pirates’ more time to steal unattended packages.

Combating Porch Piracy

Thankfully, this problem hasn’t gone unrecognized. In particular, many in the private and public sectors are doing their part to stop would-be thieves.

For example, in Rancho Cordova, California, local police have set up a special sting operation. Undercover officers drove in an unmarked SUV and delivered fake packages to various homes. With the bait laid, they then sat and waited. Once a thief tried to make off with a package, the police then made an arrest. The program only started during the last holiday season, but both residents and law enforcement hope it will act as a deterrent in the future.

Ecommerce and shipping companies are doing their part to fix the problem as well. Amazon, UPS and FedEx have their own creative solutions. Other businesses have sprung up to sell security measure to customers, such as Luxer One.

Packages for Safekeeping

Luxar One is a Sacramento, California-based firm that is,

…Setting up locker systems in luxury apartment complexes, office buildings and retail operations, where packages can safely be kept (typically for a small fee), hopefully preventing so-called porch pirates or other delivery mishaps.

The company’s services are proving to be very popular. According to Thomas’ article:

  • Luxer One reported an 83% increase in package delivery volume to its lockers during the week after Black Friday and Cyber Monday, compared with the week prior.
  • Package delivery volume to its locker units jumped 44% in November this year compared with one year ago.
  • The company currently works with more than 1,200 apartment communities across the U.S.

Porch pirates have been a huge problem for holidays shoppers in recent years. With this in mind, hopefully 2018 will see a decline in such activities. The holidays are already a stressful time for many due to all the planning involvement. People don’t need to added stress of missing gifts and packages.

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.