How Supply Chain Orchestration Improves the Customer Experience (1)

Experts believe that through digital freight matching, transportation supply chains can open a new way of driving efficiency and visibility.

Advancements in technology have created many opportunities for transportation supply chains to develop game changing digital tools. Emerging platforms such as artificial intelligence (AI) and machine learning have enabled supply chains to improve efficiencies and visibility. However, there is still an unceasing level of innovation yet to be explored, with initiatives such as mobile apps setting the stage.

Last year, Morai Logistics discussed the Uberization of supply chains, and touched on the impact of autonomous freight. According to Supply Chain Times,

The new year also provides many opportunities for shippers to turn to technologies and digital transformation to improve their operations, efficiencies and bottomline profits.

Digital freight matching, or ‘on-demand load-matching’, is an industry technology that experts believe will be a game changer for carriers and shippers. In fact, the on-demand supply chain market is gaining considerable attention this year as a top trend to watch out for.

This week Morai Logistics will examine the forward thinking theories surrounding digital fright matching and the role of the Sharing Economy in adoption.

Digital Freight Matching

On January 17th, 2019, Morai Logistics discussed the current capacity crunch impacting transportation supply chains. It causes a variety of setback for shippers, as a decrease in drivers means an increase in freight rates and inefficient delivery. Two of the most common reasons for this nationwide shortage is a shortage of drivers and Electronic Logging Devices (ELD).

Logistics Solution Providers (LSPs) have now turned to technology to push through the crunch, and develop solutions to find capacity that meet consumer demands. Digital freight matching, or ‘Intelligent freight matching’, automates the traditional forms of communication between carrier and shipper. According to Descartes, a leader in SAAS solutions for logistics, states that,

Freight matching solutions leverage new technology such as ELD and real-time tracking to know the location of carriers’ trucks with capacity and help determine which carrier wants the available load the most.

Furthermore, there are two main goals that freight matching aims to achieve:

  • Utilize capacity and ‘decrease empty miles’
  • Make the matching between shipper and carrier more efficient

Therefore, the outcome is a robust, smart and strategic supply chain. Third party logistics providers (3PLs) are able to integrate this into their solutions to help improve efficiencies and utilize insightful data.

Leading Freight-Matching Apps

A mobile-app that has changed the way we travel and live is Uber. This app is used in over 65 countries, with 3 million drivers. Research indicates that out of the total number of drivers worldwide, ‘750,000 are based in the US’. Over the course of the last year, Uber has also recognized an area of expansion, advancement and profit. It has also expanded its scope and delivered Uber Freight to the world of transportation.

Uber Freight is a good example of how technology is being utilized to create freight matching efforts. From a usability perspective, this platform enables drivers to do the following:

  • Access ‘upfront load pricing’ and a network of shippers and carriers
  • Tender a load with only a few clicks
  • Provide tracking throughout the entire shipment life cycle
  • Organized and real-time access to document management

Technologies, such as Uber Freight, are an example of mobility on demand (MOD). This concept describes a ‘user focused’ initiative that offers ‘integrated transit networks and operations, emerging mobility services, connected travelers, co-operative intelligent transportation system and real time data’.

The integration of digital freight matching is another example of how technology can improve efficiency and visibility. These emerging platforms offer shippers and carriers the opportunity to expand their networks, acquire real time data and survive the industry capacity crunch.


Experts believe last-mile logistics can effectively build brand loyalty by significantly improving the customer experience.

From a global market perspective, immediate and fast delivery is becoming a critical necessity to a company’s success. In fact, a staggering 88% of consumers who participated in the 2018 Global Consumer Insights Survey, confirmed they would pay more for ‘same-day or faster delivery’. To an online shopper, the process of dropping product into a shopping cart and checking out seems relatively simple. However, the movement of transporting product from the manufacturer, to the distribution center, to the end user, is far more complex.

To differentiate themselves from the competition and build brand loyalty, companies, especially in the retail space, must focus on last-mile logistics.

Delivering to E-commerce Markets

Over the course of the past several months, Morai Logistics has highlighted a significant rise in e-commerce shopping. Statistically, this global market will continue to generate sales that reach an impressive $4.5 Trillion by 2021. Omni-channel retailing has also given customers the ability to purchase product across a variety of platforms and devices. When buying becomes more and more accessible, competition for customer loyalty also increases. Delivery has been linked to being a significant factor in motivating customer preference.

As mentioned above, today, almost 90% of surveyed customers would opt to pay extra for same-day shipping. This figure has significantly increased over the course of the last few years. In 2016, McKinsey found that nearly

25% of consumers are willing to pay significant premiums for the privilege of same-day or instant delivery.

This reinforces the growing need for companies to seek innovative delivery solutions to remain competitive and improve the customer experience. Shifting from traditional networks that include large parcel carriers, to last-mile delivery methods, has proven to be a ground-breaking move.

Last-Mile Logistics

To improve the customer experience, retailers are beginning to take a closer look at last-mile delivery. This is the final step in the delivery process and efficiency is critical in order to meet the rise in online purchases.  According to Datex, last-mile delivery is defined as,

…as the movement of goods from a transportation hub to the final delivery destination.

Business Insider describes this phase as ‘the most expensive and time-consuming part’ of the shipment lifecycle. However, it remains an important factor in improving customer satisfaction. To combat the inefficiencies of last-mile delivery, there are variety of solutions that transportation and logistics providers are focusing on. Datex outlines them as follows:

  • Robots
  • Local Delivery
  • Uber Delivery
  • Click-to-collect

Third Party Logistics providers (3PLs) are also leveraging these solutions in order to compete in an industry challenged with capacity crunches and driver shortages. There are a variety of benefits that help promote efficiency and access to real-time data. Backed by technology, last-mile logistics helps 3PLs ‘manage peak times, routes and costs’. In return, retail customers receive their packages on-time and in good condition, and shippers and retailers avoid unnecessary costs associated with inaccuracies and returns.

Brand Loyalty

To ensure customer demand and satisfaction in today’s digital marketplace, companies must seek innovative methods for transporting goods. In every organization, building positive brand loyalty should also be a key focus. Customers will pay for a better customer experience, and there is high ROI from investing in existing clients. According to Fundera, ‘43% of customers spend more money on brands they’re loyal to’.

When customers are provided with personalized solutions, they will be more inclined to return for additional business. Supply chains know that customers are demanding immediacy and transparency. Since 56% of customers exercise brand loyalty toward companies who “get them”, this should propel supply chains to invest in innovative last-mile delivery solutions.


President of Morai Logistics graduates from QuantumShift™, leveraging insight into effective leadership strategies that will transform supply chains.

On Friday, May 11th, 2018, President of Morai Logistics, Kelli Saunders, exited the doors of Ivey’s Spencer Leadership Centre in London, Ontario. Alongside 39 of Canada’s top entrepreneurs, Saunders graduated from QuantumShift™, a five-day development program designed to propel industry leaders to grow their businesses.

Last December, Kelli Saunders received the 2017 Canada’s Most Powerful Women: Top 100 Award. Her success in taking a logistics start-up to the multi-million and multi-national level, earned Saunders a nomination into this annual program. When asked to describe her key takeaway, she stated:

The importance of networking with likeminded people who set the bar high to give you that much needed push to continue to succeed.

Effective leadership in 2018 has been a topic of conversation across many industries. According to Forbes Coaches Council, a good leader must recognize ‘when its time to adjust’ and be able to ‘adapt to the ever-changing demands of the workforce’. Due to the expansion of global markets, good business leadership is critical now more than ever. Inspired by her experience at QuantumShift™, Kelli Saunders speaks to four leadership trends shaping economies across North America.

1. Empowering Women Leadership

The movement toward gender equality in the workforce has shown through over the past year, especially in positions within C-Suite. The Forbes Coaches Counsel states that 2018 will see a major focus on placing women in leadership positions. Saunders urges female workers in any industry, to push themselves to network and develop and expand their skills and abilities.

Women need to step up to participate in these types of programs more often. The female attendance for this program was very low (4/40), and independent of gender this program was outstanding for anybody.

From a supply chain and logistics perspective, ‘71% of Global industry professionals believe that women have a different natural skillset’ than men. Therefore, it’s imperative that women are continuously  motivated to seek opportunities in leading roles.

2. Fostering Ambition

“Ambition makes your mind expand to dream of possibilities and how to achieve them. It feeds others.” says Saunders. The term “ambition” is an important trait that helps men and women succeed in  leadership positions. Forbes contributor, Ashira Prossack, also highlights the need for professionals to embrace and celebrate ambition at all stages of their careers. In her podcast with Let’s Talk Supply Chain, Sarah Barnes, Saunders shared that women will wait until they are 100% qualified before applying to an opportunity. However, their male counterparts will apply even if they are only 60% qualified for the role. Saunders adds,

I think as a female, and as I speak to other women in the industry or outside, we have to take that leap that we can do anything. We don’ have to have all the T’s crossed and I’s dotted.

3. Implementing Core Values

Kelli Saunders states that her experience participating in QuantumShift™ has motivated her to revisit her current action plan and provided the confidence and re-confirmation to scale upward. Start-ups and seasoned businesses that are eager to grow should nurture an environment built on core values. The Globe and Mail states that a company doesn’t have to sacrifice their identity in the process of scaling upward. There is substantial evidence that attributes employee satisfaction and motivation with a ‘healthy culture’ that fosters and demonstrates core values. Aside from ambition, Saunders outlines four additional traits that future leaders should have:

  • Patience
  • Philanthropy
  • Leader-ship
  • Autonomy to others to make decisions

“At Quantum, we talked about leaders being warriors or nurturers,’ stated Kelli. Forbes Coaches Counsel reinforces that C-suite leaders should develop ‘their ability to be ambassadors for the values of their companies’. Furthermore, this motivates employees to represent corporate culture as ‘brand ambassadors’.

4.Embracing Upcoming Generations

The contributions made by Gen Y and Gen Z must be considered as the global workforce continues to transform. In Let’s Talk Supply Chain, Sarah Barnes, Saunders explained that by 2020, 50-55% of the workforce is going to be the millennial generation. As a result, leaders must adapt to technology and the change that this workforce see in the future. Research confirms that this year ‘leadership empathy’ will play a major role in nurturing this talent pool. In addition, ‘listening, relating and coaching’ are leading characteristics that should replace traditional ‘command-and-control cultures’.

In conclusion, business leaders who want to scale upward should recognize the need to adjust and adapt to changing markets. Therefore, it is important to participate in programs that promote networking and economic growth. QuantumShift™ empowers entrepreneurs with the tools and resources they need to take their businesses to the next level. Their program inspires professionals to reinvent their leadership style and helps them apply their learnings to grow within their industry.


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.


While modern companies focus on providing exceptional service, Nintendo continues to focus on extraordinary products with a Customer-Centric approach.

In our last post, we began exploring the reasons behind Nintendo’s history of not meeting consumer demand. Many of its gaming consoles, software, peripherals and promotional items in the last 20 years have seen instances of scarcity across its North American and European markets. Limited supply, inflated grey market prices, and angry consumers have been the result.

Nintendo’s latest console, the Switch, launched a few months ago with similar supply shortages. Some customers and press accused the company of intentionally limiting production to drive sales given the familiarity of the situation.

What’s behind the latest supply issues is the company’s customer-centric philosophy, not artificial scarcity.

Artificial Scarcity Isn’t the Problem

On the surface, Nintendo’s selling practices may seem to favour artificial scarcity to drive sales. The problem with this theory, is that artificial scarcity is only ever a short-term solution for luxury products. Artificial scarcity only generates demand because of perceived scarcity. The actual value of the product isn’t considered, meaning that the company doing it has little incentive to innovate the product. After a certain point, and despite a company’s attempts, there will be too much of a product in circulation for it to maintain its price.

Nintendo is a nearly 140-year-old multi-national company, iconic and influential in its industry. If it followed the same strategy as the former Beanie Baby empire, it would’ve folded decades ago.

The ‘problem’ with Nintendo’s management and supply chain strategies, is that they’re very customer-centric.

Customer-Centric: An Old but Effective Model for Nintendo

Newcomers like Amazon, Uber and PayPal have been disruptive to many industries. However, their biggest contribution is the latest trend of customer-focused strategies. Many companies are now trying to streamline their services to better improve the customer experience.

Ken Ramoutar of Avanade Insights, highlights what a customer-centric focus involves:

  • Anticipate your future needs looking at behavioural patterns, market trends, leveraging data from inside and outside the organization
  • A unique and memorable experience; seamless across your interaction channels
  • Analytics to inspect call logs and problem reports to feed changes in supply and production

None of these describe Nintendo’s business practices or product design philosophy. In fact, the company is notorious for being especially conservative in an industry that’s in constant flux.

Nintendo and Unique Gaming Experiences

Nintendo’s focus throughout its long history, is on creating products that provide a unique experience in and of themselves. Unlike its past (Sega) and current competitors (Sony and Microsoft), the company never bothered to chase the latest technological, marketing or business trends. This historically had both good and bad results for the company at different points in its history. However, it has allowed it to remain strong in the face of ever ballooning industry costs. Sony and Microsoft may have millions of dollars to throw behind their development and marketing strategies, but Nintendo has its Blue Ocean Strategy.

That’s it for this week’s post. In the final entry of this three-part series, we’ll describe how Nintendo’s Blue Ocean Strategy and customer-centric approach has led it to continue to be a dominating force within its industry.

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.


Beloved entertainment giant Nintendo has a long history of trouble getting their products to the right hands.

Almost two months ago, video game giant Nintendo released its latest console—the Switch. Although it received a lot of positive coverage, a familiar problem has been marring the consumer goodwill; extreme product scarcity.

The company’s sales forecasts were off. They were so off that additional Switch consoles had to be flown to their North American and European distributors. Although Nintendo took a drastic action and its been two months since the launch, the consoles are still hard to find. Some are even claiming that it’s a case of artificial scarcity.

Before we can begin to answer the question of Nintendo’s possible motives, there’s a few basics that need to be gone over.

Make it Rare, Make it Wanted

The scarcity of a commodity or a service is an important element of the business model. If there’s a lack of supply, the price will likely go up. If there’s overproduction, the price will start going down. While scarcity is a natural and fundamental part of a free market, artificial scarcity is not.

Artificial scarcity happens when an individual, company or organization creates a scarcity either through technology, production or law, where there would otherwise be the capacity for an abundance.

A classic example would be the Beanie Babies during the 90s. Ty Warner, the person behind the craze, “would retire specific animals at whim, creating scarcity in the market and inspiring collectors to pay up to $5,000 for a plush toy that originally retailed for $5” writes New York Post contributor, Larry Getlen:

Ty’s website further fueled the phenomenon, as the company used it to make retirement announcements and to speculate on possible retirements, dropping hints that drove collectors to buy or sell different lines. Some sellers even began changing prices throughout the day based on website updates

In the end, the Beanie Baby empire came crashing down. Collectors became overwhelmed by all the new product lines and regular customers got tired of fighting with scalpers. The rise and fall of Beanie Babies is a lesson in how even the hottest products can tank if consumers aren’t respected.

Nintendo Has a History of Underestimating Demand

While misjudging demand is something many businesses go through, Nintendo is a special case. Pretty much every piece of hardware released by the company has met with supply problems.
Just to list a few, here are some examples:

  • NES Classic Mini. Retailed for $60 USD, now on Ebay for $250+ and climbing.
  • Amiibos, RFID-enabled collectable gaming peripherals originally sold for $12.99. Some of harder to find ones ended up selling on the grey market for over $100 USD.
  • New 3DS XLs were impossible to get a hold in NYC when they released earlier this year according to an article from The Verge.

Just from these examples (there are many more), it’s safe to say that the company has a history of seriously understating the demand for it’s products. Many potential customers are turned-off from buying Nintendo products for this very reason.

Is it a problem with Nintendo’s supply chain or management? What if the problem is intentional, the supply intentionally restricted as many consumers suspect? The answer to these questions require nuance which is why we’ll leave off answering them until the next blog post. Check back again soon for the second part of this two-part topic.

That’s it for us this week! 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.

Earlier this month, Research and Markets added to their “Third Party Logistics (3PL) Market Analysis By Service, By Transport (Roadways, Railways, Waterways, Airways), By End-Use (Manufacturing, Retail, Healthcare, Automotive), By Region, And Segment Forecasts, 2014 – 2025” report.

Experts are estimating the 3PL market to reach USD $1.24 trillion within the next decade. That’s a massive increase considering that the current market is estimated to sit at USD 721 billion according to Armstrong & Associates, Inc. There are eight reasons why this is the case. That’s why this month we thought we’d focus our infographic on the top market growth predictions for 2025 when it comes to the third-party logistics industry.

Third-Partly Logistics Market Growth Predition for 2025


As business around the globe continue to expand their operations, the 3PL market will continue to parallel its growth. The Research and Markets updates highlight how this will affect revenue and coverage. Overall, it looks like the next few years will be a good time for the 3PL market.

That’s it for us this week! 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.


Uniqlo is speeding up its production cycle to compete in the shipping race with other fashion retailers by compressing its design-to-deliver supply chain down to just 13 days.

Few things in life move as fast as fashion trends. Just as a style becomes widely accepted, its immediately replaced by something new and different. It’s no surprise then that self-styled fashionistas want what’s hot on the catwalk as soon as they see it.

Fashion retailers try to oblige by optimizing aspects of their supply chain so the latest trends reach mainstream consumer markets as quickly as possible. There’s even a term for the process, it’s called ‘fast fashion’.
This is top priority for retailers such as Peacocks, H&M, Topshop and Zara. And now, it’s also Uniqlo’s guiding philosophy as of this March announcement.

What ‘Fast Fashion’ Means to the Uniqlo Brand

Uniqlo embracing the fast model marks a departure for the company. For years, its brand message was of “quality first, then price” and “simple made better”. It never really chased the most current trends, instead opting for providing wardrobe essentials. However, 2016 saw a disappointing year for the retailer. The company made a 40% cut to its revenue predictions for the next five years. It’ll now be putting more resources into something Zara has been doing well—speed.

According to Bloomberg, Uniqlo is trying to compress its design-to-deliver chain down to just 13 days. Despite the reduced time, company owner Tadashi Yanai is assuring customers that the Uniqlo brand will retain its identity:

Zara sells fashion rather than catering to customer needs. We will sell products that are rooted in people’s day-to-day lives, and so based on what we hear from customers.

Uniqlo also announced it plans to improve its supply chain with heavily automated production facilities and artificial intelligence to determine the most efficient design and delivery routes.

Fast Fashion for a World Where Everything is Fast

An article on covering fast fashion suggested that the philosophy of faster delivery is linked to instant gratification, and for many retailers, it has helped lower the return rate. Writer Jeff Manoff describes how during the New York Fashion Week, big names such as Ralph Lauren, Michael Kors and Tommy Hilfiger revealed see-now, buy-now styles. Several retailers even had one-day delivery options.

There are a few reasons why this is happening according to Manoff:

  • In eight years, the total sale of luxury sales online is estimated to reach $90 billion.
  • Delivery times have been decreasing. They went from nearly 5 days in 2013 to around 4 days just two years later.
  • Customer expectations have also shifted. Unless a delivery is made within two days of purchase, it’s no longer considered “fast”.
  • Even same-day delivery may no longer be enough. Some retailers are now offering one-hour and 90-minute deliveries.
  • Faster delivery is linked to a decrease in return rate which helps overall sales.

Closing Thoughts on Uniqlo’s Clothing Logistics

Uniqlo’s literal change of pace may be a shock to some of its customers. However, it shouldn’t be too much a surprise for anyone looking fashion retail industry trends. Customers want and expect to have things immediately after they order them. As online shopping grows, the number of people with similar demands will also increase. If the fashion, or any retail industry really, wants to stay viable, it’ll need to shorten its supply chain and speed up delivery.

That’s it for us this week! 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.

Mexico continues its rise as an important global logistics hub with the opening of a new container terminal at the Lázaro Cárdenas port, earlier this month. There are ten reasons why this is important to companies with supply chains in South America.

Lázaro Cárdenas is Mexico’s busiest port and considered one of Latin America’s most important. With the improvements, it’ll also be the continent’s most modern port. According to the World Bank, Mexico’s imports have grown more than 30% since 2010. Container volumes are also up 60% in just the last three years. These statistics, along with the fact that it has more than 45 free trade agreements, is the reason behind Mexico’s meteoric rise as an important global logistics hub.

That’s why this month we’re going to be focusing on how this new port is something to be very exited about for cross-border logistics and supply chain professionals looking south of the border!

10 Reasons to be Excited About the New Lázaro Cárdenas Container Terminal


That’s it for us this week! 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.

online shopping image spread

Changing consumer behaviour is reshaping and revitalizing industrial sectors by funneling resources into warehouse construction.

According to an article by the Wall Street Journal (WSJ), the digital market place is having a physical impact on urban landscapes. Throughout the U.S, industrial pockets are seeing a “economic renaissance” reports the article’s author, Erica E. Phillips.

Large city malls and brick & mortar stores are being closed throughout the country due to dropping consumer interest. In their place, more people are shopping online for what they need. As a result, more warehouses are needed to store everything. This has led to formerly struggling industrial areas receiving fresh investment as land prices for new distribution centres increases.

Online Shopping—The World’s Biggest Marketplace

It can be hard to imagine, but even the idea of online shopping is still relatively new. The earliest version of the concept only dates back to 1979. Industry giants such as Amazon, Alibaba and Ebay are only 23, 18 and 22 years old respectively. In the two decades since they started (a little less in Ebay’s case) they, and companies like them, have revolutionized how people shop.

According to

  • In 2013, US mobile commerce revenue amounted to more than 38 billion US dollars
  • Alternative payment methods such as digital wallets or online payment providers have seen increased adoption rates and rapid growth in the past few years. Ebay-owned PayPal is one of the current market leaders with more than 14 billion US dollars in mobile payment volume alone
  • A 2016 study by analytics firm comScore found that shoppers make around 51% of their purchases online. The number of has been consistently rising by 1% for the last few years

Even luxury retailers are turning towards being more online shopping-friendly. A different WSJ article reported that retailers of high-end goods are scrambling to go online as sales are starting to fall. This is because even wealthy customers like having access to better deals and selection at their finger tips.

From Shopping Centre to Housing, and Neighbourhood Mall to Restaurants

As more families shop for their necessities online, where does that leave traditional brick and mortar stores? Unsurprisingly, many have either dedicated part of their operations to compete online themselves, changed to become more service-based, or closed down altogether.

Phillips comments on how the space shopping centres used to occupy is being re-purposed:

Many cities are razing downtown shopping centers from a bygone era to make way for hotels, office buildings and new housing developments. Suburban malls trying to keep the doors open have shifted their focus to higher-scale restaurants and new entertainment offerings, such as golf driving ranges, wall climbing and skydiving simulators.

All this is a win-win for consumers and urbanites. As warehouses become a way a life for formerly struggling communities, consumers everywhere will have access to a wider range of products and deals. The weekly shopping can then be completed in just a few minutes. This leaves more time for a family to explore the new restaurants that have sprung up where the old malls used to be.

That’s it for us this week! 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.