Of the many areas of a supply chain that get attention, reverse logistics is certainly an area amongst those that gets the least. It’s entirely understandable. Most companies focus on getting their goods to the consumer as opposed to getting those goods back. Nonetheless, it’s become critical for modern supply chains. Quality reverse logistics isn’t just about adding anther element of value to a supply chain, it’s it’s making sure it stays competitive in the future.

This article by Morai Logistics covers 5 steps companies should be taking in order to make their reverse logistics process more successful.

Figure out the why Behind Returns

Returns shouldn’t be a mindless process. They’re costly, and it’s up to supply chain managers to figure out why they’re happening. With the right approach, they can be turned from a cost to a benefit—an opportunity to improve. That improvement can come from a number of areas as the reason for the returns can stem from different places. Predominantly, they’ll be a consequence of an issue in the return policy or a product. As such, addressing this root issue is not only a cost-saving measure but a way to better understand the customer.

Have a Simple Return Policy

Make the process of returning as easy as buying. Customers are typically able to buy something online in the space of seconds. As a result, they expect the process of returning to be equally quick and simple. Not meeting this expectation leads to dissatisfied customers. Thus, it’s important to have a return policy that is both easy to understand but also straightforward to follow. Not only does this help your customers, it also helps your customer service team.

Make Sure Return Labels Come with the Packaging

Little things go a long way. In line with making returning easy, is the incredible value in ensuring return labels come with packaging. The benefits of this match that of having a simple return policy (happier customers and customer service team). However, they don’t stop there. A return label improves overall supply chain efficiency, as it allows for products to be returned quickly.

As this Supply Chain Brain article on reverse logistics, and return labels in particular, explains,

It can then be placed on a sticker that the customer can simply peel off and pop onto the product for a hassle-free return. Not only does this help the customer, but it also gets the product back to the seller much more quickly, improving the efficiency of the entire process.

Track Returns

At this point in time, it’s become apparent that having a high degree of visibility throughout a supply chain is vital to its success. That visibility should extend to reverse logistics. With that in mind, it’s critical that, in the same way monitoring systems are used for product deliveries, they should equally be implemented for returns. By doing this, companies can evaluate the treatment of their goods. Moreover, they can use this evaluation to see if any of their goods need fixing and if the handling of their product on returns is adequate.

Don’t Neglect the Right Technology

Finally, there’s the technological component of returns. As previously stated, reverse logistics is a key part of the supply chain. It can be seen as its final step. Hence, the same way in which the modern supply chain requires digitization, it then follows that so does reverse logistics.

The previously mentioned Supply Chain Brain article elabourates,

A transportation-management system (TMS) and warehouse-management system (WMS) allow for greater efficiency over the course of a reverse logistics operation. These applications combine to keep you in the know about where a product is, while always maintaining the correct documentation.

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According to Allied Market Research the 3PL market was valued at $869 billion in 2017. Furthermore, it will come close to doubling that by 2025. In roughly a 40-year span it has gone from being a insignificant industry in the 1970’s to becoming a ubiquitous presence vis-a-vie the supply chain process. With that being the case, it’s become apparent that 3PL is very much an adaptable industry. One that caters to the demands of modern day market pressures. As well as one that is set to navigate future demands.

However, for that to be the case, 3PLs have to identify what those future demands placed upon it will be. More importantly, be willing to act upon those demands, even if those actions come with a degree of risk. As logistics and technology researcher, Haley O’Donnell wrote:

3PLs tend to be risk-averse, which deters technology investment. Gaps in data leave 3PLs in a reactionary mode.

In this article, Morai Logistics covers where 3PLs have been and can continue to be successful, as well as areas of potential future success.

Areas of Continued Success

The rise of globalization has been taking place for decades. And 3PLs have done a remarkable job at rising right alongside it. As the world has become more interconnected, the number of multinational businesses have grown. Their influence has spread. Consequently, the demand for the movement of their goods as a result of those connections has grown exponentially. 3PLs have helped businesses meet that demand. And that demand isn’t slowing down any time soon. Despite some pushback in certain parts of the world, for the most part globalization is still increasing as an economic force.

In turn, the boom in the e-commerce industry in these past couple of decades has meant its heavy reliance on dependable supply chain processes. This has resulted in 3PLs playing a supplementary role that has seen it soar alongside e-commerce. Again, just like with globalization, e-commerce is set for continued growth in the years to come. With it being projected to grow in revenue by over a $100 million in the next four years in the U.S. alone.

Areas of Future Success

Going forward the expectations for improved transparency, responsivity, efficiency, communication, and predictive accuracy are only going to grow with the development of technology that can meet those expectations. Innovations in all kinds of technologies are coming thick and fast:

• Blockchain technology
• Automation
• Machine learning
• Transport management software
• Mobile applications
• Big data

Each area of innovation is varied and addresses multiple market demands. We’ll touch on several here. Firstly, blockchain technology provides transparency, security, and ensures quality as it allows for real-time feedback along the supply chain network. TradeLens, having just launched in the last year, is set to be the biggest blockchain-enabled trading platform going forward.

Equally, automation can bring down costs and increase productivity as logistical hurdles like manual data entry are replaced. Moreover, machine learning makes precise predictions about supply chain routes possible, so that risks can be anticipated, avoided, and solved for.

On top of that, transport management systems will drive down the cost and time along supply chains. With technologies such as voice commands greatly helping with communication along each stage of the transportation process. At the same time, mobile applications from which orders can be made, processed, and tracked, providing flexibility and ease for clients and 3PLS alike, unlike ever before, are being rolled out. Finally, big data will see 3PLs have the ability to prognosticate potentialities that enhance performance as a result. Addressing a plethora of the expectations mentioned earlier.

Thus, the future of 3PLs involve much of what’s seen them flourish already, as well as plenty that is novel. If the 3PL industry wants to remain a big player in the supply chain market, it has to continue to adapt. Not languish in the face of potential risk.

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Last year the ‘nationwide truck shortage’, also referred to as the capacity crunch, was a significant challenge for the transportation industry. Carrying over into the New Year, the increase in freight rates and subsequent decrease in drivers continues to impact shippers tremendously. In December it was reported that the ELD mandate was effecting not only trucking, but other modes of transportation. This movement also impacted ‘ocean shipping, intermodal and air freight’. With consumer demands at an all-time high, the outcome of implementing this type of directive has caused a variety of issues. Experts identify increased rates, shipment delays and bottlenecks amongst the most common setbacks shippers face.

In March of 2018, Morai Logistics presented some of the optimized solutions third party logistics (3PL) providers offer shippers. According to Supply Chain Dive,

3PLs can step in and usually save money for the shipper while helping the shipper get a faster route.

While the capacity crunch isn’t expected to go away anytime soon, 3PLs continue to develop optimized solutions to help shippers become proactive to industry demands. This includes a combination of technology integration, networking and Omni-channel opportunities.

This article outlines the various obstacles the transportation industry faces caused by the capacity crunch. Furthermore, it defines why 3PLs remain the prime method to ensure an efficient and cost-effective shipment life cycle.

Impact of Capacity Crunch

The capacity crunch has placed a heavy burden on the transportation supply chain and logistics industry. The Electronic Logging Devices (ELD) mandate that was strongly enforced last year has deterred many drivers from the industry. This creates additional setback for shippers, as a decrease in drivers means an increase in freight rates and inefficient delivery. While strategies to improve driver retention and job satisfaction should be a high priority, the obstacles shippers face is also important.

According to the 2018 Inbound Logistics Annual Survey:

• 81% of shippers felt their biggest challenge was ‘finding capacity’
• 78% of shippers experienced rate hikes
• 94% of shippers stated that ‘driver-related costs’ was important

The capacity crunch forces shippers to seek reliable, alternative transportation methods at cheaper rates. This can be very challenging as competition and a lack of drivers continue to increase costs. However, third party logistics (3PL) provider’s offer optimized solutions to both carriers and shippers that can help alleviate some of this burden.

3PL Solutions

In addition to price and capacity, a nationwide truck shortage can significantly impact the reliability of deliveries and the quality of customer service. Research on the preferences of shippers who choose ‘motor carriers’ found that:

• 84% say reliability
• 62% say customer service
• 73% say price
• 45% say capacity

3PLs must develop solutions that enable shippers to execute orders efficiently and cost-effectively to meet the increase in consumer demands. The widespread integration of advanced technology has made considerable contributions to the way 3PLs service shippers and carriers. However, below are the most relevant ways these transportation partners can help shippers impact by a capacity crunch.

Cost-Effective Rates Due to their large-scale industry presence, 3PLs are able to offer better rates. They can also negotiate better than small companies or independent drivers, which help offer shippers affordable options.

Network of Carriers Shippers benefit from the substantial relationships that 3PLs have built. This provides access to Omni-channel and intermodal modes of transportation that offer multiple avenues to transport products efficiently.

Digital Maturity The integration of technology will continue to shape the way warehouses operate and communicate. It will also provide companies with the ability to extract data to create insight on forecasts and patterns. 3PLs continue to integrate digital processes to improve the visibility of shipments. In addition, emerging platforms such as predictive analytics also enable shippers to take a proactive, rather than reactive approach, to operations and delivery.

There is no denying that the impact of the ELD mandate and driver shortage has created obstacles for both shippers and carriers. While the capacity crunch remains a top concern to the transportation industry in 2019, 3PLs continue to provide effective solutions.

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The Christmas holiday season provides many industries with the opportunity to significantly increase their revenue. By the end of this year, retail sales between November and January 2019 are forecasted to ‘top $1.10 trillion’. The reason behind the industries success can partly be attributes to e-commerce sales, which are also projected to increase 22% throughout this holiday season. In comparison to $110 billion in 2017, e-commerce sales are expected to reach $134 billion this year.

To ensure customers experience a positive shopping experience, companies are amping their game in a various ways. According to Deloitte, vice chairman of Deloitte LLP, Rod Sides, states

We’ve seen retailers continue to advance their approaches to shipping, delivery, in-store experiences and tech-enabled commerce.

Sides also defines those companies who will succeed this holiday season are those who exhibit ‘the right balance between innovation, experience and value.’

The holiday season for instance, is a prime time to shine for third party logistics providers (3PLs). By providing optimized solutions to help their clients optimize their customer journeys, 3PLs can leverage holidays to build relationships with customers.

This article by Morai Logistics discuss how 3PLs are an important service partner this holiday seasons.

Top Driver’s This Holiday Season

There are a variety of reasons 3PLs brace themselves for the holiday season. The retail sales industry is projected to prosper significantly this season, by a combination of ecommerce and brick and mortar. Consumers can complete all of their holiday shopping online, without even stepping foot into a store. An increase in convenience and accessibility also increases the ability for shoppers to purchase faster and more frequently. This places considerable pressure on supply chains to ensure:

• On-time delivery
• Transparency
• Cost-effective rates
• Personalization

However, despite the holiday season, the rise in consumer demand has been nothing short of new for 3PLs. Advancements in technology has forced organizations to compete within a saturated market of providers who offer similar services. This heightens even more during the holiday seasons as organizations must choose the best service providers for their customers. In addition to a peak in orders and next-day delivery, setbacks caused by weather can significantly impact the shipment lifecycle. Let’s take a look at the top reasons 3PLs are an important partner for organizations looking to prosper this holiday season.

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Speed is becoming a primary determinant of consumer preference. By 2019, statistics show that 65% of retailers will offer same-day delivery. This transition from concept to standard practice requires companies to seek solutions that will ensure real-time operations.

Visibility

During the holiday season, setbacks in deliveries can disrupt the customer experience, especially when there is a lack of visibility. Once a consumer selects a product, they pay close attention to the shipment life cycle via tracking codes or order updates. It’s important for companies to choose organizations such as 3PLs who can offer a level of transparency that will keep their customers happy.

Efficiency

In addition to speed, another important factor that supply chains should focus on is efficiency. On-time deliveries are essential for companies competing in saturated markets. Aside from transparency, 3PLs also prioritize orders arrive as scheduled. Therefore, hiring service partners such as 3PLs is important to ensure consumers receive their product in a timely and efficient manner.

Inventory Management

For the retail industry in particular a large influx of in-store inventory is not ideal. 3PLs offer optimized warehouse management solutions and technologies that can effectively manage, track and store your stock.

Distribution Centers

E-commerce has made shopping accessible from anywhere across the globe, which increases the need to ensure consistency in order fulfillment. 3PLs often have many distribution centers spread across the country, which helps organizations house product closer to customers.

There is no denying that the holiday season is a busy time of year. Partnering with the right third party logistics provider is important for organizations looking to increase revenue and create a positive consumer experience.

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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.

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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 8^th, 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.

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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.

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To say that online shopping and e-commerce has boomed in the last decade would be a gross understatement. In 2014, retail e-commerce sales worldwide were 1.3 trillion U.S. dollars. That number rose by 954 billion as of this year and is estimated to hit nearly 4 trillion by 2020. However, despite the impressive numbers, there seems to be a shift in strategy amongst the titans of the booming online retailer industry.

A few weeks ago, Reuters reported that Chinese e-commerce giant Alibaba had announced plans to move into the physical realm of brick-and-mortar stores. The move is a strange one for the company given that until now, its made $392 billion through digital sales alone.

Alibaba’s American counterpart, Amazon, has made similar announcements. Its recent purchase of Whole Foods and unveiling of an automated physical store late last year indicates the company is already on a similar trajectory.

The question to ask is why is this trend happening. Reporter Robyn Mak, who broke the Alibaba story, suggests that its because the retail e-commerce market is reaching its limits for the industry titans.

Alibaba’s New Strategy—Invest in Old Models

According to the Reuter’s article, Alibaba founder and executive chairman Jack Ma, has outlined the following plan for the company:

• The company will upgrade existing physical shops in partnership with established retailers.
• The company will also build its own stores from the ground up.
• Continued support for “Hema”, Alibaba’s own supermarket chain where can customers buy and have groceries delivered. Some stores even allow customers to choose fresh produce and have cooked in-store.
• Explore a similar Hema strategies for clothing.

Hema has been especially successful for Alibaba so it makes sense for the company to increase investment. As Robyn Mak stated:

The attraction for existing retailers is a chance to boost their notoriously low margins by tapping into Alibaba’s technology and platforms to manage inventory, supply chain, and logistics. Stores can also benefit from using the tech giant’s algorithms to analyse shopping habits and by moving to cashless checkouts, powered by Alibaba’s payments affiliate […] The e-commerce group boasts that sales per unit area at Hema are up to five times higher than a traditional supermarket

e-Commerce Around the World

The potential windfall profits that could be made through e-commerce has led to many new online businesses. In fact, there was an estimated 12 to 25 million online stores worldwide according to a 2014 study.

Most of that money trades hands in North America, followed by Europe and then China.

The world of ecommerce is dynamic and has opportunities for innovative new start-ups. At this point, Amazon and Alibaba might be too big to grow further.

Currently, 85% of China’s retail spending happens in brick-and-mortar stores. So while Alibaba is starting to stagnate in its online sales, it can continue its expansion into physical markets.
As mentioned earlier, Amazon has already started on this path. They invested $13.7 billion to acquire and rebrand the Whole Foods Market chain.

Balancing the Pace of Technology and Consumer Demand

As more people go online to do their shopping, the e-commerce market will continue to grow. Alibaba and Amazon are in the process of developing developing new strategies. But because of the demand in ecommerce, new avenues need to be explored for the industry titans. This won’t mean either company will give up any ground online. Instead, each has its own plan to expand past the digital store.

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.

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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.

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Technology such as RFIDs, barcodes and the internet have allowed for products to tell their rich histories to consumers. It’s not surprising then that more people are becoming interested in how things get from A to B. That interest may even grow to become an active step towards a career in the logistics and supply chain field.

However, the industry is much more encompassing than most people realize. It can even seem overwhelming if you haven’t done your research. To get a better understanding of the field, we’ve compiled a list of three things to know before you make the jump.

1. It’s a Bigger and More Varied Industry Than You Think

The logistics and supply chain industry is big, very big. In the U.S alone in fact, over 55 million tons of freight was moved daily in 2013. The freight was valued at $50 billion. Both numbers have since grown. As of 2015, U.S business logistics costs alone sat at $1.48 trillion.

These numbers aren’t surprising. Although the industry goes mostly unnoticed by most people, it’s responsible for every step of a product’s journey from the manufacturer to the customer’s hands. The process isn’t simple, it involves a lot of moving parts and planning. Various stages of delivery and transportation are involved to ensure they reach the right location at the right time.

With companies becoming bigger, more international in reach and scope, the demand and complexity of supply chains grows as well.

2. Logistics is Not the Same as Supply Chains

There’s a distinction between supply chain and logistics, although the two terms are sometimes used interchangeably.

Quora contributor Anastasia Kelm, outlines the differences clearly in this discussion thread.

Logistics — That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Supply Chain — The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

3. There’s Plenty of Opportunity to Grow the Career That You Want

According to a Fortune.com article, the logistics industry will need to fill 1.4 million jobs by next year. That estimate is conservative when you remember the explosive growth of e-commerce in recent years.

The truth is, even if you don’t have a relevant degree (or a degree at all), there’s still plenty of opportunities for you. Logistics is a vast industry and functional supply chains are a building block of any successful business. Not everyone looking to start a career in this field needs to be an operational manager or a truck driver either. There’s many jobs in warehousing, material handling, packaging, and management software. That’s to say nothing of support functions like HR, marketing and communications.

To learn more, check relevant job statistics on sites like Glassdoor and see what enrollment would be like at your local post-secondary school. Regardless of the avenue you plan on taking, do your research and determine for yourself if this dynamic field is right for you.

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.

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