It’s a different world for retailer shippers than it was a year ago. The year has been a story of resilience as retail supply chains continue to deliver for shoppers around the country, amid uncertain times.
In 2023, it finally felt like the US moved out of the shadow of COVID-19, and shippers have seen the market landscape change significantly on land and at sea. The 2023 holiday season shaped up to be strong as shoppers increased spending on gifts against a backdrop of economic and geopolitical question marks. Post-holiday, the retail industry won’t be dealing with the same heavy inventory hangover many had in 2023, and distribution centers have room for more of the new and fresh merchandise shoppers are looking for.
In 2024, five macro trends will shape retail supply chains. Variable consumer demand and outside economic impacts continue to challenge retailers to hone their inventory strategies and demand planning, with more and more using advanced technology like AI to improve accuracy.
Tumbling freight rates and unused capacity are changing the dynamic of carrier contract discussions. Retailers are making decisions to revisit contracts more often — or less often for some, depending on internal strategies. Theft and organized retail crime continue to plague retailers, including retail supply chains — cargo theft in the second quarter increased 57% over last year. Sustainability continues to climb the priority list for shippers, as retailers and their partners gain more tools to measure and reduce emissions footprints, especially in Scope 3. And lastly, worldwide geopolitical developments continue to influence supply chains, as shippers navigate global situations ranging from simmering political tensions to outright war.
The theme of RILA’s upcoming LINK Retail Supply Chain Conference is “The Next Demand” because retailers are endlessly preparing for what will come next — whether it’s port or labor disruptions, geopolitical conflicts, meeting emissions and sustainability commitments or just the latest product to go viral on the internet. No matter the external trends and events 2024 brings, the logistical ninjas of retail supply chains will continue to flex and respond to consumer demand — to deliver the goods shoppers need and want.