COVID-19 is reshaping our world, changing consumer habits and customer expectations. In the second quarter of 2020, e-commerce purchases increased by 44.5 percent compared to the same time last year. Along with this, e-commerce giants like Amazon are offering faster delivery, real-time tracking, and reduced shipping costs. Now, customers want it all.
When it comes to meeting new customer demands, supply chain professionals have three main options, with various performance in terms of costs, lead time, and CO2 emissions.
Ship by sea and stock at destination. In this case, goods are shipped by sea in advance, to reduce shipping costs. Then when retailers receive an order, they are able to deliver it locally within one day.
Ship by air direct from supplier stock at origin. This could appear to be the best logistics option, as goods are delivered within a few days, directly from suppliers. This is even better in a market where air carriers are looking for anything they can to fill their planes. However, this may not be the best solution in the long term. Not only does air freight cost nearly 10 times more than sea freight, it can also be destructive in terms of sustainability. Airplanes emit 10 to 20 times more CO2 per metric ton than cargo ships. CO2 impact will affect the scalability of this scheme.
Ship by sea direct from supplier stock at origin. More affordable and better for the environment than air freight, LCL maritime transport can, however, take three to four weeks. LCL process efficiency and cost can be optimized to reach the full potential of this logistics scheme.
This is what drives Buyco’s vision: providing the best sea freight management tool, enabling large shippers and e-commerce retailers to optimize costs and CO2 impact while ensuring same-day delivery if needed.