Rather than predict what the new year priorities will be for supply chains and the logistics industry, I am pleased to provide some strategic views about the amazing growth of global e-commerce. As the president of a new order fulfillment business, my comments are derived from real market needs and opportunities.
Buying and selling online, or via mobile devices, is estimated to exceed $8 trillion worldwide in the next few years. What does that mean to all of us? There are three primary impacts on our supply chains, logistics, and transportation businesses.
First, the customer/consumer has truly become the “king” and “queen.” Customers increasingly demand what they need, when they want it, how they obtain it, where, and either with “free” shipping expense, or at lowest possible cost. Thus, we in logistics must continue to innovate and enable these requirements. Customer personalization comes along with these needs.
Second, it is imperative that we all keep up more than ever with innovations, new technologies, new leading business practices, and breakthroughs — either by your competitors, or by your industry, or overall. As the entrepreneurial icons like to say, “try new things and fail fast,” and learn as you go.
Third, if your business does not have a new operations strategy designed to join the digital revolution, you can expect slowdowns in growth, margin pressures, and even market share losses. As supply chain and logistics leaders, you should be proactive in leading, or at least facilitating, new ideas for logistics based on new technologies, new practices, or new services/solutions, no matter whatpart of the global supply chain you participate in.