As we move into 2016, we will continue to see the international trade industry evolve alongside global commerce and technology. One of the biggest factors impacting international trade is the emergence of global e-commerce and the opportunities and changes it brings. Global e-commerce is growing by double-digit proportions and is projected to hit $2.4 trillion by 2018, positioning it at the forefront of international trade. The 18.6 percent spike over 2015 warrants a shift in the logistics industry, and providers need to adapt to compete in the new market.
With products a mouse-click away, retailers are able to connect with shoppers, and shoppers to goods, without proximity limitations and many of the roadblocks encountered in the past. This virtual movement will transform global and regional supply chains, adding stress on fulfillment infrastructure, in turn forcing shipping providers to become more efficient in operational processes.
E-commerce is fueled by convenience, value and technology. With increased product availability, flash sales and cyber deals — obtainable however a consumer accesses the Internet — transactions are more abundant and effortless than ever before. As such, the increased focus on better visibility I noted last year also remains a key priority in 2016. With the impact of e-commerce and the changing supply chain model, consumers and businesses alike will require better visibility capabilities, with timely, accurate, detailed information about their shipments.
Technology is not just driving e-commerce for consumers; it is also an essential business requisite for providers aiming to keep pace. Allocating efforts to streamline cross-border capabilities for the burgeoning, international e-commerce sector will prove impactful in providing unparalleled flexibility and reliability. The providers who invest in the technology, tools and solutions to meet the needs of the modern shipper will come out on top in 2016.
Jack Muhs, President and CEO, FedEx Trade Networks