There is permeating pressure across the logistics industry today when dealing with the current consumer model, as companies are trying to make choice, speed, and availability paramount.
If you look at the Amazon model and what they’ve accomplished the past decade, it’s impressive — particularly how they continue to invest in research and development and infrastructure.
Our company, Dunavant Logistics, competes on a bulk basis. We’re primarily concentrated on delivering to and fulfilling distribution centers, like Amazon and other shippers, but we are not the last-mile deliverer to the direct consumer. However, from a logistics and 3PL perspective, there is still opportunity with companies that are distribution center- and hub center-focused. Every company has a specific philosophy or strategy around their product type and speed to market. We hear often about speed, choice, transparency, consumers wanting visibility — and that all depends at a high level on whether it is a B2B or B2C model, or even C2C in some cases.
I believe we will continue to see more and more retail distribution centers that may be smaller but closer in proximity to the consumers to meet speed-to-market demand. There is no shortage of opportunities to take advantage of inventory optimization and placement.
On the other hand, returns require a completely different supply chain model to optimize, as returns continue to increase as customers want choice and spend but also the freedom to touch and see it as you would in a retail store. The dollars spent associated with the reverse logistics process is significant and growing, and the process will continue to grow as more and more products are ordered online.
The bottom line is that moving products is an evergreen business; however, the modes, demands and expectations are constantly changing. Flexibility is key.