E-commerce has been on the rise over the past few years, driven by the convenience it offers to both customers and retailers. As a customer, you can order virtually anything online and have it delivered to your doorstep.
That essentially places logistics and shipping at the heart of e-commerce. Unfortunately, although it has come a long way, the delivery process still faces several challenges.
In this article, we will cover more about the present and future innovations of e-commerce logistics and shipping.
Current State of E-commerce Logistics and Shipping
As mentioned, the logistics sector of e-commerce faces a lot of challenges. These include delivery delays, growing demand for faster shipping (from customers) and last-mile inefficiencies. In other words, the orders from clients are coming in faster than businesses can manage to deliver products.
When deliveries are not done on time, customers are more likely to grow dissatisfied with the business. And, as a business owner, you understand the importance of keeping your clients happy – that’s why finding solutions for these challenges is a crucial next step for e-commerce.
One of the easiest ways businesses have been able to address these challenges is by turning to e-commerce shipping solutions. These systems provide essential tools, such as automated shipping and real-time tracking, designed to streamline operations, reduce costs and improve delivery times. Essentially, they optimize your logistics operations – improving customer satisfaction and retention.
Some businesses also partner with third-party delivery services to handle the high shipping demands. While it may not be very pocket-friendly, it allows you to focus more attention on your business’s core operations while still ensuring efficient delivery to clients.
Emerging Technologies in E-commerce Logistics
While online business owners have been able to find a workaround for most of the challenges, the solutions are still not as effective as we would want them to be. Luckily, e-commerce logistics is constantly evolving – and we get improvements regularly. Here are a few examples of emerging technologies that are shaping the e-commerce logistics sector:
Use of AI
The use of AI is becoming more prominent in various facets of business, including customer experience and sales. For online businesses, AI can be a powerful tool for enhancing e-commerce logistics through operational efficiency.
For starters, you can use AI insights to forecast demand, allowing you to effectively manage inventory and avoid potential stockouts (or overstocking) in the future. Additionally, it provides tools and strategies necessary for identifying and eliminating inefficiencies in the supply chain. For instance, if you have several supplies and one is consistently delivering late, AI can help you identify the pattern. That allows you to find a better supplier that meets the standards you have set.
Warehouse Automation and Smart Warehousing
Besides AI, online businesses are also embracing warehouse automation and smart warehousing to improve logistics. If you have been to a modern warehouse, you have probably seen automated robotic systems that work round the clock without human intervention. These systems reduce the risk of human error and don’t tire, which has been a revelation in terms of efficient warehousing.
In addition to robots, some warehouses also have interconnected systems (smart warehousing); this brings the different aspects of warehouse management into one place. But why is this important?
By having everything in one place, it becomes easier for businesses to manage the warehouse, especially in terms of order tracking and inventory management. For instance, if the Order Management System is connected to the Inventory Management System, it becomes easier to monitor and update stock levels.
Use of Drones and Autonomous Vehicles
Traditionally, we depend on humans driving vehicles to deliver products from the seller to buyers. However, shortly, we are likely to see a growth in the use of drones and autonomous vehicles. Drones are especially perfect for cities with huge traffic as they don’t have to use roads. Autonomous vehicles, on the other hand, can be incorporated with AI to ensure more effective navigation and reduced operational costs.
Summary
E-commerce logistics needs to evolve to address the majority of challenges faced by online businesses. The evolution has already started with the increased use of AI and robots in warehouses. There are also a few delivery services that use autonomous vehicles and drones, though on a small scale. So, don’t be left behind – implement some of these tech today to unlock the full potential of your shipping sector.
