Logistics Technology Archives | Lateshipment.com Experience the future of logistics with LateShipment.com. Discover how we revolutionize efficiency and cost savings in shipping and delivery operation Wed, 01 May 2024 10:36:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://lswordpress.s3.amazonaws.com/blog/wp-content/uploads/2024/02/01181630/ipad-retina-144X144-100x100.png Logistics Technology Archives | Lateshipment.com 32 32 A Guide to FedEx and UPS Delivery Signature Options https://www.lateshipment.com/blog/a-guide-to-fedex-and-ups-delivery-signature-options/ Wed, 24 Apr 2024 13:10:49 +0000 https://www.lateshipment.com/blog/?p=11504 In the world of shipping and logistics, ensuring your packages reach their destination safely and securely is crucial and carriers ensure their full-on commitment to it. One aspect of this process is the carrier getting a confirmation of receipt upon successfully delivering a package to its intended recipient or an authorized individual at the delivery […]

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In the world of shipping and logistics, ensuring your packages reach their destination safely and securely is crucial and carriers ensure their full-on commitment to it. 

One aspect of this process is the carrier getting a confirmation of receipt upon successfully delivering a package to its intended recipient or an authorized individual at the delivery address through a signature. This signature helps carriers ensure security and accountability throughout the delivery process. 

Before diving into the specifics of FedEx and UPS signature options, let’s first understand what they entail:

Understanding Delivery Signature Options

Both FedEx and UPS offer various signature options to accommodate the diverse needs of businesses and customers. These delivery signature options allow senders to choose the level of security and verification required for their shipments, depending on the nature of the package and recipient preferences.

Why shippers need to choose delivery signature options

Shipping out packages comes with a lot of risk up until the delivery is made. Hence, shippers need to ensure secure and reliable delivery of packages while meeting regulatory requirements. This is where delivery signature options come in to help shippers maintain accountability and compliance. 

Requiring delivery verification, especially for high-value shipments ensures that the package has arrived safely without falling into the wrong hands such as porch pirates among other reasons, and thereby offers you peace of mind. 

As a shipper, it’s essential to consider factors such as the value of the shipment, recipient availability, and the level of security required when selecting a delivery signature option. 

In this blog, we’ll explore the different delivery signature options provided by FedEx and UPS, helping you determine which one is best suited for your shipping requirements.

FedEx Delivery Signature Options

FedEx provides three options when shippers require a signature upon delivery. Each option accommodates different shipment requirements.

1. FedEx Adult Signature Required

  • Costs around $8.15 in 2024
  • Specifically designed for shipments containing age-restricted items, particularly at least 21 years old at the delivery address. 
  • A government-issued photo identification is required
  • When there is no eligible recipient at the delivery location, FedEx may re-attempt the delivery
  • Firearms are one type of shipment where an adult signature is required 

2. FedEx Direct Signature Required

  • Costs around $6.75 in 2024
  • Designed for shipments that are to be delivered at a location instead of a specific individual
  • Any person physically available at the location can sign for the delivery
  • When there is no eligible recipient at the delivery location, FedEx may re-attempt the delivery
  • Automatically applies to all packages equal to or greater than $500. However, the direct signature required fee will not apply to these packages

3. FedEx Indirect Signature Required

  • Costs around $6.75 in 2024
  • This allows FedEx to collect a signature even from some nearby the location such as neighbors, front office, or building managers 
  • Even if there’s no eligible recipient at the delivery location, FedEx can still make the delivery without re-attempting, given that the recipient has authorized

Just like FedEx, UPS too has its own set of Delivery Signature Options or Confirmation Services that are served as a value-added service because they’re slightly more safer than just a regular ‘delivered’ parcel tracking notification.

UPS Delivery Signature Options

1. UPS Delivery Confirmation

  • Costs around $6.75 in 2024
  • Includes a delivery date, the name of the recipient, and if the package is being returned, the reason for the return is mentioned

2. UPS Signature Required

  • Costs around $6.75 in 2024
  • A physical recipient is not required at the location as UPS accepts any electronic acknowledgment of receipt from the individual to deliver the package

3. UPS Adult Signature Required

  • Costs around $8.15 in 2024
  • Specifically designed for shipments containing age-restricted items, particularly at least 21 years old at the delivery address. 
  • A government-issued photo identification is required
  • An additional voice authorization or ‘Proof of Delivery’ option is available, where UPS may call the person physically available at the delivery location for an additional $5.00

Final Word

Be it FedEx or UPS, delivery signature options don’t come cheap. Also, these rates increase during peak season times and have a consistent YoY increase. Of course, paying an additional $7 will give you the peace of mind of your package reaching its destination safely and securely but you can also cut these costs in several ways:

  1. Make full utilization of these options: For instance, let’s say you’ve ordered some wine for your boss’ retirement party and it requires an adult signature. In such cases, ensure that either you or an adult is at the delivery location to collect the package instead of re-delivery attempts. 
  2. Limit further re-delivery attempts: When you’re out of town but have a series of packages that require direct signatures, you can redirect your shipments to a FedEx location for 5-10 days. 
  3. Negotiate with your carrier: if you’re a high-volume shipper or have a long-standing relationship with the carrier, you can also negotiate a contract with your shipping carrier that includes favorable terms and pricing for delivery signature options.

Also, wrongly added delivery signature costs are a common sighting in your shipping invoices. In such cases, you can audit your invoices and file refund claims for such additional charges. 

In conclusion, both carriers offer a range of delivery signature options to accommodate diverse shipment requirements. Make sure you select the right option for your needs and ensure the costs that come along with them aren’t straining your wallet.

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4 Emerging and Promising Ecommerce Logistics Trends for 2024 https://www.lateshipment.com/blog/emerging-and-promising-ecommerce-logistics-trends/ Sat, 13 Jan 2024 13:36:12 +0000 https://www.lateshipment.com/blog/?p=8601 Based on Statista’s prediction, global retail e-commerce sales are expected to grow 9.5% from 2023, a slight decrease from last year’s increase (10%). A line that we’ve all been hearing since the end of the pandemic and the dawn of the new age of e-commerce shopping is expected to return this year as well — […]

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Based on Statista’s prediction, global retail e-commerce sales are expected to grow 9.5% from 2023, a slight decrease from last year’s increase (10%). A line that we’ve all been hearing since the end of the pandemic and the dawn of the new age of e-commerce shopping is expected to return this year as well — while the growth rate is slow, e-commerce is still growing. 

There are two ways to look at this. 

  1. Customers are still open to shop online amidst the re-opening of brick-and-mortar stores
  2. E-commerce merchants are going to adopt new initiatives to spur more customers to spend time with their business

While the growth of e-commerce means so many things, it directly translates to higher parcel volumes. As consumers increasingly turn to online shopping, there exists a surge that places significant pressure on shipping carriers and the supply chain’s infrastructure. 

Research predicts global parcel volume to grow from 8.5% through 2027. This necessitates continuous adaptations within the e-commerce and logistics spaces to handle the increasing demand and ensure timely and efficient order deliveries.

That said, 6,913 billion dollars being spent on an industry worldwide in a single year is a huge deal. The question is “How much % of it are you spending on growing your business”? 

Knowing what other businesses are cooking, what industry leaders are predicting, and what is going to happen in the e-commerce logistics landscape can help you put your best foot forward and enjoy the fruits of success.

E-Commerce Logistics (B2C and B2B Parcel Shipping) Trends For 2024

Enter 2024, a year poised to be a turning point in the e-commerce logistics saga. 

Businesses and consumers alike are consistently raising the bar. Sustainability, efficiency, and hyper-personalization are the new buzzwords. There is a consistent demand for revolution in how goods journey from virtual carts to living rooms. 

So, what’s new, what’s hot, and what matters most? Here’s a straightforward article that covers the key trends you need to know to optimize your shipping strategy and deliver a seamless experience for your customers this exciting year. 

Here’s something that you can expect inside: 

  • The newer role and impact of AI in logistics
  • The need for sustainability in packaging and shipping
  • The increasing demand for faster and efficient deliveries
  • The evolution of customer expectations and hyper-personalization
  • The changes in trade regulations and customs procedures

1. Integration of advanced technologies in the form of AI and machine learning

According to a recent report by McKinsey, 55% of business professionals confirmed that their organizations have already integrated AI technology into their operations. Also, with the e-commerce logistics industry expected to witness substantial growth in the adoption of AI in the upcoming years, businesses that haven’t tapped into using this technology will probably get left behind in the race toward redefining the game. 

One of the primary roles of AI in e-commerce in 2024, is enabling predictive analytics and real-time data, helping businesses make data-driven decisions in areas like demand forecasting, route optimization, and inventory management. For example, with predictive analytics, retailers can better plan for seasonal fluctuations and avoid overstocking or stockouts. Also, with automated processes, there is a reduced workload on manual processes like paperwork, leading to lower errors, and delays and increased efficiency and cost-effective operations.

Ultimately, with access to AI technology, stakeholders who are dependent on the supply chain can make informed decisions quickly, adapt to changes, and respond to disruptions effectively, thereby making it a critical asset in today’s e-commerce environment. 

What you can do to keep up: Make use of Inventory Management tools such as Zoho Inventory, Salesforce, etc, to forecast demand fluctuations, avoid stockouts, and ensure smoother deliveries.

2. A greater focus on sustainability

Amidst timely deliveries and growing technology, a trend that has witnessed a spike for the last couple of years is sustainability in logistics practices. This comes from the place of today’s shoppers’ growing awareness of environmental concerns and a desire for more eco-friendly practices and businesses catering to their needs. 

Here are a few boxes that businesses are looking to tick in 2024 in the context of sustainability:

  • Reduced packaging waste: E-commerce businesses are increasingly adopting practices that minimize packaging waste. This includes using packaging materials that are recyclable, or easily biodegradable. Also, businesses are optimizing packaging sizes to reduce the amount of excess material used.
  • Green logistics: Major shipping carriers like DHL, FedEx, and UPS have always committed to reducing their massive carbon footprint from frequent order deliveries that they take up on a day-to-day basis. This involves taking up initiatives in the form of carbon–neutral shipping, EVs and other alternative fuels, efficient routing leading to lower fuel consumption, etc. 

What you can do to keep up: Use eco-friendly materials for your packaging needs, prioritize shipping partners that use electric vehicles and other carbon-neutral delivery options, sustainable warehousing, etc, will all come together to minimize the environmental impact of e-commerce logistics. Don’t forget to promote yourself as an eco-conscious e-commerce brand and ensure that consumers favor you.

3. A shift towards customer-centric experiences

In today’s highly competitive e-commerce landscape, the CX that businesses provide acts as the competitive differentiator. This leads to brands increasingly adopting a customer-centric approach to cater to the evolving needs and expectations of online shoppers. This approach encompasses various strategies and initiatives aimed at enhancing the overall shopping experience and building customer loyalty.

2024, much like previous years, taking a customer-centric approach involves providing personalized product recommendations, having a user-friendly Interface to minimize friction in the buying journey, offering proactive responsive customer service channels, faster shipping and delivery options, flexible returns and exchanges, omnichannel experiences, etc. 

Also, with the abundance of data available and customers willing to share their data for a more personalized experience, businesses are increasingly tailoring their logistics operations to individual customer preferences. This means not only personalized product recommendations but also customized delivery options including delivery preferences like time slots and delivery locations.

4. Increased focus on strengthening Cybersecurity

As we progress further into the digital age, the e-commerce industry has become a prime target for cyberattacks. The increasing digitalization of supply chains has made them vulnerable to various threats, ranging from data breaches to ransomware attacks. In 2024, cybersecurity will take center stage as companies strive to fortify their defenses and safeguard the integrity and trust of their operations.

This includes secure backups, network segmentation, employee training to recognize and prevent phishing attacks, and improved user identity verification methods.

Naturally, businesses can expect stricter regulations and cybersecurity measures to safeguard customer information and ensure the integrity of delivery systems. Additionally, the physical security of packages will be paramount, with advanced tracking and anti-theft solutions becoming commonplace.

What you can do: Cybersecurity tools like IBM and Kaseya to safeguard customer information and ensure the integrity of delivery systems. Additionally, physical security of packages is paramount, so make use of a post-purchase automation solution like LateShipment.com with real-time tracking to stay in the know of parcels at all times and communicate the same with your customers.

Over to You

2024 promises to be a turning point in e-commerce logistics. By embracing these trends, businesses can gain a competitive edge, build customer loyalty, and contribute to a more sustainable future of deliveries. Whether you’re a tech-savvy start-up or a seasoned retailer, buckle up and get ready for the thrilling ride ahead!

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How Automation Transforms the Post-Purchase Customer Experience https://www.lateshipment.com/blog/automation-and-post-purchase-customer-experience/ Mon, 01 Aug 2022 10:09:20 +0000 https://www.lateshipment.com/blog/?p=9833 In the always-on retail environment, the convenience of a seamless experience is the key to winning more customers. According to Linnworks research, over 80% of shoppers are looking for a frictionless, cross-device ecommerce experience. The challenge for retailers is that they’re busier than ever merchandising products, processing payments, delivering orders and juggling a multitude of […]

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In the always-on retail environment, the convenience of a seamless experience is the key to winning more customers. According to Linnworks research, over 80% of shoppers are looking for a frictionless, cross-device ecommerce experience. 

The challenge for retailers is that they’re busier than ever merchandising products, processing payments, delivering orders and juggling a multitude of other daily tasks. To scale the business without sacrificing convenience, companies should consider automation services, such as LateShipment.com. The benefits of automation are clear for the business as a whole, and automation can also transform the customer experience even when the customer isn’t directly involved. 

Shopping and checkout experiences can be managed directly by the customer, but that’s only half of the overall order experience. The post-purchase phase can present a series of complex tasks ⁠— including shipping, tracking, delivery, returns, reviews and more ⁠— and automation helps ensure these tasks are managed in an efficient manner. Automation helps create a positive post-purchase experience for the customer and can have a significant impact on engagement and revenue opportunities.

Managing Orders

Supply chain disruptions have affected businesses and consumers across the board, causing growing dissatisfaction among buyers and leaving sellers to find alternative vendors, products and solutions. 

While automation won’t necessarily resolve these issues, it can help scale ordering processes to provide efficient fulfillment services and eliminate delayed or partially fulfilled orders. For example, automation can help logistics and fulfillment centers communicate with each other to locate alternative products and routes for orders. In other cases, automation can be used to prevent a customer from placing an order for out-of-stock products.

Automation can also help eliminate manual record-keeping, freeing up time for your employees to focus on other tasks and minimizing human error. As orders are placed, automated systems can begin fulfillment processes while monitoring inventory levels.

Fulfillment

Managing Inventory

In what we call the effortless economy, consumers have high expectations for convenience. They expect to order from their chosen channel by selecting the shipping or pickup option that works best for them. Of course, customers can’t place orders if there’s no product to sell. Running a successful ecommerce business requires companies to have inventory management automation tools that order the right stock in the right quantity and at the right time to ensure order fulfillment occurs without delay. 

Not only is it important to understand the demand for each product, but you also need to know how long it takes to replenish that inventory. This knowledge helps prevent delays, out-of-stock notices and poor customer experiences. Automation systems can be established to place orders directly to suppliers as inventory is sold, eliminating slower manual processes.

Managing Listings

Supply chain disruptions can cause significant issues for consumers and retailers alike. By managing listings automatically, you can remove or update products identified as out of stock, avoiding disgruntled customers by clearly indicating that a product is not currently available. Some software even offers the ability to make recommendations for a similar product or allow the shopper to sign up for a notification when the product is back in stock. 

Predicting Supply and Demand

Automation software can also analyze sales patterns to anticipate predictable demand or adjust for seasonal spikes in sales. When this software is deployed, issues with overselling can be reduced or eliminated when inventory is automatically replenished. As demand declines or a newer product gains popularity, stock levels will continue to be adjusted. The ultimate benefit of automation is that this oversight allows sales and stock levels to be maintained at optimal levels, ensuring that products are available for customers when they’re ready to order.

Facilitating Delivery

Real-time delivery tracking can bring immediate attention to unexpected issues, giving you time to take corrective action before it affects the customer. If there are delays in shipping orders or other unresolved issues, you can proactively communicate with the customer to offer a solution. Regardless of the outcome, most customers appreciate open communication and effort to resolve delivery issues.

Automation can also be used to group orders together and select the most appropriate fulfillment company. The ideal company can vary depending on the channel, where the order was placed, the location of the products and customer, and the type and/or value of the product. 

Retailers can set rules for automation so that decisions are made on how orders are fulfilled. This removes the risk of human error and replaces expensive manual processes with seamless automation that gets products from storage facilities to customers quickly.

Tracking Orders

If you have placed an important order online, you recognize the value of shipping notifications during the delivery phase. Consumers expect to have an estimated delivery date before completing a purchase, and those tracking expectations extend to the final delivery. By automating notifications, you can send emails and text messages directly to your customers throughout the order-delivery life cycle, helping to ensure a seamless delivery experience and saving time for your support team to focus on more critical tasks.

Some businesses take order tracking a step further by providing customer orders with a unique, branded tracking experience. This approach can provide essential tracking information in an easy and accessible format. Companies that incorporate branded elements such as logos, design or colors can provide a more consistent experience for the customer. This also communicates to customers that your brand prioritizes order tracking and fulfillment.

Improving Returns

Return processes can be time-consuming and costly, and bad experiences can drive away customers, sometimes permanently.  As ecommerce sales skyrocketed in recent years, many retailers opted to extend their return policies to offset issues caused by the pandemic. This led to longer wait times for processed returns and lower customer satisfaction. 

Instead of adjusting policies and timelines, improve your return process with automation. This  approach can save time and labor while improving the customer experience. Seamless returns experiences can help businesses throughout the multichannel ecommerce journey to create loyal customers and redefine returns as a growth driver.

Collecting Customer Feedback

Customer service can’t improve without understanding your customers’ experience. Take the guesswork out of providing better post-purchase experiences for your customers. Gathering feedback from customers is crucial for companies to recognize successful practices and areas for improvement. Businesses selling through their websites can use delivery feedback to influence shipping decisions that optimize the experience, while businesses selling on social media can use it to make better delivery choices.

LateShipment.com and Linnworks

Linnworks has partnered with LateShipment.com to provide a host of benefits to help businesses like yours win more customers with positive post-purchase experiences. From staying on top of delivery issues to custom shipping notifications, branded tracking pages and more, our partnership with LateShipment.com helps brands build credibility and stronger customer relationships.

Providing a World-Class Customer Experience

Providing a world-class customer experience is one of the most important aspects of any business. A positive and consistent experience builds customer loyalty and drives success. In fact, according to Zendesk, 75% of customers are willing to spend more on a brand that provides a good customer experience. By contrast, service failures, even when seemingly miniscule, can have a drastic impact on your bottom line.

Your customers have made their expectations clear. Meeting them where they are and offering a convenient experience is key to customer satisfaction, but it’s not the only piece of the puzzle. Once they place an order, it’s up to you to provide a seamless experience and offer highly valued features throughout the customer journey.

As sales increase and operations scale, all ecommerce businesses must keep up with the pace of change. Maintaining high customer satisfaction can sometimes seem nearly impossible. However, by implementing well-designed automation strategies and partnerships, as seen with Linnworks and LateShipment.com, retailers can reduce the burden of manual processes while prioritizing the customer experience. To learn more about Linnworks and automated inventory management, request a demo now.

This article is a guest contribution from Linnworks

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Supply Chain Crisis in the US: Causes, Effects, and Corrective Measures https://www.lateshipment.com/blog/supply-chain-crisis-in-the-us/ Tue, 26 Oct 2021 05:58:15 +0000 https://www.lateshipment.com/blog/?p=8760 If you have happened to follow the news in the recent past, you might be aware of the global supply chain crisis that is happening: The number of container ships around ports has doubled since April Dwelling times of containers has reached 6-10 days, way above the average 4-5 days Railyards have also been clogged, […]

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If you have happened to follow the news in the recent past, you might be aware of the global supply chain crisis that is happening:  

  • The number of container ships around ports has doubled since April
  • Dwelling times of containers has reached 6-10 days, way above the average 4-5 days
  • Railyards have also been clogged, with trains at one point backed up 25 miles outside a key Chicago facility. 

All of this can threaten to spoil the Holiday season joy for e-commerce retail businesses such as yours by eating into your profits. 

There are more negative consequences of this supply chain crisis but before we look at them, let us find the answer to the question, what really is causing these logjams? 

What is Causing This Supply Chain Crisis?

Supply chain crisis - causes

“There are going to be disruptions and shocks to the system as long as the pandemic persists and could last into 2022” – Pete Buttigieg 

Americans who chose to stay home and came outside after feeling trapped at home for a long time have been equally spending dollars on shopping goods such as laptops and at places such as restaurants, triggering an unprecedented increase in demand that the nation’s unprepared logistics system was unable to handle.

Consumer goods demand is overall 22% higher compared with pre-pandemic levels (comparing February 2020 with August 2021). BBC

This sudden increase in demand doubled with the negative consequences of the pandemic such as workers getting affected by the virus, nationwide lockdowns, shutting down of operations, etc., resulted in lower production and distribution businesses and thus businesses ended up not being able to handle the demand.

This demand > supply factor doubled down with external factors such as shortage of workers and effects of climate change, etc is said to have caused this crisis in the supply chain.

E-commerce activity has witnessed major gains and has subsequently impacted warehousing and importing, straining logistics and supply chain networks. – White House media release  

Large businesses have the bandwidth to double down on their logistics operations and make sure they are least affected by this global phenomenon. But what about small businesses?

What Does This Supply Chain Crisis Mean for E-commerce Businesses?

Industry experts see momentary changes between the situation getting worse and staying at a standstill. Either way, it doesn’t look like it’s normalizing. 

As the customer demand doesn’t seem to be going down anytime soon, you can expect the situation to continue into 2022 (beyond the Holiday season). 

This naturally conveys that your customers’ Holiday season orders could hit a slump and would lead to a big blow on your revenue. Everything from Halloween costumes, to tech products such as computers and printers for Black Friday, Christmas decors and lights are all set to reach your customers late due to the current crisis. 

The commercial pipeline that each year brings $1 trillion worth of toys, clothing, electronics, and furniture from Asia to the United States is clogged and no one knows how to unclog it. – Washington Post

If these disruptions don’t seem enough to lose revenue, your shipping and freight costs are known to increase, leading to a cut down on your customers’ discounts in order to meet ends. 

Moreover, you can as well anticipate lower purchases from customers, who will shop less due to the sudden inflation. 

But don’t let your hopes down. There are measures simultaneously being taken and which you can take to counter the crisis. Understand what they are and make sure that you are least affected by them.

Corrective Measures Being Undertaken and What E-commerce Merchants Can Do to Ease the Supply Chain Crisis

Even though the crisis doesn’t look to get any better, the White House primarily and others who have been affected by it have been taking appropriate measures to rectify the situation and reduce considerable damage, if not already done. 

  • Following President Joe Biden’s urge, The White House has issued orders for congested ports of Los Angeles and Long Beach to work 24/7 and keep containers out of ports by doing doubling trips
  • Biden also said he’s considering deploying National Guard to help ease the stress on the US supply chain as it prompts growing concern about the economy
  • Retail giants such as Walmart, Target, Home Depot, Samsung, etc and shipping carriers such as FedEx and UPS have all considered committing to increase usage of nighttime hours. 

Similarly, experts have some suggestions for growing businesses such as yours to overcome this disruption: 

  • Now that road and sea cargo costs have risen considerably and the fulfillment time difference being huge, businesses can consider aircargo as a better option
  • This year the holiday battleground is not only the CX you provide but unexpectedly the availability of your products. Therefore, look for ways to keep your inventories stocked
  • Encourage customers to start shopping early as 3-4 weeks during the Holiday season days, especially right before Thanksgiving and Black Friday to avoid last-minute delays on their orders 
  • Provide a realistic estimated delivery date of delivery even before customers make their purchase so that they become aware of the crisis and refrain from blaming you in case the delivery timeline gets extended
  • Keep your customers in the loop of their orders via tracking information across post-purchase touchpoints to avoid getting blamed for delays that are no fault of yours.

Bottom Line

From the experts’ point of view, the past stands for an unprecedented issue, the present stands at the situation getting worse before it gets better, and the future is the calling out of the existing logistics operations model. 

The supply chain and logistics system will not and should not revert to the original model that existed during the pre-pandemic times as the current scenario calls for desperate measures in the form of modernization.

While increasing operations, availability of products, getting help from everyone possible would indeed help businesses and the economy itself circumnavigate past the Holiday season, the actual transformation of the supply chain model is the key for long-term benefits. 

From your customers’ point of view, it looks like they’re indeed aware of what’s happening with their parcels as they would’ve been affected by the delay during the past few weeks. This is what led their work on permutations and combinations to understand where exactly the demand is cropping up.

Americans planning to shop early to reduce the damage of the supply chain crisis

They will also start shopping earlier this year and not wait for discounts during times like Black Friday. This is because they are well aware that higher demand, labor, and shipping costs will result in businesses, especially smaller ones, providing fewer discounts to meet ends. They will not risk their order getting stuck somewhere for some bargain, which would obviously be an awful gamble. 

And as of now, follow the experts’ advice, understand the consumers’ buying behavior, and hope for the situation to get better or ‘normalize’ if there were such a thing.

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How to Leverage Automation for Holiday Season Sales https://www.lateshipment.com/blog/how-to-leverage-automation-for-holiday-season-sales/ Wed, 18 Aug 2021 07:46:16 +0000 https://www.lateshipment.com/blog/?p=8525 The holiday sales season is often the most important for retailers. Researchers predict holiday ecommerce retail sales to make up 18.9% of total holiday sales this year, up from the year before. In 2020, retail ecommerce made up 17.5% of total holiday sales. If retailers do not want to miss out on these sales, they […]

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The holiday sales season is often the most important for retailers. Researchers predict holiday ecommerce retail sales to make up 18.9% of total holiday sales this year, up from the year before. In 2020, retail ecommerce made up 17.5% of total holiday sales. 

If retailers do not want to miss out on these sales, they must be in the selling channels where customers are spending their time. 

It has never been more important for retailers and brands to be wherever the customer is, on their terms. Linnworks calls this Total Commerce

Total Commerce means going to the customer rather than having the customer come to you. It means staying current on what channels customers are making their purchasing decisions. It’s difficult to constantly manage and keep up with these multiple sales channels. This is where automation comes in, putting Total Commerce control at the center of your business this holiday season.

The Power of Automating Inventory Management for Peak Season

One of the challenges high-growth retailers face is managing logistics through ever-expanding complex channels. Retailers must manage the orders, inventory, and shipping in multiple selling channels. The risk of human error greatly increases the more selling channels a business has when managing commerce manually. 

Automation takes care of the management of these areas. Automation is especially important when you have high order volumes during the holiday season. For example, automation helps to solve one of the biggest problems retailers face: inventory management. 

Successful inventory management is key to navigating the high-demand holiday season. Inventory management prevents stock-outs. 

Stock-outs occur when retailers oversell their inventory. This can lead to a negative customer experience, lost revenue, and a permanently damaged reputation. Stock-outs are most likely to occur during sales surges, which is a common occurrence during the holiday season. This is where automation can be an invaluable asset to manage the stock levels of your inventory across all selling channels.

Get Your Products to Customers Easier and Faster With Shipping Management Automation

A shipping management system helps retailers decide what fulfillment method to use, and designate carrier services based on filtered criteria such as location or product information. 

A system also allows you to manage the delivery experience of all of your orders, including being able to identify any delivery issues well before they happen. When you have this kind of insight, it helps you build long-lasting relationships with your customers by providing a positive delivery experience. 

Moreover, a good shipping management system integrates well with third-party logistics companies to provide an immersive overall experience. 3PLs can handle the distribution, warehousing, and fulfillment of products. 

3PLs can be extremely valuable to retailers because these companies have multiple fulfillment centers that are close to your customers, therefore decreasing the amount of time it takes to ship your products to your customers. Being closer to customers provides a huge advantage for retailers because it allows retailers to get their products to customers faster. 3PLs also save you money because you do not need to buy or rent warehouse space.

Manage Multiple Sales Channels in One Place with Automation

Automation helps retailers implement a successful sales channels strategy. Marketplaces are one type of sales channel and include well-known names like Walmart, eBay, and Amazon in an ever-growing area. 

According to Linnworks, 90% of customers start their search for a product on a marketplace. In a consumer market where the winning retailers are wherever their customers are, wherever may seem like everywhere. 

Each new marketplace is a possible selling channel to consider for a retailer. Marketplaces can be great for sales and also for more customers to find out about your brand. Automation helps you sell on all possible channels where your customers are spending their time, like marketplaces. 

Accomplishing Total Commerce, being where your customers are, on their terms, is difficult to manage without automation. It has never been more important for retailers to be wherever their customers are, such as marketplaces.

Leverage the Power of Automation for the Holiday Sales Surge

Automation helps with your commerce operations while also helping you create a seamless, convenient customer experience. 

Automation can consolidate selling channels, manage inventory across those channels, and coordinate shipping. Automation is the key to connecting your business to customers where they already spend their time, in a way that provides them a seamless experience, so that they will return again and again. 

This article is a guest contribution from Linnworks

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[eCommerce 2021] 7 Ways to Speed Up Your Business’ Shipping Process https://www.lateshipment.com/blog/ways-to-speed-up-your-business-shipping-process/ Thu, 10 Jun 2021 09:44:10 +0000 https://www.lateshipment.com/blog/?p=8175 The contemporary shipping process is changing rapidly, and as a shipper, you need to streamline your process. Streamlining your company’s shipping process implies having a more efficient and speedy supply chain, something most clients prefer. Forbes suggests that, you need to devise effective ways to speed up the shipping process for your company to remain […]

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The contemporary shipping process is changing rapidly, and as a shipper, you need to streamline your process.

Streamlining your company’s shipping process implies having a more efficient and speedy supply chain, something most clients prefer.

Forbes suggests that, you need to devise effective ways to speed up the shipping process for your company to remain competitive. Therefore, we’ve come up with a few tips to help you streamline and speed up your shipping process. 

1. Enhance Your Company's Warehouse Communication

Enhance Your Company's Warehouse Communication

Proper communication in your warehouse is crucial for a streamlined and speedy shipping process. Therefore, you should ensure that communication with your warehouse is clear and timely to avoid delays.

Ensure you communicate with your warehouse staff on how they should conduct processes to enhance efficiency. This is particularly crucial if you’re offering cross-country car shipping because timely communication prevents delays.

Ultimately, laying down proper communication channels can help speed up the shipping process for your business.

2. Partner with the Most Effective Shipping Carrier

If you’re looking for ways to speed up your shipping process, then you should partner with a reputable and efficient shipping carrier.

This means prioritizing on-time deliveries and proper handling of damages to avoid loss or damage.

Also, when choosing a carrier, ensure you select one that can handle pressure situations. Such a carrier can help you deliver urgent packages per your customers’ needs, helping you gain a competitive advantage.

3. Streamline Your Company's Internal Processes

Streamline Your Company's Internal Processes

Most shipping companies implement many systems or programs for a single internal process.

However, this ends up converting a simple task into a complex and sluggish process, leading to frustrations and delays.

Therefore, if your company’s internal processes are prolonged and frustrating, try simplifying them or developing new simple, efficient, and speedy processes.

In the end, simplifying your internal processes can help speed up your company’s shipping process.

4. Plan for Customs Clearance Beforehand

Preparing early for customs clearance is a great way to speed up your shipping process.

Often, customs clearance is a long and tiring process that can cause delays in your shipping process.

The most effective way to address this is to plan for customs clearance in advance.

Consequently, you can avoid delays and last-minute frustrations to beat the deadline for delivering packages to clients.

5. Invest in Shipping Capabilities that Meets Demand

Invest in Shipping Capabilities that Meets Demand

To speed up the shipping process for your company, you have to invest in shipping capabilities that can meet customer demand.

I.e, you have to ensure that the shipping trucks you’re using are spacious to accommodate all the products they need to ship.

This way, you can speed up the shipping process for your business to meet customer needs.

6. Provide Real-time Order Tracking

Provide Real-time Order Tracking

Today’s customers want to know where their parcel has reached and when they expect to receive it. For this reason, you need to offer real-time order tracking for your clients to understand the status of their luggage whenever they want.

This can help improve your shipping process by keeping your clients informed about the location of their parcel.

Also, having order tracking capabilities can help you identify and resolve issues early enough to allow timely delivery.

Ultimately, providing order tracking is an excellent way to develop trust with your clients and optimize your company’s shipping process.

Having order tracking capabilities can help you identify and resolve issues early enough to allow timely delivery.

7. Implement Electronic Data Interchange (EDI)

Implement Electronic Data Interchange (EDI)

EDI is a strategy that is implemented by many shipping companies which replace traditional paperwork with electronic data.

By replacing paperwork with electronic data, your shipping company can process data faster, speeding up the shipping process.

Besides, EDI can process large volumes of data within a short period, eliminating possible delays.

Ultimately, implementing the latest data processing technology in your business can greatly speed up the shipping process.

Wrap Up

Speeding up your company’s shipping process is critical for you to meet today’s client needs.

You have to devise new and efficient ways to streamline your delivery process to meet client expectations and remain competitive.

For instance, you can enter into a partnership with the most effective courier service and enhance your company’s warehouse communication.

You can also offer real-time order tracking and invest in shipping capabilities that meet customer demands.

This is a guest post Mckenzie Jones

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eCommerce Success: Pros and Cons of Cloud Computing in Logistics & Shipping for Emerging Businesses https://www.lateshipment.com/blog/ecommerce-success-pros-and-cons-of-cloud-computing-in-logistics-shipping-for-emerging-businesses/ Fri, 08 Jan 2021 05:07:42 +0000 https://www.lateshipment.com/blog/?p=7075 You might have come across many technical terms being hyped by tech-enthusiasts, but ‘cloud computing’ rightfully deserves the attention it has been getting over the last few years. Cloud computing is revolutionizing technology that has created a buzz in many business areas due to its ease of accessibility and flexibility. According to the recent cloud computing […]

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You might have come across many technical terms being hyped by tech-enthusiasts, but ‘cloud computing’ rightfully deserves the attention it has been getting over the last few years. 

Cloud computing is revolutionizing technology that has created a buzz in many business areas due to its ease of accessibility and flexibility.

According to the recent cloud computing statistics, the global public cloud market will exceed estimated expectations worth $330 billion as the year 2020 wraps up. 

After looking at such exponential figures, there is no doubt that companies worldwide have outgrown the outdated technologies and expanded their investments towards cloud computing.

Undoubtedly, the advanced technology has been successfully integrated into the logistics and shipment industry as well. 

Today, cloud-based logistics software is considered much more efficient to fulfill commercial needs and provide value-added services to customers

Let’s find out what pros and cons the revolutionary technology has for the logistics and shipping companies.

Cloud Computing in Logistics & Shipping for Emerging Businesses

Advantages of Cloud computing in the Logistics Industry

The following are some of the best benefits one can reap by integrating cloud computing in the logistics industry.

1. More accessibility to real-time pricing updates

Various elements can directly affect pricing when it comes to transportation and warehousing. 

External factors like market conditions, customer demands, sales fluctuations, weather changes, and other such volatilities have the power to make or break your margins. 

 

Not every person can have real-time access to such fluctuations and call the next big trend change that could affect the pricing. Cloud computing does precisely that for you. It provides more accessibility to real-time pricing updates. 

 

Like for instance, you receive immediate notice that freight rates have changed, but if you are out of the station, you can still communicate the necessary changes needed to be made to accommodate the sudden change of rates in your favor.

2. Helps your business expand to accommodate customer demand

A smooth supply chain is essential for a company’s operational efficiency. 

Given the customer-centricity and the significance the supply chain provides to it, a streamlined supply chain can do a lot more to match customer demands. It can give your business a boost across all the associated supply chain channels without costing the business a fortune.

Organizations require flexibility and integration to survive the competition in the market. And cloud computing can be the right answer. 

Cloud computing is a game-changer for businesses to expand and meet customer demands by deploying new agility services.     

 

Data from Accenture

3. Easy collaboration at every step of the supply chain

Logistics has been transformed ever since technology has been integrated every step of the way. 

Where the supply chain has become more complex and dependent on every step, a smooth and streamlined collaboration has become vital for sustaining your business operations. 

 

Because the supply chain quickly multiplies the cost down the value stream, even the slightest change that can help you save through access to real-time pricing information is a significant win for the company. 

Therefore, cloud-based logistics is the key to breaking down communication and pricing issues in the supply chain. It will help create a more predictable supply chain by connecting the process through the cloud.

4. Better data mobility among various departments involved

Logistics and shipment require real-time access to data from various departments. 

Deploying cloud computing allows better data mobility through the organization’s various departments to streamline the supply chain and make better decisions. This not only saves time and resources but instead directs the use of resources towards other innovations.

 

Cloud computing allows speedy data deployments of departments like management, maintenance, IT, and other upgrades that are involved in the supply chain. It affects efficiency and productivity through tangible means as it takes open and seamless integration of all the other departments involved to work together.

5. Create better transit models for efficient shipping

If your supply chain requires coordination from several suppliers spread on a larger scale, then it should be seamlessly aligned and synchronized. And cloud computing can help you do just that with regards to your logistics.  

Cloud-based logistics solutions easily provide real-time monitoring access to create better transit models for efficient shipping

The real-time data is not only remotely accessible, but it is available for the entire team regardless of time or location.

 

Even if you want in-transit models spanning on a global scale, cloud-based logistics solutions can be integrated to efficiently cover, optimize, and manage such formidable and complex trails.

It is easier to deploy and less-costly to initiate.

6. Supply chain transparency for better operations

Cloud solutions allow you to connect with multiple dimensions of your organization. 

You can connect with internal and external departments, your partners, and even the services that you have outsourced. 

As you integrate cloud in the supply chain and connect all of your inter-departmental partners, it provides real-time transparency at every supply chain level.

 

It allows you to keep your supply chain inbound functions, outbound operations, and logistics data process under control and your customers satisfied. 

The visibility at every step makes it easier and quicker to deploy the means that can carry forward the process, ultimately making it more streamlined.

7. Access to inventory and warehouse capacity figures

Inventory is the starting point and probably the full-circle endpoint of a supply chain. That is why on-hand inventory is the most direct way through which you can easily control the risk factors and optimize your costs. 

 

Cloud allows you to instantly access your on-hand inventory figures and information to maximize your ability to respond to the on-going fluctuations. 

The consistent inventory data flow through the cloud allows you access to specific details like profit margins and highest seller figures etc. 

Such valuable information can impact your sales significantly and allow you to make better orders to fulfill customer demands. 

Disadvantages of Cloud computing

Where cloud computing can be a shining gold armor for logistics and supply chain management, organizations should understand that there are just as many unique risks involved with cloud adoption.

1. Requires a lot more efficient access management

Cloud computing in logistics can lead to inefficient access management in two ways. 

One happens through an inefficient credential policy where there is no need for strong passwords to protect the data. 

There are no frequent updates in the system to counter any territorial breaches. 

The other one happens when risk is known as shadow IT or a rogue IT system that makes use of systems, devices, software applications, and services without a clearly defined IT approval.

2. Countering unauthorized use

It requires countering of unauthorized usage, whether the breach has been made through intentional or unintentional means. 

However, the main reason behind the breach is the irresponsibility of the employees who might be using untested and unauthorized means to access the cloud servers that harm the entire logistics and supply chain system.

3. Limited structural control

Due to the risk involved, the companies are advised to protect their systems to every extent possible. 

This minimizes the structural control but also closes the access to endpoints that can be exploited. 

Limiting potential attack surfaces can be detrimental to the overall supply chain structural integrity, but there is no other way to ground the operations safely.

4. Multiple clouds and interface issues

If the cloud system is accessed through an application program interface or API, it can automate almost every transaction your organization has ever made and expose it to the world. 

Such issues stem from several factors involved in the overall system.

 

Configuration and deployment of multiple clouds require the assurance that they are compatible with each other. 

Negligence towards and lack of investment made in this regard enables more APIs that can then become potential entry points for hackers.

5. Dealing with numerous stakeholders

As a logistics company, you would be having multiple suppliers, clients, and stakeholders in general.

Therefore, logistics companies must know the main stakeholders in freight distribution and how different actions can impact their corporate relations with them.   

The sharing of your resources and cloud system data among your stakeholders, tenants, and customers is risky.

Resources are vulnerable to leakage, and anybody with ill intentions can get easy access if they want to use such information against you.

Wrapping It Up!

All in all, there is no doubt that cloud-based solutions are here to stay when it comes to logistics, shipment, and supply chain companies. 

These companies can easily achieve better operations, execution of tasks, collaboration within the business circle, and overall high functionality through cloud computing.

 

Therefore, in the upcoming future, we will see many logistics companies moving towards and adopting such cloud practices and generally advancing in the digital realm of performing company operations.

Cloud computing may not be regarded as groundbreaking anymore due to its high adaptability in every business format. 

Still, it is breaking barriers when it comes to making seamless supply chain management processes for companies adopting it.

This article is a guest contribution by Samantha Kailee

Samantha Kaylee is currently working as a Planning Manager at Crowd Writer, an excellent platform that offers services like write my assignment UK. She has gained significant experience in logistics due to her previous job in a renowned shipping company. You can check out her blog for recommendations and expertise.

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8 Ways Dropshipping is Empowering eCommerce Business https://www.lateshipment.com/blog/8-ways-dropshipping-is-empowering-ecommerce-business/ https://www.lateshipment.com/blog/8-ways-dropshipping-is-empowering-ecommerce-business/#comments Fri, 05 Jun 2020 09:37:38 +0000 https://www.lateshipment.com/blog/?p=5454 Dropshipping is a profitable and effective way of doing business. The strategy ensures that there are no consumer goods in stock. The dropshipping model mostly involves retailers working with other retailers, or working with players up the hierarchy.  It is up to manufacturers and wholesalers, rather than dropshippers, to ensure that customers get their goods […]

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Dropshipping is a profitable and effective way of doing business. The strategy ensures that there are no consumer goods in stock. The dropshipping model mostly involves retailers working with other retailers, or working with players up the hierarchy. 

It is up to manufacturers and wholesalers, rather than dropshippers, to ensure that customers get their goods at designated places. In some scenarios though, dropshippers purchase their products from wholesalers and sell them to the consumers in turn. 

Do you have an eCommerce retail business? Read till the end for a way to save up to 20% on shipping costs & provide customers a delivery experience that has them coming back for more.

How Dropshipping Works - The Dropshipping model

Considering that dropshipping is convenient for both the customer and the selling company, this business model is thriving. eCommerce and dropshipping profits have reached over $4 billion annually, a 7% year-on-year increase for the last 10 years.

There are numerous ways in which dropshipping is changing the world of eCommerce and we’ll name the most notable ones. This will help you understand its benefits and impact on eCommerce. 

Before we get into the benefits, if you are planning to create a store that dropships, we suggest you take a look at these tips to create a unique dropshipping store, particularly in 2021. 

The Benefits of Dropshipping

1. Lowers Startup Costs

Dropshipping gives ambitious individuals a chance to start their business. Considering the low startup and operating costs, it provides many people an opportunity to give online business a try.

In 2019, there were approximately 1.92 billion digital buyers and eCommerce sales accounted for 14.1% of retail purchases worldwide.

Online shopping is growing at such a fast pace that the global online shopping market is predicted to hit 4 trillion this year.

The dropshipping model solves the problem of those who have the idea but don’t have the initial budget. If someone knows the type of product they want to sell but don’t have enough money to prepare the stock, dropshipping is their solution. 

To get started, simply partner with a dropshipping wholesaler and begin marketing their products from your site. They handle all shipping and other logistics involved in getting the product to your customer.” 

                                      – Smallbiztrends

The process is quite simple and recommendable for those who are just starting with eCommerce business.

2. Contributes to Business Efficiency

eCommerce is all about efficiency. The entire business model relies on different independent components for optimal functioning. The strategic delegation of tasks helps the process of online purchases run smoothly. 

Dropshipping ensures that retailers do not have customer goods in stock. This helps reduce the backlog and allows these retailers to carry on their business and scale. 

When there is no backlog, the entire business operation witnesses increased efficiency.

Running an eCommerce business is much easier when you don’t have to deal with physical products. You don’t have to manage a warehouse, pack and ship orders, track inventory, handle returns, and manage product inventory.” That is why dropshipping is so efficient.

– A Shopify representative

3. Helps Build Trust

One key challenge within the eCommerce industry is trust. Customers are always unsure if they will receive what they have ordered in time and in good condition. However, dropshipping changes the whole picture of eCommerce. 

When a supplier sends goods to a store and then the store sends out the goods to the customer, the delivery is unnecessarily prolonged. In the dropshipping model, the supplier sends the goods directly to the customers and the customer gets their product faster.

This helps build trust and increase the customer’s confidence in the eCommerce business. With each satisfied customer, come more recommendations and an increased number of online sales. 

Either way you slice it, at the end of the day, you gain from increased confidence and shopper happiness.

4. Reduces Operating Expenses

Without dropshipping in the picture, more warehouses will be in play for storage purposes. More people will need to be employed to work in these warehouses. The downside here is that these expenditures will raise the overall cost of doing business. 

Ultimately, increased costs cut into profits.

With dropshipping, products don’t have to be stocked and paid for in advance. Only when an order is placed does a product need to be sent from the supplier. 

Therefore, by assuming the delivery role, dropshipping raises the prospects of growth, success, and expansion of eCommerce.

More and more eCommerce owners are being motivated to adopt the dropshipping model. The recognition and validation that dropshippers get from current users promises further growth. The main benefit they stress is the reduction of costs and expenses,” 

– Donna Hayes,  digital marketing expert

5. Allows for Budget Repurposing

Saving money on one end means that it can be channeled into other aspects of the business. Besides costs like storage, employees, and stocking products, there are numerous other expenses you might not even think of.

For example, conventional eCommerce owners need to prepare professionally taken photos of products if they want to be taken seriously by customers. That leads to either hiring a professional photographer or purchasing an expensive camera, lighting, and other necessary equipment. 

Instead of taking chunks of the budget for such expenses, money can be repurposed on expanding the business. 

Marketing plays a huge role in growing a business, which is just one example of where money can be channeled. 

6. Is Conducive to Selling Niche Products

One thing evident from the digital community is that it is best to enter the market while an idea isn’t still completely worn out. That’s what makes dropshipping so exciting. 

The dropshipping model is still in the growth phase. Which means there are lots of options that are yet unexplored. 

Those who wish to sell highly-specific products stand a better chance of success with dropshipping. Creating a one-of-a-kind shopping experience is possible with the dropshipping model.

Customers are always looking forward to something original and new, which is exactly what dropshipping can provide them.

A unique business model and interesting website design can make a business stand out among competitors and boost profits.

7. Lends Itself to Innovation

Every new segment in business welcomes innovative minds to introduce information technologies that are yet unseen.

As previously mentioned, dropshipping is still a growing model. Consequently, there are numerous possibilities for technology experts to come up with new software advances that will improve this business model.

For example, Ecomdash’s dropshipping management system helps users have hands-off communication between the suppliers and sales channels.

Another example of innovative dropshipping software is AutoDS, an all-in-one dropshipping platform that allows you to manage product uploading, customer service, price and stock monitoring, automated orders, and so on. 

The demand for the dropshipping model on the online marketplace is expected to increase, a solid reason for us to expect innovations within the model.

8. Provides Opportunities to Scale

eCommerce stores that use the dropshipping model can start as a hobby but end up an empire. This unlimited growth potential sends an inspiring message to the entire online community.

Consider Amazon. Jeff Bezos’s journey started in 1994 when he introduced Amazon to the world. A promising idea quickly grew into something spectacular. 

Who would have guessed then that the dropshipping business that originated in his basement would turn him into the richest man in the world?

While aiming to become the next Jeff Bezos can be a long shot, the dropshipping model still promises that an individual can achieve something great from a simple eCommerce website. 

Take Wayfair for instance. They work with over 10,000 suppliers and have 8 million products at their customers’ disposal. This massive scalability is unlikely to be achieved by a conventional eCommerce store.

In summary, dropshipping is changing the eCommerce landscape for the better. By reducing the logistical burden, retailers can focus on doing more business and developing their eCommerce wing.

On the other hand, this model also works in customers’ favor. Since suppliers directly send goods to customers, the waiting time is shorter.

There are no complications with sending a product from the supplier to the store and from the store to the customer.

Dropshipping simplifies the process.


This article is a contribution by Elisa Abbot

Elisa is a passionate traveller, a translator, and a digital marketer at PickWriters. Her love of learning languages developed when she was just a child, and she wants to share that passion with her children. Elisa believes that learning a language can be a fun experience with the necessary component that is picking out the right activities. 


Perhaps you own a retail business and don’t plan to dropship anytime soon. 

You probably ship via a shipping partner like UPS, FedEx, or DHL. Your shipping contract promises you refunds on parcels that are delayed even by 60 seconds. But are you claiming those refunds in time?

LateShipment.com can help you by

The value we offer is best experienced first hand and LateShipment.com integrates with your existing tools.

It only takes 2 minutes to sign up, so give it a shot!

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All You Need to Know About Amazon Logistics in 2019 https://www.lateshipment.com/blog/all-you-need-to-know-about-amazon-logistics/ Sat, 21 Dec 2019 01:24:13 +0000 https://www.lateshipment.com/blog/?p=4324 Introduction In the world of last-mile deliveries in the US, 2019 is a landmark year; For the first time in a very very long time, the duopoly of FedEx and UPS in the US market is being seriously challenged by a competitor: Amazon. For the first time in a very very long time, the duopoly […]

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Introduction

In the world of last-mile deliveries in the US, 2019 is a landmark year; For the first time in a very very long time, the duopoly of FedEx and UPS in the US market is being seriously challenged by a competitor: Amazon.

 

For the first time in a very very long time, the duopoly of FedEx and UPS in the US market is being seriously challenged by a competitor.

 

 

In 2019, Amazon Logistics is set to finish the year handling around 2.5 Billion shipments. This is 2x what it handled in 2018 and getting eerily close to the 3 Billion mark of FedEx and the 4.7 Billion mark of UPS. This is no mean feat even for a company like Amazon and represents more than a decade of effort behind the scenes to own the complete shopping experience of a customer from procurement to unboxing.

 

 

From the perspective of a tech company that operates in the shipping and logistics space and which is an active advocate for transparency and choice in this space, this is exciting news that can potentially disrupt this space and bring a host of positive changes to both shippers and end customers who receive those shipments.

 

 

Here we attempt to take a closer look at the impact that Amazon Logistics has had on Holiday Season 2019 and what the future potentially holds for them in the small parcel shipping carrier space currently dominated by FedEx and UPS. 

Why is Amazon Logistics a big deal?

While last-mile deliveries may seem like just another component in the long list of things Amazon does, the reality is far from it. This happens to be an exceptionally important component of their “customer obsession” mission and helps them build a critical advantage over other online merchants. 

 

When you look closer, every online merchant, including Amazon, traditionally relied on a shipping carrier like FedEx or UPS for their last-mile deliveries. This meant that a merchant’s shipping speed, costs, and delivery experience were restricted to what was offered by these shipping carriers. In a country like the US, with a near duopoly between two carriers, this often meant very little flexibility or control for merchants over their shipping. 

 

In the US, the near duopoly between two carriers has meant little flexibility or control for merchants over their shipping. 

 

This limitation was something that Amazon has always resented as it left the final portion of a customer’s shopping experience in the hands of a shipping carrier, which often had different objectives compared to Amazon. For instance, providing a tighter delivery window, offering flexible redelivery options, ensuring that a high-value shipment or customer is given special treatment, providing in-home deliveries to combat package theft, etc. may be of high importance to Amazon, being the seller a customer has a direct relationship with. But, a shipping carrier, which is simply paid for transporting a shipment from A to B, often has very different objectives compared to the seller and customer. This mismatch has always been a pain point for customer-obsessed businesses like Amazon. 

 

Taking direct control of this final piece of the shopping experience will enable Amazon to have direct control over a customer’s order right from the moment a customer lands on their website to the moment the customer unboxes the product, enabling Amazon to have a remarkable customer experience advantage over the competition. 

 

 

Just imagine being able to order something in the morning, pick a 30 min delivery window late next evening, rescheduling that effortlessly if needed or even giving the delivery person permission to step in and leave the product in your living room vs picking another merchant who will be delivering through FedEx or UPS throwing the delivery across your fence 3 days later. That’s the magnitude of difference in experience Amazon Logistics can bring to the table for Amazon. 

How did Amazon Logistics succeed where others could not?

The biggest limitation that has prevented serious new competition from emerging in the shipping carrier space to challenge FedEx and UPS has been the very high infrastructure investment required to operate at a national level as a shipping carrier. The shipping volumes required to justify such an investment have always been very high and it remains exceptionally risky for a new entrant to bet on achieving these massive volumes to be successful. 

 

 

Amazon, on the other hand, managed to circumvent this challenge by independently growing to be a shipper large enough to easily justify such investments, thus allowing it not only to become an independent carrier that satisfies their own shipping needs but also offer shipping services to other merchants who may or may not be selling on Amazon; in other words, reduce its own dependency on FedEx and UPS and offer a serious alternative for other merchants using FedEx and UPS.

How is Amazon Logistics different from shipping carriers?

Let us imagine a customer in California ordering a product from a merchant in New York and. on the same day, a customer in New York ordering the same product from a store in California. When these merchants rely on FedEx or UPS, this situation will result in two cross country shipments of 3+ days, each with a higher probability of delays compared to shipments that travel a lesser distance. 

 

With Amazon through, since they are also the merchant and have control over inventory and shipping locations, the order from California would be fulfilled probably the same day from a warehouse in California and the order in New York similarly so from a warehouse in New York. 

 

This direct control over inventory and shipping locations offers Amazon the ability to optimize transportation costs, performance, and efficiency far better than a traditional shipping carrier like FedEx or UPS. When Amazon Logistics makes a move to corner the non-Amazon shipping market down the line, this considerable expertise in managing fulfillment as a whole is likely to see them offering comprehensive and innovative fulfillment solutions that go beyond just the shipping services offered by traditional carriers. 

 

 

How did Amazon Logistics perform this year?

This is the first year Amazon Logistics is operating at a scale comparable to FedEx and UPS and we project their performance numbers to match up to those of FedEx and UPS with Holiday performance being right around the 8% delay mark. For a first attempt, this is commendable indeed. 

 

 

With the inventory and fulfillment location advantages that Amazon enjoys, we expect performance numbers to get far better than those of FedEx and UPS in the next 1–3 years, especially because Amazon is relentless in trying to improve performance and expand its footprint in this space.

A chart showing the growth of Amazon Logistics over the next few years

Image Courtesy: www.vox.com/recode

What does the future hold for Amazon Logistics?

For the reasons stated above, Amazon Logistics is a very serious effort for Amazon; something that Amazon has put a tremendous amount of background work into over more than a decade and something we expect Amazon to be relentless in trying to perfect. 

 

We expect Amazon Logistics to have a massive impact on the shipping space, comparable to the significant impact AWS had on cloud computing. We expect it to grow into a huge, invisible backbone that powers e-commerce across the US. 

 

 

We expect Amazon to focus on perfecting its own deliveries and taking on the deliveries of merchants using FBA. 2019 saw them handling 46% of such deliveries and 2020 is likely to see that expand to around the 70% mark. At this point, we expect to see Amazon open up Amazon Logistics on a large scale, as a serious alternative to FedEx and UPS, for non-Amazon sellers and shipments. This move will likely double it’s 2.5 Billion parcel volume by 2021 and eat into the 82% share of FedEx, UPS, and USPS in the small parcel space, giving Amazon about 40% of that market by 2023. 

 

Amazon has far more interest in focussing on delivery speed and experience than traditional shipping carriers as most shipments are sent to its own customers. This is likely to make Amazon obsessively focus on on-time deliveries and more flexible and customer-friendly delivery options such as in-home deliveries, batch deliveries, and night deliveries and tighter delivery windows. 

 

 

We estimate Amazon to achieve >98% on-time deliveries all through the year, including the holiday season, with a significant rise in more customer-friendly delivery offerings by 2021. 

Final Word

Irrespective of whether we take the perspective of a customer or of a merchant, Amazon’s much-anticipated entry into the last mile space is exciting news. The massive competition that Amazon brings is likely to revitalize tech penetration in this space and bring about a succession of rapid changes that are likely to enable merchants and customers more of a say in how packages are shipped between them. 

 

_________________________________________

 

This is an article by Sriram Sridhar, CEO at LateShipment.com.

 

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Modern Supply Chain: Leveraging Blockchain in Logistics https://www.lateshipment.com/blog/leveraging-blockchain-in-logistics/ Tue, 19 Feb 2019 13:47:53 +0000 https://www.lateshipment.com/blog/?p=2297 The world is a global village now and while it has expanded horizons for businesses, it has also added to supply chain complexities. Supply chain management professionals are constantly on the lookout for technology that will help them collaborate efficiently on a global scale. Among emerging and newly developed technologies used in SCM, blockchain shows […]

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The world is a global village now and while it has expanded horizons for businesses, it has also added to supply chain complexities. Supply chain management professionals are constantly on the lookout for technology that will help them collaborate efficiently on a global scale.

Among emerging and newly developed technologies used in SCM, blockchain shows much promise.

The important and useful aspects of blockchain technology are

  • decentralized/distributed ledger infrastructure for transparency and traceability
  • even playing field for trusted data
  • accountability and
  • streamlined governance

These reasons make blockchain a perfect match for business applications within procurement and logistics.

 

how blockchain works

Source: cnet.com

Supply chains are based on the physical movement of goods and human interaction, action, and sequences. There is scope for a lot of error and oversight, given the nature of multiple players and human intervention from several legs of the supply chain. Blockchain offers several technological capabilities to accomplish excellent efficiency levels with streamlining and automating processes.

Recently, an Israeli shipping organization managed to incorporate blockchain technology in digitizing the eBL of a ship. An eBL is a manifesto of a ship’s cargo which is given to the master or captain of the vessel as part of the ship’s legal documentation. The measure has shown immense improvement in reducing time, complexity, and operating costs for all the stakeholders involved.

With blockchain, logistics and shipping have scope to improve by leaps and bounds. In July 2018, the Commonwealth Bank of Australia used bloackchain tech to track the shipping of 17,000 kilos of almonds halfway around the globe.

Cost Optimization

Supply chains, with their phenomenal shipping and trade, have a huge impact on the global GDP. Blockchain technology can greatly optimise costs and have a good result on GDPs across the world. Maersk and IBM launched an optimised stakeholder pool by digitizing end-to-end shipment tracking. The move can eliminate several costs associated with trade documentation and administrative processes for global shipments. Data exchange in terms of documentation is made tamper proof via blockchain. Blockchain technology can track and trace millions of shipping containers all at the same time. so, delays and frauds can be identified and resolved immediately.

Transparency

A very simple application of blockchain technology in the supply chain is to denote transfer of goods on the ledger as transactions that would identify the parties involved, price, date, location, quality and state of the product etc. Having a central ledger of all information is a great measure to enhance the processes involved. At any given point of time, stakeholders can see what has happened, where and when. No one person can forge the data or change anything about the process. So, to identify disruptions, inefficiencies, fallacies or problem-origins, one simply has to look at the ledger.

If you run an e-commerce organization, things become immensely easy and efficient with blockchain since there is transparent tracking technology. Right from the moment your customer places an order, the chain of events from the warehouse inventory to logistics, everything is clocked individually. Every action is tracked and time stamped. So, there is no way you can miss something.

blockchain in logistics

Source: globaltranz.com

Enabling IoT functionalities

The Internet of Things (IoT) can be used alongside to achieve optimum efficiency in the supply chain. Product verification is done through QR verification codes. Individual products are tagged into groups, providing easy identification regarding ownership, throughout the supply chain.

A distributed database helps stakeholders get information on inventory from anywhere in the world.  One needn’t have channelized access to a specific warehouse as everything is integrated into the blockchain. It is also brilliant in terms of accountability. Data is not locked in one place, in one computer or available to a select set of individual to tamper records. So, it greatly dampens enthusiasm insiders have for data theft as they know they will get caught.

Procurement

Procurement excellence is highly dependent on the compliance of first-tier, second-tier, and even third-tier suppliers. With every added tier, the process becomes more complex.

Technology enables linking people and collaborating on monstrous scales.  Procurement rates are also made transparent via the blockchain. Coming to procurement processes and the transparency involved, blockchain enhances tendering processes. Tendering is efficient, without any leakage of information and it helps find the best suppliers, resulting in improved quality and performance.

Smart tendering, an integral part of IoT enabled blockchain technology, has a streamlined process that is in use today in parts of Finland. Pallets in the warehouse are equipped with RFID tags. These pallets cite their reasons and need to traverse from point A to point B on the ledger. Carrier mining applications enable bids to win the stated move. The RFID assigns the job to the bidder with the most suitable conditions. All the processes involved are automated and the transaction is registered on the block chain. Each movement of the shipment is tracked through the supply chain.

Anonymity with Transparency

There is no bias in choosing a trader, agent or producer in the supply chain where the RFID or the automated process chooses the most optimal player for each part. Blockchain technology offers balance of transparency with anonymity. Furthermore, there are large producers who do not want to reveal provenance of their goods for fear of losing a competitive advantage. In this case again, block chain allows flow of information in a trustworthy and anonymous way, thereby creating a trustworthy network without revealing who the involved people are.

Auditing and Governance

Transactions are stored with time stamps and the data is tamper proof. So, blockchain offers scope for easy governance. Procurement teams can eradicate defective players with audit reports. Audits offer a one stop shop to see which player has failed where and how. So, block chain enables fraud control, helps eliminate money laundering, ethical oversights and child labour among other things.

Smart Contracting

Every move leaves a trace in the blockchain controlled supply chain. So, automatic triggers are sent using smart contracts.  A proof of delivery from a shipping partner can trigger online invoices and initiate a bank payment. So, processes are optimized in terms of time, effort, money and complexity. And since everything is based on verification methods, the payment processes are reliable and accurate.

Supplier Relationship Management

Not only do you see transparency in blockchain technology, but also accountability. The process ensures that players are accountable for their actions. Compliance is interlinked in the entire process. For example, a data transfer between two countries is expected to comply with the regulations in either country. All of this is managed in the blockchain. So, across the world, procurement professionals, suppliers, shipping and logistics partners can align themselves with their trades, improve their own businesses while indulging in trade over trustworthy channels.

Projections for 2019

A major obstacle in the path of accepting Blockchain technology has been its reputation, as it is associated with cryptocurrency and BitCoin. Both of these entities are seen with suspicion across industries. While blockchain technology is very suitable to be adopted by the logistics sector, the association with these unsavoury elements puts people off. But, if 2019 projections are to be believed, blockchain will be re-christened and disassociate itself from cryptocurrency. According to Deloitte’s 2018 Global Blockchain Survey, companies are interested in moving away from proof-of-concept projects to real-world applications. Industry majors will be interested in seeing not just where blockchain could fit, but to find places where it is the best fit.

If you liked this article, you can also check out

Blockchain: The missing link in your logistics strategy

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Digitization of Supply Chain: The Rise of Digital Supply Networks https://www.lateshipment.com/blog/rise-of-digital-supply-networks-in-2018/ Tue, 22 May 2018 13:33:06 +0000 https://www.lateshipment.com/blog/?p=861 The supply chain has come a long way from traditional linear networks to what it is today: dynamic, digitized and interconnected with information flowing in from every part of the network. These new age supply chains are open systems or Digital Supply Networks (DSN). What works today is actually a hybrid of traditional methods with […]

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The supply chain has come a long way from traditional linear networks to what it is today: dynamic, digitized and interconnected with information flowing in from every part of the network. These new age supply chains are open systems or Digital Supply Networks (DSN). What works today is actually a hybrid of traditional methods with digital networks. Sensor-based data sets help DSNs merge views of the supply chain and use-case appropriate latency responses to dynamic events.

Digital Supply Networks consolidate information from many different sources and locations, from across vendors and stakeholders to drive the chain ahead. The priorities of a supply chain are still the same, over the years: Volatility, velocity, volume, and visibility. All these are digitized today. Needless to say, digitization lowers computing charges, makes storage cheaper, and reduces costs of bandwidth among other things.

The new age methods and tools in DSNs that make a huge difference are powerful analytics, visualization, scenario analysis, predictive learning algorithms and easy access to data. Organizations are keen to collect real-time data and study them in a digitized manner to learn things better. State of the art robotics, drones, additive manufacturing and autonomous vehicle play a major role in implementing these methods.

Manual intervention has been made minimal in most logistics operations now. Robots man warehouse functions. Drones are being sent out to finish last mile deliveries. Uber tests driverless cars. These developments help with the functions of the supply chain. There is exchange of money, time, information and physical goods in every leg of the chain. Lower computing costs and real-time data sharing goes a long way now.

It is no longer a mean feat to gain insight to every step of the supply chain operation. Digitization enables systems to gather data from everywhere and present them in any format you need.  The linear flow of designing, creating, and moving physical goods is still intact with the addition of new inter-linkages that enable digitization.

Connectivity, with technical capabilities, has reduced hiccups that have plagued supply chains for aeons. Data predicts disruptions. Real-time data can hasten decisions. Damage control is handled effectively from various corners of the world. Inefficiencies and potholes are identified easily from the data generated by efficient systems.

With the advent of 3D printing, some businesses are shifting to different business models altogether. The requisite materials are shipped across destinations. On the last leg of the journey, 3D printing enables the business owner, with a careful network of logistics and supply chain, to just assemble the final product with 3D printing technology and deliver it to the customer.

Related:

Leveraging shipping data analytics to cut supply chain cost

The Beginning of the drone era in shipping: Should your business be worried?

How analytics can transform supply chain management?

 

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Why should your retail business automate shipping invoice audit process? https://www.lateshipment.com/blog/why-should-your-retail-business-automate-shipping-invoice-audit-process/ Thu, 26 Apr 2018 13:30:23 +0000 https://www.lateshipment.com/blog/?p=769 Shipping cost constitutes anywhere between 5 to 15% of the total expenditure for Retailers. Adding to their tightening margins is the steady 4% year on year increase in FedEx and UPS shipping rates. The complete monopoly of these shipping carriers in the small parcel shipping market leave retailers with no other option but to let […]

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Shipping cost constitutes anywhere between 5 to 15% of the total expenditure for Retailers. Adding to their tightening margins is the steady 4% year on year increase in FedEx and UPS shipping rates. The complete monopoly of these shipping carriers in the small parcel shipping market leave retailers with no other option but to let shipping costs eat into their profits. Not anymore! Shipping carriers can be easily held accountable with an in-depth shipping invoice audit. Although most retailers invest in in-house shipping audit, it is not as efficient or impactful as their automated counterpart.

The most compelling reason to switch to an automated audit process is that manual process could be time sinking as well as labor intensive. Moreover, the cumbersome process of auditing your invoice takes your focus away from building a successful business. Listed here are the definitive advantages of using automated parcel shipping invoice audit over manual in-house process.

Manual vs Automated Shipment Audit

As noted in the illustration, the first step towards logistics digitalization is automating the auditing process of FedEx and UPS shipping invoices. LateShipment.com is a service that helps you audit upto 50+ service failures committed regularly by your shipping carriers and save instantly upto 20% of your shipping costs. Our realtime tracker also empowers your business to predict delivery exceptions and help you make data driven logistic decision.

Are you willing to take a calculated leap and step out of your in-house process? Sign up now to automate your shipping invoice audit process.

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