Inbound Logistics | January 2023

Retail E-Commerce Sales Worldwide (2014-2024) In billion U.S. dollars

deliveries has often been around speed. However, battling for one- or two-day delivery quickly gets pricey. The last mile of the e-commerce supply chain can account for 60 to 70% of overall e-commerce logistics costs, based on industry research and conversations with shippers, Taranto says. It is possible to rein in delivery costs. “The emergence of consolidators, and regional and local carriers, provides potential opportunities to improve both cost and service where there is a good t for the shippers’ business,” Taranto says. And while e-commerce operators can’t ignore delivery expectations, it’s not the only metric to consider. Accuracy, options, and communication also matter. Many online consumers also want to be able to choose from several delivery options and then be condent everything will arrive as expected. As they wait for their goods, they also expect communication that tracks the shipment. STILL EVOLVING Looking ahead, the e-commerce world will continue evolving. One example is the growing interest in “intelligent substitution” for e-commerce orders, Nuce says. Offering alternatives is an efciency play, but it requires e-commerce companies to know their inventory, the alternatives to each product, and each consumer’s preference. For example, if a retailer is out of organic berries, which customers will accept non-organic? Articial intelligence and machine learning will be used to assemble the relevant data and disseminate it to another system or human that can make the decision. Yet even as e-commerce changes, the critical role of logistics and supply chain operations as drivers of differentiation and performance will remain. “The past few years have put supply chain in the spotlight,” Riskowitz says. Companies that invest in operationally savvy employees and in operations solutions such as order management systems can gain phenomenal returns. n

Source: Shopify E-Commerce Trends 2023 report

Advancements in technology and the growth of available marketplaces have made it easier than ever to buy and sell online. The e-commerce market is expected to grow by almost $11 trillion between 2021 and 2025.As businesses came online during the pandemic, the global trend toward digitization surged ahead at lightning speed. Even as regions begin to reopen, e-commerce sales are still climbing. Global e-commerce sales are expected to reach $5 trillion in 2022, and $6 trillion by 2024.

service. This streamlines logistics processes and allows customers to easily schedule and track deliveries. Once products start their journey to the end customer, the focus on

One step that can help is integrating order management with the logistics function, says Anar Mammadov, owner and chief executive ofcer with Senpex Technology, a logistics and delivery

106 Inbound Logistics • January 2023