Trends in Logistics, Fulfillment, and 3PL Supply Chain Management
The logistics industry has undergone significant transformations post-COVID-19. Some new trends emerged in 2020 when COVID-19 peaked, shaped the landscape through 2021/2022 and promises to shape through 2023 and beyond. With more people buying online, there has been a tremendous increase in demand for home deliveries, which is driven by the growing clout of online consumers and their increased expectations for convenience. Although these advancements promise improved customer experiences, they also come with challenges, such as economic volatility, inflation, and persistent disruptions in the supply chain. Despite these challenges, the logistics sector has adapted to the evolving market conditions. This post explores the hot trends in logistics, fulfillment, and supply chain management influencing online businesses worldwide. Contact us today to discuss your order fulfillment requirements.
4 Popular Third-Party Logistics, Fulfillment, and Supply Chain Management Trends Shaping 2023 and Beyond
The following are 4 popular third-party logistics, fulfillment, and supply chain management trends that will drive businesses beyond 2023.
Amazon Diversification: Amazon accounts for 38% of the total eCommerce revenues in the US! According to a study, as of April 2023, 9.7 million sellers are selling through Amazon globally, with over 1.9 million active sellers relying on Amazon Central and Vendor platforms for their business. The company operates through 100 fulfillment centers and 300 delivery centers worldwide.
Despite these promising statistics, the trend of Amazon diversification is one the rise among online businesses. This is all due to supply strategies adopted by Amazon to meet the rising demands of customers during and after the pandemic. The company prioritized medical and household supplies over other shipments, which caused major delays in some good shipments, thereby leaving the businesses to incur the dissatisfaction of their customers. As a result, now online businesses are keen to diversify on other fulfillment platforms, such as Target.com or Walmart.com to avoid shipping delays, or the instances of understocking or overstocking. This diversification is set to help online businesses and third-party logistics service providers in many ways.Technology Integrations: Connectivity has emerged as a key differentiator for most third-party logistics fulfillment services in the US. Most of these services rely on advanced eCommerce warehouse solutions like warehouse management systems, inventory management systems, automated order fulfillment, and so on to improve efficiency. These integrations help them cope with the rising customer demands and fast-evolving market conditions. This trend is expected to continue beyond 2023, too.
Green Supply Chains: A survey by CGS Retail and Sustainability indicated that almost 68% of consumers are inspired to buy from online brands that practice green supply chain practices. There are several green supply chain practices such as using alternative fuels for fleet operation over fossil fuels, route optimization, cutting down on packaging, and so on. Many third-party eCommerce shipping and fulfillment services are using parcel lockers, bikes, and electric vehicles for last-mile deliveries wherever applicable.
Robotics Investments in Warehouses: Robotic vision systems, picking arms, and intelligent software applications are used in many warehouses to improve productivity and minimize shipping-related errors.
We are halfway through 2023, and new third-party logistics trends are shaping up. Many 3PLs have already incorporated these trends and working harder to mitigate the challenges of these trends and astronomical operating costs. If you are an online business wishing to leverage the upcoming trends, you can partner with experienced third-party logistics fulfilment services like 3PL Business. We are well-equipped to meet the challenges and requirements of evolving trends in 2023 and beyond. Feel free to contact our experts at (732) 983-4801 or email at sales@3plbusiness.com to share your thoughts on the upcoming trends, challenges, and opportunities they offer. Our experts will happily answer your queries on these trends and offer you the best solution for your needs.