With the exponential rise of e-commerce and the outsized impact of peak seasons, Black Friday and Cyber Monday mean the retail logistics industry will be busy — and full of potential chokepoints.
How do shippers and LSPs focus on logistics cost management, improve supply chain resilience, and create a truly orchestrated, transparent value chain that enables real-time reactions to avoid supply chain disruption?
The answer lies in your transportation management system.
Retail Logistics Costs Rising
As consumers order (and return) more goods through online and mobile channels, they expect fast delivery and “ship to store” options at every turn. The cost of providing those logistics services is skyrocketing.
In its 2023 State of Logistics report, CSCMP found that domestic logistics costs topped $2.3 trillion in 2022, a 19.6% increase, year over year. That’s 9.1% of America’s GDP.
Why Does Omnichannel in Retail Logistics Matter?
Orchestrate Omnichannel Logistics Using Omnimodal TMS Applications
Using a TMS to ensure you select the right mode for every shipment will optimize omnichannel e-commerce service, guaranteeing the retail logistics shipment lifecycle proceeds without a hitch.
Take ERP as an example. With ERP integration into your TMS, your system will always know the closest available item for each order. In this retail environment, customers are demanding the ability to choose “store pickup” or other delivery options. An omnimodal TMS works with your ERP system to make seamless deliveries happen.
Calculate your potential Saving While Using an enterprise TMS
Your Retail Logistics Operation Needs a Purpose-Built TMS
Upgrading to a TMS that can handle omnichannel retail by embracing omnimodal logistics is the best way to create a resilient supply chain infrastructure ready to handle increased consumer demand alongside growing supply chain disruptions.
Download our brochure to see how MercuryGate TMS is built for retailers and designed for omnichannel delivery, backed by real-time shipment visibility, robust planning tools, and automated offerings that let you remove manual processes from your operations.
Frequently Asked Questions
How does the integration of emerging technologies, such as AI, impact cost management and supply chain resilience in retail logistics, and what challenges do these technologies face in proving their effectiveness?
Emerging technologies such as artificial intelligence (AI) are increasingly utilized in retail logistics to enhance cost management and supply chain resilience.
AI-powered analytics offer predictive insights into consumer demand patterns, helping shippers optimize inventory levels and distribution routes. Additionally, AI-driven automation streamlines processes like order fulfillment and route planning, reducing operational costs and improving efficiency.
However, challenges persist in proving the effectiveness of these technologies, including the need for large-scale implementation, data integration complexities, and ensuring alignment with evolving customer expectations.
Beyond the seamless customer experience, what specific challenges do shippers and LSPs face in implementing omnichannel logistics, and how do they address these challenges?
Implementing omnichannel logistics in retail involves addressing various challenges beyond providing a seamless customer experience. Shippers and logistics service providers (LSPs) must synchronize inventory management across multiple channels to meet fluctuating demand while minimizing stockouts and overstock situations.
Additionally, coordinating transportation logistics for omnichannel fulfillment requires efficient routing and delivery strategies to optimize cost-effectiveness and meet service level agreements.
Managing complexities such as inventory visibility, order orchestration, and reverse logistics processes further adds to the challenges faced by retailers in adopting omnichannel strategies.
what are common obstacles or complexities encountered during the integration of TMS and Existing Systems like ERP, and how can companies overcome them to ensure smooth operations?
Integrating transportation management systems (TMS) with existing enterprise resource planning (ERP) systems presents several common obstacles for retailers. These challenges include data compatibility issues between disparate systems, complexities in aligning business processes, and ensuring seamless communication between platforms.
Additionally, customizations may be required to accommodate unique business requirements and workflows, adding to the complexity of integration projects. To overcome these obstacles, retailers often engage in thorough system analysis, collaborate closely with software vendors or integration partners, and leverage standardized data formats and Application Programming Interfaces to facilitate smooth data exchange between TMS and ERP systems.
