Top Parcel Shipping Trends to Monitor

Parcel Shipping Trends

Parcel shipping continues to grow in importance and value at the height of e-commerce demand

As explained by Material Handling & Logistics, demand increases for more visibility, lower pricing on logistics, and faster deliveries. U.S. parcel carriers shipped 20 billion packages in 2020, and the profound dependency on logistics and industry developments is a focal point in successful supply chains.

To maintain success, shippers, and logistics service professionals (LSPs) must understand the top parcel shipping trends revolutionizing the industry.

Leading Parcel Shipping Trends Have a Common Thread of Increased Visibility

Increased visibility into shipment-level detail remains the biggest goal for shippers and LSPs. As consumer demands increase, the players in the logistics industry are clamoring to partner with the best and newest technology providers to improve and achieve up-to-the-minute visibility into the location of packages and shipments.
UPS already offers a “Follow My Delivery” feature for UPS My Choice customers, which allows users to follow the truck carrying your package on a live map with updates every few minutes. This type of tracking will continue to become the norm, with carriers investing in advanced GPS technology so all parties will be able to see exactly where a package is en route to the final delivery location. Tracking technology is equally important in the B2B sector.
All successful businesses must now ensure that they are always up-to-date on the location and ETA of their shipments via state-of-the-art tracking systems—not only to remain competitive but also to lower operations costs.

Companies Will Look to Lower Parcel Shipping Costs

Customers already expect free shipping; yet building the cost of shipping into the product price can easily backfire. Customers already have access to highly competitive e-commerce marketplaces that offer fast, free shipping. Meanwhile, those same marketplace behemoths are now on track to offer delivery within mere hours of placing an order. Unfortunately, the fastest parcel shipping option is almost never the lowest cost. As a result, shippers and LSP’s need to look for new ways to achieve cost reductions in parcel shipping.

Compliance with Regulations Will Continue to Affect Operating Costs

The Department of Transportation continuously works to maintain U.S. roads, manage trackers, and improve compliance among industry professionals. As new regulations appear to reduce the volume of “busy” work for drivers, associated technology, such as electronic logging devices, will effectively increase costs for operators through required investments. Furthermore, increased compliance necessitates more data collection, tracking, analysis, storage, and reporting. More information is power, and shippers and LSP’s will look to use data to drive efficiency within parcel shipping throughout 2020.

Increased Outsourcing, Crowd Shipping, Automation, and Mobility Form Another Digital Trend in Parcel Shipping

Shippers and LSP’s need time-saving techniques that attract third-party drivers, improve talent retention, reduce the burden of repetitive, manual processes. This also includes automated controls that intuitively manage parcel shipments in a fraction of a second. Enter the modern transportation management platform (TMP), commonly referred to as a transportation management system (TMS). A modern platform leverages artificial intelligence, machine learning, API-driven integration, and the expertise of thousands of IT professionals across the global supply chain. Since everything is connected to more users within a single TMP effectively increases its value.
Encouraging company-wide usage of transportation management platform, with efficient communication features, document storage, and real-time information, provides multiple benefits, including:
  • Improved collaboration
  • Reduced risks for delays or missed pickups
  • Improved customer service levels
  • A way to augment supply chain processes to meet the demands and growth of e-commerce directly

Future-Proof Your Supply Chain by Implementing a TMS That Empowers Your Team

The parcel delivery market size is rapidly changing, and major industry events and other market forces, represent the changing demands on the shippers today. As companies look to unlock more savings and lower freight spend, every mode of shipping becomes a critical player. Consolidation and strategic partnerships within the industry are the next revolutions and opportunities to work together, improve service levels, and lower costs simultaneously. While arguments exist to support more technology in LTL, FT, rail, ocean, and air logistics controls, the parcel is arguably the most impacted area of transport in the age of e-commerce. Instead of hoping for the best, guarantee success with a modern, innovative Transportation Management Platform and solutions provider.

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Phil Melton

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