Parcel Retail Shipping Will Continue to Grow, Despite Slower Than Expected Demand During the Upcoming Peak Season
The Driving Forces of Strong Parcel Demand
- More delivery options, including lockers. This goes back to automated parcel delivery terminals and is a subject that continues to garner more interest. Within the last two years, Amazon created Amazon Key, giving the company authorization to enter consumer homes and has plans to add vehicles with automated systems. As technology evolves, the number and volume of automatic delivery options will continue to grow.
- SKU proliferation via third-party services. Since e-commerce gives customers across the globe the ability to shop anytime and anywhere, companies have taken on the challenge of delivering more products and diversifying their inventory. While SKU proliferation enables more competition and profitability, it comes with higher carrying costs and increased inventory management demands. As a result, shippers must take an even closer look at all available inventory, including inventory sitting in trailers, located on loading docks, and even in manufacturing facilities.
- Increased demand for “smart delivery.” Continuing on the theme of end-to-end visibility and tracking, consumers increasingly want more and smarter delivery options. This includes providing detailed information about shipment status, location, and expected delivery. It is no longer enough to scan the package at touchpoints.
How Parcel Demand Will Shape Your 2019 Peak Season Strategy
- Integrated with your TMS, WMS, and WES platforms.
- Accepted and used among your carriers.
- Ability to leverage data and analytics to gain insights and better predict demand.
- Metrics to track the performance and responsiveness of your supply chain.
- Ongoing improvements through applied analytics and a dedicated TMS that handles all your needs through automated processes.