E-commerce changing the logistics approach

Logistics has become a more important part of business than ever before. Because of the ability of users to connect to the internet from anywhere and shop right from your smartphone, organizations that are not proficient at fulfilling these orders, can quickly find themselves on the outside looking in.

A recent article from FleetOwner Magazine examined the ways that this landscape is changing.

According to Robert Nathan, the CEO of Load Delivered Logistics, the use of logistics has expanded to include more than just a focus on pushing goods from distribution centers to big box stores. The shift includes goods bypassing the stores and being delivered directly consumers home. This is changing the logistics dynamic significantly.

The evolution of shipping is the result of the growing e-commerce landscape. Along with direct-to-consumer shipping and the omni-channel approach to distribution demand, the 3LP industry must be ready to change.

"Technology is what will make a 3PL more agile, especially in terms of e-commerce; it's what will allow a 3PL to integrate with an online shopping cart," Nathan to the news source. "Six to eight years ago this kind of technology and this kind of shopping pattern didn't exist – and it's why traditional logistics services won't necessarily provide the right solutions."

He added this will lead to two changes. First the bigger companies will grow and merge to meet the scale of omni-channel. Second, smaller organizations will take advantage of niche opportunities in the market.

More companies are going to need to improve their logistic solutions if they want to be able to keep up with what customers demand.