Transport and Logistics Newsletter

The Impact Of E-Commerce On Supply Chains

How online shopping is transforming the transport and logistics industry.

T he rapid growth of e-commerce has revolutionised the way people shop and consume goods. According to a report by the United Nations Conference on Trade and Development (UNCTAD), global e-commerce sales approached $25 trillion in 2021, representing a quarter of the global gross domestic product (GDP) that year. The COVID-19 pandemic undoubtedly accelerated this trend as more consumers shifted to online platforms to buy essential and non-essential items. However, this massive increase in online trade has also created new challenges and opportunities for the transport and logistics industry. As e-commerce customers expect their orders to be delivered quickly and efficiently, the demand for faster and more reliable transport has surged. This requires high visibility and coordination across the entire supply chain, from the point of origin to the point of consumption. In this article, Simon Pinion, Business Advisory Partner, will explore how e-commerce is impacting the supply chain and what the implications are for the future of logistics.

The need for speed and efficiency One of the key drivers of e-commerce growth is the convenience and flexibility it offers consumers. Online shoppers can browse and compare products from various sellers and choose the delivery option that suits their needs and preferences. According to a survey by Statista, 49% of online shoppers in the UK said that free delivery was the most crucial factor when choosing an online retailer. In comparison, 28% said that fast delivery was the most important. This means that transport and logistics providers must meet the high expectations of e-commerce customers, who want their orders delivered as soon as possible, sometimes within hours or even minutes. This puts pressure on the supply chain to operate at optimal speed and efficiency, reducing the lead time and the cost of transportation. To achieve this, transport and logistics providers need real-time inventory visibility, the location and the status of the shipments, and the demand and supply fluctuations. This enables them to optimise the routing, loading, delivery and returns of the goods and to respond to any disruptions or delays in the supply chain.

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