The massive consumer demand of the post-pandemic period has forced e-commerce retailers to require ever faster shipping. Speedy deliveries from companies like Amazon have adapted consumers to same-day service for little or no additional cost. As a result, freight forwarders are also adapting to this new business paradigm with increased efficiency.
E-Commerce has also resulted in freight forwarders needing to provide their customers with reverse logistics.
One challenge of e-commerce comes from consumers returning online purchases. For example, shoes often fit poorly when tried on at home, resulting in a return. Freight forwarders have adopted strategies to manage reverse logistics for their customers, so returns can be processed with a minimum expense.
To adapt to changes in consumer expectations, freight forwarders have created processes for meeting ever shortening delivery windows. For instance, old-fashioned, long-haul delivery has been supplanted by just-in-time delivery. Long hauling simply takes too long, so many suppliers have changed their process from a central storage facility to many smaller, regional warehouses. Freight forwarders now increasingly focus on shorter routes in local areas.
Different types of vehicles have come with these more localized routes. For instance, many freight forwarders have found it profitable to invest in smaller vehicles, such as vans and bikes, because they are ideal for short-distance, frequent delivery runs.
The Technological Edge
Freight forwarders have found an ally in new technologies. To keep pace with the competition, many have turned to big data. The vast amount of useful data collected through operations is far too large for a single person or team to analyze. Artificial intelligence, however, can collect, categorize, and analyze mass amounts of information in seconds. Managers can then use this information to improve process flows.
Digital payments through mobile devices are another key technological change. In an increasingly cashless society, customers increasingly prefer to pay online using a card. This provides ample opportunity for data collection and artificial intelligence aggregation. Because of this, e-commerce and freight forwarding companies can better understand their customer base. The end results are faster shipments and more satisfied consumers.
Customer Service Focus
E-commerce logistics has increased its focus on customer service through more significant customer collaboration efforts and growing capacity for tailor-made services. In today’s competitive environment, adding a personal touch to services goes a long way.
For instance, chatbots provide instant responses to delivery inquiries 24 hours a day. Also, artificial intelligence tracks shipments with speed and accuracy, formerly possible only in science fiction. When a problem occurs during the shipping process, tracking software detects the problem immediately and either correct the issue or informs the freight forwarder.
This enables more frequent communication with customers and a smooth, stress-free customer experience.
Unconventional Delivery Solutions
Speaking of science fiction, the e-commerce sector is advancing in unconventional delivery solutions. For instance, drone- and robot deliveries are now becoming a reality. Amazon’s Prime Air can make deliveries in less than an hour through its fleet of drones. Moreover, these drones can deliver lightweight packages and more heavy-duty drones may crisscross the sky’s in the future.
As of June 2022, Amazon’s delivery drones are employed in several test territories around the world. Popular merchandise for Amazon’s drone deliveries includes time-sensitive products, such as pharmaceuticals.
In addition, self-driving vehicles offer promise as last-mile delivery solutions. For example, they can move products from a local warehouse to their final destination. Because no driver is needed, they can operate at any time.
Robotic delivery also allows for contactless product transport to the end-user. The pandemic has shown how critical contactless services can be. These devices can stop the spread of COVID-19 and future novel diseases during quarantine periods.
In fact, robotic deliveries are already taking place in several states to transport groceries and other essentials. As regulations allow for more self-driving vehicles and consumers adapt to the new paradigm, the use of these technologies should increase.
Whether freight forwarders will step into the unconventional delivery space remains an open question. While ecommerce companies are exploring these technologies now, their proliferation may bring them into the freight forwarder ecosystem.
E-Commerce continues to advance technologically with a new delivery, customer service, and tracking options. The results are enhanced customer service, shorter delivery times, and lower costs. As the industry progresses, consumers can look forward to ordering their products online and receiving fast deliveries because of automated processes.
Overall Freight Management
Running a freight forwarding business requires transparency and efficiency in order to thrive as well as survive in an extremely competitive industry. This is achieved with freight forwarding software that is unique to your businesses’ needs.
CSA Software has been developing customized freight forwarding software products for more than 35 years with continued success. Providing transportation management systems to domestic and international freight forwarders through cloud-based software helps take businesses to the next level as they continue to grow. Call us to learn more about the aspects of freight forwarder software and how it can help your business! Free Demo