E-commerce has revolutionized the way the world shops, but it’s had an even bigger impact on the business side. Companies are making sweeping changes in logistics and supply chain management to accommodate the new virtual landscape of retail.
E-Commerce: Keeping Pace with Customer Demands
Customer expectations for speedy deliveries are driving a shift in “last mile” strategies as companies seek ways to create delivery windows of as little as two hours. Regional distribution centers are giving way to facilities located in dense urban areas where most of the customers are.
As small and medium-sized enterprises (SMEs) struggle to compete with industry giants for market share, they’ve come to rely on third-party logistics (3PL) operators to facilitate distribution and fulfillment services. Chinese e-commerce company Alibaba recently rolled out One Touch, a high-tech platform that allows merchants to directly handle export-related services.
Amazon Leads the Way
Not surprisingly, Amazon has been in the forefront of many of these changes. They’ve been aggressively expanding their logistics and global shipping operations since 2012, causing much of the shake-up in traditional supply chain operations.
According to a report from real estate services firm Colliers International, Amazon is using its Amazon Prime service to control supply chain operations and improve delivery times. Amazon is also becoming a de facto 3PL by opening smaller distribution facilities near customers.
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