The Surge of E-Commerce Shipping: Alexis Asks

Managing editor Alexis Mizell-Pleasant asks industry experts about various topics developing in the supply chain field. Strategies that implement efficiency enhancing tools will be the ones to keep up in the coming years.

Adobe Stock 323829328

In a recent report by UPS Capital, merchants reported a 30% increase in shipping volume driven by e-commerce growth over the past two years. Why? Look at online shopping, which is expected to continue to boom, growing by more than 10% annually through 2027. This new dawn has ushered in its own set of challenges, including the always looming risk of lost, delayed and stolen packages — threatening merchants and customers alike, and often ruining relationships that strip away the chance for repeat buys. 

Siddharth Priyesh, vice president of CrimsonLogic, says the surge in e-commerce shipping volumes highlights the rise of omni supply chains and reshapes logistics processes. "This surge poses challenges like capacity limitations and fulfilment speed issues, especially during peak periods. However, it also underscores the ongoing expansion of online shopping, urging retail models to integrate physical and digital channels to meet evolving customer demands and offer a seamless customer experience which is key today."

We hear a lot about forecasting models and AI optimization in so many sections of supply chain but in this specific instance, it seems to play a larger role in mitigating those opportunities for pitfalls and helps merchants maintain a positive brand image.

"AI-driven solutions play a pivotal role in optimizing operations, facilitating demand-supply forecasting with predictive analytics, and efficient delivery with route optimization, automated customs compliance data entry and end-to-end shipment visibility," says Priyesh. "AI enables businesses to better manage risks by providing insights into market risks and alerting logistics service providers to incorrect customs declaration filings before submission, enhancing risk management effectiveness."

As the cornerstone of supply chain and logistics, planning is also a key feature here. Strategic adaptation, Priyesh explains, is essential to navigate challenges and capitalize on the opportunities presented by the era of omni supply chains.

Now bigger than ever, modes of reaching customers have revolutionized the amount of people getting their hands on a given product. That means more profit, but it also means more moving parts. Strategies that implement efficiency enhancing tools and place an emphasis on tracking analytics that offer actionable trends will be the ones to keep up in the coming years.