In the post-pandemic era, e-commerce platforms recorded a 77.6 percent surge in February 2020 in response to customers of all ages seeking comfort, ease, and security. Third-party logistics providers had to be more versatile, adaptable, and flexible than ever before to satisfy these logistics and fulfilment demands. Despite the post-pandemic balance in 2021 and beyond, leaders will face a fragile supply chain, an ever-increasing and demanding client base, and a significant B2B e-commerce sector. These factors will cause business development problems.
In 2022, retail e-commerce sales -including digital services- were set to surpass one trillion U.S. dollars in the United States. That figure represents a projected 16 percent increase from the previous year when sales were forecast at 919 billion dollars. After 2022, sales will continue to grow by double digits, though with a slight growth rate decline nearing the middle of the decade.
It is important to note that a large amount of space is not necessarily a good thing for 3PLs. The benefits of an alternative to a corporate owned and operated regional distribution centre are lost if the productivity, throughput, and efficiency promised are not delivered. Because demand for space will be driven by e-commerce in the near term, e-commerce sales generate an added 1.25 million sq. ft. of warehouse space demand per billion dollars in sales.
3PLs must emphasise what they’re good at and highlight why alternative providers are suitable for new customers to grow. Only when fulfilment demands are met can manufacturers prepare for unprecedented growth. 3PLs allow manufacturers to deal with growing seasonal spikes that have never been more significant. Only when fulfilment demands are met can a manufacturer plan for rapid expansion. When the warehouse campus is integrated with software, every 3PL executive must connect with clients who desire a competitive advantage. Acknowledgement of the fact that supply chains are complex is also an opportunity to increase efficiency. After a pandemic, demands for warehouse operations to keep up with growing demands, labor issues, and a multitude of other issues present new challenges and conflicts.
Warehouse executives can devise a plan for the future by understanding how successful distribution executives are evolving to a warehouse-first model for visibility and operational efficiency. 3PLs have been ahead of the curve with a wide range of technology solutions, particularly AGVs (Automated Guided Vehicles). Because of the variety of products and clients, the cost-justification was simpler. Although these technologies were previously costly and time-consuming to install, they failed to deliver on their promises. AGVs can be up and running in a matter of months, eliminating the need for hard-to-find fork truck drivers who must receive OSHA training. The AGV has come of age, and in a competitive e-commerce environment, it’s a lifesaver.
ProConnect Integrated Logistics – Your Freight Forwarding Partner
There are many freight brokers in the industry, you need to choose the right partner for your shipment. Your shipment is valuable, and we ensure we treat it like ours. ProConnect Integrated Logistics gets its expertise, experience, and value from working with its group company – Redington. Over the years, ProConnect has established itself as a preferred freight forwarder and logistics partner for many companies in the UAE and Saudi Arabia, catering to a variety of industries.
If you are looking for a partner to take care of all your logistics hassles, talk to us