Okay, here we are, running through the year 2022 full speed. And what have we learned by now? What did the previous two years teach us? Well, we’ve learned that we live in quite an unpredictable world, full of changes and that everything impacts our business. Those experiencing logistics problems know precisely what I’m talking about.
Statistics on eCommerce show that the numbers are declining for the first time in 9 years. Should that worry you? How to be prepared for the unpredictable future, and what changes can you make to secure your eCommerce business?
Oh, and yes, what are the biggest challenges in the logistics segment.
Don’t let your bad logistics experience turn into a bad customer experience in your eCommerce business.
If you have a bad reputation in the industry, it will spread like wildfire. Customers will leave reviews if they are unhappy with the service they received, and they will spread the word if they are happy.
Yes, yes, we all know the drill. But let’s be honest. It’s easier said than done.
If you need to export your goods abroad, or if your supplier is not near you, you have probably had some setbacks over the past two years because we’ve experienced a lot of stumbling blocks.
Remember the cargo ship stuck in the Suez canal? Yes, it’s just a little reminder of how things can go wrong. That accident totally messed up traffic and caused the supply chain crisis.
But that’s not the only thing that made everyone think twice about the efficiency of their supply chain. The problem is that keeping stocks in brick-and-mortar stores is a luxury for most eCommerce stores. And if we add to that customers’ expectation, where they expect to have a fast and seamless shopping experience, the red flag is up.
According to statistics, the estimated average annual cost to respondents’ organizations as a result of global supply chain disruptions in 2021, by region or country looks like the following:
|Country/Region||In millions of US dollars|
|The United States||228|
|The United Kingdom||146|
|DACH (Germany, Austria, Switzerland)||145|
How to deal with this problem? How to decrease the chance of getting into the same situation again?
Simply by doing everything in your power to cover all parts of eCommerce logistics.
The eCommerce logistics process encompasses:
In order to run a successful eCommerce business, each of these phases needs to be covered entirely.
The best practice is to:
So, what can you do to overcome the world economy’s challenges to your business? How to deal with the shift from globalization to regionalization as an emerging trend that recently everyone is aware of?
Diversify your supply chain. You don’t need to cut off every supplier, logistic center, or manufacturer on another continent. But make sure to provide a parallel regional supply chain.
That way, even if your globalized supply chain breaks, or experiences setbacks, your business won’t crash. Look at it as your safety net.
Will it increase the costs initially? Yes. Will it provide your business safety in turbulent times – Yes!
And to run this double supply chain system, you need to automate your logistics.
The logistics and distribution sector includes many sub-sectors, including transportation, warehousing, retail distribution, and other activities that support the movement of goods from the point of origin to the point of consumption.
The sector’s efforts to become more efficient and less costly have led to the automation of many activities and tasks. Electronic data interchange, for example, is a standard method for transferring information and documents between companies, and the use of digital signatures and encryption has made it easier to protect data.
It’s much easier today to automate the logistic processes than it was 10 years ago, and you don’t need to double-check or waste your time on manual input. Everything is done automatically.
Thanks to iPaas solutions, such as SyncSpider, you can connect and sync any app, tool, platform, or marketplace you use and synchronize your business without worrying about making mistakes or hiring an additional workforce.
Logistics plays a vital role in the functioning of an eCommerce business. In order to keep this running smoothly, you need to be prepared for changes and challenges.
Before 2020, the global supply chains were scattered worldwide, and when the transportation issue emerged, we all found out how fragile these supply chains were.
And though this system was functioning perfectly when everything ran smoothly, with low costs and efficiency, the moment we stumbled on the obstacle, we paid double the mistake of not having a backup plan.
How does logistics regionalization fit in it? Well, regionalization is a beneficial way for supply chains to utilize their existing networks of manufacturers by separating them into smaller sites.
Though initially, it might seem a more expensive solution, in the long run, it helps you bring products home to your customers while cutting costs and improving performance. And on top of all, you will have less chance of being stuck if something unexpected occurs.
When an organization breaks down a complex supply chain into smaller regional locations, it can easily streamline processes.
If we look at the eCommerce predictions, we can see that most eCommerce experts talk about AI, AR, virtual reality, mobile-friendly design, and the importance of the supply chain.
But things get even more complicated these days. Shipping prices are jumping sky-high, and it’s easily disrupted by various external factors which we cannot influence.
A few years back, the distance between you and your supplier was not a factor that could disable your functioning, whether retail or manufacturing. But today, we see adverse effects of these business partnerships due to lengthy and costly shipping.
Do you know what the secret is to successful businesses? They are always one step ahead; they always see what will happen in the near or far future. And that’s not their psychic gift; it’s more talent for gathering information and logical conclusions.
Don’t worry, eCommerce is here to stay, but it will transform, especially in a supply chain segment. In order to overcome eventual logistics problems, we will all need to diversify our supply chains and provide a regional backup.
SyncSpider is the app-2-app integration tool built for eCommerce.
Grow your sales by instantly becoming a multichannel retailer, update your inventory between multiple web stores with a single click and connect your favorite eCommerce tools to work flawlessly in sync.