E-commerce Trends You Need to Follow in 2020

The global supply chain must evolve to keep up with the modern demands e-commerce places on it. From order fulfillment efficiency to reducing the carbon footprint, most modern logistics companies have their hands full! 

To overcome these challenges, many supply chain management companies are following a few main globalization trends. And in the process, they are learning new methods of meeting e-commerce demands from other companies all across the globe.

The logistics world is currently experiencing several new trends that appear to only be getting more prominent. Some of these include such things as automation, an increased focus on green logistics, and better E2E visibility.

In this blog post, we will take a look at the top 5 biggest e-commerce trends to follow in 2020.

The Growth of B2B

Most companies in the logistics industry are interested in saving as much money and resources as possible. Some approaches to doing this include spending less money per shipment, reducing surcharges, and reducing packing costs. 

One of the hottest e-commerce trends aimed at achieving this is to simply embrace B2B partnerships.

To maximize efficiency and save money on e-commerce delivery and transportation, B2B partnerships allow companies such as Amazon to not only expand their in-house delivery process but also to partner with third-party delivery companies and vendors to offer more flexibility to customers.

Improving Automation 

In 2019, a major shift occurred when automated equipment became reliable enough to be used for order fulfillment. More specifically, automated equipment can be used for picking, packing, and procuring inventory. This means fewer mistakes, more money saved on payroll, and higher standards for workplace safety. 

Robotics is also affecting warehouse and fulfillment centers. In fact, warehouse operators are beginning to integrate robotic equipment to work alongside human workers to speed up and make order fulfillment more efficient. This approach is more than just one of the latest e-commerce trends, it is quickly becoming a valid standard!

Additionally, automated warehouse management systems that are connected to the cloud allow fulfillment centers and 3PL’s (third-party logistics companies) to improve customer communication, adjust customer orders, and reduce the number of missed deliveries, all of which save money on the cost of transporting products to consumers via freight.

Green Logistics

While in times past the idea of a green supply chain was more of a marketing and social buzz term rather than a practical strategy, times are changing. Manufacturers, carriers, and others in the logistics industry are beginning to see how embracing a greener logistics operation is more beneficial financially. 

Going green can help to reduce expenses and improve profitability. Some ways to implement this include swapping out traditional light bulbs for LED lighting, installing natural light windows, and converting gas-powered equipment to electric.

In the transportation industry, some ways to go green include using alternative fuels in addition to EV’s and autonomous equipment to reduce the carbon footprint. Also, each year new technology is being developed to help reduce pollution and better methods of recycling supplies are being discovered.

Growth of Mobile Payment 

In recent years, the number of consumers using mobile devices to make payments has increased. In fact, the usage of mobile payments by people using the internet has increased from 26% in 2016 to 37% in 2018. 

The idea of a cashless society is increasing in popularity. While China currently has the highest number of mobile payments being made, it is only a matter of time before the rest of the world jumps on board with this trend. Ecommerce is thriving because it acknowledges the way in which technology has changed the needs of customers.

Being Able to Deal with Political Uncertainty

The fact of the matter for logistics operators across the globe is that politics will continue to play a role in the upcoming decade. While North America is now ready to accept a new trade agreement, the USCMA (United States-Canada-Mexico Agreement), there is still some political opposition in the U.S and Canada preventing the bill from passing.

There is also some political uncertainty in Europe, such as the U. K’s pending Brexit and political turmoil in France, Germany, and other countries. Also, tariffs between the U.S, China, and other foreign nations are also negatively impacting the logistics world by making it harder for logistics operators to develop a plan for the new fiscal year.

The best way to optimize for success in supply chain management is to know which trends are merely fads and which are truly changing the industry. If you are interested in improving your supply chain operations, it is always a good idea to consult with a professional third-party logistics company. Reach out to Redwood Logistics today!