More people are taking comfort from shopping online from the comfort of their own homes. With today’s technology, it makes e-commerce a lot more efficient and effective. E-commerce logistics and parcel shipping are the livelihoods of many businesses. Aside from the everyday use of parcel services during the regular shopping seasons, they can also hold the key to a successful peak season.
Using Various Freight Tactics to Reduce Costs & Streamline Management
Parcel Shipping and E-Commerce Go Hand-in-Hand
In the last decade, ordering online was somewhat a new trend. Today, e-commerce has exploded into a large and integral part of society. If businesses are not exclusive to e-commerce, most still participate in some form of online services that provide home shopping and shipping. E-commerce cannot be successful without a useful and timely parcel shipping service. Almost all e-commerce run businesses rely on the ability of a parcel shipping service. During peak seasons and holidays that increase the number of online shopping consumers partake in, parcel services are essential to adjust their procedures accordingly. Losing time equates to the loss of income for businesses and service providers.
The advances in e-commerce and parcel shipping have led to a more competitive atmosphere. According to DC Velocity, “Consumers increasingly want faster, more flexible, and lower-cost parcel delivery services. They want the ability to manage the entire transaction on their mobile smartphone—from product selection to payment to carrier selection to real-time, up-to-the-minute shipment tracking. That’s changing the market for all participants, from small urban last-mile delivery startups like Deliv to regional parcel carriers such as OnTrac, all the way to the industry’s largest and longest-established players—United Parcel Service (UPS), FedEx, and the U.S. Postal Service.” All these moving parts create a user-friendly experience and a complete operation for business to boom.
Parcel Management Represents an Added Strain on Resources
Parcel management works to increase its geographic footprint to branch to more areas of the market. Parcel shipping is a highly competitive market, and being able to upkeep the growing demands of e-commerce will contribute to its success. Parcel management has many benefits, such as economic sustainability, higher customer service and satisfaction, and increased revenue. With these benefits, they can also be an added strain on resources. Customers want on-time delivery at low costs. This can strain transportation efforts, value to the carrier, cost to the consumer, or even the warehouse. The growth of the e-commerce industry has also contributed to increased rates. Factors that can lead to extra costs at the parcel carrier’s expense are services such as flat-rate shipping or waived shipping. Allowing these services is imperative to retaining patrons due to the incredibly competitive atmosphere that is parcel shipping.
How to Improve Parcel Shipping Efficiency for Peak Season
Timeliness is the most essential part of parcel shipping services. The ability to provide low-cost shipping while operating on time restraints is the key to the most successful parcel carriers. According to Supply Chain Dive, “USPS posted the best on-time delivery rate in peak season 2018 with 98.8% of Parcel Select deliveries made on time, followed closely by UPS at 98.3% on time and FedEx at 97.6%.” Some of the ways to increase efficiency for peak season and maximize parcel optimization are:
- Use an advanced, parcel-capable transportation management system (TMS).
- Work with more parcel carriers, recognizing their differences and which carriers may offer lucrative discounts for companies with shipper-of-choice status.
- Avoid delays with integrated supply chain systems that work together to help uncover new insights with business intelligence tools and big data analytics.
- Consider using dropshipping, eliminating the need to manage the transportation and order fulfillment steps of online purchases.
- Run automated auditing programs to avoid double billing, identifying problem carriers, and ensuring 100% on all invoices.
- Hasten freight settlement with digital processes reduces inconsistencies and shortens the payment clock for small fleet owners.
The advancement of technology makes predictive methods useful in that they show consumers their options. These methods will assist in strengthening the ties between the carrier, the business, and their customers. They will also help eliminate some middlemen and support profitability.
Parcel and E-Commerce Will Only Continue to Grow Simultaneously
Parcel shipping and the e-commerce industry are booming without the added pressure of an omnichannel peak season. Peak season success is contingent on the relationship between the parcel carriers and the businesses they service. On-time delivery is crucial to forging the trust and rapport needed for peak season. These factors will continue to increase revenue for the company and the parcel carriers while preserving consumers’ expectations.