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Being Certain In Times Of Supply Chain Uncertainty
There are some common sentiments going around right now: fear, insecurity, panic, unease, and – if you're not careful – negativity. One feeling that is definitely in short supply these days is certainty. And no wonder – in a relatively short amount of time, most people's personal and professional lives have been turned upside down. What is certain, though, is that e-commerce shipping – and its impacts on residential shipping – has been particularly affected by the ongoing pandemic, with many online retailers reporting year-over-year revenue growth of up to 75% (or more) in the early days of the pandemic1 – a trend that's sure to continue for months to come.
Supply chain trends over the last six months
Immediate and lasting impact to online shopping behavior affecting e-commerce shipping
Consumers are avoiding in-store shopping and embracing e-commerce like never before. Experts believe that this shift in consumer behavior is likely permanent, and that a majority of consumers will continue to prefer an online shopping experience even when it's safe to resume shopping in stores. Even as customers shop more online, their purchasing power has taken a hit as the pandemic's accompanying economic downturn has reduced employment levels and paychecks.
A rise in residential shipping
Besides the increase in e-commerce shipping, there has been a general trend away from office-related deliveries and toward residential ones. This makes sense, as many office workers have transitioned temporarily or permanently into home-based situations, leading to fewer B2B transactions and more B2C ones. In recent months, UPS® has seen their volume shift to predominantly residential deliveries – a major change for many shipments previously bound for office locations that now sit unattended.
Major disruptions to the global supply chain
The aforementioned quarantine measures and headcount reductions have wreaked havoc on the predictability that the global supply chain counts on for consistency. To this day, and likely for the foreseeable future, ports are closed or jammed up, parcel shipping carriers have reduced capacities, and factories and not producing at their pre-pandemic levels. This overall lack of predictability greatly influences another key e-commerce aspect: shipping rates.
Large fluctuations in shipping rates
Businesses and consumers that have counted on fairly stable and predictable shipping budgets have been rocked by rapidly fluctuating rates as retailers, producers, and carriers all attempt to adjust to the "new normal."
So whether you've seen an uptick in your e-commerce business that has you scrambling to fill more orders than ever, or you've seen a residential shift in your recipient locations as more companies make remote work a long-term solution, you're probably looking for ways to regain control over your supply chain.
How to manage uncertainty in supply chain
One choice you can make to add some predictability into otherwise uncertain times is building a partnership with a trusted third-party logistics (3PL) provider. Here are a few ways the right 3PL can inject some certainty into your shipping operations:
A 3PL relationship from Day 1
Nobody knows your business like you do, but a trusted 3PL can come in at a very close second. They'll take the time to get to know your business's unique shipping needs and ensure that you have the right shipping solutions to meet them regardless of what supply chain trends may look like. Learn how WWEX can partner with your business.
Access to carrier capacity
Although carriers are quickly adapting operations to meet the demand shift from B2B to B2C, there's still a crunch on available capacity that could affect your shipments. Because 3PLs negotiate with leading small package and freight carriers, their customers generally get priority when it comes to limited space.
Forward-thinking 3PL advice
Your ideal 3PL partner doesn't just know your business, they also have the experience and foresight to know the road ahead. While nobody has a crystal ball, on-the-ball 3PL providers are the best-equipped to help you adapt and pivot during in a chaotic business environment. Their seen-it-all experience is priceless in helping you not only address immediate challenges, but also plan for the future so that your business is as prepared as possible with a disaster recovery plan should the worst occur. See how WWEX is a top, forward-thinking, 3PL.
A one-stop shop
With a powerful 3PL in your corner, the days of shopping around for the best rate, route and shipping tools are behind you. The right 3PL will provide top-to-bottom, streamlined service that will allow you to easily and intuitively control every aspect of your shipping. Billing, real-time shipment tracking, proper parcel insurance and more are all at your fingertips.
Shipping rates that won't grate
As e-commerce and residential shipping demands increase, you want to make sure that your parcel shipping costs stay predictable and within your budget. A great 3PL can provide you with the best possible value for your shipping dollars, especially in these residential delivery-heavy times, and can also be a handy companion that provides cost-saving small package shipping ideas, such as packaging best practices.
The only thing that's certain about the coming months is that uncertainty will continue to prevail for most businesses. Do your peace of mind – and bottom line – a favor by partnering with an experienced and highly regarded 3PL like Worldwide Express.
Your dependable 3PL provider, no matter the times.
Get started with a custom shipping consultation today and see how you can leverage our experience and expertise to provide your business some certainty in uncertain times.