The Retail Revolution and Supply Chain Management
You may not know it, but we are experiencing a retail revolution. As modern consumers continue to push for convenience and instant gratification, we witness the steady growth of e-commerce, alongside traditional consumer purchasing. In fact, studies show that e-commerce sales are growing at 10% to 12% CAGR.
Shifting Retail Strategy: Adapting to Change
As a result, the retail strategy is changing. Retailers, both big and small, are expected to closely manage their relationship with consumers, largely through the provision of a seamless online and offline experience. Not only are they expected to encourage repeat store visits for those shoppers who still prefer an in-person experience, but they also have to optimize their online channels for a consistent, user-friendly, intuitive shopping experience. Retailers need to examine their supply chain logistics carefully to meet these demands. Learn more about how the sales process has changed in the 3PL industry to adapt to these shifts.
Focus on the Customer Experience
As retailers build out their transportation management strategy and seek partnership with qualified 3PL vendors, it’s important to identify those suppliers which have an intimate understanding of the retail environment.
Retail, after all, is not an easy process from a supply chain perspective. Those transportation providers with experience in this realm rely on carriers who are intuitively aware of the customer experience; shoppers in the store during the shipment pick-up or drop-off, as well as those receiving the shipment. Ultimately, if a driver doesn’t have a positive relationship with store associates, the retailer’s business could suffer. With this in mind, there exists an integral code of conduct that vetted drivers must adhere to in order to establish and cultivate great relationships with retailers and, in turn, inspire a seamless supply chain.
Learn more about the importance of partnerships in 3PL logistics and how it can positively impact the customer experience.
Going Digital: The Supply Chain of the Future
The retail industry has largely gone digital, so it should come as no surprise that the supply chain is following suit. As same-day and multi-hour deliveries become more commonplace, retailers will continue to demand a more transparent transportation process, that allows them to know exactly where shipments are and when they will arrive. Learn how MacSync technology offers complete visibility and tracking for retailers seeking this level of transparency.
In fact, Bain & Company found that retailers that integrate digital technologies into their supply chain rapidly improve service levels while cutting costs by up to 30%. McKinsey also states that companies who strongly digitize their supply chain could expect to boost their annual growth of earnings before interest and taxes by 3.2%, and their annual revenue growth by 2.3%. Fortunately for retailers, 3PL providers like Mactrans are in the process of rolling out digital technology that allows for complete transparency along the supply chain, inviting a more informed shipping experience.
Leveraging Data to Enhance Logistics Efficiency
One critical factor in the evolution of retail logistics is the use of data analytics to optimize supply chain operations. By analyzing patterns in customer demand and inventory levels, retailers can make informed decisions on stock management and shipping timelines. Partnering with a 3PL provider like Mactrans allows businesses to gain access to real-time data and insights that streamline operations, reduce costs, and improve customer satisfaction.
Cross-Border Logistics for Retailers
In an increasingly globalized market, cross-border logistics has become a significant challenge for many retailers. Mactrans specializes in cross-border shipping between Canada, the U.S., and Mexico, providing seamless solutions to help retailers expand their reach while maintaining operational efficiency. With extensive knowledge of customs regulations and international shipping protocols, Mactrans helps businesses navigate complex cross-border logistics with ease.
Reducing Environmental Impact with Sustainable Logistics
As sustainability becomes a priority for consumers, retailers must also adapt their supply chain strategies to reduce environmental impact. Mactrans MacSync technology plays a key role in optimizing delivery routes to minimize carbon emissions. Retailers can work with Mactrans to develop green logistics solutions that not only align with their sustainability goals but also appeal to eco-conscious customers.
Is Your Supply Chain Ready for 2024?
2024 looks to be an exciting year for retail, with ICSC forecasting retail sales growth of 3.7% this year. The only question that remains is this — can your supply chain handle it? If your business needs the help of dedicated transportation experts who can optimize, manage, and scale your supply chain, Mactrans can help.
