Impact of e-commerce development in the logistics industry
e-commerce: commercial transactions conducted electronically on the Internet.
One of the emerging trends in the business world is undoubtedly the "e-commerce" industry, which allows individuals to order products whenever and wherever they want within the day. With regard to transportation, the ease of these online shopping has altered customer expectations by increasing their demand for more frequent messages. In addition to the low cost and short delivery time of products, there are other options that enable tracking or tracking of their products via online platforms from the supplier's warehouse to delivery to customers. With such a growing demand, transport companies have higher profits but also need to keep in mind a steadily growing trend of this industry. People always require shorter transport times and easier use of ordering applications, which requires the addition and expansion of warehouses with products and the development of an airline fleet.
For a better demand optimization, according to BusinessInsider, companies like Amazon are expanding their warehouses so that they can lower the delivery time. In addition, Amazon is expanding its aviation fleet in partnership with Boeing, where they have recently converted 9 passenger airplanes to logistics, the number that has reached 40 in general so far, compared to the UPS that owns 240 planes and FedEx consisting of out of 370 such aircraft is still small.
UPS is collaborating with research centers that will help them create a transport plan that focuses on urban areas and aims to address common obstacles such as limited parking and traffic jams during rush hours. With this, the company is trying to reduce the delivery time and have a comparative advantage over Amazon as the biggest competitor.
In addition to better distribution in orbiting areas, a "e-commerce" industry's development will also enable an expanding scope in rural areas that, according to supply chain management professionals in America, includes 28% of the total cost. As the next "milestone" leading to improvement of the situation is an accurate marking of homes and apartments with updated addresses. As a means of achieving this, "Roedie" who prefer to call themselves "Uber" of the transport industry. Like Uber, Roedie is part of the common economy, which relies on individuals as independent contractors carrying out various goods deliveries to their destinations.
Though this industry boom has raised some operational bottlenecks for transport companies, this industry obviously has a big future ahead. Transportation and logistics can be the next billions of dollars for e-commerce industry companies. According to the World Bank Boeing and Golden Valley, the world transport market, whether it be water, air or road, is a $ 2.1 trillion market. With a greater geographic reach (including rural areas) of social networking, resulting in increased number of orders, companies such as Amazon, FedEx and UPS will be the pioneers of an innovative structural transport industry on a "user-friendly" platform.
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