Don’t Think You Need Parcel as Part of Your TMS? Think Again.Posted on May 07, 2019
Those shipping in the B2C space realize that parcels are huge. Well, physically, most aren’t, however, as a whole, the parcel shipping industry is booming.
The global parcel market was almost $380 billion (USD) in 2018, up from just over $340 billion (USD) in 2017, according to the Global Parcel Delivery Market Insight Report 2019, and growth is expected through 2023.
Spurring this on is the growth of eCommerce—and the omnichannel shipping methods being adopted by many e-tailers. Globally, online purchases account for slightly over 10 percent of total retail sales, up from around 5 percent in 2012, according to the report.
To meet these demands—not only in volume but in service—retail and e-tail companies can no longer rely on singular distribution centers. Today, they are implementing strategies that will deliver shipments from an endless aisle. They are shipping from inventory held by stores and suppliers that are closest to their customers, thereby reducing the cost of free shipping while speeding up delivery.
This has led to a shift in the way many supply chain partners, including manufacturers, ship. Instead of aggregating loads on freight carriers, they now have to deal with more frequent and smaller shipments, as well as manage more carriers.
Carriers have also had to learn to adapt to eCommerce’s impact on the industry.
For carriers that have traditionally handled freight via FTL and LTL, along with more traditional national, regional, and local carriers, the need to manage parcel shipments becomes essential, even if it hadn’t been part of the mix in years past. Even companies not known for shipping are looking to get into the fray, especially as consumers are more willing to purchase goods online such as furniture, luxury items, and home goods, once thought to be exclusive to brick-and-mortar retailers.
In fact, according to an article in Freight Waves, one of the ways freight carriers are approaching LTL or parcel shipping is through the introduction of new last-mile delivery services that would typically remain parcels.
All of this change — and rapid change at that — Is adding to the complex management of transport to keep costs in line.
Join Pierbridge and Cerasis for a webinar at 1 pm on June 4 to learn more about the value of adding parcel to your current TMS, including:
• Achieving full omni-modal with alternative delivery channels
• Managing local courier and final mile
• Managing deconsolidation of shipments
• Drop-shipping to your customers’ end customer
• Implementing cartonization
• And more