As humans, we all live in a competitive world where we compete for the available resources. The same scenario occurs in business specifically in e-commerce whereby one needs to employ a different strategy to remain relevant.
Some of the most valuable strategies include having a thorough understanding of the emerging trends in the market and taking into consideration the Cost, Customer Experience, and Convenience and are taken into account. These and many others will ensure that only the best and quality products are being delivered to the market to satisfy your customers.
We are in a continually changing and inter-connected world whereby it’s increasingly easier to order a product online. Most businesses owners are trying to infiltrate the market and sustain their competitive advantage. Consumers also expect fast, cheap and free delivery.
This has led to a new model by Logistics Company to launch a direct-to-consumer model to support the consumer’s urgent demand and also provide a competitive advantage for logistics companies willing to adapt.
Statistics from U.S. Census Bureau states that more than $440 billion worth of goods were imported from China in 2013. This represents about 19.4% of all US imported goods. This trade relationship between US and China can be seen as a perfect example of the direct-to-consumer logistics model.
Traditional Logistics Process
In the traditional logistics process, the supply chain comprises of customer needs to deal with many service providers all through the logistics process. This makes room for a lot of errors, multiple customer service contacts which will seem confusing in case things go wrong. You also have the issue of numerous contract negotiations and balancing of account issues within the business. Not leaving out the issue of incomplete shipment visibility, and goods lying dormant in the warehouse especially for slow-moving stock, this will affect your profit margin.
Direct-to-Consumer Supply Chain Process (new model)
This model allows your shipment issue to be settled as seamless as possible. In this new logistics, a manufacturer in China can directly ship its products to the U.S. consumer.
With this model, one can bypass the warehouse and save up to 20% by shipping directly to consumers or one company. With this, you will have more time to focus on advancing your business.
You need to ask yourself some questions as the answer will determine which step you would take.
Do I want to focus more on advancing my business or I want to keep spending the time in dealing with multiple carriers? In a competitive market, do I want an advantage over my competitors as regards to cost?
These and many more are the questions you will need to ask yourself. This will help you make an informed decision whether to stay with the traditional logistics process or to embrace the new process.
Ted Frank, Montreal
Global Sky Logistics