GROWTH IN LOGISTICS COMPANY BY THE IMPACT OF E-COMMERCE

Dr.D.Sathishkumar, Assistant Professor, SIMS.

            The rise of e-commerce and the digital marketplace phenomenon has changed the composition of consumer buying behaviour and expectations, as customers expects fast, free shipping and competitive pricing. The demanding delivery schedule challenges traditional logistics and supply chain models and companies are forced to adjust the strategies to provide the low-cost and on demand delivery services that customers demand.

            E-commerce accounted for 14.3% of all retail sales in 2018 and 15% in every year. It is assumed e-commerce will raise in 17.5% in 2021. The growth and demand is the impact of logistics and transportation industry with increased volume and deliver expectations. By attractive with a dependable financial collaborator with information of the industry and security, logistics companies can conclude how best to remain aggressive and successful industry changes.

CHANGING CONSUMER EXPECTATIONS

            Consumers have become familiarized to tremendously quick liberation and as more retailers offer fast, free shipping options, logistics companies will need to adjust to the ever escalating deliver pressures that align to developing consumer opportunity and preferences. In the dynamic of the supply chain and fundamentally shifting as companies are enlarging traditional delivery with JIT (Just-in-Time) delivery and suppliers are transitioning from multiple storage facilities to single warehouse location to meet local needs. This motivates in smaller truck and van purchasing for supporting accommodate an increase in last-mile delivery.

            As e-commerce continues to rise, companies need to adjust business models to accommodate the fast, free and convenient delivery service that consumers demand. Last mile delivery specially will be a key area of focus for companies looking to compete in the e-commerce against like online supporting companies.