E-Commerce Growth Surge Sparks a Logistics Free-For-All

3 Dec 2020


E-commerce has exploded in recent years, but as COVID-19 emerged the sector has seen unprecedented growth. While many industries battled disruptions, e-commerce provides opportunity. E-commerce and logistics companies are accelerating planned innovation and restructuring initiatives to stay ahead of the curve — if that’s even possible — spurring the implementation of three to five years of advancements in a span of just five months to keep up. It’s akin to upgrading the jet while traveling at Mach speed.

This significant growth in online sales shows no signs of slowing, with Deloitte forecasting e-commerce sales to increase by 25–35 percent year-over-year during this upcoming holiday season, compared to an increase of 14.7 percent in 2019. Retailers and shippers cannot deliver on these demands unless the broadest selection of inventory is positioned close to significant populations. It all boils down to having the right inventory in the right places at the right time.

Nothing happens on the shop floor, whether digital or physical, that doesn’t have an impact on the supply chain. Ever-changing consumer behaviors mean real estate and supply chain professionals must make quick decisions during a time when nearly every aspect of the industry is in flux. Everything from network planning and building size to labor and automation is changing — not to mention the expectation of free and faster shipping.

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