Digital disruption continuously changes how we do business. A strategy that proved effective in 2017 may start to phase out in 2018. Companies, therefore, need to embrace this ongoing digital transformation and reshape their business models to improve customer experience, redefine their brand positioning, and enhance customer expectations. Every logistics company in the supply chain needs to keep track of the following trends in 2018. Continue reading
We are now in the thick of the holiday season. Lots of folks out there are spending quite a bit online to buy gifts for friends and loved ones, and this is where logistics come in. Without the right channels and people in the right places, those gifts will never reach their owners in time. Logistics refers to the complex operation between the point of origin of a product and its point of consumption. It is a highly specialized process that makes sure every item ordered is released from the manufacturer in top condition and gets all the way to the consumer unscathed.
What are the logistics of this holiday season?
We are past the middle of December, and this is a rather hectic time for consumers. While 25% of consumers already shopped in the month of November, the expectation is that 43% are still in the midst of their holiday shopping as the middle of December passes, and the statistics indicate that they are ready to splurge on gifts, with an estimated one third of household budgets going to gifts this month. The average family is going to spend a little over $1,200 on gifts, so logistics providers need to be ready to handle this kind of volume.
In order to understand how the 2017 season is stacking up from a logistical standpoint, we need to look at what happened in 2016. Omni-channel trades for that year’s holiday season amounted to $1 trillion. This year, experts project a 4.2% increase, which is saying something. E-commerce sales in particular totaled $110 billion, and there are excited murmurs about that rising 15.8% this year. Within the total e-commerce number, mobile commerce is also going to be a big deal this year, with an incredible 45% surge projected over 2016’s $22.7 billion in business.
It gets even better
Last year was “the year of massive parcels volumes,” as the holiday statistics would suggest.
- The United States Postal Services delivered 750 million packages.
- United Parcel Service did 700 million.
- FedEx did 357 million.
In 2016, retailers hired 738,800 temporary employees to manage the surge in gifts being transported across the country.
So, 2016 was a massive year for holiday season logistics. If preliminary figures are anything to go by, 2017 is going to be far bigger. Now more than ever, retailers, both online and bricks-and-mortar, need to really stay focused on prompt and accurate order fulfillment.
Oakland Bay Area Logistics
If you are in need of logistics, warehousing & distribution, or intermodal services, R&A Trucking is the go-to company in the Oakland Bay Area. To speak with a representative today call 510-632-7112 or use our online contact form.
Logistics can make or break a company. When people think of a shipping company’s logistics, they mainly think only of the shipping and receiving elements. However, the thought process should involve the whole company, external companies, carriers, vendors and end users. It’s a process that revolves around moving products from your suppliers to the end user. For a shipping company to have a successful logistics plan, there are several key elements that can be followed to ensure that your company is effective and efficient while keeping customers well satisfied with the end result. Continue reading
Metal Box has Changed the Game for Oakland Intermodal Services and Beyond
One bright idea from truck driving company owner Malcolm McLean has decades later revolutionized the transportation, shipping, and intermodal services industry: the shipping container. Metal containers have hugely impacted global trade. Simple yet revolutionary, the basic anatomy of a metal shipping container continues to be an integral part of transportation and international shipping methods.
Oakland Intermodal Transportation Leader Discusses New Record in Industry
The R&A Trucking team is delighted to report that there has never been a better time for the rail intermodal industry. A new report published by the Association of American Railroads has revealed that intermodal transportation volume has recently broken all previous records. In a recent week, the volume of intermodal traffic rose 4.3 percent higher than the volume a year ago. In the following week, the increase from the previous year was even higher, reaching 4.9 percent.
Oakland Logistics Company Examines Recent Earnings Increases in The Industry
Reports confirm that the profitability of the intermodal services industry is currently very solid. More and more businesses are hiring trucking and rail services, possibly because the surging general economy has increased shipping and storage demands across many sectors. The six million dollar question is: will these favorable trends continue or taper off? How should businesses that are trying to compete and improve their logistics processes change up what they’re doing based on these trend lines?