fbpx
DB Schenker - Now That's Logistics
  • English
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
DB Schenker - Now That's Logistics
No Result
View All Result
Home Shipping & Logistics Contract Logistics (SCM)

Adapting to Changing Consumer Demands with a Flexible Supply Chain

July 12, 2016
Share on FacebookShare on Twitter

Keeping pace with rapidly changing customer demands, behaviors, and expectations has become a full-time job for most companies. No longer able to operate in a “business as usual” manner, organizations must respond and adapt to customer requirements or risk losing them to their nearest competitor. Driving the trend is a consumer who wants everything from clothing, to cars, to computers, to food when he or she wants it—or sooner, preferably.

Compounding the challenge is a consumer experience that’s become highly personalized and specialized over the last decade. This translates into more customized orders, shorter delivery windows, tighter compliance standards (on the part of major retailers, for example), and an overall intolerance for any shipment that’s late, incorrect, damaged, or otherwise unsatisfactory.

Industry experts credit online retailing giant Amazon with driving a good portion of these higher expectations. “Amazon is dominating the headlines by constantly challenging the logistics status quo,” writes PARCEL’s John Haber in Amazon Is Redefining the Supply Chain. “What started out as the leading online retailer of books in 1994 has evolved over the last decade to become ‘the earth’s most customer-centric company.’ To support this self-proclaimed title, Amazon has built a unique supply chain network that is transforming the way supply chains are built and managed.”

As a result, today’s logistics network is moving closer and closer to the customer. “Shortening time from order, to fulfillment, to delivery is critical to a growing segment of the population,” Haber writes. “These days many consumers want their packages next day, same day, or even within one hour. Amazon’s fulfillment network reflects these changing customer preferences and, in some aspects, may even be responsible for changing consumer behaviors.”

Other key trends impacting the logistics space—and driving companies to rethink their end-to-end supply chains—include:

  • Consumer preferences that are becoming more complex and personalized
  • Companies that are producing more customized orders
  • An e-commerce channel that continues to grow globally (40 percent of worldwide Internet users [1 billion+] have bought products or goods online via desktop, mobile, tablet or other online devices
  • Delivery windows for orders that are shorter than ever
  • Retailers who expect their vendors to keep up with their compliance regulations
  • Retailers who need their suppliers and logistics providers for help navigating these changes
  • Companies that must be able to ship everything from full pallets of goods right down to single orders to be delivered right to an end user’s home
  • Order-to-shelf cycles that have tightened, particularly for retailers (and, subsequently, their suppliers)
  • The list goes on…

Streamlining the End-to-End Supply Chain 

As customer preferences continue to change—and as the complexity associated with those changes grows exponentially—the end-to-end supply chain has become a focal point for any company seeking operational efficiencies and related improvements. Within the supply chain, the transportation component plays a critical role in ensuring that customer requirements and expectations are met or exceeded.

Take the food sector, for example. Consumer behavior and preferences are rapidly changing—arguably at a speed that many industry providers are not prepared for, according to Deloitte’s Food Industry Logistics: Trends That Matter. “We are witnessing an explosion of consumer interest in locally sourced, fresh, organic, natural, and sustainable products. Furthermore, consumers are increasingly expecting food companies along the value chain to be responsible environmental stewards and corporate citizens.” In response to these new demands, several disruptive innovations from the supply side have begun to appear in the marketplace, Deloitte reports.

“[These] consumer demand elements are just starting to bring to light the dramatic adaptation of logistics infrastructure and execution that will be required in order to keep up with the new food environment. From smaller, closer-to-market, and more responsive distribution and consumption sites all the way to entire production systems built on predictive demand analytics and real time information, the field of food and beverage logistics is changing rapidly. Organizations must remain flexible and ready to implement change today. They must know how the market is changing and anticipate the next market move.”

Logistics Partners Answer the Call 

With no end in sight to the number of customer behavior and preference “shifts” that are taking place right now, the real question is:  How can companies successfully navigate and address these shifts while remaining profitable and healthy in an increasingly competitive business environment?

According to PwC, these trends are creating new demand patterns for the commercial freight transportation and logistics industry. Shippers want logistics partners that can operate across their diverse supply chains and distribution networks and that are strategically inclined — as comfortable in the C-suite as in a buyer’s office. “Shippers particularly seek carriers that can accommodate spikes in volume and maintain a high level of performance during disruptions,” PwC reports in 2016 Commercial Transportation Trends. “And they are looking for business-enhancing opportunities, such as 3D printing and digitally-enabled solutions that provide visibility into multiple vendors, greater price transparency, and a consumer-like user experience.”

Ultimately, PwC says shippers’ supply chains are becoming ever more complex, even in market segments where their needs have been relatively straightforward in the past. “…shipping is no longer a tactical decision influenced solely by cost, but rather a strategic consideration based on such factors as customer expectations, sales volume, and product mix.”

These realizations present significant opportunities for companies that work with their logistics providers to create agile, flexible, and efficient transportation chains. With core competencies in global freight transportation management, as well as a full range of logistics and supply chain management services, DB Schenker has the right solution to help you better manage and control your supply chain in a world where customer preferences and requirements are in constant flux.

Next Post
Exploring Opportunities in Modern-Day Breakbulk

Breakbulk Americas 2016

RECOMMENDED

Top 15 Ports in The Americas

Top 15 Ports in The Americas

March 16, 2018
Top 15 Ports in the Americas 2019

Top 15 Ports in the Americas 2019

June 24, 2019
The Top Air Cargo Airports in the US

The Top 10 Freight Airports in the US

March 12, 2019
3 Things You Need to Know about Importing Chocolate

Three Things You Need to Know about Importing Chocolate

February 2, 2017

TRENDING

Global Trade Trends for 2023

Global Trade Trends for 2023

January 26, 2023
5 Airfreight Trends to Keep On Your Radar Screen in 2023

5 Airfreight Trends to Keep On Your Radar Screen in 2023

December 27, 2022
The Port of Vancouver — What Drives Canada’s Busiest Gateway

The Port of Vancouver — What Drives Canada’s Busiest Gateway

December 13, 2018
The Top 10 Freight Airports in Latin America

The Top 10 Freight Airports in Latin America

October 21, 2019

Thought Leadership Updates with Brian Petrie

March 28, 2023
DB Schenker

DB Schenker is the world's leading global logistics provider, delivering over 150 years of premium performance and transportation solutions. One call gets our customers on the fast track to nearly 2,000 locations in all of the world's most important economic regions.

Contact Us

United States
+1 (800) 225-5229 (in USA)
+1 (602) 458-6200 (outside USA)
www.dbschenker.com/usa
Canada
+1 905 676 0676
www.dbschenker.com/ca

Categories

Visit Us

• DB Schenker Americas
• DB Schenker Canada
• DB Schenker Careers
• DB Schenker USA
• Trade Advisory Solutions

Follow Us

• LinkedIn
• Twitter USA
• Twitter Canada
• Facebook

© 2022 Schenker Americas, Inc. | Privacy Policy

No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
  • pt-br Português
  • fr Français
  • es Español
  • en English

© 2022 Schenker Americas, Inc. | Privacy Policy

We use cookies in order to optimize our website and continually improve it. By continuing to use this site, you are agreeing to our use of cookies. You can find further information on cookies in our privacy policy. Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT