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Whether you are a craft jeweler or a global manufacturer, getting your products to customers is a crucial part of your business. The transportation of goods requires careful planning, time, labor, and money. And in today's digital age, e-commerce has had a profound impact on businesses of all sizes and industries. In this article, we will explore how e-commerce has disrupted transportation execution and become a competitive advantage for many enterprises.

  • E-commerce has revolutionized the way manufacturers connect with their customers. It has shortened the distance between them, allowing manufacturers to bypass traditional intermediaries and sell directly to consumers. This direct-to-consumer (DTC) approach gives manufacturers access to a wider customer base and opens up opportunities to expand into new markets.While e-commerce currently represents only a fraction of all retail sales, its growth rate has been remarkable. Retail e-commerce sales have grown by 20 percent every year for the past decade. Consumers are increasingly making larger and more expensive purchases online, even cross-border, in search of unique products and better deals. For example, Nike has embraced the DTC model and believes it will become increasingly important as a revenue stream. Analysts suggest that Nike's profit margin on DTC sales is significantly higher compared to its wholesale business. This highlights the potential profitability of tapping into the e-commerce market.
  • The rise of e-commerce has also contributed to the challenge of delivering products to high-density urban areas. Traditional delivery methods, often reliant on combustion engines, cause air and noise pollution, as well as traffic congestion. To tackle these issues, many cities have implemented congestion charges to discourage vehicle use.
    Consumers are also becoming more environmentally conscious and are demanding greener delivery options. They expect prompt and sustainable deliveries without compromising on the quality of service. As a result, companies that can meet these demands are likely to gain a competitive edge.
  • With the advent of e-commerce, customer expectations have evolved. Prompt delivery and in-transit visibility have become the new norm, and businesses need to adapt to meet these demands. B2B customers expect the same level of service they receive when shopping for retail goods online. However, achieving same-day or next-day delivery is challenging, especially when there is a significant geographic distance between the manufacturer and the customer. To overcome this, businesses need to get closer to their customers. They can either establish strategic distribution centers or partner with third-party logistics providers (3PLs) to ensure efficient transportation execution.

To address the evolving needs of transportation execution in the e-commerce era, companies can turn to integrated solutions like PRECISION. PRECISION automates global trade and transportation from one platform, integrating with leading Enterprise Resource Planning (ERP) and Warehouse Management Systems (WMS). PRECISION Global Trade Management streamlines export processes, ensuring correct documentation production and customs reporting. It also helps businesses comply with regulations when shipping specialized or hazardous goods. By verifying trading partners and assessing end-use destinations, PRECISION Trade Compliance enables businesses to perform due diligence and mitigate risks associated with global trading environments. Additionally, PRECISION Transportation Execution is a global, multi-carrier transportation management solution that manages inbound and outbound shipments for any mode of transport. With access to a vast global network of carriers, companies can compare costs, routing options, and other criteria to make informed decisions. For enhanced visibility and problem resolution, PRECISION Delivery Exception Management provides a centralized portal for tracking shipments across multiple carriers and regions. It allows businesses to proactively manage problematic shipments, capture proof of delivery, and initiate tracers for lost or damaged shipments.

E-commerce has disrupted transportation execution across various industries, from retail to life sciences. The demand for quicker delivery and direct access to customers has prompted businesses of all sizes to reconfigure their distribution channels and transportation strategies. In order to remain competitive, companies need to embrace e-commerce as an opportunity rather than a challenge. By adopting integrated solutions like PRECISION, businesses can navigate the complexities of transportation execution in the digital age and gain a competitive edge in the global market.

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