How The Logistics Model and Consumer Needs Are Changing

To say it’s a modern world we live in would be an understatement. Thanks to technology, anything you could ever want is in the palm of your hand, just a finger tap or click away. As the world continues to advance, so must supply chain optimization. While logistics companies look for ways to cut down on costs, supply chain management must also look for ways to make their dollar go farther. Consumers aren’t concerned with how they get their products or supplies, they just want to know when.

How Amazon and Uber Have Opened the Door for Greater Logistics Possibilities

In the past, no one would ever think about delivering on the weekends. Then Amazon came along, causing an entire industry to shift its thinking. Implementing a model of getting product from various channels and locations into the Omni channel scenario was an inventory nightmare. Now, it works by getting product to the end user quicker and in the correct amount ordered.

And then Uber came along, opening up the door for another potentially seismic change in the logistics industry.  

How is a people moving tech-company going to change the rules of logistics? Ideally, as trucks and freight become available, they can be requested with just a push of a button. From there, a truck will come by and pick up the shipment that is ready to be transported to a specific location. This wasn’t something that was possible just 20 short years ago, as no one could communicate all the information to all of the trucks that are available. 

What makes these models work is a strong influence of technology with a detailed knowledge of logistics. As shippers and manufacturers look for a better understanding why their customers change their habits or are continually looking for value, these two models shed some light on why they are requesting a change. 

What Does This Mean for C-Levels?

Companies buying your product may be looking for better delivery options, which includes the inventory levels and how fast they can get the product. This could result in overall lower operating costs. It can also help you keep the competition out. 

So What Can You Do About It?

First off, it’s important to know your freight. This will help you categorize customer expectations. Layout the flow and specs to formulate a current transportation model. Test certain spec for alternative solutions or validity. Validate new assumptions and communicate across multiple functions within the organization. Finally, generate an optimal model and audit results.

It’s important to consider what your company can do to keep up with the industry trends. You don’t want to get left behind in an ever-changing market.  

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