January 30, 2024 5 Key Supply Chain Trends Driving Ecommerce Evolution

Supply chain management is crucial to your business’ success. It impacts order fulfillment, quality, delivery options and customization.

Today’s supply chain isn’t just about delivering products to customers on time. Customers want efficiency, reliability, and sustainability. When companies can deliver on those values and provide the best products, it increases customer loyalty, boosted sales, higher retention rates, and positive recommendations. Your supply chain is a feedback loop crucial to your business’ success — driving the evolution of e-commerce.

Supply chain management involves the process of planning and executing the flow of goods, whether they are products for your business’s services or the products you sell. How you manage your supply chain directly impacts the experience your customers have and, as a result, the overall performance of your business. Consumer-centric supply chains deliver consistent results, cultivate satisfied and loyal customers, and enhance positive reviews and referrals.

Supply chains impact customers’ order fulfillment, product quality, delivery options, and customization, all crucial to the customer experience. You want to deliver products accurately, timely, transparently, and sustainably.

Finding ways to enhance your supply chain and stay ahead of trends is crucial. E-commerce revenue is projected to reach $3.6 billion in 2024, according to data from the research firm Statista. Meanwhile, e-commerce users are projected to reach 2.5 billion by 2028. According to the consulting firm Boston Consulting Group, e-commerce will represent 41% of global retail sales by 2027. That’s an increase from only 17% in 2017. It’s undeniable that e-commerce is the future of business, and your supply chain is the cornerstone of your company’s success.

The modern supply chain has undergone numerous advancements. Firstly, last-mile deliveries have significantly improved thanks to new shipping and delivery innovations and companies. Last-mile delivery refers to the final stage of the supply chain, specifically the process of delivering goods to the end customer. New technologies, such as autonomous vehicles, drones, electric vehicles, and advanced algorithms, drive innovations in last-mile delivery. Companies can utilize these technologies to reduce costs, achieve faster and more accurate delivery times, provide customers with real-time tracking updates, and streamline operations.

Another recent advancement in supply chains is the implementation of inventory optimization technologies. This includes barcodes, artificial intelligence, IoT sensors, and tracking algorithms. These technologies help businesses ensure products are in stock when needed, monitor and forecast demand, and track inventory levels more effectively.

Furthermore, blockchain technology has enabled companies to accurately record and verify transactions, enhancing transparency and security.

What technologies and trends are emerging in e-commerce supply chains? Looking ahead, there are several trends that businesses should keep an eye on.

1. Consumer expectations are changing.

With the rise of social media and the increasing influence of Gen Z values, online consumers are more sophisticated than ever, and they expect to be met where they are. Use a local SEO company to help your business reach its target customers. Additionally, improve your marketing strategy to boost transparency. Show consumers how you are addressing their feedback and delivering high-quality products.

2. Companies will increasingly opt for micro-fulfillment.

Micro-fulfillment refers to companies handling order fulfillment directly, often opting to utilize inventory from a nearby warehouse. More companies are looking to bring this process in-house.

The demand for e-commerce warehousing has led to an increase in the number of national fulfillment service centers, as reported by the commercial realtor CBRE Group.

3. Businesses should have crisis plans in place.

The COVID-19 pandemic has caused unprecedented delays and disruptions in supply chains. Looking ahead, companies are developing preventive strategies and investing in technologies to monitor future risks, changing demands, and market trends. “Future-proofing” is a significant theme in corporate strategies.

4. The demand for air shipping is on the rise.

In a survey of 46 brand executives conducted by Glossy and Modern Retail, 63% stated that their companies are investing in new supply chain technology to help reduce shipping delays. Air shipping was the preferred choice among the respondents. While it can be more expensive, it is often faster.

5. Sustainability is a top priority.

With the rise of ESG regulations and evolving consumer values, companies increasingly emphasize developing sustainable supply chains. Businesses are looking to invest in new technologies that streamline and are environmentally friendly workflows.

Your supply chain drives your business’s sales and customer retention. Understanding current trends and future predictions can help your business stay competitive in the e-commerce industry.

Greg Walthour is co-CEO of Intero Digital, a 350-person digital marketing agency and a local SEO company that offers comprehensive, results-driven marketing solutions. Greg has over 20 years of experience directing paid media strategies, optimizing SEO, and building solutions-oriented content and PR. He leads a team of experts in web design and development, social media, video, and graphic design, and Greg has helped companies of all sizes succeed in the digital age.

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