The COVID-19 pandemic caused major changes in the supply chain and shipping industries. Consumers have increased the number of packages shipped online as they want to be safe. Ecommerce has prompted an increase in online shopping, which is placing additional weight on shipping carriers and slowing down the supply chain.
What does this mean to retailers in the new year Many sellers have seen the difficulties in shipping and supply chain management and are now wondering if there will be more. Although it is difficult to predict how long these issues will continue, learning how to deal with them can make the recovery process more manageable.
Supply Chain Problems are Here to Stay
Justin Miller, Director Sales atOnfleetBrands should anticipate many supply chain challenges in 2021. They are here to stay. Retailers must offer customers multiple options to personalize their shopping experience. This includes ecommerce, in store at a transaction level and how products are delivered. It is important that the continuity of the customer’s view be clear, simple, and intuitive.
These supply chain problems will not go away because COVID-19 has made online shopping more convenient, which has led to a surge in growth that has overtaken both transport infrastructures and delivery infrastructures. SkyPostal, Inc. CEO AJ Hernandez says that this will lead to longer transit times, which will require business owners and managers to manage customers’ expectations about when they will receive shipments. Retailers must be aware of the transit time for shipments and inform customers about this information.
Supply Chain Security
As ecommerce continues to grow, so are thefts of all sorts. Ecommerce businesses are not the only ones experiencing an increase in thefts.Over 650 fraud attempts are made every month.BSI“s”Supply Chain Risk Exposure Evaluation NetworkIntelligence has discovered that there is a worldwide increase in the theft of high-value products such as alcohol, tobacco and PPE. The BSI supply chain experts have compiled a list with tips for improving supply chain security for online vendors.
- Be wary of email fraud
These are the places where scammers try to place large orders of high-value items, repeat purchases requests, or request immediate times.
- You must ensure that your website security is at an all-time high.
Customers will feel secure when shopping online via encrypted connections. This will give them the confidence they need to make a purchase. Customers will be reassured by symbols such as the Secure Digital Transactions Kitemark or the closed padlock in the website address bar.
- Avoid delivery and collection theft
Companies should exercise due diligence in sourcing suppliers, particularly delivery companies. Ensure that all subcontractors have the appropriate certifications, such as ISO/IEC 27001 or ISO 9001. This will give you reasonable assurance of a structured and secure operation. Ensure that you verify customer details before sending an order if click-and-collect services are used.
How to Handle Supply Chain Challenges
Miller stated that Onfleet is investing in improved distribution centers, including micro fulfillment, increased automation and central distribution hubs in urban centres. This offers an opportunity to address some supply chain issues. We have found that there are still significant last-mile restrictions. Customers who continue to rely on traditional shipping channels will be disappointed if they encounter capacity constraints. Not only does it give you more control, but it also allows you to interact with customers in a “shelter-in-place” world.
Shipping Prices Increase
FedEx, UPS and DHL, major global carriers, are having difficulty meeting their delivery obligations due to the increase in ecommerce orders. This is leading to higher shipping costs and poor delivery service. Hernandez claims that shipping rates will rise at least 5 percent across the board due to the increased transport costs and COVID safety.
How to deal with delayed deliveries
Ecommerce is drowning under the weight of rising shipping costs and incessant delivery delay. According to aShippingChimpAccording to FedEx and UPS, an average of 22-29 percent of UPS shipments arrive late. This is causing a serious damage to brand reputations and resulting in more customers being turned away due to non-fulfilled delivery promises. Retailers cannot afford to make more mistakes in the new year.
ShippingChimp has some solutions for sellers to overcome these difficulties:
- Customers shouldn’t be forced to call. Instead, offer customers real-time order delivery notifications that will help them throughout their purchasing journey.
- Customizing email notifications with your logo will make you stand out from the rest.
- Use feedback to improve your delivery experience and harness the power of feedback.