e-commerce is affecting more aspects of the supply chain and infrastructure than many businesses realize, reports Fleet Owner in a new series examining how e-commerce is changing the world beyond logistics.<\/p>\n
E-commerce sales in the United States totaled $453.5 billion in 2017, an increase of 16% from just one year earlier, the Census Bureau reported. That included a record $6.5 billion in sales during \u201cCyber Monday\u201d alone and an overall gain of 17% for the entire holiday shopping season, according to data from Adobe Systems Inc.<\/p>\n
\u201cThe peak e-commerce season is stretching the limits of the nation\u2019s freight and package-handling capabilities,\u201d research firm\u00a0Stifel Financial Corp. wrote in a note to investors.<\/p>\n
As consumers become more accustomed to faster deliveries, carriers and shippers are being forced to develop a more time-definite supply chain. It is creating a race to conquer the \u201clast-mile\u201d space, with parcel carriers, traditional fleets, and startups seeking the most efficient ways to deliver small packages as well as oversized and irregularly shaped goods directly to consumer\u2019s homes.<\/p>\n
During a recent Fleet Owner<\/em> webinar, Al Hemmelgarn, director of operations for wholesale distributor Pollock, said e-commerce \u201cpushes our customers into an entirely different type of distribution.\u201d<\/p>\n Rather than large shipments, a shift to delivering thousands of smaller packages requires greater use of warehouse automation, and smarter packaging technology to ensure accuracy and avoid damages.<\/p>\n Amazon.com remains the company most often cited as fueling the e-commerce boom, leading to changes throughout the freight transportation network.<\/p>\n \u201cIt is becoming increasingly clear that Amazon\u2019s lead over the traditional retailer is only growing,\u201d Evercore analyst Anthony DiClemente wrote in a report. \u201cThis lead is likely to take on greater importance as billions of e-commerce dollars come up for grabs in the coming years from greater penetration of [fast-moving consumer goods] categories.\u201d<\/p>\n A survey by Shipware found that the public\u2019s expectations for free shipping and faster transit is putting pressure on the entire supply chain.<\/p>\n Mike Spence, senior vice president of fleet services for Fleet Advantage, has noticed some shift in truck-buying patterns. \u201cMany more companies are starting up to handle these shipments, as well as incumbents adding to their fleets to handle the additional business,\u201d he said.<\/p>\n Truckload carriers are also expanding as operations gain a larger e-commerce slice.\u00a0Meanwhile, traditional retailers, including those with sizable private truck fleets, are tailor\u00ading operations to e-commerce needs.<\/p>\n