The “Amazon Effect” on Cleveland Freight Shipping
Freight shipping (aka freight transport) is the physical process by which we move goods and cargo through the sea, land and air. Like so many other industries in recent years, freight shipping has been forced to evolve to meet ever-increasing consumer expectations, thanks in part to the so-called “Amazon effect.”
The Amazon effect is named for the multi-billion dollar online retailer that sells everything from podcast equipment to pools – usually delivering in a matter of a couple days or even hours.
Our Cleveland freight shipping experts know that once-upon-a-time (not so very long ago), companies used to capture customers on their own terms. Now, the Amazon effect means customers expect to be addressed on their terms – and on their timelines. It’s not quite as fast as a fairy godmother, but it’s often pretty close.
That means freight shippers must keep up – and we’re committed to doing just that. Freight shipping and 3PL providers that used to launch strategic planning initiatives every three years now need to make sure improvements are constant. On Time Delivery & Warehouse is dedicated to guaranteeing our Cleveland freight shipping services and supply chain operations are agile and responsive and employ the best people and technology available – all while making safety a top priority.
Freight Shipping Industry Weighs Amazon Effect
The term “Amazon Effect” has been used most notably to describe the decline of brick-and-mortar stores in the face of a ballooning eCommerce market. (Note: while internet sales are indeed climbing fast, online orders still only account for about 8 percent of all retail sales, according to Slice Intelligence). But the Amazon effect goes beyond that to impact pricing, shipping and delivery times in a broad range of industries.
At the most recent FTR Transportation Conference (offering a comprehensive outlook on North American freight services), TruckingInfo.com reports industry insiders explained many independent logistics firms are trying to find their way into a niche to stay afloat. Freight shipping services increasingly must be adaptive. For example, supply chains used to move product pallets at a scheduled time and those goods would sit on shelves at a distribution center for a few days until a big shipment could be scheduled, ultimately winding up at a brick-and-mortar store. Now, we’re seeing an increase in LTL shipping (less-than-truckload), with smaller and more frequent freight shipping services aimed at keeping pace with those higher delivery demands.
Companies that don’t use 3PL freight shipping services may soon find themselves playing catch up because development of these systems and strategies is akin to a science – one that On Time Delivery & Warehouse has been carefully studying and mastering for years.
Benefits of the Changing Freight Shipping Industry
The good news for customers is the Amazon effect has placed them in a position of greater control. They have options. Fierce competition is driving firms to find more ways to enhance customer experience, delivery speeds and other services.
Beyond that, many companies are embracing the technological innovations spurred by the Amazon effect because it ultimately improved their end-to-end visibility. True, the supply chains are often more complex. But overall, companies are enjoying the better transparency in freight shipping. Many are discovering it boosts their profitability because they can capture key data in real time and craft useful analytics from that. They can also track their shipments and offer meaningful, on-the-spot information to customers and stakeholders.
Many company leaders are learning that in this rapidly-changing commercial landscape, outsourcing their freight shipping services is in their best interest because it opens the door to market expansion, improved responsiveness and production and reduction of overall costs.
If you’re interested in exploring your freight shipping options in Northeast Ohio and beyond, we can help.
If you have questions about Cleveland freight shipping services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.
The Amazon Effect on Freight Transportation Discussed at FTR Conference, Sept. 14, 2018, By Evan Lockridge, TruckingInfo.com
More Blog Entries:
Finding the Best LTL Shipping Service in Ohio for Your Small Business, Feb. 28, 2018, Cleveland Freight Shipping Services Blog