The impact of e-commerce on truck manufacturing.

There’s little doubt digital online buying – a.k.a. the ‘Amazon Effect’, is impacting traditional retailers, especially since Walmart has stepped up to the plate to compete with Amazon in this competitive e-commerce space.  While consumers enjoy the benefits of their e-commerce ‘warfare’, another dynamic to the ‘Amazon Effect’ being brought into the forefront is truck and trailer manufacturing.

The supply procedure of any online purchase is run ‘not as a marathon but rather as a relay,’ says Bruce Sauer, of Truck/Body Builder. Adding, “Track coaches typically assign their fastest, most reliable runner to anchor the final leg of the race. It’s where many relays are won and lost”. His clever analogy highlights the importance and emphasis supply chain management and 3PL (third party logistics) companies are putting on the ‘final mile’ – the shipping, handling and delivery phase, of any e-commerce order.  Retailers need to be paying attention too.

Delivery vehicles are being re-designed to have better maneuverability at distribution and fulfillment centers moving away from full truckload models to more ‘metro-friendly freight patterns.’  Additionally, vehicles will likely be lighter and also get better gas mileage; ‘optimized’ so as to maximize cargo space and keep drivers comfortable, safe and able to conduct their job most efficiently. E-commerce has created a ‘trucking revolution’ that has really only just begun.

Since the physical size of the United States remains enormous, trailers will remain to play a vital role says Brent Yeagy, president and chief operating officer at Wabash National, a leading producer of commercial trucking equipment.  However, “E-commerce is not linear,” Yeagy says, “It’s growing exponentially. And its implications for the trucking industry promise to be more disruptive than 99% of us can even fathom at this point.”

Consumer expectations are also a big influencer. AlixPartners, LLP recently found in their 2016 Consumer Shipping Survey, seventy-five percent of e-commerce consumers are ‘greatly impacted’ by free shipping when they are making purchasing decisions. ‘Free and fast’ are what consumers expect and this expectation is another reason delivery vehicle manufacturers are rethinking their designs.

Simply put, a consumers’ last impression of a retailer is based upon their interaction with the ‘delivery company’.  An all out effort to streamline the supply chain down to redefining the design of the delivery truck, are underway.  Ultimately, consistent and reliable order fulfillment and delivery are imperative to any successful e-commerce retailer’s sustainability – especially in the competitive U.S. market.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

Subscribe to our TradeTips Newsletter for the latest import/export events and trade news, and/or call us at (360) 380-6900.

UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

(Source: Alix Partners, LLP article: “Final-Mile Delivery: What Do Online Shoppers Want? And How Should Retailers and Their Logistics Partners Respond?”)

(Source: Truck/Body Builder, “How the shipping model of e-commerce is impacting truck body and trailer manufacturers –the ‘Amazon effect’ of fast, free shipping re-routes truck body/trailer builders’ thinking”.)

Order Returns – Cause and Effect

Attributed to the overwhelming increase in e-commerce holiday orders, UPS has hailed January 5th ‘National Returns Day’ because of the volume of product returns it manages during the first week of January – in particular on the 5th.

Ecommerce is on the rise and it’s not only putting increased pressure on shipping couriers like FedEx and UPS but the entire supply chain (Related Article: A Logistics Revolution). While business increases all parties struggle to adapt to the demand. In order to ‘stay ahead of the curve’ both shipping giants have partnered with specialized companies, like UCanTrade, Inc., to better control the costs and challenges presented by “reverse logistics”.

Further, their specialized third party logistics (3PL) partners work closely with retailers/e-tailers to establish (among other things) an effective return policy to best maximize their profits. “[An] easy-to-use returns experience should be one of several retail strategies to enhance customer loyalty and manage the cost of returns processing,” said UPS chief marketing officer Teresa Finley.

This is especially true for Canadian (e-commerce) companies exporting their goods to the U.S. and selling to American consumers; notorious for their high customer service expectations. An effective return policy can give exporters a competitive advantage not only with other Canadian businesses but also with US retailers as well. (Related Article: Return to Sender – What’s Your Policy?)

Consider your supply chain, the cause and effect of returns and then manage it in both directions – there AND back.

UCanTrade, Inc. is a boutique, third-party logistics and warehousing services provider situated 15 minutes south of the B.C. / Washington State, Blaine border crossings. Proudly providing business and logistics services to Canadian importers and exporters, since 1984.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

Subscribe to our TradeTips Newsletter for the latest import/export events and trade news, and/or call us at (360) 380-6900.

UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

(Source Article)

“Return to Sender” – What’s Your Policy?

According to UPS, January 6th is officially ‘National Returns Day’. The global shipping giant reportedly expects to handle approximately 5 million package returns by the end of the first week in January with over a million consumer returns on January 6th alone! With online shopping exponentially increasing each year, particularly during the holiday season, e-commerce retailers need to consider their return policies.

Returns play a huge role in a buyer’s decision process. Structuring a ‘flexible policy’ to provide online shoppers with ‘free, fast and easy returns’ helps make a consumer feel much more comfortable buying something sight unseen. UPS reports just 32% of retailers offer free returns. Further, less than half outline a ‘merchandise exchange timeline’ which, UPS says, “is a key component of the return policy that is viewed by 88% of online shoppers.”

Canadian retailers and small businesses expanding their businesses online and selling into the U.S. market should recognize a no-hassle return policy will give them a competitive edge in a very competitive market.

Establishing a business identity in the USA and using reliable trade partners can eliminate unnecessary border crossings, clearance expenses, freight costs and time delays while providing your American customer base with the reliable, quick turnarounds they’re after.

If you need a trusted (reverse) logistics partner to handle your USA warehousing and ‘pick & pack’ shipping needs with accuracy and attention to detail, please consider our team at UCanTrade, Inc. (Ref. “Six Eyes On Every Box”)

To learn more about our Technical Repair and Return Services click HERE or call us at 360-380-6900.

Subscribe to our TradeTips Newsletter for the latest import/export events and trade news and/or follow us on Twitter @UCanTrade.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

(Source)

Six Eyes On Every Box

By: UCanTrade

Technology is great. We love technology. But relying on machines alone without human verification can cause things to go haywire.

That’s why at UCanTrade, every shipment is triple checked before it leaves our warehouse not once, not twice, but three times.

In the warehousing and logistics industry, a 1-2% error rate is considered standard. Sending 1 or 2 of every 100 packages to the wrong address is “business as usual” in many operations.

That’s not good enough for our clients, and it’s not good enough for us. So, we triple-check everything before it ships.

Our staff are some of the most experienced in the industry, and not one, not two, but three of our warehouse professionals view, verify, and sign off on every box before it leaves our warehouse.

The result? An accuracy rate of over 99.8%.

Reverse Logistics, Shipping, Handling, Warehousing

Experienced staff. Triple-checked shipments. Six eyes on every box.

If you need a trusted logistics partner to handle your USA warehousing and ‘pick & pack’ shipping needs with accuracy and attention to detail, Call us at 360-380-6900.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

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UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade