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”.)

New Research Provides Dramatic Views of the US Market

Many Canadian and other foreign companies are intimidated by the sheer size and scope of the U.S. market. In most cases, companies simply cannot afford to target the entire market. Often, “a picture is worth a thousand words,” when planning the worth of either traveling or shipping to different areas of the country.

A recent article by National Geographic describes brilliant new research published in the open-access journal PLOS ONE. The authors present data on U.S. “megaregions” based on their analysis of census data on over 4 million commutes of American workers. One amazing graphic is presented below; several others can be found on the two websites linked earlier in this paragraph.

U.S. Megaregions
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

Don’t Miss Out – Q4 US Federal Contract Spend (7/14 Webinar)

Hosted by Judy Bradt, CEO of Summit Insight, with special guest Bill Jaffe, SVP TAPE, this 7/14/16 webinar, ‘Next 5 Tactics for Federal Q4’, shares successful methods (Canadian) businesses can use to secure US federal contracts.

According to Bradt, “over 25% of federal contract spend happens between mid-August and September 30th.” Earn more on your US sales by learning the strategies now to sell your goods and services to the US government.  Registration information HERE. (Note: all registrants get the recordings.)

(Related Article: Use It or Lose It – How Fiscal Year End Buying Could Change Your Business)

FREE USA Market Research Info (Published by: Jim Pettinger, President UCanTrade, Inc.)

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

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“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)

Use It or Lose It – How Fiscal Year End Buying Could Change Your Business

By: UCanTrade Staff

The US Government buys everything from steel pipe to ‘uniforms for dogs’ – according to Judy Bradt, CEO of Summit Insight, and is considered the largest buyer of goods and services in the world!

Regardless of what the good or service is, chances are, there is a federal agency that needs it … and a lot of it. Further, each fiscal year end prompts a ‘use it or lose it’ phenomenon when US federal agencies spend their unused financial resources to avoid funds being returned to the Treasury &/or cut from their budgets the following year.

As you can imagine, selling to the US Government requires specific protocols and procedures. However they are small hurdles when considering the profit potential a business can achieve if it’s procured by Uncle Sam, particularly during the end of the fiscal year which this year is September 30th, 2015.

USamCheck out these online resources and learn more:
How to Sell to the US Government (GSA, US Government)
FREE Webinars (Presented by: Summit Insight, Judy Bradt, CEO)
FREE USA Market Research Info (Published by: Jim Pettinger, President UCanTrade, Inc.)

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

Subscribe HERE to receive our TradeTips Newsletter – Cross-Border News & Upcoming Events in the Pacific Corridor