Logistics Report: Consumer loyalty tied to speed of delivery. The rise of e-commerce has driven consumer expectations upwards in recent years.

The past decade in the road freight industry has seen businesses pushing toward digitalization of legacy processes within logistics operations. Companies are waking up to the prospect that visibility into the supply chain will ultimately help every stakeholder in the ecosystem reduce expenses by improving operational efficiency.

The rise of e-commerce also buoys the digitalization efforts, pushing supply chains to react faster to their customers. The “Amazon effect” has led to logistics — especially the last-mile segment — becoming an integral part of the consumer experience. Jay Sackos, head of sales at Dolly, the fast-shipping startup, spoke to FreightWaves on the last-mile trends he has witnessed the past few years.

“Since the digital freight boards happened in the full truckload business — both in terms of capacity and volume — there has been a general quickening of market cycle times,” Sackos said. “So we used to be in this freight world where it would be several years of demand-driven or capacity-driven trends, but that has now shortened to just around a year.”

This translates to gradually heightening expectations. Previously content with weeklong delivery schedules, customers now often view next-day delivery as a given. This ratcheting of expectations has effectively created a reality in which expedited shipping is a necessity for brands to garner consumer loyalty.

Content reprinted from FREIGHT WAVES, By Vishnu Rajamanickam Oct. 31, 2019, 6:00 am ET Read more…