As the rise in ecommerce drives up small-parcel shipping, shippers are dealing with rising concerns and taking new steps to address them, shipping software provider ProShip says in a new report.
“The ProShip Report: Navigating the Future of Parcel Shipping 2024” compiles data from a survey of 209 high-volume parcel shippers on their fulfillment preferences and their views on emerging shipping technologies.
Among the trends the report cites among high-volume parcel shippers are:
- 39% of high-volume shippers are leveraging multiple distribution centers to enhance efficiency and meet customer expectations.
- 52% use expedited or international shipping options.
- 36% say automation in shipping technology systems is a priority along with other emerging technologies like alternative fuels.
- 38% say labor shortages and rising costs are significant challenges.
The study’s results indicate a growing trend of shippers using a mix of fulfillment location, including stores, 3PLs and drop-ship vendors. “This approach caters to specific customer needs and optimizes inventory management,” the ProShip report says.
The report shows the percentages of respondents by the methods they use to fulfill orders:
- 14% via third-party logistics providers.
- 14% via drop-ship vendors.
- 15% through a single distribution center.
- 18% via stores.
The percentages of respondents by their biggest parcel shipping challenges :
- 21%, Visibility/tracking problems.
- 19%, Cost control.
- 18%, Delivery timeliness.
- 11%, Limited carrier options.
- 10%, Peak-season management.
- 8%, Shipping data accuracy.
The report says a critical issue for shippers is balancing visibility into shipping status and shipping accuracy.
“While data accuracy wasn’t a major L at 8%, ensuring clear visibility throughout the shipping journey emerged as a significant challenge” at 21%, the report says. “This indicates a need for improved data management and robust tracking functionalities. Additionally, integrating shipping software with existing systems emphasizes the need for seamless operations to optimize costs.”
Labor shortages, automation, alternative fuels, drones and AI
When the report asked respondents for their “biggest concerns regarding the future of high-volume parcel shipping,” finding enough workers was cited most often:
- 20%, Labor shortages.
- 18%, Evolving customer delivery expectations.
- 18%, Increasing costs.
- 15%, Data security.
- 13%, Carrier landscape.
- 12%, Regulations and policy changes.
- 5%, Scalability and limitations.
The report noted the following percentages of respondents by what they cited as the emerging technologies they expect to have the most significant impact on parcel shipping in the next three to five years:
- 36%, Automation.
- 23%, Alternative fuels.
- 21%, Artificial intelligence.
- 19%, Drone delivery.
- 1%, Other.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].
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