The pandemic made most businesses adjust their operations to thrive through the e-commerce boom. Closure of businesses, restrictions on gathering, and social distancing guidelines meant that most companies had to turn to online business. Estimates indicated a 44% increase in amounts spent to $861 billion in 2020, compared to the previous year. E-commerce led by 21% of the retail sales in 2020, compared to less than 16% in 2019.
One year instead of seven
Cathy Morrow Roberson, an industry consultant who heads Logistics Trends & Insights, stated that most people have extra cash initially meant for vacations. Roberson claimed that most people consumed the money on their homes through online platforms. According to Kraig Foreman, president of e-commerce at DHL Supply Chain Americas, most online business activities occurred in one year, instead of seven.
Sean Henry, CEO and co-founder of Stord says that it was challenging for businesses to transition into online operations. Factoring in social distancing and other health protocols was a difficult challenge to handle. Some clients to companies had to close down due to lockdowns imposed and other restrictions. Disruption in the supply chain with delays at ports (because of the overwhelming inventories) also adversely affects many companies.
Malcolm Wilson stated that most companies only had the option to either adapt or be phased out. He added that hard work is the only key since the warehouses must be efficient and deliveries must be on time according to customers' needs. Foreman reiterated that companies must adjust accordingly and inform themselves well in order to meet ever-dynamic customer needs.
Return of goods on the rise
Greg West noted that there had been an increase in the number of goods people returning. He said that companies do a cost-benefit analysis before taking back any goods. Some goods are left for the customers, who are still refunded for the orders if they are not worth taking back. West acknowledged that technology is the only way to cope with the unprecedented changes brought by the pandemic.
The Stord System started to ensure that consumers have goods closer to them by offering warehouse facilities to retailers. The use of technology would provide better inventory management, quicker deliveries, and efficient tracking of goods in transit. For instance, XPO adopted the use of Robots at warehouses for packaging. The only challenge is to have both robots and humans working together in the warehouse. Technology will pay off for many years as most businesses will not revert to normal operations but rather stick to online business.
