The Wall Street Journal recently published an article about the impact that online shopping has had warehouse building developments in the past five years. Because of the evolution of tech hardware and the internet, e-commerce has experienced a massive surge in the past decade. To meet the growing demands, e-commerce businesses are forced to shift their distribution center logistics.
Partially because of the growth of online marketplace and tech giants, such as Amazon, Google and Paypal, e-commerce has undoubtedly become a very popular place for businesses of all sizes to sell their products. A few other reasons for the explosion of e-commerce include:
With an ever-increasing (and ever-demanding) audience of tech-savvy consumers on the search for speed, convenience and quality in each of their online purchases, businesses need to adapt and deliver (literally).
E-commerce has changed the shape of the market- supply chains to become much more focused on getting access to the highest number of people in the shortest period of time. The WSJ continues, “If they don’t expand their networks, they’ll lose out on the growth of e-commerce.”
Business Insider states, “warehouse availability in the US decreased for a 25th consecutive quarter and now sits at 8.8%, according to a separate report from real estate services firm CBRE Inc. This means that retailers are leasing warehouses faster than developers are building them.” U.S. shippers are running out of the space needed to maintain inventories that have been growing the past decade… and are now at record levels.
The keys to successful and timely deliveries are not only expanding networks, but also streamlining distribution center logistics such as automation.
One of the major trends set to emerge for e-commerce distribution center logistics is an increase in investments in automation to enhance delivery services and monitor the movement of goods accurately with short lead times. The use of technologies, automated packaging equipment, shipping solutions, and other evolving technologies, is expected to help businesses streamline processes, maintain a balance in inventory and pack products efficiently.
The e-commerce logistics market is expected to grow at 9.69 percent through 2020, and it’s not slowing down. Whether you are a small organization just beginning to automate, or are a large business looking for a total turnkey integrated packaging line, Hughes Enterprises has the in-house capability to lay out and tailor a solution to meet your specific needs.
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