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Home Supply Chain

A Surge in Demand for Sustainable Supply Chain with Heightened e-commerce

by Supply Chain Insights
October 1, 2022
in Supply Chain
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E-commerce Supply Chain
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Written by Jamie Dixon, Director Supply Chain, TMX

It is no more a secret how the pandemic fastens the global shift over in the retail market and how drastically e-commerce has grown over a brief period of time. And with that shift over, the sudden outburst of intense consumer demands has mandated more emissions within the e-commerce supply chain.

This outburst has also driven the usage of last-mile deliveries, leading the trucks to run empty, surging the requirements of embracing more sustainable supply chains in the transport and logistics sector, not merely to govern operational savings but to retain environmentally conscious customers. 

Road to resilience

Besides the shift over consumers to e-commerce, the role of technology deserves a notable mention. The significant evolution of logistics and transportation, with the embracement of the GPS, has heightened the gains resulting from the delivery process. 

Easy tracking and routing systems have enabled the logistics to dodge traffic and make the end process of facilitating the consumer with their desired purchase in a stipulated time smooth and efficient. What’s worth appreciating is that it’s not only satisfying the consumers but also helping e-commerce and supply chain to grow and make their way ahead towards betterment. Helping the e-commerce sites to contribute to a healthier environment simultaneously. 

With that said, a question that makes its way out is whether the customer really understands the difference between fast and cheap delivery to sustainable supply chains? Because, as the operators fasten their operation to make up the festive requirements, say for the Christmas period, the question remains whether the service cost is being covered or not. 

Concerns for shoppers

As per the 2020 e-commerce Industry reports of Australia, the concerning point when it comes to online shoppers were

Sustainable packaging and supply chain e-commerce delivery info

Exchange, return process, and related policies

Added cost when it comes to shipping like tax and duties

Besides that, most of the respondents had some critical concerns about having green credentials linked to logistics operators. 

Considering their concerns, a simple solution emerges by embracing the reverse distribution process. In these examples, employing the additional capacity to accumulate carrier and stock goods that can be employed again in supply chains can beget real advantages. Utilising additional storage room in a truck to transport packaging that can be remodelled multiple times would offer the business environment and cost savings.

The big challenge

Senior executives confront some challenging, sustainable supply chain e-commerce issues arising while aligning enterprises’ activities with the anticipation of both external and internal stakeholders. 

Holding exceptional managerial skills and the ability to confront daily challenges is paramount for embedding sustainable supply chain e-commerce. Besides, some international organisations have even added the issues of complying with legislative requirements, elevating the target level. 

The new normal

The requirement of embracing tech and sustainability was initially bracketed under the situation’s urgency. Still, as the time passed by and witnessed the changeover of customer preference, it is evident that it is no more a situational demand but an urge to stay afloat. 

Witnessing the changeover, there is no scope of e-commerce and supply chain requirements to go off the board, at least not anytime soon. Therefore leading and newly emerging companies need to look for ways to make their e-commerce supply chain adaptive and efficient to maintain their place with the upcoming challenges of the marketing landscape, to hold the majority of consumer share with high-quality delivery and support systems. 

As the COVID19 has propelled the industry ahead by approximately five years, turbocharging the evolution of online retail, now’s the term to bear the charge of sustainable e-commerce and supply chain.

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