2020 was a tough year for many and we truly hope everyone continues to endure while we work through beating what has become our biggest enemy in current history. The Vaccines are on the way and light is at the end of the tunnel but many lives have changed forever.
For the E-commerce industry it has been bittersweet, while some businesses have been hurt this last year others from the supply chain industry have grown at a pace they normally would not have seen in the next three to four years. Covid has literally leaped the E-commerce industry ahead three years, much faster than ever thought of or planned on.
One could say a company like Amazon was made for the pandemic and to be fare you have to give them credit where credit is due. They had previously raised the bar and set new benchmarks for the entire online retail industry, they have excelled through the Pandemic and now others need to catch up. Depending on which numbers you see, E-com orders have grown anywhere from 61 -72 % percent year over year with Amazon dominating the market this last year. These increases have created other growth markets, one being technology where sales here have grown much higher than expected. Techdinamics driven by techSHIP sales has seen an increase in excess of 104 % over same period last year. That being said we truly believe the best is yet to come and we have concentrated our technology on supporting what is the now the fastest growing providers to the E-com industry, 3rd
Party Fulfillment Centers.
In 2021 you will see the bar raised again for Manufactures and the Retailers trying to keep pace in an exploding E-com industry, many will not keep up with the Technology requirements needed to do so.
Order integration, process flows, service levels, carrier selections and the customer experience will make up the key steps for success going forward. Amazon will again raise the bar early in 2021, their service levels, costs to deliver and customer experience is about to evolve even further. The 3rd party fulfillments companies are poised to be the largest competitor to this elephant in the room. They have the ability to move fast in support of the manufactures and they will bring the knowledge needed to help the forward-thinking retailers catch up. There has been a lot of doom and gloom for retail brick and mortar but there is still time, they need to make the changes to their prior practices and connect with the right channel partners.
3pls are investing at a pace second to none and they have the supply chain knowledge to help the manufacturers and retailers alike get their products to market cost effectively. It’s always hard to play catch up but 2021 will see the largest investment into systems technology that we have ever had. The E-commerce industry is using a global supply chain and now has the highest demand for instant delivery we have ever seen. Techdinamics is seeing this increase in demand from customers worldwide, customers are asking for better technology. Product offerings for order integration, automation, visibility tools and an expanding capability to cut cost through the carrier selection processes are some of the largest demands. With final mile representing more than 42% of the E-com supply chain costs extensive rate shopping and zone skipping tools are needed by the Manufacturers and Retailers alike just to keep pace with the Amazon model.
Capacity issues will drive the pain points for 2021 especially in the carrier world. We are seeing a whole new breed of carrier sprouting up triggered by 2020 demands especially with the less than stellar performance that we saw through the prior peak season. The greatest demand today on Techdinamics is for shipping software. 3pl’s are investing heavily into the carrier selection process and they need integrated technology to make the appropriate decisions on the fly all while they are packing thousands of orders at once. Improvements in Technology from order entry through process flow to final delivery will be the key investments for 2021 and we at Techdinamics are excited to be a part of that growth.
“Smarter Fulfillment” will contribute to the biggest success in achieving and growing market share in this new E-commerce race, it will be an exciting 2021.