Six keys that shed light on the new logistics challenges in e-commerce

The pandemic marked the definitive takeoff of e-commerce, and with it, of logistics and last-mile delivery.
This effervescence slowed down in 2022 and the first months of 2023.
The slowdown in demand after Covid, the effects of the war in Ukraine, inflation and the contraction in consumer spending are behind this slowdown.
This situation has led to a reordering of some projects in the search for solutions that will allow companies to continue to prosper.
In fact, the “Global E-commerce Logistics 2023” report forecasts a 7.9% growth in the sector for the current year, recovering the losses of 2022 and reaching a value of 451,239.3 million euros.
All this has shown that logistics and last-mile delivery for e-commerce is facing new challenges, in a sector in which large logistics operators and parcel networks coexist with new specialists with a high technological component and focused on sustainability.
To understand this evolution, it is essential to know some of the keys that will have a definite influence on the future of logistics.
A sector marked by infrastructures that are costly and slow to create and modify, which is “condemned” to understand and connect with the culture of the Internet and e-commerce, a sector that is much faster, more adaptable and with a relatively inexpensive infrastructure.  

Milestones that will shape the future of the logistics sector

E-commerce represents a great business opportunity but also a great challenge and a titanic effort for the current logistics model, which must be faced by reinventing itself and becoming much more flexible.
This is evidenced by recent events that have marked and will mark the future of the sector.
These are the keys that the 2023 E-commerce Logistics and Last Mile Distribution Report, which we are reporting on today, exhaustively analyzes.  

1. E-commerce slowdown

As we have seen, the end of the pandemic and the restrictions it entailed resulted in a slowdown in online shopping.
According to the CNMC’s 2022 Annual Postal Sector Report, after three years of more than double-digit growth, in 2022 the number of parcels shipped fell by 4.4%.  

2. Tighter financing and higher costs

Multiple internal and external factors have led to a constant increase in fuel, electricity and labor costs.
A rise that affects all sectors, but especially last-mile delivery.
To this must be added the drop in support from financial backers for new startups, in a context of rising interest rates, which offers large investors much more secure profits.
This has led some of the leading companies in the sector to “close their doors”.  

3. Outsourcing and internalization

Retailers, distributors and FMCG companies are aiming for greater control of their e-commerce logistics, especially in terms of stock and order preparation.
This is why there is a succession of projects for large warehousing centers in the different countries in which they operate.
The goal: to shorten delivery times and gain efficiency, to build customer loyalty and increase profits.  

4. Increased competition

Despite the economic slowdown caused by the end of the pandemic, new initiatives are constantly emerging, especially in the area of fulfillment.
Young companies are focusing on making data management, order processing, customer service and logistics more efficient.
All of this is aimed at improving customer satisfaction.
In this regard, the Spanish market is of particular interest to international logistics companies, which are seeking to attract Spanish customers by offering to facilitate their marketing abroad and vice versa.  

New delivery points

In-store and locker collection is gaining popularity among Spanish shoppers on a daily basis.
This is reflected in the latest CNMC Household Panel.
According to this report, 15.3% of Spanish shoppers choose a physical store to pick up their packages and 9.2% choose a smart locker.
This increase represents a great opportunity for logistics companies that are committed to strengthening these alternatives to home delivery.
An option that is also much more environmentally friendly and efficient.  

6. More technology

The latest technological advances are becoming increasingly important and necessary in the logistics sector. New technologies applied to both warehouse management and delivery continue to gain in importance, especially in the field of real-time route control and monitoring, direct communication between the delivery person and the buyer, and returns management.[:]