3 Logistics Industry Trends for 2016

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The e-commerce industry has seen an unprecedented growth in the past few years. According to a report released by Merrill Lynch in 2015, it has been estimated that the e-commerce industry in India will be worth $220 billion by the year 2025. E-commerce, however, is more than just sales and the merchandise value. Speed of delivery and the product quality are some of the important factors that determine the success of the e-commerce industry. Smart locker network. In fact, logistics is a key component for the success of this industry. Here we will discuss some of the logistics industry trends to watch out for in the e-commerce logistics market.

1.Collaboration between logistics providers and e-commerce companies
As already mentioned above, the e-commerce industry is growing rapidly. In the midst of fast growth, it is essential to leave the logistics to the experts by entering into strategic partnerships with the logistics service providers (LSPs). Small and medium-sized enterprises can gain from this strategy as it helps to expand the business and provide better control over cost. The global partnerships between Alibaba Group and multiple LSPs, for instance, helped the group get better opportunities in Southeast Asia and other regions. In the same way, the e-commerce companies in India can gain a lot by collaborating with the LSPs.

2.Vehicle tracking in E-commerce
The logistics industry is still unorganized in India, and as a result the under-utilisation of resources is not surprising. There will be an increase in the adoption of technology in operations in order to ensure customer satisfaction. Vehicle tracking provides necessary control and helps in planning routes to ensure fast delivery of the products. E-commerce companies such as Snapdeal and Flipkart are building strategies leveraged by its third party logistic partners to improve vehicle tracking. Amazon, for instance, has added fast, resourceful and reliable internet connectivity across devices to use technology better for vehicle tracking.

3.Automated parcel delivery

A hassle that many online shoppers face is collecting their order. There are instances when people are either travelling or not present at the mentioned address to collect the order. Taking into consideration such challenges, Smartbox has launched India’s first network of automated parcel delivery terminals. Smartbox makes it easy for shoppers to pick-up parcels as per their convenience. Currently, present at various locations in Delhi NCR region, this network will expand all over India by the end of 2016 to help consumers and e-commerce companies in 24/7 parcel pick-up and drop respectively. Smartbox automated parcel delivery terminals will also help e-commerce businesses save on the added costs of missed deliveries.

Implementing these changes in the logistics industry is necessary in order to improve customer satisfaction. The new processes and technologies will help overcome the last mile delivery challenges faced by e-commerce industries as well as customers.


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