LEGACY Insights: Sustainability & Ecommerce Become Major Supply Chain Trends

Report: Demand for Supply Chain Sustainability Remains Strong

It would be an understatement to say that 2020 - and, so far, 2021 - have placed the global supply chain and all the companies that operate within it under considerable pressure. Yet despite container shortages, capacity constraints, surging ecommerce demand and, yes, a global pandemic, industry professionals say that supply chain sustainability (SCS) remains a top priority.

According to the 2021 State of Supply Chain Sustainability report, published in partnership by the MIT Center for Transportation & Logistics (MIT CTL) and the Council of Supply Chain Management Professionals (CSCMP), “More than 80% of supply chain professionals claimed that the crisis had no impact [on] or increased their firm’s commitment to SCS.” Executives, in particular, were adamant about the importance of SCS, with 83% stating that “COVID-19 [had] either accelerated SCS activity or, at the very least, increased awareness and brought urgency to this growing field.”

Though industry insiders cited multiple different motivating factors, many agreed that changing consumer expectations played a major role, with one executive reporting that sustainability issues were rated by customers as the second-highest concern, just after capacity. Given this growing interest from consumers, it seems as though SCS is on track to become the next big competitive differentiator.

“Our members tell us that now, more than ever before, that the very notion of embedding sustainable practices from within their company’s supply chain delivers real, tangible results,” said Mark Baxa, interim president and CEO of CSCMP.

“Competing in today’s global marketplace is not just about the high-quality products supply chains plan, procure, make and deliver. It’s about doing the right thing for the whole of society.”

Forcast: Ecommerce Sales Expected to Remain Strong in 2021

Now that a significant portion of the U.S. population is fully vaccinated, shoppers are finally returning to stores - but that doesn’t mean that ecommerce is going anywhere. According to its revised annual forecast, the National Retail Federation predicts that retail sales will exceed $4.44 trillion in 2021, and that ecommerce sales - which are included in the total figure - will grow between 18% and 23% to a range of $1.09 trillion to $1.2 trillion.

These figures come as excellent news for omnichannel retailers and ecommerce pure players alike, as well as point to a larger trend within the industry. Throughout the pandemic, we witnessed a dramatic increase in online sales as homebound consumers turned to the internet for everything from groceries and toiletries to electronics and furniture. Despite capacity constraints and container shortages causing shipping delays and other issues throughout the global supply chain, the vast majority of consumers have embraced eCommerce and intend to continue to shop online. According to a recent survey of U.S. consumers, 29% of respondents said they will shop for items online more than they did during the pandemic. Another survey found that 55% of consumers in the U.S., Canada, the U.K. and Australia said they would prefer to shop online than in stores.

This continued consumer commitment to ecommerce has, naturally, put last-mile delivery under the microscope. Throughout the pandemic, many retailers have offered free shipping as a concession for protracted transit times and unexpected delays. Consumers quickly became so accustomed to free shipping, that 53% now report that they expect brands to offer it indefinitely - and to provide greater visibility into shipments.

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