Using a Transportation Management System for Parcel Shipping

Higher shipper costs, ongoing labor constraints, and a “want it now” mindset are driving more companies to implement TMS for parcel shipping.

Today's "want it now" delivery expectations are pushing manufacturers, retailers, distributors, and logistics providers to rethink the way they orchestrate their parcel shipping operations.

When a customer orders a single tube of Chapstick online and expects it to arrive on her doorstep within two days (or less), traditional parcel management approaches must give way to new, tech-enabled processes that enable expedited deliveries.

Omni-channel, where customers get a seamless shopping experience whether they’re shopping online, in person, or by phone, is also creating new challenges for companies that must ship via parcel in order to accommodate these demands.

The scenario is playing out both on the business to consumer (B2C) and business to business (B2B) side of e-commerce, which are expected to reach $605 billion and $1 trillion in 2019, respectively.

“We’re seeing a digital transformation of the entire sales process right now,” says David Hogg, Logistyx Technologies’ vice president of business development.

“This is putting new pressure on the supply chain to be able to adapt and respond in new ways.” For example, 10 years ago a retailer probably had numerous warehouses that were used for bulk replenishment of its stores.

When e-commerce entered the picture, that retailer suddenly needed new facilities to accommodate smaller, faster orders to individual customers. “Just dealing with the picking of single units, and being able to handle the related distribution,” says Hogg, “was a pretty big deal for retailers.”

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