E-commerce represents one of the single greatest factors impacting the future of LTL freight. In just two years — from 2017 to 2019 — e-commerce grew from roughly 11 percent of retail sales in the U.S. to nearly 17 percent. And that number will only continue to rise.

As demand has risen in both brick-and-mortar and e-commerce supply chains, shippers have been faced with a challenge. Smaller and more frequent orders mean shorter lead times and less product to fill a truck. That forces consumer packaged goods (CPG) shippers to use less-than-truckload services more often.

For a logistics or delivery company to claim that they offer “unmatched care” when it comes to handling shipments is nothing new. There is, however, a growing trend you’ve undoubtedly heard of that takes this concept even further – white glove service.

The LTL shipping industry is busier than ever. As a result, space within trucks is also tighter than ever before. This places added responsibility on the shoulders of shippers and carriers to ensure that each shipment is packaged as safely and efficiently as possible.

The demand for final mile and white glove delivery services is rapidly growing for large and heavy products that aren't suitable for parcel shipping. These types of residential deliveries generally require the use of two-man delivery teams. Pulling off a successful final mile delivery, however, will require planning and actions on behalf of the recipient. 

Over the past several years, two important challenges have developed for supply chains. First, the growth of online shopping has increased shipping volumes and demand for quick deliveries to consumers. Secondly, the driver shortage has strained freight capacity across multiple areas of the supply chain process.

Together, these challenges have forced shippers to rethink their warehousing and distribution services strategy. This is especially true for shippers that move mid to high volumes of freight across multiple markets.

To that point, look at Amazon's warehousing and distribution services model. Marketplace shippers (and increasingly Amazon's own line of products) sell to customers throughout North America and around the globe. To keep customer prices under control, Amazon understands the value in local and regional warehousing and distribution services.

With approximately 75 fulfillment centers and 25 sortation centers in the U.S. alone, the company's supply chain is structured to reduce final mile transit times and costs. This structure allows sellers to stage inventory across multiple key markets rather than having to ship individual orders hundreds or even thousands of miles.

Well, that warehousing and distribution services strategy is great for Amazon's sellers, but what about B2B and B2C shippers that sell and move products independently? It goes without saying that most businesses lack the capital to build a supply chain infrastructure on the scale of Amazon. Nonetheless, local and regional fulfillment solutions are increasingly becoming available to shippers to meet the growing demands of today's supply chain.

As the busiest time of year for retailers, the holiday season can be a roller coaster of preparation and execution across all areas of business. From gauging the latest shopping trends to staffing temporary employees, there are several moving pieces that need to work together to succeed. One part of the puzzle that certainly can't be overlooked is inventory and supply chain planning.

In February 2018, we discussed solutions that can help shippers navigate the freight capacity crunch currently felt throughout the U.S. Current challenges with capacity, however, are not limited to freight moving domestically. Cross-border freight capacity between the U.S. and Mexico, for example, has become increasingly difficult to secure in recent years.