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New Parcel Shipping Research: 71% of Shippers Overlook Advantages of TMS

In partnership with Logistics Management, Logistyx recently published “Using TMS to Reimagine Last-Mile Fulfillment,” a research report detailing e-commerce’s significant impact on the supply chain, current parcel shipping trends and how technology is helping companies formulate their last-mile fulfillment strategies.

The online survey of 143 professionals conducted by Peerless Research Group for this report sought to learn more about shippers’ challenges and solutions in relation to their e-commerce strategies. It’s no secret: consumers want their parcels more quickly than ever. As e-commerce continues to grow and parcel shipping expands, our industry is constantly reinventing itself. The research showed that 69% percent of respondents feel e-commerce has had an impact on their organizations and that it’s led to an increase in their parcel shipping.

 

Read on to learn more about the challenges shippers face in the e-commerce era, including some key data points from the report.

Parcel Wins the Race

For shippers seeking a balance between cost and efficiency, parcel shipping by ground is the most popular choice.

 

When shipping priority and expedited parcels, 89% of respondents shipping domestically are using parcel services, while 73% are using air, 75% rely on less-than-truckload (LTL) and 49% utilize truckload (TL).

On-time ≠ Communicative

While 90% of companies rated their on-time delivery rates as excellent, very good or adequate, only 56% of organizations rated their alerts regarding delays or damages for shipments as excellent, very good or adequate. While making deliveries on-time is key, many businesses show room for improvement in tracking and tracing, paperwork practices, end-to-end visibility and more consumer communication initiatives.

Cost Matters

Rising parcel costs continue to pose a significant challenge to shippers. As a result, 52% of respondents are working with fewer carrier partners, 39% are consolidating shipments and 38% are optimizing their internal resources (for example, labor or equipment) or improving their decision-making and planning.

Carrier Reliance High

Of course, it’s key shippers work with carriers on which they rely, but this doesn’t mean they should rely on external data as a substitute for their own tracking system. When managing parcel shipments specifically, 57% of shippers are using their carrier’s solution. This number jumps to 63% for international shippers.

TMS: The Underutilized Secret Weapon

Across both domestic and international shipments, 29% of companies are currently using a transportation management system (TMS). Yet, 60% of companies using a TMS find it to be either

extremely or very effective at helping them streamline their parcel shipping operations.

As the volume of parcel shipments increase and shippers work to meet customer demands, turning to automation and advanced technology like a TMS can help optimize the fulfillment and delivery process while keeping costs in check and providing an enhanced customer experience.

If you’re interested in learning more, download the full report here.

Ready to upgrade your parcel shipping strategy with top-tier technology? Logistyx TME is a cloud-based TMS for global parcel shipping that guarantees carrier compliance, streamlines transportation execution, monitors parcel delivery movements, and identifies ongoing opportunities to increase profits per shipment. Learn more about how TME can help your business here.