Instant Gratification Upends Logistics Industry

In today’s instant gratification age, the expectation on speedy services in retail has naturally progressed as fast as possible.

As a result, consumers are looking to businesses to ramp up anything and everything. The latest victims in the crosshairs of this newly developed seamless service is the logistics industry.

One of the major contributors to the upending of the logistics industry, via consumer demand, of course, is Amazon with its over 65 million Prime members. Living in a large city affords many benefits, but with Prime membership, consumers have the ability to receive an order within hours of paying for it online.

A recent report by CRBE shows more companies are moving products from large warehouses that tend to be far away to smaller and more convenient locations inside cities. The move to closer locations is what’s known in the logistics industry as the “last mile” of delivery.

GeekWire quotes CRBE saying, “Customers expect speed and convenience, and logistics operators are compelled to give them what they expect in order to survive in this competitive business. This is where technology comes into play.”

It’s not just Amazon getting in on the action. This movement in the logistics industry has spurred entrepreneurs to develop innovative startups in the space. From locker location deliveries to Uber-like services employing drivers to pick up packages and deliver at any time, we’re seeing a revolutionary change in the way the once-stale logistic industry operations.

Looking toward the future, there will likely continue to be a demand for products to be delivered at increasingly rapid speeds. We’ve seen a few companies out there testing out drone deliveries but none that have truly captured the space. Before too long, we may just see drone deliveries flying high in the clouds alongside planes.


New PYMNTS Report: The CFO’s Guide To Digitizing B2B Payments – August 2020 

The CFO’s Guide To Digitizing B2B Payments, a PYMNTS and Comdata collaboration, examines how companies are updating their AP approaches to protect their cash flows, support their vendors and enable their financial departments to operate remotely.

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