The boom of e-commerce and shopping online has meant that there are more parcels and packages that need delivering than ever before. Increased same day or next day deliveries are preferred and as such, the demand for logistics operators and providers is additionally seeing a marked rise.
The following article looks at some of the reasons for this growth and in doing so, also pinpoints the various opportunities that will exist in this business.
As e-commerce grows and more people now order most of their living requirements online, from food to garden tools and plants, it can all be delivered to your door and purchased at the click of a mouse. The current growth of e-commerce is expected to stabilize yet continue to grow at a steady rate for the next five years at least.
Growth in Uber-like applications for logistics
As the demand for transport has risen there have been a number of Uber-like applications that have tried to disrupt the industry. As long as you have a truck or appropriate form of transport, you can register using these apps to complete deliveries in your local area.
Change in delivery requirements
Same day last mile delivery options have changed drastically. People now want their goods delivered the same day they order them and pay for them online. This demand for same day or next day delivery means there is a heightened demand for drivers and couriers. This means more warehouses are required next to major cities and towns and more localized couriers doing the last mile.
Warehouse Automation
The development and implementation of warehouse automation technology has sped up the order processing component of the purchase. Items can now be picked and packed a lot quicker than ever before, and this means that there is always a wrapped and addressed parcel somewhere that needs immediate delivery.
There will be several associated business-building processes that you will need to follow to engage with these opportunities. For example, you will need to develop a business plan to engage with any of the opportunities presented above. Knowing your business credit score is also critical if you need financing to expand into one of these areas. Lastly, being able to actually perform the tasks/job as required will be key, like having the trucks, drivers, storage and systems.
Logistics is a great start-up idea. It should also be remembered in closing, that transportation is not just about parcels and e-commerce. Yes, these are the current growing trends and the sectors that will provide lots of work, but logistics is also about the transportation of children to and from school, animal transport and the movement of fresh and frozen produce. Everything that we consume and use or interact with needs to be transported to us and as such it is best to keep an open mind as you look to the logistics sector as a sustainable business opportunity.
