What are some key supply chain facts?
It Takes a Giant Workforce
It turns out that more than 5 million people in the U.S. are employed in transportation and warehousing according to the Bureau of Labor Statistics. These people serve the needs of many customers. In the past, most goods were sold in retail shops, but today online shopping continues to grow in numbers and popularity. Just this year alone, the world has about 2.14 billion online shoppers– over one-quarter of the global population– and they order things online that they expect to arrive at their doorstep in a couple days, or, better yet, a couple of hours. Hence, for suppliers, supply chain logistics continues to grow in order to meet the needs of all the shipping involved thanks to online sales.
Over a Trillion Doller Industry
Shipping is a huge industry, to the tune of a trillion dollars. Though it’s just one part of the supply chain, it’s gigantic. That’s because more and more people are buying things online which increases the demand for shipping, and businesses are adapting to this as they spend money in order to increase the efficiency and quality of their shipping.
How quickly do customers want what they buy online? Ideally, they’d like it to arrive the same day they purchase it. Interestingly, same-day shipping is actually working out for many retailers these days. Same-day shipping is becoming the new normal. That, of course, puts pressure on the supply chains.
It’s still all about trucks delivering goods. Sure, airplanes and drones contribute, but the bulk of freight transportation in North America is covered by the trucking industry.
Finally, when it comes to warehousing, radio frequency identification (RFID) is helping to change (and improve) supply chains, making inventory accuracy as high as 95%. Therefore, less inventory gets lost. And these tags help workers find and keep track of goods so they can ship them even more quickly than they used to do a couple years ago.
When you need a reliable third party logistics partner, learn how Affiliated Warehouse Companies can help.