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The electricity supplier has provided huge opportunities for profit to the logistics industry. Frank Diaz, executive vice president of Price Smart, an American chain store retailer, is eager for the logistics industry to help companies compete with e-commerce retailers.
In November 1st, he said at Air & Sea Cargo Americas meeting: "electricity providers are generally hard to make profits. Now the challenge is how to make profits, and we are relying on the logistics industry to help us achieve profitability.
Diaz said that logistics companies now need to deliver products faster and cheaper, ensuring their own advantages and not being replaced by others.
Although Diaz acknowledges that the airline industry has benefited most from e-commerce, he also believes that shipping routes have opportunities, especially in larger or less urgent cargo transportation.
So far, most of the electronic cargo transport has made the air transport industry profitable. But as the number of consumers in the global middle class keeps increasing, their product consumer market will continue to grow, and the shipping industry will also benefit.
"The general e-commerce products are small packages," he said. Transport companies should be prepared to cater for the increasing demand of customers. The counter can lower the landed cost of goods. The most successful enterprises have focused on this point. If we integrate e-commerce and shipping into an industry, we will have the opportunity to greatly enhance the consumer experience. "
SeaLand chief executive Craig Mygatt confirmed that customers wanted more shipping routes, not just from ports to ports. "Customers need to change now," he said. We need to work more closely with people outside core business to meet customer needs. "
Diana Najera, an international business manager at Mexico express company Estafeta, says e-commerce has enabled businesses to contact more consumers and help them understand consumers' shopping behavior. "Now customers need a comprehensive logistics service," she said. And customers also have their own customers, which means that enterprises must meet the needs of multi-party customers.
UPS Romaine Seguin, the US president, said the express company that controls the last kilometre transport will become the winner. She said: "now the consumer dominates the market, and it was a retailer 10 years ago. Now retail is thinking about how, when and where to let consumers want to get products. "
She added that market forecasting will become an important part of enterprises. "Enterprises have high peaks and low levels. They must understand these predictions," she added.