The New Logistics Model: E-Commerce and the Supply Chain

In recent years, the online shopping trend has revolutionized how companies do business. The e-commerce boom and the ability to buy with a single click have forced companies to be up to date on sales trends regarding digital platforms and e-commerce logistics in order to consolidate their competitiveness while the market continues to grow.

Against this backdrop, Mexico reached MX$401 billion (US$19 billion) in 2021 in e-commerce sales, an increase of 27 percent compared to 2020 and representing 11.3 percent of the country's overall retail sales, reflecting the significant growth of e-commerce, according to the study of online sales 2022, prepared by the Mexican Association of Online Sales (AMVO).

Given the opening of physical locations and the arrival of the COVID-19 vaccine in 2021, Mexican digital consumer behavior stabilized, but there were changes in the demographic profile and consumer trends that will mark the post-pandemic transition.

Some of the categories that gained preference among online consumers were: pharmacy, food delivery, fashion, furniture, home decoration, tools and electronics. These continue to lead the list of the most preferred categories in the digital channel.

It’s important to highlight that Mexico is one of the leaders in e-commerce retail, surpassing both the world average and developed markets, such as France, Germany, Italy or Brazil. However, Asian markets are showing the potential for development in the coming years.

Online consumers expect a service that offers flexibility, convenience and speed when making a purchase. For the logistics industry, these factors will be key in 2022 to improve the sales experience on websites and marketplaces.

The pandemic caused problems for the global supply chain, causing setbacks in the supply of products and services in various sectors, and the logistics industry was also affected.

Given this scenario, logistics operators analyzed and addressed the new needs of the market, leading them to rethink their operating processes, optimization of the supply chain and resource management in order to adapt to the behavioral transformation of customers and the consumer.

Onest Logistics, a leading company in logistics services, recognizes that digitization and intelligent information are key elements for the implementation of effective strategies with great impact in a short time to promote and streamline e-commerce.

As a result, this 100 percent Mexican company received the National Logistics Award (PNL) 2021, in the Logistics Services Provider category, 3PL Subcategory, for the outstanding project: "Accelerated Suburbia: e-commerce growth during the pandemic."

During the pandemic, Suburbia and Onest Logistics, achieved a 53 percent increase in department store e-commerce operational capacity within two months. The greatest impact of the project was the growth of the operation by 400 percent, achieving a greater product rotation in a more resilient supply chain.

To supply market demand, it was necessary to analyze the purchasing trends of our clients' users through the collection of information from supply standards, recommendations through social networks and various internet platforms, which allowed us to assess the behavior and purchase prediction of each person.

Now, analyzing the panorama and global consumer demand, the logistics industry must continue to innovate and design logistics models that meet the needs of the market, maintaining the highest quality standards in our supply chain as a competitive advantage to improve the quality of customer service.

For the third consecutive year, Mexico is positioned in the Top 5 of countries with the highest growth in e-commerce retail, just behind India, Brazil, Russia and Argentina. Electronic commerce in Mexico exceeds the world average by more than 10 points, demonstrating a strong and expanding market.

In this way, e-commerce serves as a great lesson for all industries to update processes and develop strategies that allow companies to proactively anticipate any economic scenario.

The digital consumer recognizes the benefits of online shopping beyond price, mainly the benefits of home delivery, avoiding trips to physical stores and having access to the exclusive inventories of the digital channel.

As the evolution of the market allows us to delve into this topic, we have to grow our data analysis database and offer alternatives and facilities to customers. Sustainability is another requirement of consumers who want to encourage care for the environment and support for different social causes.

The main commitment of logistics companies is to help customers and users have a great shopping experience on a daily basis, both in stores and on digital platforms, considering new technologies, the evolution of the consumer and the optimization of the supply chain at a global level.

About ONEST LOGISTICS

Onest Logistics is a leading Mexican logistics services company, recognized for its reliability, values and commitment to its customers. In the last few years, Onest has consolidated its position as the first and largest Mexican company in the 3PL sector, competing with all the transnational companies, based on our three main pillars, which are technology, flexibility and consolidation.

For more information visit: https://www.onestlogistics.com/