The “Amazon Effect” & New Expectations of B2B Logistics [Part 4]

Last month, we posted part three of our Final Mile Delivery blog series and provided advice on improving your current logistics services and how to search for the right partner.

Join us for the final blog in this series, part four, as we talk about how e-commerce and the “Amazon effect” have impacted the supply chain industry and shaped people’s expectations of logistics in the business-to-business (B2B) space.

“The “Amazon effect” refers to the impact created by the online, eCommerce, or digital marketplace on the traditional brick and mortar business model that is the result of the change in shopping patterns, customer expectations, and the industry’s competitive landscape.”

When you think about e-commerce and the “Amazon Effect,” how has that changed the expectations of your clients?

Our clients’ expectations have changed when it comes to delivery, along with their customers and/or suppliers. Due to the “Amazon effect,” they are used to receiving information, like when their package is arriving, when ordering products and goods to their homes. They have seen the possibility of free next-day shipping, minute-by-minute location updates, photos at delivery, and real-time information sent directly to their phone.

This has shifted our clients to expect the same level of service, visibility, and efficiency when it comes to their business. Our clients do recognize that their Amazon small parcel packages and their company’s high-value deliveries are not the same, but increased shipping costs or longer delivery times become less approved of with this transition. These new expectations have put new pressure on our team and our network of partners to meet this need.  

How has the “Amazon effect” evolved the logistics and supply chain industry overall?

Frankly, the “Amazon effect” has injected a huge volume of parcel freight into our standard transportation networks, which has increased opportunities for delays and damages. With the increased demand from this new expectation of our clients, supply chains are now having to focus on greater efficiency and end-to-end traceability and visibility. Logistics companies are also investing more money and resources in AI technology and tools to stay competitive.

While we are getting trained by Amazon and other e-commerce retailers, what makes the shipping experience in the commercial space challenging or different?

On the commercial side, we must be real. At Pegasus, we say, “the truth hurts helps.” We do not want to say we can be the next Amazon tomorrow. We want to provide realistic timelines associated with the events that we’re completing in the final mile delivery. We know we are not currently like Amazon that uploads it in 30 seconds and delivers it in no time. However, we do listen to our clients and understand exactly what each of them needs so we can adapt to those needs. We then work collaboratively with our clients to get what will be satisfying for them as well as their customers.

What can organizations do and what has the Pegasus team done to meet these new expectations of clients?

When it comes to B2B, it is mission-critical to provide that high level of visibility and transparency on every shipment, from point A all the way to point B. B2B sellers and supply chain providers must adopt technology to meet customer demands and effectively compete in the market, as well as consistently think about the future and understand where the market is headed.

From customized technology to visibility platforms and our people, we have invested in shortening that cycle of visibility, so our clients feel a similar experience to the Amazon experience when shipping with us. At Pegasus, we are innovators who look at tomorrow today. We are forward-thinking industry leaders who provide a solution-focused, flexible network. Our approach to stay out of the resident B2C parcel deliveries allows us to stay hyper-focused on the outcome of every one of our high-value shipments.