alternative solutions that are less dependent on people because they don ’ t have the bodies .”
Today ’ s low unemployment rate spurs the need for these alternative ways of doing things . “ It ’ s hard to hire now . We ’ re still at a 3.7 % unemployment rate , although I ’ m expecting that situation to ease up a bit ,” says Rowley . “ Projections for the fourth quarter of 2023 point to a slowdown in the economy to 1.5 % growth over the next 18 months . We expect that to mean that people will hold onto their jobs because they are worried about job security . This slowing economy also means it will be easier to hire .”
Increased Pressure to Decrease Carbon Footprint
Another macro trend that will impact companies in the logistics space is the growing attention to emissions . “ Shippers are looking at their carbon footprints and impact on the planet . They are seeking ways to decrease that . This will definitely affect last-mile providers . We know that the last mile is not only the most expensive part of the supply chain , it ’ s also the biggest contributor to shippers ’ carbon footprints ,” cautions Hadhazy .
She warns last-mile providers that haven ’ t taken this issue seriously : “ Those that don ’ t act now are going to be behind the regulations and the governance component of it . It will be a part of the success of their customers – the shippers . They are looking for ways to overcome these challenges right now . They will ask carriers , ‘ How can you create better routes ?’ ‘ How can you optimize what you are doing ?’ They have to because consumers are not changing their patterns . They want everything today . Tomorrow at the latest . And they want to know exactly where to know where their deliveries are right now . And , of course , they want it to be delivered free . Companies need to determine the best way to meet these consumer expectations while measuring up to new governance regulations on environmental impact .”
She pointed out that the first step for last-mile providers will be measuring their carbon footprints . “ First , you measure . Then you improve ,” she says . “ And it will become necessary because your customers – the shippers - will require it . It ’ s going to become part of their scorecard model . Shippers won ’ t just ask , ‘ Was it delivered on time and in good condition ?’ They will ask about a provider ’ s carbon footprints while doing all that .”
What does this mean from a staffing point of view ? Will carriers need designated team members whose job it is to handle this ? “ Not exactly ,” she says . “ It will be less a staffing issue than an information issue . Carriers will need to assign this responsibility to someone on their staff who will keep track of and aggregate this information . When they think of the roles within their organizations , they will need to have somebody who can think creatively about these issues and have the authority to try new things .”
Pickup at Store – A Growing Trend
Retailers looking to cut their carbon footprint will also search for ways to automate their fulfillment processes . For some , that may mean encouraging customers to order online and pick up the items from the store themselves . “ The threat to last-mile providers is ordering online and picking up at the store . I expect that to take off more heavily next year ,” says Rowley .
36 customized logistics & delivery Magazine I fall 2023