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Transforming Global Logistics with Digital Communications

This article was updated on July 13, 2021

Dating all the way back to 3600 B.C with the ancient Egyptians, transportation and logistics is probably one of the oldest industries in the world. The people of ancient Egypt built advanced and complex canals and ships. They would then use the Nile River to transport water, food, raw materials, and precious metals.

Today's global logistics companies traverse the world over land, air, and sea, to deliver a more diverse mix of cargo, at a higher volume, and at a faster pace. Companies operating in retail, healthcare, education, and finance, among many others, all rely on the logistics industry to help drive their business.

The Rise of Global Logistics

Today, the global transportation and logistics industry is not only seeing a lot of growth in the marketplace, but it is also experiencing a major shift in operations. The Global Logistics Market is projected to reach a value of $6.3 Billion USD by 2024, registering a CAGR of 4.9% during 2019 - 2024. (IMARK Group, Report: Logistics Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024)

What are the factors influencing this ongoing shift and market growth in logistics? From the rising population, technology, and consumer demand, let's take a look at the three things that are disrupting global logistics:

1. There Are More People.

"Since 2008, urban populations ballooned from 3.4 billion to 4.2 billion—over half of today's global community."

After all, Disney once said, "It's a small world." Meanwhile, the global population continues to grow. The world is expected to populate an additional billion people by 2030, with 60% living in an urban environment and a majority of them come from today's emerging markets, according to the 2018 Euromonitor International Passport Database. The higher demand for logistics companies naturally follows the growing global population.

Whether shipping products in bulk to a business or as a single order directly to a consumer, expectations and standards for logistics companies are high. One example of a company that is tackling the high demands and growing complexities of today's market includes the global logistics company, Aramex, which makes worldwide deliveries, even without a real address.

2. More People Have Smartphones.

"Ten years ago, 1 in 100 individuals owned a smartphone. Today, 1 in 5 have one."

These days smartphones are practically people's lifeline. For many, it's the primary tool used to engage with the world around them, from social and professional connections, shopping, money management, and beyond. People are also using the plethora of mobile apps to deliver entertainment, information, services or products. From groceries and last-minute meals, to retail-apparel; likely, there's an app for that.

The appeal of a grocery delivery service that is powered by technology is painfully obvious. Why spend an hour at a store when there's an app to help make sure that your groceries are delivered to your front door in a fraction of the time?

Then there's cooking or going to a restaurant. Both options may not appeal to those with a distaste for a long wait, kitchen clean-up, and those who have a full schedule. Food delivery apps offer a convenient alternative and an opportunity to elevate the customer experience at every touchpoint.

While shopping is a favorite past time for many, the busy retail stores and shopping malls may not appeal to everyone all the time. New retail is digital, easy, and fast. When you once had to wait one or two weeks, now you can get that new outfit within the span of two or three days—or a few hours with Amazon's Prime Now.

3. Internet Sales Have Quintupled.

"Internet retail sales quintupled between 2008 and 2018, from $290.4 billion to $1.6 trillion."

The transportation and logistics industry is in the midst of its own digital revolution, yet it's already contributed to a massive amount of growth and success in the retail industry. However, mounting pressure from retailers and consumers has the transportation and logistics industry working ten times harder to meet today's higher standards. Consider that transportation and logistics companies are not only fulfilling online retail sales to consumers, but they're also delivering shipments from warehouses to physical retail store locations.

Did you know that 9 out of the top 10 online retailers in the U.S. also operate brick-and-mortar stores? There are over 1 million retail establishments across the United States, and retail sales have grown almost 4 percent annually since 2010.

Whether a shipment is going from China to New York or Seattle to San Francisco, retailers and logistics companies continue to face the larger challenge of fulfilling retail orders quickly and accurately, in order to meet the demands of today's consumers.

Smarter Deliveries with Facebook Messenger

With 60 million active business pages and 2.4 billion people on Facebook, businesses have a better opportunity to engage with customers on a more personal level. Benefitting the consume and business, Facebook is an organic fit within the purchase life cycle for retailers. People already use the social media platform to engage with the world around them.

Whether a purchase starts over a Facebook ad or a retailer's e-commerce website, it's important for brands to build an interactive and personalized customer experience. From real-time updates on a customer's delivery status to customer support questions, QR codes, and images—Facebook Messenger can help you deliver a more engaging customer experience. Not to mention, you can also make a phone call or engage with customers over video with Facebook Messenger.

Customer experience will always play a critical role for businesses today. Adding Facebook Messenger to your communication mix will help you streamline your processes, expand interactions with customers, and elevate customer service.

For transportation and logistics companies that want to expand interactions with customers and elevate customer service, Nexmo APIs will broaden your reach to the 1.3B global Facebook Messenger users today.

Written by Vonage Staff


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