Brick-and-mortar foot traffic never fully bounced back with the fading of the COVID-19 pandemic. On the contrary, the shift from in-store to online purchasing, evident over the last 10 to 15 years, became all but solidified.

The e-commerce logistics market is projected to grow by more than $400 billion by the end of 2027. It’s clear that consumers are funneling the bulk of their purchasing power into the online arena.

Consumers in major verticals generally have more than one option for fulfilling their orders. In response, online retailers and direct-to-consumer (DTC) providers need to enhance their offerings in nearly every category. They must prioritize the total online shopping experience, including the price and quality of the merchandise, and the “how” and “when” of receiving it. That includes managing the cost of last-mile delivery, which accounts for 41% of total supply chain expense.

In the days before Amazon.com, consumers were often forced to accept longer delivery windows and less choice of carrier. Not anymore. Today, customer preference plays a pivotal role, along with traditional concerns such as price and reliability.

An effective way to achieve all of these things is through the adoption of a multi-carrier strategy.

By relying on consumer data such as purchase frequency and geographic location, shippers using this approach can tailor their options and produce savings for brands and consumers alike. Consider that FedEx instituted a $13.25 per-package surcharge in January of this year for deliveries to select rural ZIP codes designated as “remote,” affecting some three million Americans. If the shipper absorbs half the cost, it’s greatly impacting its profit on the sale, while passing the entire charge on to the consumer is likely to send it seeking alternative products and providers. A single-carrier strategy offers fewer options for specific use-case solutions.

The degree of carrier reliability ultimately depends on the size of the customer. Imagine being a mail order pharmacy with a single-carrier strategy, facing down a work stoppage from its chosen carrier (or worse, imagine being a consumer who relies on that pharmacy for life-sustaining medications). A multi-carrier strategy not only gives the shipper the power to assign parcel volumes in the most advantageous way, it keeps it from being painted into a corner should some unplanned event force a shutdown in the supply chain.

Shippers seeking greater control over their transportation spend are employing business intelligence tools to identify trends in carrier cost and performance. Such analysis is increasingly causing them to turn to multi-carrier strategy as a solution.

In tandem with big data, artificial intelligence is helping to drive the evolution of logistics and shipping in new ways. Together, the two have shown their potential for reducing last-mile inefficiencies and optimizing deliveries, while automating the supply chain. 

Reasons for adopting a multi-carrier strategy today are many, including better operational efficiencies, more affordable shipping and the ability to meet rising customer expectations. For the shipper, it all adds up to a final benefit: peace of mind.

Patrick Kelley is executive vice president of OSM Worldwide.