The challenges for eLogistics left in LATAM in 2020

5 min read

The big topic of 2020 was without a doubt COVID-19. The pandemic not only changed social and work behavior, it also changed companies, especially in the area of ​​logistics. Thanks to the pandemic, e-commerce has increased its demand in very significant percentages, which is a challenge for supply chains and home delivery services.

The challenges for eLogistics left in LATAM in 2020
The challenges for eLogistics left in LATAM in 2020

The quarantine and inability to leave the house led to new consumption habits, which affected delivery speed, demand and supply planning. However, the Latin American market, with cases like Pibox, viewed the pandemic as an excellent growth opportunity that largely depends on the evolution of eLogistics.

In fact, the logistics application Pibox generated more than 2 million shipments in the four countries (Colombia, Mexico, Peru and Brazil) during this period and positioned itself as the logistics company with the highest growth in the last year. Based on this data, the company expects growth of 300% in the coming months in order to establish itself in the logistics sector of the region.

Electronic logistics, the organization promoting e-commerce

E-logistics or electronic logistics refers to all digital strategy and organizational processes that make up e-commerce, from purchasing management to logistics transport to product stocks, storage and sales. This is intended to provide the customer with a user experience that is not only effective but also completely satisfactory and encompasses all of the requirements of virtual trading.

Thanks to electronic logistics, e-commerce gains more effective methods of optimizing its operations, especially product deliveries, as it includes more services as well as better information management in real time to be attentive to every step in the supply chain. For this purpose, eLogistics uses the most advanced and adapted technology currently available.

Logistics panorama in Latin America

“Digital logistics platforms not only lower operating costs, but also facilitate the meeting between the customer and the company, shorten delivery times and improve communication,” says Daniel Rodríguez, CEO of Pibox. In fact, the World Trade Organization (WTO) predicts that these platforms could increase trade in goods by 2 percentage points compared to a baseline scenario.

As if that weren’t enough, the World Economic Forum last January predicted that demand for last mile deliveries would increase by 78% globally by 2030. However, it is almost a fact that this sum is much higher due to the pandemic and at the moment we live in, where LATAM is presented as one of the most important developing markets.

Advantages of using eLogistics

“The great advantage of using electronic logistics is an increase in the productivity of the logistics process, thanks to the combination of the latest technology that includes tools such as data analysis, big data, IoT, open data and temporal connectivity – real, augmented reality and virtual reality,” said Rodríguez.

ELogistics can help improve business and retail activities in Latin America. Similarly, by digitizing or optimizing purchasing and delivery processes, companies could achieve a reduction in shipping costs of up to 25%. This is significant because in Latin America shipping logistics is 15% of the cost of a product, almost double what it is in Europe and the US.

Photo: Courtesy of Pibox

Main logistics challenges in the future

The logistics sector still faces major challenges both in the immediate future and in the future that extends to the following years:

  • Facilitating returns: Use the reverse logistics, forwarding and resale services of the logistics companies.
  • Adaptation to “green logistics”: It is no longer enough to be socially responsible companies, but they must look for methods that do not pollute or harm the environment and use the greatest amount of organic resources.
  • Updated professionals: Nowadays it is necessary for those involved in a logistics chain to constantly update themselves in order to implement new strategies and not to delay the processes.

“Although the pandemic has halted some commercial activity, before 2020 e-commerce grew in unimaginable amounts, which is a great opportunity to take advantage of the Latin American market ready to adapt with new technology electronic logistics to handle each of their processes to improve and grow at will worldwide, ”concluded the CEO of Pibox.

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