Direct-to-consumer (D2C) sales have experienced significant growth as manufacturers and retailers focus on connecting directly with consumers. The shift is affecting the supply chain as shippers and their logistics providers prioritize speed, flexibility and resiliency.
Speed has become a top priority. Among respondents, 48% of shippers and 53% of 3PLs report customers expect deliveries in less than two days. For 27% of shippers and 26% of 3PLs, two- to three-day delivery expectations are the norm.
Although speed is important, costs are an issue, and 30% of shippers and 3PLs report they are not willing to absorb any costs related to shipping speeds. A higher percentage (44% of shippers and 38% of 3PLs) say they are willing to absorb a small percentage of the costs. Just 5% of shippers and 3% of 3PLs are willing to absorb a significant portion of the cost.
Consumers are increasingly concerned about the environmental impact of their purchases. D2C brands are responding by integrating sustainable practices into their supply chains. These include reducing packing materials, incorporating recycled materials into packaging and increasing transparency. About half of shippers (47%) say their highest priority within the D2C customer promise is a general brand commitment to reduce environmental impact in the supply chain.
Given the importance of speed, it is not surprising that both groups cite it as one of the most likely differentiators. Others include increased delivery visibility and supply chain resiliency.