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Home » Where is the small parcel market headed in 2021?
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Where is the small parcel market headed in 2021?

CSCMP’s latest Hot Topics discusses the impact of COVID on the small parcel market and what’s expected for B2B parcel deliveries in 2021.

Parcel
February 9, 2021
Supply Chain Quarterly Staff
No Comments

Demand will continue to be high for small delivery providers, according to a Hot Topics publication from the Council of Supply Chain Management Professionals (CSCMP). In “2021 Small Parcel Outlook,” Kim McQuilken from the consulting company Spend Management Experts explores upcoming trends for the small parcel market and expectations for business-to-business (B2B) shipping needs.

McQuilken predicts that trends that were prevalent in 2020—such as high e-commerce demand and capacity challenges—will continue into this new year and result in increased shipping rates. The consultant suggests that shippers “need to understand all of their costs associated with shipping parcels and all other cargo” in order to tackle the challenges in this volatile market. To plan for the year ahead, companies should focus on increasing visibility while also investing in data analytic tools.

As retailers look to mitigate the increased small parcel costs, McQuilken offers these tips:

  • Invest in omnichannel technology solutions,
  • Embrace lockers and third-party pickup/drop off locations,
  • Prepare for higher return rates and work on reverse logistics strategies, and
  • Keep abreast of changing customer preferences.

Hot Topics are available to download by visiting cscmp.org, clicking on the “Develop” tab, and selecting “Hot Topics.” You can search for “2021 Small Parcel Outlook” and purchase for immediate download (CSCMP members receive Hot Topics publications for free).

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