August Newsletter Roundup
What Direct-to-Consumer & Retail Brands Need to Know
About the Supply Chain this Month
Top Insights this Month
With so many economic changes happening in recent months, we know there's only one thing on your mind: peak shipping season. There are significant variables at play that can impact DTC brands' ability to keep up, with the critical ones being the commercial real estate, fluctuation in consumer demand, and a lack of labor in the supply chain industry.
While there is no magic solution, there are a few things you can consider. Explore new carriers to create redundancy, optimize spend and improve reliability. Think ahead and expect that carriers may have issues due to bottlenecks and labor shortage especially during peak season. Balance time to home with cost. At TransGlacier we are focused on helping you find strong partners for all your shipping needs. Let us know if you’d like a free supply chain analysis where we can help identify risks you may have and opportunities you can explore.
1. Increased Demand for Commercial Real Estate
Commercial real estate (CRE) fundamentals improved in the first half of 2022* and is now experiencing a gradual slowdown into choppy, yet still positive demand. Furthermore, the amount of people back in an office has increased by 1.9%, creating more than 635,000 jobs in the first half of the year. This stabilization of CRE demand plus the increase in jobs available is just another factor driving positive demand for commercial real estate space.
2. Large Volume Swings in Direct Orders
Over the last 2-3 years, the supply chain has endured everything from delays to a lack of willing workers—bringing the opposite of predictability. Year-to-date, 2022 has seen similar challenges as we did in 2020 and 2021. Most recently, Amazon and Shopify merchants are experiencing wide swings in their WoW shipment volume, while other merchants are hovering below last year's growth metrics.* Check out the metrics for yourself here.
3. Stiff competition for labor continues
Unemployment dropped to 3.5% in July, the lowest rate yet since February 2020.* While traditionally a positive metric to reflect on, the low unemployment rate brings particular strain to the logistics & supply chain sectors. Turnover in the logistics sector was more than 49% last year, causing significant strain on the industry as a whole. Our advice for you? Attract and retain talent by offering growth opportunities and exposure to cutting edge technologies. Investing in your people will benefit their career and in turn, keep them invested in your company.*
About Our Partner Network
We've been busy vetting partners so you don't have to. In addition to our current partner network, we're on pace to onboard more than 10 new partners in the coming weeks. These partners span all facets of the supply chain - from domestic to international and small parcel to full containers - but three common denominators remain: honesty, transparency, and trust. We're excited to share more in the days ahead. Stay tuned for our next newsletter.
Market Insights from Extensiv
According to market insights on Extensiv, Amazon and Shopify are currently experiencing drastic fluctuations in the WoW volume of orders, while other marketplaces are consistently negative in their YoY average order volume per merchant.*
Amazon Average Order Volume per Merchant
(Week-Over-Week)
Let's Talk Logistics
We live to talk about all things logistics. Whether that be about your viewpoints on other key market factors that will impact the road ahead or discussing how we can help you build a more resilient supply chain, you can connect always connect with us here.
We live to talk about all things logistics. Whether that be about your viewpoints on other key market factors that will impact the road ahead or discussing how we can help you build a more resilient supply chain, you can connect always connect with us here.