GROWTH OF E-COMMERCE – We Are Just Getting StartedGrowth of e-commerce in the U.S. has steadily increased in overall sales and as a % of total retail sales.

Forrester expects online sales to reach $523B by 2020, averaging an annual 9.32% YoY growth rate.

Mobile continues its sharp climb in the US

During Q3 2016, mobile commerce accounted for 20% of e-commerce purchases in the U.S. By 2020,

m-commerce is projected to account for approximately 50% of total e-commerce sales.

Personalized Online Shopping Experience

Media giants like Facebook, Twitter and Google are introducing integrated online chat bots to assist with

the personalized online shopping experience and customer service.

Artificial Intelligence is HereNew and emerging technologies like Google Home and

Amazon Echo are making it more convenient for consumers to purchase products at home

and on-demand.

Increasing Online Consumer Expectations

Free shipping has not only become a norm, it also helps increase sales. 9 out of 10 online shoppers say free

shipping is the No. 1 incentive to make them shop more online.

67% of consumers expect a clear and easy return policy.

60% of online shoppers consider free shipping as an element of the best returns experience.

E-COMMERCE TRENDS IN

2017

SUPPLY CHAIN CHALLENGES AFFECTINGE-COMMERCE SHIPPERS IN 2017

Reverse Engineer Your Program: Taking an outside-in focus that starts with the consumer’s experience of the supply chain and working back through the supply chain design will result in a better e-commerce experience for your customers.

Be Flexible, Be Agile: Network optimization, carrier and mode selection based on factual data are key components to reducing supply chain cost and improving time in transit. This, in turn, has a positive impact on customer satisfaction.

It’s Time to Look Beyond Cost Savings: To remain competitive and increase market share, shippers need to take a holistic approach to their supply chain. Savvy shippers are making it a priority to set their network up for future growth, not just taking advantage of immediate cost savings.

Final Mile is a Difference Maker: Proactively analyzing your final mile delivery strategy could be the difference between one-star and five-star reviews.

Seamless Omni-channel Experience: Online shoppers want an integrated shopping experience. By providing options (e.g. in-store pickup and returns), you are increasing customer loyalty and potentially a higher AOV (average order value).

Making Data Actionable: Understanding your shipping data and turning it into business intelligence will enable you to better meet customer expectations and become more profitable within the growing e-commerce industry.

Optimizing Your Supply Chain for 2017: A more efficient supply chain practice in this digital age is adopting an ecosystem or platform approach that is inclusive of suppliers, production, distribution and the consumer.

IS IT TIME TO RETHINK BEYOND THE TRADITIONAL SUPPLY CHAIN?

US E-Commerce SalesMillions ($)

Source: US Department of Commerce

•E-commerce as % of total retail

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02

03

04

05

06

07

https://www.internetretailer.com/2016/01/29/online-sales-will-reach-523-billion-2020-us

https://www.forrester.com/report/Brief+US+CrossChannel+Retail+Forecast+2015+To+2020/-/E-RES116715

https://www.census.gov/retail/ecommerce/historic_releases.html

https://www.statista.com/topics/1185/mobile-commerce/

http://marketingland.com/e-commerce-report-9-10-consumers-say-free-shipping-no-1-incentive-shop-online-180280

https://solvers.ups.com/assets/2016_UPS_Pulse_of_the_Online_Shopper.pdf

REFERENCES

$71,503 $75,080 $77,789 $79,567 $80,451 $83,987 $87,558 $89,454 $93,046 $97,250

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

•6.2% •6.4% •6.6% •6.7% •7.0% •7.1% •7.4% •7.5% •7.9% •8.1%

$100,742 $102,674

Q3 2016 Q4 2016

•8.3% •8.3%

Learn more at: http://www2.transportationinsight.com/e-commerce2017 ©2017 Transportation Insight, LLC. All rights reserved. R1 4/2017

E-Commerce sales grew to $102.7B during Q4 2016. This is a 14.3% year-over-year increase.

Maximum agility required to meet omni-channel customer demands

Growing delivery demand calls for improved infrastructure, assets, relationships and rapid response times to complex problems

High variability, high velocity (Amazon Effect) final mile expectations are increasing costs while profit margins decrease

Increasing speed of business and consumer connectivity

Supply chain visibility across all modes and channels

Escalating logistics-related costs (especially for parcel shippers)

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E-COMMERCE?IS YOUR SUPPLY CHAIN OPTIMIZED

FOR THE CONTINUED RISE OF