Burgeoning E-commerce Strains Logistics Industry - Roanoke

February 27, 2015 | Industry Insights

Burgeoning E-commerce Strains Logistics Industry

Share This:
Featured Image

Smaller logistics companies are having trouble keeping up with the boom in online commerce. While Asia looks at logistics as a prime opportunity for growth, developed nations, in particular the U.K., have seen a disruption in the traditional logistics sector that has led to the collapse of a record number of couriers and haulers.

Even though online orders grew 14% and fuel prices fell, overcapacity in the U.K.’s courier and hauler industry drove freight transport prices down. As a result of buyer appetite for speed in delivery and demands from manufacturers and distributors for processing of large volumes at high speed, the freight transportation and warehouse industries have been pressured to adopt sophisticated information technology systems that have the capacity to respond to pickup, delivery and tracking requirements.

Those without advanced IT capability have found, or will find, themselves unable to keep up – or catch up. Supply chains could be crippled not by weather or breakdowns or civil commotion but, rather, by simple traffic bottlenecks or IT insufficiency.

Accounting firm Moore Stephens says smaller logistics and delivery companies in the U.K. are failing because they have not made sufficient investment in their IT platforms and operations. Their business models may be outdated, and they are not flexible enough to meet the needs of e-commerce fulfillment. That pressure could push some logistics providers into new arenas, such as repacking returned items for resale or actual repair and return of goods for resale by the delivery company, Moore Stephens suggests.

Vulnerabilities in the supply chain due to a shortage of drivers, antiquated IT systems, traffic jams at warehouses and business insolvencies create multiple concerns for all those in the delivery line. Traditional supply chain insurance coverage may not suffice in many of these circumstances.

At Roanoke Trade, we consider your loss exposures in depth and understand the nuances of the industry that many freight delivery insurance brokers can miss. We provide all the standard cargo insurance and logistics insurance policies, but we also have access to specialty insurance that can meet the needs of freight carriers and the warehouse industry that fall outside the standard commercial property insurance policy.

We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE.

Sources: CFO Innovation, Financial Times, Noodls

Share This:

Related


2023 NCBFAA Scholarship & Application Announcement

Roanoke Insurance Group is delighted to once again sponsor a $5,000 scholarship to students intending to join the trade industry. The National Customs Broker and Forwarder Association of America (NCBFAA) offers this $5,000 scholarship award yearly and will be presented to the winner at the NCBFAA annual conference in April 2023. The topic for this year’s scholarship will be “U.S. Trade Embargoes – Are They Effective Tools to Promote Change?” This $5,000 Scholarship Award is available to any employee (or an employee’s child) of an NCBFAA Regular member. High school seniors or undergraduate students at an accredited college or university, […]

Industry Insights

Thank You to Karen Groff

We have important news to share with you. Karen Groff, President of Roanoke Insurance Group, has decided to leave the organization. Although our hearts are heavy with this news, we respect her decision and wish her all the best in her future endeavors. Karen played an integral role in Roanoke’s success over the past 30 years and solidified “The Roanoke Way” during her tenure as President. In her own words, Karen shares: “I will always treasure my time spent with Roanoke colleagues, clients and partners. The strong engagement and sense of community shared in this industry have been a constant inspiration […]

Industry Insights

Is your Business Exposed to the Risks of Employee Distracted Driving?

The National Safety Council(NSC) recognizes April as Distracted Driving Awareness Month. They estimate that 4,000 deaths and 276,000 injuries occur yearly because of distracted driving crashes. Additionally, distracted driving is the cause of 10% of all fatal crashes. Many of these accidents and fatalities are attributed to drivers engaging in risky behavior such as cell phone use, eating/drinking, reaching for an object, talking to a passenger or reading GPS. Not wearing seatbelts, speeding and use of alcohol makes these accidents much worse. Additionally, the stressors of the pandemic, returning to work, and other social factors have increased the cognitive distraction […]

Commercial Business Insurance, Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653
US Flag

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


Canada Flag

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo