Light paths shooting into the sky of a city at night, overlaid text 'Innovations in the World of Parcel Management', reflecting the future of logistics.

Innovations in the World of Parcel Management

by LJM Group

Over 131 billion parcels per year are now shipped worldwide, and the number is predicted to double by 20261. Moving this volume of packages through all the stages of sale, shipment, and delivery has become an unprecedented logistical challenge that affects businesses everywhere. The situation is made even more challenging by rising fuel and freight costs, supply chain disruptions, and continued effects of the pandemic.

In response, businesses are turning to technology. According to the 2022 MHI Industry Report, 40% of companies began piloting new technologies in the last year, and investment in innovative technologies is up by 37%2.  LJM is working with clients to stay on top of emerging technology—and help them implement the most effective solutions available. Here are some of the latest innovations for improving operations, logistics, and profitability.

Benefit from the Blockchain Breakthrough

Blockchain or Decentralized Ledger Technology (DLT) is set to revolutionize business operations, efficiency, and customer service. Blockchain tech greatly facilitates logistics by storing all data related to a transaction in a single, tamper-proof source that serves customers, sellers, shipping carriers, delivery services, and other involved parties3. The huge potential for blockchain technology is reflected by research that forecasts a compound annual growth rate (CAGR) of 86% from 2022 to 20304

The Harvard Business Review presents a compelling case for the blockchain solution in a report that outlines how Walmart Canada applied blockchain to solve freight logistics for their staggering volume of 500,000 packages shipped annually. The DLT system not only reduced invoice discrepancies to less than 1%, but it led to significant operational efficiencies5

Smart contracts are another blockchain innovation. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They automate the execution of contracts so everyone involved can be certain of the results, without unnecessary involvement or time loss6. A consistent smart contract infrastructure creates a network of interconnected companies, increasing functionality and value for the parties involved7. LJM is highly experienced at employing smart contract technology to ensure parcel carriers are accurately meeting the terms within their  client agreements.

Consider an E-commerce Distribution Center

Businesses without physical locations should consider opening a micro-fulfillment center. It’s a more viable option than ever, due to pandemic closures, high vacancy rates, and relatively affordable commercial spaces. In fact, e-commerce distribution centers are expected to become a billion-dollar market in 20228.

Also known as “pop-up distribution centers,” these mini-fulfillment warehouses can be placed in areas where you have a concentration of business, enabling you to serve top customers faster and more cost-effectively. Even giants like Walmart and Hermes rely on them to fulfill the demands of a burgeoning e-commerce market9.

Leverage Consumer Trends

Meet the Brand Demand – Research shows the need for businesses to position themselves as sustainable and environmentally friendly brands. Here are some sit-up-and-take-notice statistics:   Customers are four times more likely to purchase from a company with strong brand values (which in turn helps businesses grow organically, retain customers, and command higher prices). And a staggering 77% are concerned with the environmental impact of the products and services they buy10.

In the past year, nearly 50% of customers chose brands that have a clear commitment to sustainability. Studies show a 71% jump in online searches for “sustainable goods” globally since 201611. It makes sense to brand your business as a leader in sustainability and responsible environmental practices. Based on consumers’ strong preferences for sustainable, eco-conscious brands, a Shopify study recommends practices that reduce your carbon footprint, like electric vehicle deliveries, e-commerce  distribution centers, eco-friendly packaging and logistics technology12.

Establish Shipping Transparency – According to the 2022 MHI Industry Report, 66% of consumers are already aware of supply chain delays, and 45% actively search for businesses that clearly communicate delivery times13. This demand for transparency extends across all steps of the fulfillment and shipping process. Since delays are expected, communicating regularly with customers goes a long way in assuring them that you’re on top of things.

Get Expert Help with Logistics

The enormous increase in shipping volume, combined with a fluctuating market and supply chain disruptions, can create a logistics nightmare. This is why the use of logistics experts is one of the most recommended strategies for lowering shipping costs and increasing efficiency in 2022 and beyond. In fact, the MHI Industry Report states that 47% of companies are partnering with logistics experts to gain help in understanding applications and employing technology14.

Businesses with both online and physical locations face unique logistical issues. Forty-nine percent of companies say that breaking down organizational silos between digital and physical stores will be one of their biggest challenges in 202215, and 47% are concerned with the difficulty of unifying online and in-store operations and data16.

As an LJM client, you have an edge when it comes to logistics.  You have access to sophisticated  services including expert Carrier Contract Negotiations, Parcel Invoice Auditing Services and comprehensive Logistics Advisory Services.

Citations and References:

1 – Pitney Bowes Shipping Index –

2 – 2022 MHI Annual Industry Report, Evolution and Revolution: Building the Supply Chains of Tomorrow

3 – Blockchain in Transport Alliance –

4 – Grand View Research –

5 – Harvard Business Review, How Walmart Canada Uses Blockchain to Solve Supply Chain Challenges

6 – IBM, What Are Smart Contracts

7 – Forbes, Supply Chain Strain Breeds Innovation –

8 – Shopify, Future of Shipping and Logistics –,That%20much%20hasn’t%20changed.

9 – Parcel and Post Technology International, The Evolution of Parcel Shipping in 2022

10, 11 – 2022 MHI Annual Industry Report, Evolution and Revolution: Building the Supply Chains of Tomorrow

12 – Shopify, Future of Shipping and Logistics –,That%20much%20hasn’t%20changed

13, 14, 15 – 2022 MHI Annual Industry Report, Evolution and Revolution: Building the Supply Chains of Tomorrow

16 – Shopify, Future of Shipping and Logistics –,That%20much%20hasn’t%20changed

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