Exclusive Interview: The Future of Logistics Innovations Through the Lens of 3 Industry Experts

May 25, 2023

In today's rapidly evolving business landscape, the logistics industry plays a crucial role in enabling seamless commerce and customer satisfaction. 

To gain insights into this dynamic field, we bring together three prominent voices: Jacqueline Krage Strako (Jakki), Chief Commerce and Business Solutions Officer and EVP of USPS; Cathy Roberson, Research Manager of Reverse Logistics Association; and Prashant Shah, Chief Supply Chain Officer of SwagUp. In this written interview, they share their expertise, perspectives, and thoughts on the trends, challenges, and exciting innovations shaping the logistics industry.

Note: This interview has been edited for brevity and clarity.

The trusted source of e-commerce logistics data insights
Sign up for free now!

Looking Through the Lens of USPS

The Future of Logistics Innovations Through the Lens of 3 Industry Experts - USPS

In her role as the Chief Commerce and Business Solutions Officer and Executive Vice President, Jakki leverages the Postal Service network of plants, transportation and last-mile delivery for solutions for customers. She is also responsible for developing omnichannel shipping products and commercial solutions, managing business development for over $30 billion in shipping revenue and overseeing the USPS property portfolio. 

What Sets USPS Apart from the Rest

Driven by its commitment to providing reliable, affordable, and universal mail service nationwide, the USPS ensures deliveries to over 165 million addresses six days a week, and seven days in select areas. With dependable and trusted delivery professionals, USPS reports that 98% of the country's population receives their mail and packages in under three days.

Regardless of the destination, whether it be the depths of Grand Canyon or the towering skyscrapers of Manhattan, USPS remains dedicated to serving its customers. They offer complimentary pick-up services, effectively transforming their extensive network of 165 million addresses into a convenient first-mile network accessible to both businesses and customers. With a widespread presence of 31,000 Post Offices throughout the nation, 95% of the U.S. population resides within a 5-mile radius of a USPS location.

Jakki's View on Shifts in Customer Behavior

During the interview, Jakki highlighted several important consumer behavior trends that significantly impact the logistics industry. One such trend is the continued growth of e-commerce, with online sales continuing to rise even as retail sales decline. Although the growth rate has slowed since the pandemic's peak, consumers and the industry have shifted their focus toward online purchase fulfillment. This has resulted in a higher demand for fast and efficient delivery options, putting pressure on logistics companies like USPS to adapt and enhance the speed and reliability of their delivery services. Jakki mentioned that USPS has made investments in its network, package sortation, and IT infrastructure to meet the fast-growing e-commerce needs and provide reliable service.

Another trend Jakki discussed is the rise of social media e-commerce. During the pandemic, consumers spent more time at home and turned to streaming and social media apps in record numbers. This, combined with the growth in online purchasing and delivery, led social media influencers and companies to leverage their online presence and fan base to offer products directly through their channels, ensuring quick shipment to customers. 

Direct-to-consumer (D2C) is another significant trend that Jakki highlighted. More companies are creating their own e-commerce engines and selling directly to consumers. While companies still balance D2C with wholesale and other channels, the explosive growth of marketplace platforms is expected to continue.

The importance of sustainability in consumer behavior was also discussed. As the world becomes more environmentally conscious and e-commerce continues to grow, logistics companies need to have sustainable strategies in place. This includes the use of electric vehicles, sustainable packaging materials, and reduced transportation while ensuring prompt and affordable service. Jakki mentioned that USPS serves every address six to seven days a week, and by maximizing their delivery trucks' capacity, they help eliminate unnecessary transportation. 

Lastly, Jakki emphasized the importance of convenience in consumer preferences. Customers seek convenient and secure delivery options, and visibility from purchase to confirmed delivery is crucial. This very reason – coupled with its statutory universal service obligation – is why USPS offers delivery to every residence and business in the U.S., six to seven days a week, without additional fees for residential delivery. USPS also provides convenient and secure alternatives such as shipping packages to local Post Offices for pickup.

Understanding the Perspective of the Reverse Logistics Sector

The Future of Logistics Innovations Through the Lens of 3 Industry Experts - Reverse Logistics Association

Cathy Roberson, Research Manager of the Reverse Logistics Association, describes herself as a former librarian with a research focus on the circular economy. The circular economy, as defined by UNCTAD, involves creating markets that incentivize reusing products instead of discarding them and extracting new resources. In this economy, all types of waste, such as clothing, scrap metal, and obsolete electronics, are reintegrated into the economy or used more efficiently.

The Unique Offering of the Reverse Logistics Association

The Reverse Logistics Association (RLA) distinguishes itself as the leading authority on best practices in reverse logistics. As a global trade association driven by its members, the RLA provides information, research, solutions, and networking opportunities for manufacturers, retail companies, and third-party providers in the returns and reverse industry. The RLA's objective is to educate and inform professionals in reverse logistics globally, serving as the voice of the reverse industry.

Impact of Consumer Behavior on the Logistics Industry

In Cathy’s view, consumer behavior trends have significant implications for the logistics industry. Currently, consumers are cautious due to factors such as inflation and interest rate hikes. Uncertainty about the economy potentially entering a recession has made consumers more mindful of their spending. Consequently, there is reduced demand for goods, leading to lower manufacturing activity and import volumes. This downturn affects various transportation modes, including ocean freight, air freight, trucking, rail/intermodal, and even the final mile. Additionally, many retailers still have high inventory levels from the previous year that they need to reduce, while certain industries, such as automotive and aerospace, continue to grapple with inventory shortages.

Exciting Technologies and Innovations in the Industry

The logistics industry is witnessing the rise of technologies and innovations aimed at managing returns more effectively. Several startups are focusing on this previously overlooked aspect of the supply chain, concentrating on transportation management, data analysis, and establishing streamlined processes. The Reverse Logistics Association recognizes the importance of these advancements and foresees their implementation in the near future to enhance their operations.

Drawing Insights From the Team at SwagUp

Prashant Shah, the Chief Officer of SwagUp, is a seasoned leader with a diverse background spanning management and various industries. With a focus on empowering his team, Prashant's role involves overseeing the flow of goods and services at SwagUp, a company that specializes in custom branded merchandise and promotional products. As a former Marine, he brings a strong sense of discipline and dedication to his work. Prashant's ultimate goal is to support SwagUp's growth and guide the company towards achieving its vision of becoming a $1 billion enterprise within the next five years.

The Future of Logistics Innovations Through the Lens of 3 Industry Experts - SwagUp

Unique Selling Points of SwagUp

SwagUp stands out in the industry due to the exceptional quality, uniqueness, and relevance of its products. The company offers high-quality swag items that are both visually appealing and useful to its target audience. What further sets SwagUp apart is its ability to personalize swag items, providing a personalized touch that differentiates them in the market. Additionally, SwagUp prides itself on delivering excellent customer service, ensuring a positive experience for its clients.

Successful Collaborations and Enhanced Customer Experience

Collaborations between SwagUp and its delivery or retail partners have proven beneficial in several ways. By leveraging each other's expertise, resources, and networks, these collaborations improve the customer experience and overall business performance. For instance, partnering with delivery providers like FedEx and UPS allows SwagUp to expand its distribution reach, enhance delivery times, and provide real-time updates to customers.

On the other hand, collaborations with retail partners and vendors help increase brand awareness, attract new customers, and boost sales. Sharing data and insights between partners enables SwagUp to optimize operations, develop targeted marketing campaigns, and offer new or improved products and services. Successful collaborations contribute to SwagUp's reputation, customer loyalty, financial performance, and overall growth.

Up and Coming Innovations in Logistics

When asked about the top technologies and innovations that are emerging in the industry, Prashant highlighted the following advancements:

  • Augmented Reality (AR): Augmented Reality technology is being increasingly utilized in promotional campaigns to create immersive and interactive brand experiences. By allowing customers to virtually interact with products in real-time, AR enhances engagement and boosts brand recognition.

  • Artificial Intelligence (AI): AI is playing a significant role in gathering valuable customer information, personalizing marketing campaigns, and providing accurate product recommendations. It enables companies to offer personalized experiences based on customer preferences and past behavior.

  • Wearable Technology: Promotional campaigns are incorporating wearable devices such as smartwatches, fitness trackers, and health monitoring devices. Brands can provide exclusive deals, discounts, and rewards to customers who use these wearables, enhancing customer engagement.

  • Virtual Events: The advent of virtual and hybrid events has transformed promotional strategies. Brands now have the opportunity to create immersive digital experiences for customers through 3D digital environments, interactive games, virtual booths, and live streaming.

Prashant believes that integrating these technologies into promotional campaigns can revolutionize customer interactions and provide a more enhanced experience, enabling companies to effectively engage their customer base.

About Home Delivery World USA

Home Delivery World USA 2023 is the industry-defining conference and exhibition for last mile logistics in the US and abroad. The show is dedicated to uncovering innovative solutions for retailers, grocers, CPGs and 3PLs facing challenges across the supply chain from warehousing to fulfillment and the last mile. From fleet & route optimization, and reverse logistics, to grocery delivery, parcel spend and white glove, this is the event of most importance for e-commerce retail supply chain.

Find out more

For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.

Share this with your network

Also worth your time