A combination of recovering economies and growth in e-commerce creates a high flow of goods throughout LatAm, therefore increasing logistics revenues.
According to America’s Market Intelligence report
, “It’s estimated that Latin America’s e-commerce volume will expand to US$118 billion in 2019, and of this nearly $60 billion will come from retail e-commerce traffic.”
LatAm logistics companies are responding to this e-commerce boom by changing warehouse approaches, introducing warehouse automation using robots, and utilizing big data and analytics to analyze how their fleets operate in efforts to increase efficiency.
A problem that LatAm logistics must confront, however, is the issue of high return rates for products purchased via e-commerce.
“The pain of less-than-stellar reverse logistics operations in Latin America will be felt particularly with cross-border e-commerce products. Often, companies are just shipping new products to customers to avoid the cost and headaches of customers trying to ship back products that were incorrectly shipped or faulty.”
According to AMI, ‘the ugly’ for 2019 logistics in Latin America is that “Disruptors are pressuring companies to drop their prices to compete, and this is on top of global price pressures. This has meant that many companies have had to slash costs by laying off employees and shedding unproductive assets. While moves like this may improve the balance sheet while potentially creating more efficiency, the cost-cutting could also reduce their capabilities to serve existing and future clients, causing loss of business.”