Inflation and logistics. How is the rise in prices affecting distribution chains?

Inflation is a problem that affects us all, as we see how prices suddenly begin to rise in a seemingly endless climb, which makes our daily lives more complicated.

Businesses also suffer from this, and logistics is one of them, perhaps more affected than others, because right now companies dedicated to this sector have to work with tight margins in order to be competitive.

It is known as the supply chain or chain of supply in our language, the entire process from when the customer places their order until it is delivered once paid for.

It should not be confused with logistics, since this is one of the parts that make up the supply chain, the one responsible for getting the product to the customer through storage, order preparation, deliveries, etc.

In this way, the supply chain includes the sourcing of raw materials, product manufacturing, storage, and distribution.

A supply chain, also known as a value chain, has three fundamental phases:

1. Purchase of raw materials: in order to manufacture a product, various raw materials are needed, which are acquired, received, and stored in the first phase.

2. Manufacturing: the components from the previous step are transformed in this stage, resulting in the finished product.

3. Distribution: the last part of the value chain, in which products are worth more, since they are already finished and packaged if the market requires it. Thanks to the distributor network, they reach the end consumer.

Right now, the entire supply chain is being heavily affected by inflation, something that is easy to understand now that we know it in full.

It all starts with raw materials, which are more expensive to produce and increase in price, in addition to producers having to raise margins in order to be profitable.

In manufacturing this is exacerbated, especially if it is what specialists call an "energy-intensive" sector, which means it requires enormous amounts of electricity or gas in order to operate.

That further increases the price, and the last link in the chain, logistics, has to do the same, since it is the one suffering from the rise in fuel prices.

The summary of all this is an increase in prices that affects the consumer, who can no longer consume as before and stops buying what is not essential in their daily life.

There are several ways to reduce the impact of inflation in the logistics sector, and some of them are reducing fuel costs and doing the same both with the vans that are on the road and with couriers.

At InPost we offer solutions that can greatly help minimize the footprint of inflation in logistics. Thanks to our network of more than 7,000 Punto Pack | Locker locations, spread across the entire country.

At InPost we propose shipping to pickup points, so that costs for couriers, vans, and necessary staff are reduced, thanks to the optimization achieved by leaving a large number of parcels at each Punto Pack or Locker.

The Punto Pack are small neighborhood stores where parcels are delivered, so the customer can collect them whenever it suits them, without the need for the courier to make door-to-door deliveries.

As for the Lockers, these are smart lockers located both indoors and outdoors, in places such as gas stations, supermarkets, shopping centers, etc., and, in the case of those located outdoors, they operate 24/7.

With all this, more economical prices are achieved, something of vital importance in situations of high inflation. At InPost we also offer the Start Offer for e-commerce merchants, with a 10% discount on all shipments. The Start offer is the best option for businesses with a shipping volume below 5,000 per year, while if this number is exceeded, a tailor-made quote can be obtained that is even more advantageous.