Retail News CRM

Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • DHL renews partnership with Africa’s largest e-commerce event

    DHL renews partnership with Africa’s largest e-commerce event

    DHL Express in Sub-Saharan Africa (SSA) has announced that the company has once again signed on as lead sponsor for the 2019 DHL eCommerce Africa Conference and Exhibition, which will be held at the Cape Town International Convention Center on the 19thand 20thof March 2019.

    The eCommerce Africa Conference and Exhibition, delivered by DHL, is hosted by South African conferencing company, Kinetic, and is one of Africa’s biggest opportunities to bring stakeholders in the ecommerce sector together. Later in the year, Kinetic will also bring the conference to Kenya, with the eCommerce East Africa Edition, also delivered by DHL, set to take place in Nairobi on the 12thand 13th of June 2019.

    This year’s event offers participants an opportunity to learn from world-class thought leaders, both from Africa and the rest of the globe, on the innovative strategies that will unlock e-commerce opportunities over the years to come. Delegates from some of the continent’s biggest tech, retail, banking and legal firms will be in attendance to share their experience and engage with attendees to exchange knowledge.

    According to the McKinsey Global Institute’s report, Lions Go Digital, e-commerce and fintech represent two of Africa’s biggest growth opportunities, with the growth of the mobile technology market driving both of these sectors. “More than half of urban African consumers already have Internet-capable devices and this number is increasing. Online shopping in Africa could account for up to $75 billion in retail sales by 2025.”

    Steve Burd, Vice President Sales for DHL Express Sub-Saharan Africa, explains that the ongoing partnership between DHL and eCommerce Africa is a good fit. “As the market leaders in express logistics in Africa, we have extensive first-hand experience of the positive impact that ecommerce has on the continent. The massive growth in cross-border and international ecommerce in Africa sees DHL working with thousands more customers across the continent each year, helping them to expand their brand across borders.”

    He adds that the development of ecommerce in Africa continues to unlock major opportunities for growth. “E-commerce allows entrepreneurs and SMEs to connect with a large customer base and scale up rapidly, which accelerates the need for support services. E-commerce growth therefore has a ripple-effect on many other industries on the continent.”

    “DHL’s partnership with eCommerce Africa provides us with an additional platform to connect with organisations and help them to understand key logistics considerations, and learn how to plan for and overcome any logistical challenges,” adds Burd.

    Terry Southam, Kinetic Managing Director, says that the collection of thought leaders and the topics under discussion this year are aimed at creating an immediate impact for African ecommerce companies.

    “From marketing to fulfilment, the world’s best will be on stage sharing best practice and innovative hacks to drive online growth. It is quite remarkable to have all of these industry leaders on the same stage – not only willing to share but actively working to grow the industry and ensure African customers receive a world-class online shopping experience. This year’s theme for the conference is ‘Conquering Scale’ and we couldn’t be happier to have a market leader like DHL on board, to help us deliver 2 key e-commerce events on the continent this year,” he concludes.

  • DHL Expands For Temperature Sensitive Shipments

    DHL Expands For Temperature Sensitive Shipments

    The WMX service in Mexico will expand by early Q2 2019 into 17 new origin cities, including Zapopan, Toluca, Cuernavaca, Cuatla, Pachuca, Saltillo, Aguascalientes, Puebla, Celaya, San Luis Potosi, Torreon, Morelia, Leon, Guanajuato, Jalapa, Orizaba and Durango.

    The integrated transportation solution, which DHL launched in Mexico in July 2018, facilitates the delivery of Mexico-based patient samples to U.S. central labs in less than 24 hours. This reduces transit times for these urgent temperature sensitive shipments from primary cities (beyond Mexico City) by an additional day.

    “Sponsor pharmaceutical companies have told us that the enhanced transit times have delivered significant improvements during prospective sample analysis, and improved testing results – particularly for Biomarkers and Flow Cytometry Assays,” says Brian Bralynski, Director Life Sciences Healthcare for DHL Express Americas. “Those types of gains are highly impactful and a direct benefit to patients requiring such treatment or sample analysis.”

    DHL can provide improved transit times, in part, due to its asset-based air-network and ability to export from multiple gateways in Mexico. DHL operates direct daily flights from Mexico City, Guadalajara and Monterey, linking to its regional hub at Cincinnati/Northern Kentucky International Airport (CVG), and then connecting to most U.S. cities and central lab locations the next morning and in less than 24 hours from patient draw time.

    For Mexico origins, exporters of record (typically sponsors or Clinical Research Organisations / CRO’s) will administer a one-time administrative change process, in order to authorise DHL to export samples on their behalf from three export points.

    “DHL Medical Express continues to meet the needs of the pharmaceutical industry and clinical research sectors with forward-thinking, intelligent healthcare solutions, while also expanding our wide range of services in Mexico,” said Mike Parra, CEO of DHL Express Americas. “At DHL, we focus on connecting healthcare stakeholders, deeply caring about the ultimate link of the chain – the patients, and to do so, we ensure we strictly comply with every regulation – global or local, and innovate in every front. A combination of responsiveness, transparency and cost-effectiveness will enable this service to be advantageous to all clinical trial stakeholders and, most importantly, clinical trials’ patients.”

    Qualified customers for the service receive a choice of temperature options (ambient, chilled and frozen) through specialised thermal packaging. Pre-determined contingencies circumvent delays, and DHL quality control centres monitor the shipments 24/7. The service is suitable for transporting laboratory kits and medical devices, biological samples, research products, vaccines and drugs for commercial and non-commercial use.

    Lees ook:

  • DHL Express Opens €93 Million Hub in Spain

    DHL Express Opens €93 Million Hub in Spain

    DHL Express has opened a new hub at Barajas Adolfo Suarez Airport in Madrid, creating 200 new jobs and strengthening the position of Madrid as a hub for international commerce, particularly between Europe and Latin America.

    By investing in high-quality infrastructure and the newest technologies, DHL Express will quadruple its capacity in Madrid. The 14,500 m2 building, which includes offices, will facilitate the sorting of 24,500 packages per hour.

    John Pearson, CEO of DHL Express said:  “With this latest investment in our infrastructure, we are further expanding the capabilities of our European and global network, enabling continued growth supported by a platform of quality. Customers from our traditional sectors as well as e-commerce customers in both private b2c as well as businesses who are driving their own b2b growth agendas through e-commerce will benefit from the investment. With this new hub in Madrid, we are connecting sellers and consumers around the world with even greater speed and efficiency.”

    The new hub has a total of 176 loading docks enabling 160 road movements each day, as well as 10 daily flights operated by DHL’s own aircraft, and 30 daily commercial flights servicing 20 international destinations, mostly in Latin America.

    “We are investing in infrastructures to increase efficiency and to improve our delivery capability. This will allow us to provide an even better service to our customers,” adds Miguel Borrás, Managing Director, DHL Express Spain and Portugal. “This new hub is a critical nexus between Europe and the LatAm countries. Thanks to this, we could connect businesses from all industries and private consumers alike, and enable them to leverage from the increasingly growing e-commerce worldwide”.

    In accordance with DHL’s GoGreen Program the new hub will help to reduce the company’s carbon footprint thanks to the use of new and more efficient sorting technology, improved building insulation, and more efficient energy systems to manage the consumption of electricity, water and cooling systems.

  • Meet Scout, Amazon’s new delivery robot

    Meet Scout, Amazon’s new delivery robot

    Amazon is field testing a new delivery robot called Scout, which the company describes as a “fully-electric delivery system” designed to safely get packages to customers using autonomous delivery devices.

    Six robots are initially being tested in a Snohomish County neighbourhood in the U.S. state of Washington, where they’ll be delivering packages Monday through Friday during daylight hours. The devices will autonomously follow their delivery route but are initially being accompanied by an Amazon employee.

    Customers in Snohomish County order just as they normally would and their Amazon packages will be delivered either by one of Amazon’s partner carriers or by Amazon Scout.

    The robots, which are the size of a small cooler box, were created at Amazon’s research and development lab in Seattle. They’re designed to roll along sidewalks at a walking pace and safely navigate around pets, pedestrians and anything else in their path.

    Lees ook:

  • DHL Global Forwarding appoints Fabian Rybka to head Bangladesh and Sri Lanka

    DHL Global Forwarding appoints Fabian Rybka to head Bangladesh and Sri Lanka

    DHL Global Forwarding, the leading international provider of air, sea and road freight services, has appointed Fabian Rybka as Cluster Head for DHL Global Forwarding’s operations in Bangladesh and Sri Lanka, along with partner operations in Bhutan, Nepal and the Maldives.

    Rybka brings to the role more than 10 years of experience at DHL Global Forwarding in both Asia and Europe, serving most recently as Head of Business Strategy and Development for DHL Global Forwarding ASEAN and South Asia, where he spearheaded successful growth initiatives in Bangladesh and Sri Lanka amongst other markets. Previous roles saw him specialize in designing and executing growth plans for DHL Global Forwarding’s high-potential markets including Italy, India, Singapore, Bangladesh, Indonesia and the Philippines, as well as key operations in European markets.

    “Fabian has built up a formidable track record for turning even the most challenging business situations into environments of high growth and customer satisfaction,” said Thomas Tieber, CEO, DHL Global Forwarding ASEAN and South Asia. “He has already proven that ability in guiding our teams in Bangladesh and Sri Lanka to significant results while understanding the nuances of the local market operations. I can think of no better individual to lead these growth markets and further build on our strong market position.”

    In the new role, Rybka will apply his extensive business development expertise to further boost productivity and expand DHL Global Forwarding’s range of services in the markets under his leadership, focusing particularly on developing key products in ocean freight and value-added services like customs and integrated warehousing. He also continues to lend his business turnaround skills to projects throughout the broader South Asia and Asia Pacific regions.

    “I firmly believe Bangladesh, Sri Lanka and the surrounding markets of Bhutan, Maldives and Nepal hold opportunity for substantial growth. We have a role to play to connect these economies to the rest of the world, supporting foreign businesses to invest in these markets, and also encouraging exports from local businesses overseas,” Rybka said. “Bangladesh’s GDP is growing faster than almost anywhere else in Asia at 7.3% per annum, while Sri Lanka continues to see steady increases in both imports and exports[2] that point to its growing connectedness and market opportunity within the global economy. As business optimism grows, my goal is to ensure we make our world-class logistics services as accessible and reliable as possible to enterprises of all sizes throughout the cluster.”

    Rybka holds an MBA from the University of Cooperative Education in Stuttgart, Germany, as well as a Global DHL CEO Award for his work in CSR and sustainability. Formerly one of Germany’s top junior football coaches, he also organizes and hosts youth football competitions — including one of the world’s largest, in Switzerland — to support the community work of SOS Children’s Village, a DHL GoTeach partner organization with whom he has volunteered for more than 10 years.

    Read more at https://vietnamnews.vn/media-outreach/505358/dhl-global-forwarding-appoints-fabian-rybka-to-head-bangladesh-and-sri-lanka-operations.html#qzaaIQjDkqMUVr8X.99

  • Indonesian airline Garuda talking with Go-Jek to provide logistics support

    Indonesian airline Garuda talking with Go-Jek to provide logistics support

    Indonesia’s national carrier Garuda and Go-Jek are in talks for a partnership that will make it easier for the ride-hailing and e-commerce app to move goods to customers within the 17,000 islands of the sprawling Southeast Asian archipelago. Garuda chief executive Ari Askhara told Reuters the talks are in an advanced stage and an agreement is expected to be finalised by the two companies in the next few months. Askhara said Garuda was developing a new technology relating to e-commerce and logistics. The partnership would enable goods ordered via Go-Jek’s app in one city in Indonesia to be delivered in another using Garuda’s fleet, he said. The CEO did not provide more details.

    Started in 2011 in Jakarta, Go-Jek has evolved from a ride-hailing service to a one-stop app through which its customers can make online payments and order everything from food, groceries to e-commerce goods.

    Go-Jek, which is valued at between US$9 billion and US$10 billion according to sources, declined to comment.

    E-commerce has been growing rapidly in Southeast Asia’s biggest economy, but one of the main obstacles is logistics as the islands are sprinkled across an area bigger than the European Union.

    Go-Jek recently raised over US$1 billion in a funding round as it challenges Singapore-based rival Grab for a larger share of the region, sources told Reuters.

    The Go-Jek proposal is one of several being explored by Garuda to cut its dependence on passenger traffic as the airline tries to grow its profits after a bumpy 2018.

    The airline has been battling for market share against local market leader Lion Air, which in October suffered a crash of a Boeing Co 737 MAX jet, killing all 189 people on board.

     

    Lees ook:

    Lees ook:

  • Pierre Poignant succeeds Lucy Peng as Lazada Group CEO

    Pierre Poignant succeeds Lucy Peng as Lazada Group CEO

    Lazada Group has announced its new CEO this year, with group executive president Pierre Poignant taking the role immediately. The move is a leadership succession plan for both Lucy and Pierre where Lucy will remain as Executive Chairwoman and continue to be based in Singapore.

    In a media statement, Lazada described the change as “succession planning”.

    Poignant, who was appointed president in August, will lead the company’s strategic development into new growth pillars, while continuing to manage Lazada’s operations in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, working closely with country CEOs and regional functional team leaders.

    “Pierre is a well-respected Lazada co-founder, who has contributed tirelessly to the company for the past six years,” said Peng. “He and the team of other co-founders had the vision to build our logistics network from the ground up back in the days when no one in Southeast Asia believed in e-commerce – this valuable asset has now set us apart from the competition. Over the years, Pierre has consistently delivered beyond his call of duty and excelled in every role he has taken up.”

    Poignant said Lazada has benefitted from the Alibaba ecosystem, from the technological prowess to the logistics network.

    “This year is a turning point for Lazada. We have improved and evolved and now come out stronger, more efficient, and more agile than the start of the year. Our transformation has just begun and I am confident next year will be another watershed year,” said Poignant.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Looking at Omnichannel presence in India: IKEA

    Looking at Omnichannel presence in India: IKEA

    Swedish home furnishings major IKEA Thursday said it plans to have an Omnichannel presence in India going forward, reiterating its long-term commitment to the country. Last year, the company opened its first store in Hyderabad, spread over 13 acres of land and has a built up area of 4 lakh sq.ft. “We are long term committed to India. We are planning to have omni-channel presence here. We will have three formats — big stores, online and smaller stores here,” Peter Betzel, CEO, IKEA India said.

    According to a report, the presence in three formats is to bring the customers closer, he added. The Hyderabad store is the first of 25 such outlets planned to be set up in India by 2025.

    The company will be opening big stores in India, starting with a store in Mumbai this year, followed by one in Bengaluru in spring-2021 and then in Delhi-NCR, Betzel said.

    However, he did not provide any timeline for the opening of the store in Delhi.

    IKEA will have its online presence in Mumbai and will also expand smaller stores category there, he added.

    When asked how the company plans to fund the expansion, Betzel said: “It will be through our own money.”

    In 2013, IKEA received nod from the government to invest Rs 10,500 crore in single-brand retail out of which it had invested Rs 4,500 crore in its different ongoing projects in India.

    IKEA has been present in India for 30 years, sourcing many different products for IKEA stores worldwide.

  • Kerry Logistics expands e-commerce fulfilment through E-Services Group JV

    Kerry Logistics expands e-commerce fulfilment through E-Services Group JV

    Hong Kong-based Kerry Logistics is expanding its e-commerce fulfillment capabilities through a joint venture with Asian e-commerce specialist E-Services Group. Their joint venture, Kerry ESG (HK) Company Limited, will combine Kerry Logistics’ global supply chain capabilities with ESG’s technology platform, global marketplace networks, and e-commerce expertise to offer etailers cost-efficient solutions internationally.

    ESG, founded in 2002, claims to be ‘the leading international end-to-end e-commerce company in Asia’, headquartered in Hong Kong, with offices in China, Singapore, and Taiwan. As the strategic partner to over 20+ leading global marketplaces such as Rakuten, JD.id, and Cdiscount, ESG not only enables its 28,000+ etailers to grow their businesses internationally through marketplaces, but also supports them with comprehensive shipping solutions.

    Kerry ESG, set to debut in March 2019, aims to become one of the leaders in global e-commerce fulfillment solutions, enabling etailers to deliver products to customers anywhere in the world quickly and cost-effectively. Through direct integration with leading shopping carts and global marketplaces, etailers using Kerry ESG’s services will be able to seamlessly manage their order fulfillment, inventory, and returns to and from multiple logistics centres through one platform.

    William Ma, Group Managing Director of Kerry Logistics, said: “We are thrilled about the growth opportunities in global e-commerce. With Kerry ESG, we are creating a unique platform with total solutions from upstream marketing to downstream logistics that will capitalise on the booming international marketplace model to facilitate the exports for our international brand customers. Combining forces as industry leaders, Kerry Logistics and ESG are well-positioned to unlock the potential in the market with this new joint venture.”

    Alan Lim, Founder and CEO of ESG, added: “Winning at e-commerce means getting every piece of the puzzle right, and fast, reliable fulfillment is a critical component of success. This partnership gives etailers access to an extensive distribution network to support e-commerce fulfillment in every market and with every online channel. With Kerry Logistics we have found a great partner, whose capabilities complement ours and whose culture and vision matches that of our team. I am excited about how we can grow this business together.”

    Kerry Logistics said it has identified cross-border e-commerce, particularly between Greater China and ASEAN, as a major growth sector which plays to its strengths. The new partnership with ESG, which is the official partner of leading marketplaces including JD.id, Rakuten, and Newegg.com, will play a pivotal role in strengthening the foothold that the two companies have in this area.

    Kerry Logistics has a network covering 53 countries and territories, and is managing 53 million sq ft of land and logistics facilities worldwide.

    Lees ook:

  • DHL Expands Green Fleet With New Electric Delivery Vans

    DHL Expands Green Fleet With New Electric Delivery Vans

    DHL Express is rolling out a new fleet of 63 electric delivery vans in the United States as part of the German company’s goal to reduce logistics-related emissions to zero by 2050. Thirty battery-powered NGEN-1000 vehicles from Workhorse Group will be deployed in San Francisco with the remainder in other unspecified markets around the country later this year.

    The new vehicles have a range of 100 miles and 1,008 cubic feet of cargo capacity.

    DHL said its delivery fleet in the United States already includes electric, hybrid-electric, compressed natural gas and clean diesel-powered vehicles. The company has set a target of operating 70% of first- and last-mile delivery services with what it considers “clean transport” modes by 2025.

    “This year alone, nearly 30% of our new vehicles will be alternative fuel,” said Greg Hewitt, CEO of DHL Express U.S. in Plantation, Fla. “We’re excited about the technologies that continue to emerge in this area and how they are benefiting the logistics industry.”

    Workhorse Group launched commercial production of the NGEN-1000 and three smaller-capacity electric cargo vans in October 2018.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • JD.com has just marked a breakthrough for drone delivery in Southeast Asia

    JD.com has just marked a breakthrough for drone delivery in Southeast Asia

    JD.com announced the completion of Indonesia’s first government approved drone flight – a breakthrough for drone delivery in Southeast Asia. The successful pilot opens the door for future commercial drone use in Indonesia and the Southeast Asia region, subject to further regulatory approvals. Representatives from Indonesia’s Ministry of Transportation, Civil Aviation and Air Navigation were present for the flight. The news was announced during the World Economic Forum Annual Meeting.

    The test flight took place on January 8, 2019, in West Java, Indonesia, where the drone flew from Jagabita Village, Parung Panjang to MIS Nurul Falah Leles Elementary School to deliver backpacks and books to students.

     

    The items delivered by drone were part of a larger donation of supplies from JD.com to the school. JD has a long history of offering philanthropic support to those in the communities where it operates. The company often taps its technology and nationwide logistics network to provide immediate support for natural disasters such as earthquakes in China.

    JD.com and its JV partner, e-commerce company JD.ID, were early movers in bringing high quality e-commerce to Indonesia. JD.ID, which launched e-commerce operations in 2016, sells 1 million SKUs and serves more than 20 million consumers across the country. Its operations leverage a logistics network consisting of ten warehouses across seven islands, covering 483 cities and 6,500 counties.

    Given the fact that the country is spread out across many islands, the implementation of drones for regular use in e-commerce deliveries, as well as other logistics-related services, will enable citizens in Indonesia to enjoy more efficient and reliable services, and help JD.ID realize its goal of being able to deliver 85% of orders same- or next-day. JD.ID is also committed leveraging its logistics and other resources to support humanitarian efforts like earthquake disaster relief.

    “It is a privilege to have contributed to this important moment in Indonesia’s history,” said Jon Liao, Chief Strategy Officer at JD.com. “We have been using drones for real deliveries in China for over two years now, and have seen the profound impact that the technology can have on people’s lives around the country. We look forward to working closely with WEF and the Indonesian government to realize the full potential of this technology, and provide more convenience to Indonesian citizens.”

    JD.com is a strategic partner of WEF and a partner of WEF’s Centre for the Fourth Industrial Revolution. The C4IR is a global hub for multi-stakeholder cooperation to develop policy frameworks and advance collaborations that accelerate the benefits of science and technology. Leveraging drone technology to deliver supplies to areas in need is a high priority on the C4IR’s agenda. WEF and JD have been working closely together to ensure the success of the pilot in Indonesia.

    “This trial represents the first government approved drone delivery operation in Indonesian history,” said Timothy Reuter, Head of Drones and Tomorrow’s Airspace at the World Economic Forum. “These tests are an opportunity for Indonesia to become a leader in the Southeast Asia region by leveraging drone delivery to improve access to vital medical, humanitarian, and commercial goods in remote areas.”

    Lees ook:

    Lees ook:

  • GreyOrange to launch new products at LogiMAT 2019

    GreyOrange to launch new products at LogiMAT 2019

    Robotics and warehouse automation company, GreyOrange, will launch its new modular sortation system and demonstrate upgraded versions of its Butler and PickPal at LogiMAT 2019, the 17th International Trade Fair for Intralogistics Solutions and Process Management in Stuttgart, Germany on 19-21 February.

    Nowadays, retailers and logistics businesses face many new kinds of complexities and challenges due to the unprecedented growth in volumes, combined with the volatility of peak periods and increased pressure to cut operational costs. GreyOrange will present a portfolio of AI-powered solutions that bring Flexible Automation to life; it reduces complexities and delivers maximum productivity, from inventory management and picking to sortation.

    Sid Chatterjee, Vice President – Products, GreyOrange, said, “The GreyOrange solution portfolio offers a strong business case for Flexible Automation. In the past year it has been adopted globally by industry-leading players in retail, 3PL and e-commerce. At LogiMAT we will demonstrate how our new solutions can help address the complexities of retail distribution. We invite everyone to visit our booth to get a hands-on demo to see how higher throughput can be achieved.”

    The new GreyOrange modular sortation system, designed for flexibility and portability, comprises modular components that deliver significantly higher throughput per unit area; it improves space utilization and reduces operating costs. The AI-enabled robotics system can be easily scaled making it more investment-friendly and usable for a range of applications across retail and logistics industries.

    In the demo of the GreyOrange Butler goods-to-person system, visitors will see how this robotics solution uses an AI-first approach to optimize order fulfillment processes from inventory management to order picking. It has been deployed in distribution centres in Japan, India, Europe and the Americas across industries such as 3PL, e-commerce, electronics and retail. Additionally, the Butler PickPal handles high-speed auto-fulfillment with AI-powered shelf picking.

    GreyMatter, the Warehouse Execution System, is the software platform developed by GreyOrange to make flexible warehouse automation a reality, and address the complexities of warehouse operations caused by ever-changing retail trends. By connecting people, processes and material more efficiently using Artificial Intelligence and Machine Learning, it provides granular control and visibility across warehouse processes and enables systems to adapt flexibly to changing business demands.

    Lees ook:

    Lees ook:

  • Last-mile delivery investment will boost sales

    Last-mile delivery investment will boost sales

    Increased investment by retailers in last-mile delivery is essential to uncover new revenue streams, according to a new study released by the Capgemini Research Institute. According to the report, 97 per cent of organisations believe that current last-mile delivery models are not sustainable for full-scale implementation across all locations, and that free shipping costs cannot be maintained unless delivery costs are reduced through automation.

    “Today, customers are neither satisfied with the quality of delivery services, nor willing to bear the total cost of last-mile delivery,” said Tim Bridges, global sector leader, consumer products, retail and distribution at Capgemini.

    “Therefore, the dilemma facing retailers is to provide last-mile delivery services that customers value, without damaging their own profitability. If done right, and their last-mile experience can win over customer satisfaction, retailers stand to gain loyalty, increased purchase value and frequency, while mitigating profitability risk through automation and optimisation of fulfillment locations,” he said.

    Among its conclusions, the report stated that with warehouse and product sorting representing one-third of supply chain costs, there is a significant opportunity in automation. Recognising this opportunity, 89 per cent of organisations are investing in the mechanisation and automation of store back-rooms to expedite fulfillment and deliveries.

    Speed boosts sales

    Fast and effective last-mile delivery were also shown to increase customer spend and loyalty. Seventy-four per cent of satisfied customers intend to increase spend by as much as 12 per cent with retailers they frequently purchase from. The majority (82 per cent) of customers have shared positive experiences with friends and family, and just over half (53 per cent) would be willing to purchase a paid membership for a good delivery service. However, despite 55 per cent of customers expressing that offering two-hour deliveries would increase loyalty, only 19 per cent of firms currently provide this compared to 59 per cent of firms that offer a delivery timeframe of more than three days.

    The report found that consumers are not satisfied with the current state of last-mile delivery with high prices (59 per cent), non-availability of same-day delivery (47 per cent), and late deliveries (45 per cent) driving delivery dissatisfaction.

    According to the findings, 97 per cent of organisations believe that current last-mile delivery models are not sustainable for full-scale implementation across all locations. As such, they must be viewed as a key investment for this year, with only 1 per cent of customers willing to absorb the total cost incurred for last mile deliveries.

    Despite low delivery costs being the top priority for half of all customers, only 30 per cent of organisations considered it a top priority for themselves.

    Recommendations for retailers

    The report closes with the following recommendations for last-mile delivery success:

    Optimise fulfillment locations: Increasing store-based deliveries by 50 per cent could potentially lead profit margins to soar by as much as nine per cent. Dark stores – retail outposts with store-like layouts intended only to fulfil online orders – can also process high delivery volumes and are 23 per cent cheaper than conventional stores for same-day deliveries. Additionally, if 30 per cent of deliveries and returns are routed through parcel locker collection arrangements, organisations could expect an eight percent increase in profit margins.

    Automate delivery options: Back-room automation could increase profits by up to 14 per cent by reducing the cost of click-and-collect orders and deliveries from store. Furthermore, automation offers a range of benefits including reduction of fulfillment errors and managing returns (which forms 26 per cent of the delivery cost).

    Lees ook:

  • DHL announce ecommerce service expansion in Turkey

    DHL announce ecommerce service expansion in Turkey

    German based logistics firm DHL Express has said it will be investing more on ecommerce operations and infrastructure in Turkey in a bid to expedite parcels passing to and from Europe and several other parts of the world. A key part of the innovations and improvements will be a new operations hub at Istanbul airport but more developments are planned.

    The announcements were made at the DHL International Cross Border eCommerce Summit, which took place in Istanbul during December. And it was noted that the importance of Turkey is its strategic position as the meeting point between Europe, Africa and Asia. As a crucial trading hub, they reckon that DHL will be able to move consignments to numerous destinations in the Middle East and Africa more quickly by operating through Turkey.

    This makes Turkey a very important country for us, and we are working to make it a regional hub,” Leendert van Delft, VP Global Sales Programs DHL Express said. The operation center at the airport in Istanbul will be the first step in that direction the vice president announced. “Today, when you look at the world, everyone speaks of the US and China as ecommerce markets. But in the case of Turkey, you’re not at the initial phase of this journey, but you have actually moved from the infancy to the stage of walking. It is time for Turkey to run now.

    DHL says that their current share of global ecommerce deliveries is estimated to be in the region of 29% but they they hope to achieve something closer to between 40-50% by the end 2020. They also note that the DHL portion of same stood at 5% in 2016 and increased to 10% at the start of 2017 before rising to 15% in November 2017. And as competition and ecommerce increases, an ongoing share of business of roughly 25-30% is their reported aim.

    Lees ook:

    Lees ook:

    Lees ook:

  • FamilyMart expands Bangkok delivery service with Kerry

    FamilyMart expands Bangkok delivery service with Kerry

    Convenience store chain FamilyMart has partnered with logistics operator Kerry Express to expand its Bangkok delivery service. “Today, the e-commerce market has grown continuously for more than 20 per cent annually, and individual consumers have also had a greater demand for express delivery over the past three to five years,” said Central FamilyMart president Chiranun Poopat.

    “We have introduced Kerry Express, an express delivery service, available 24 hours a day at our FamilyMart stores in Bangkok and surrounding locations. The door-to-door express delivery will be provided to our individual customers so that they will be able to send their parcels to any locations throughout the Kingdom with fast and high-standard delivery process.”

    The new service is being promoted with a free limited-edition parcel delivery box available to customers during the Christmas period. The box will be provided to customer spending more than THB79 (US$2.42) via its express delivery service.

    Lees ook: