Skin ADV

eng
About   |   Newsletter
Demand & Supply Chain Management Evolution




12 Dec 2018
DHL Study Reveals Winning Logistics Strategies for the Last Mile

DHL
DHL

  • Rise in urban consumers in developed and emerging markets is challenging retailers and logistics partners to deliver even more speed and convenience
  • Companies that can improve performance in the areas of flexible transport networks, automation and data will be better positioned to compete

Increasing urbanization is making the last mile of delivery more complex and critical for the success of e-commerce companies, according to new research by DHL, the world’s leading logistics company, and market research company Euromonitor. With over 600 million more people forecast to live in urban environments by 2030 and new technologies creating opportunities for both service enhancement and disruption, online retailers and their logistics partners are being challenged to embrace bold new approaches in order to survive and compete.

In the white paper, Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer, DHL and Euromonitor have identified the four main trends that are shaping urban last mile transportation – localized delivery, flexi-delivery networks, seasonal logistics and evolving technologies – and ways in which companies can adapt their supply chains to the changing market environment and achieve competitive advantage.

Shortening the Last Mile Info

 

“The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively,” said Katja Busch, Chief Commercial Officer, DHL. “It’s not just about transportation, but about companies’ overall approach to managing inventory – getting the right items to the right place at the right time. DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks.”

The white paper found that the major urban trends all create various challenges in terms of cost, service impact and organizational strain. For example, the growth of seasonal logistics as a result of increasingly popular holidays and promotional days such as Asia’s Singles’ Day or national Cyber Days, places significant pressure on logistics companies to build up additional capacity and hire resources to cope with short-term volume surges, which can in turn be difficult to predict. Urban customers’ demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralized networks with local fulfilment and distribution infrastructure, which can require more accurate balancing of inventory. Evolving technologies are creating opportunities for new disruptive challengers to enter the market, while also requiring incumbents to invest prudently and incorporate new skills into their workforce.

To overcome these challenges, DHL and Euromonitor have jointly identified the F.A.D. (Flexible transport networks, Automation and Data) model as a framework that will help retailers and logistics operators to ensure their competitiveness over the last mile. By improving their performance in increasing automation, managing data and building flexibility into their networks, e-commerce companies in all markets will be able to better manage inventory and increase the efficiency of their last-mile delivery networks.

FAD Triangle

 

 “The future evolution of this fast-moving, highly competitive e-commerce market is still incredibly difficult to predict, so companies need to remain nimble and efficient while ensuring they are meeting customer demands,” said Lee Spratt, CEO, DHL eCommerce Americas. “The last mile requires considerable attention because, however the market evolves, it will continue to be one of the main touchpoints in the customer experience. Those companies that can build effective partnerships to make their urban delivery networks more elastic, invest in the most effective technologies to boost productivity, take advantage of data to build better customer experiences and, most importantly, manage their inventory as efficiently as possible will emerge as winners in the dynamic e-commerce marketplace of tomorrow.”

 

 

 

 

 

 

 

 









 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 1 Feb 2019
Series-record stockpiling of inputs at UK manufacturers as Brexit preparations continue
   Source: Markit /CIPS UK Manufacturing PMI   -  IHS Markit
United Kingdom 


Chemicals & Pharmaceuticals

Even industries driven by the strictest safety and environmental regulations are capable of reducing their costs. Our solutions improve each phase of the chemical logistics supply chain, to increase your supply chain performance, improve predictability and mitigate potential problems before they arise. B...


Five ways Blockchain can unblock your Supply Chain

  Futurist Don Tapscott said blockchain will allow companies to revolutionise their business models, but how can the technology unblock your supply chain? The conversation around data sharing can be a particular ...


Education
 
26
Feb
2019
Introduction to public sector procurement
     Birmingham
27
Feb
2019
Applying the public procurement regulations
     Birmingham
28
Feb
2019
The future of public procurement
     Birmingham
 4 
Mar
2019
Introduction to contracts
     Birmingham
 5 
Mar
2019
Introduction to contract management
     Birmingham

Local & Regional Agenda
 


Resources
 
Tudor Rose International increases productivity through integrated SCM platform ASSIST4

Tudor Rose International is Europe’s leading export market management company specialising in building brands around the world. In business for nearly 30 years, the innovative company mastered an ambitious IT mo...

Order Placement And Distribution: Their Impact On Satisfaction And Word Of Mouth

One of the key dyadic relationships across supply chain is between logistics service provider and the manufacturer. Over time the concept of logistics service provider developed toward service offering of greater complex...


International Agenda