Innovation on the last mile

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Stella Schieffer

Talk for Bosch Siemens Haushaltsgeräte 9th International Logistics Conference in Ljubljana, Slovenia

Business Économie & finance

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Bosch BodendüseRD295S
2 in stock
400m away
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800m away
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Market overview: Innovation on the last mile in the retail industry

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BringBee
Delivery today or tomorrow
Post Standard
2-3 days

Excited Customers
real help
fun
makes sense practical & ecological at the
same time

Business model
Purchase costs
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+ Fee
Purchase costs
+ Reward
Shop
Orders online Buys and delivers
Deliver

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The increasing popularity of omni-channel retailing has created many challenges for transportation and logistics providers servicing retailers. This has forced transportation operations to think outside of the box and make significant changes to their service offering portfolios. Omni-channel retailing has made fulfilling customer orders efficiently and cost effectively much more complex with a variety of new distribution strategies. E-commerce orders grew 47% between 2009 and 2014 in comparison to only 6% at brick and mortar store locations. E-commerce sales are expected to reach $2.3 trillion by 2017. This shift in retail channel utilization has increased the order fulfillment needs and associated labor costs. Retailers are evaluating existing distribution networks to verify they can handle the added volume and are seeking out additional delivery solutions as a supplement. In many cases, these additions are in the form of local and regional distribution centers. Rising shipping costs have also been a significant challenge for last mile delivery as they account for approximately 28% of total transportation costs. Shippers have many options for counteracting rising shipping costs including: intermodal freight utilization to link logistics clusters, shipment consolidation with crossdocking, primary delivery channel elimination and click-to-collect/ parcel locker centers to consolidate parcel drop-offs. Governmental regulations have also created problems related to last mile logistics, both in the US and abroad. Regulations such as vehicle size and weight limitations, parking policies and noise restrictions. To avoid these issues some transportation operations are investing in smaller delivery vehicles for use in local regional delivery operations. These vehicles are typically more compliant with imposed noise and size restrictions. In areas where even these smaller vehicles are not an option some logistics providers have started to offer bike delivery and contracted one-time delivery services through businesses such as Uber. Demand for up-to-date order information has also become an issue for many omni-channel retailers. Customers now want to know when their order has been accepted, processed, shipped and delivered. In order to provide this level of detail omni-channel supply chains are implementing inventory management software such as WMS with customer relationship management capabilities to provide real-time information to customers. In order to provide a positive final impression on consumers retailers must focus on last mile logistics. Focusing on these potential solutions can help retailers to improve the effectiveness, efficiency and cost of last mile delivery operations. Learn more from Datex experts now at marketing@datexcorp.com or www.datexcorp.com .

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Now that customers are in the driver’s seat, the changes are happening faster and more frequently. Your customers have been through an unprecedented digital & mobile expansion, but there’s much more to come. In this hyper-active environment, what does it take for you to create relevant and insightful customer interactions across multiple channels? In this fast-paced and entertaining session, Darrel will provide well-known brand examples in high tech, retail, financial services, travel, and hospitality which will demonstrate: • why customers are adopting more technologies even more rapidly than you think • how marketers need to predict, envision and invest in the new customer relationships that these channels can build • what’s the best way for you to determine your biggest opportunities to engage customers in their mobile and digital moments • why the lack of strategy and digital skills hold back digital advancement • and what are the necessary steps that you need to take to integrate cross-channel journeys and experiences for the biggest return

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