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Shipping challenges reached a peak in 2021 – and we’re here to tell you that things aren’t looking better for 2022. But that doesn’t mean your operations need to suffer. You have more control over supply chain disruptions than you realize. Download our report today to find out what else we discovered and how it impacts your business. 
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In-depth analysis of the post-sales experiences provided by US retailers to establish best practices, common mistakes, and opportunities to outperform competitors.
Farid Mheir's insight:
WHY IT MATTERS: free delivery appears to be a myth based on this analysis from parcelLabs. And in-store pickup is the most popular option. Is this because customers really prefer to pay for delivery or go to the store? - or because the pick-pack-delivery-return costs are too high and as they come down with economies of scale, customers will naturally pick the free delivery option, as they do with Amazon?
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Everybody likes to get a package. In 2020, we'll send more than 100 billion of them--and that number could double by 2030. Who will deliver all those packages, and how? In this edition, The Next Normal explores what's ahead in last-mile parcel delivery.
Farid Mheir's insight:
WHY IT MATTERS: parcel delivery has become the primary volume for postman. Why not have delivery routes - postman or milkmen - to deliver the parcels and not just the mail? Would this not be a more cost effective solution than delivering one by one?
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The rise in ecommerce caused an unprecedented surge in Amazon's volume, but it came with fulfillment challenges. The coronavirus pandemic bolstered ecommerce growth—sales grew 44.4% annually in Q2—as consumers turned to online shopping instead of brick-and-mortar amid store closures. But the milestone came with challenges in handling the surge, including delivery delays and slowed shipping speeds. Other competitors, like Walmart, were able to more effectively weather the storm because of their massive store network, so replicating competitors' strategies could help Amazon recoup lost market share and extend growth during the busy holiday season.
Farid Mheir's insight:
WHY IT MATTERS: Amazon will use failing and bankrupt stores and shopping malls to build warehouses so close to consumers that 1-2hr delivery becomes possible - the last hurdle in making eCommerce viable in many product categories (grocery, food, meals, and other high volume / low margin categories come to mind first of course).
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Proposed facility part of push to boost online grocery fulfillment. Walmart representative said the concept marks a different grocery pickup approach and would represent its largest pickup-only site. The location also would be Walmart’s first stand-alone, drive-up grocery facility in Illinois. The building would have no customer access and house 41,700 square feet of inventory space. Signs would direct customers driving through the lot to one of three canopied pickup bays, where they would park in a designated space and have their groceries loaded into their vehicle. Customers would order their groceries as usual via the Walmart Grocery app or website and select a pickup time in one-hour windows. Pickup trips and parking spots would be coordinated to avoid congestion.
Farid Mheir's insight:
WHY IT MATTERS: when Walmart gets into something, you should watch out. Here it seems they are exploring options for grocery fulfillment and delivery - as everyone is trying to figure out what will customer prefer and where to make money. But the solution feels like back to the future: the concept looks like a sears pickup counter from the old days! The article also mentions some delivery options being tested by Walmart including autonomous cars and crowdsourcing.
Tuhin Islam's curator insight,
October 25, 2018 1:57 AM
Online grocery fulfilment? Can there be a Bangladesh version?
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The growth of last-mile delivery and demand for next- and same-day service is pushing logistics beyond traditional hub and spoke models to regional options, crowdsourcing, digital, and smart automation.
Farid Mheir's insight:
WHY IT MATTERS: delivery models are plenty and need to be expanded to reduce the cost of eCommerce deliveries.
How to Grow your Business's comment,
May 21, 2019 5:18 AM
Logistics Management Strategies & Improvement Tips https://urlzs.com/fuZW
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The last mile is seeing disruption from new business models that address customer demand for ever-faster delivery, as well as new technologies such as drones and autonomous ground vehicles.
Farid Mheir's insight:
WHY IT MATTERS: delivery is the last problem to solve to continue ecommerce growth. McKinsey explores the different delivery models for the last mile in this article.
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Amazon spent $21.7 billion on shipping in 2017.
Farid Mheir's insight:
WHY IT MATTERS: Amazon spends 14.2% of its net sales to fulfill orders and 12.2% to deliver them to consumers. Thus a quarter of the costs of products sold is allocated to logistical costs and this is the biggest hurdle to eCommerce wide adoption. Amazon and other pure plays have a number of key advantages over established brick-n-mortar retailers (no retail store costs, no store employees, etc.) but they have to battle with order preparation and delivery which traditional retailers delegate to their customers as they push their carts in the store aisle. In that context, recent announcement of Sobeys to leverage Ocado's automated warehouse technology or recent Amazon announcement to create a parcel delivery solution that competes with FedEx and UPS makes sense. Any retailer thinking of scaling its eCommerce operation should thus make sure that its business model is viable regarding fulfillment and shipping - all other elements of eCommerce are not an issue. - Amazon SWA service: http://fmcs.digital/blog/amazon-package-delivery-service-to-compete-with-fedex-and-ups-swa-ecommerce-disruption-retailapocalypse/ - Sobeys Ocado partnership: http://fmcs.digital/blog/u-k-s-ocado-taps-into-canadas-online-grocery-market-with-sobeys-tie-up-is-canada-mature-enough-to-have-automated-grocery-fulfillment-centers-ecommerce-robots/ - Ocado's technology: http://fmcs.digital/blog/video-shows-ocado-warehouse-technology-that-sobeys-has-acquired-to-prepare-grocery-orders-is-based-on-an-army-of-small-robots-working-on-3d-hive/
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Curated by Farid Mheir
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WHY IT MATTERS: shipping remains the last issue to solve in eCommerce IMHO. This report provides some insights into the challenges for 2022, including rate increases labour shortage, increased competition by Amazon.