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Day: 23 February 2023

On-time, Cost per Delivery KPIs for Logistics Providers

Posted on by David Priestman

FarEye released the full findings of its Eye on Last-mile Delivery Report today, conducted with Researchscape International, which explores retailers’ and logistics providers’ last-mile delivery priorities and opportunities over the next five years.

Logistics providers’ priorities for performance improvement differs by company size

FarEye’s research findings for logistics providers reveals that for providers over $100 million in revenue, on-time delivery (74%) and cost per delivery (62%) are their top two priority KPIs to improve. For providers under $100 million in revenue, their top two priorities are cost of delivery (73%) and customer satisfaction (64%). As logistics providers grow, complexity and scale increase, where on-time deliveries become more challenging to execute with precision.

“Unlike retail, last-mile delivery is the backbone of logistics providers’ operations and their goals will be focused on delivery performance and cost efficiencies, above all. While their priority improvement metrics don’t differ heavily from retailers’ priority improvement areas, the difference lies in the size of the logistics provider. With size comes complexity, but also efficiency, where the cost per delivery goes down, but the difficulty in managing and tracking orders goes up,” said Stephane Gagne, vice president, product, FarEye.

Retailers and logistics providers must work together to achieve superior deliveries

How retailers and logistics providers work together to achieve the pinnacle delivery experience – one that simultaneously reduces cost to deliver while increasing customer satisfaction will be crucial. Outsourced delivery networks have become a way for retailers to increase speed to deliver (64%) and reduce cost (37%) of last-mile delivery, however, it comes with the sacrifice of less control of the consumer experience.

FarEye’s initial report findings denote that 84% of retailers that have outsourced their delivery networks want more control of their delivery networks. Specifically, 33% of retailers are challenged by logistics providers’ inability to provide reliable information and they rank carrier performance as the top factor that inhibits delivery speed.

Logistics providers’ last-mile delivery growth priorities

Over the next year, 77% of logistics providers expect their budgets for last-mile delivery technology to grow. Eighty-two percent of logistics providers claim they will likely change or buy a new last-mile delivery solution in the next 1-2 years. Forty percent of logistics providers expect to buy a last-mile delivery platform in the next five years, vs. building their own in-house (40%). Similar to retailers, logistics providers are also evaluating electric vehicles (80%), autonomous vehicles (44%) and drones (38%) to make their fleets more sustainable and efficient, over the next five years.

Research Methodology

The FarEye Eye on Last-mile Delivery research was released in two parts, in January and February 2023. FarEye analysed responses from 300 leaders across retail and logistics with responsibility for logistics and retail operations in the U.S. (32%), EMEA (36%) and APAC (32%) regions.

FarEye’s Delivery Management platform turns deliveries into a competitive advantage. Retail, e-commerce and third-party logistics companies use FarEye’s unique combination of orchestration, real-time visibility, and branded customer experiences to simplify complex last-mile delivery logistics. The FarEye platform allows businesses to increase consumer loyalty and satisfaction, reduce costs and improve operational efficiencies. FarEye has 150+ customers across 30 countries and five offices globally. FarEye, First Choice for Last Mile.

On-time, Cost per Delivery KPIs for Logistics Providers

Posted on by David Priestman

FarEye released the full findings of its Eye on Last-mile Delivery Report today, conducted with Researchscape International, which explores retailers’ and logistics providers’ last-mile delivery priorities and opportunities over the next five years.

Logistics providers’ priorities for performance improvement differs by company size

FarEye’s research findings for logistics providers reveals that for providers over $100 million in revenue, on-time delivery (74%) and cost per delivery (62%) are their top two priority KPIs to improve. For providers under $100 million in revenue, their top two priorities are cost of delivery (73%) and customer satisfaction (64%). As logistics providers grow, complexity and scale increase, where on-time deliveries become more challenging to execute with precision.

“Unlike retail, last-mile delivery is the backbone of logistics providers’ operations and their goals will be focused on delivery performance and cost efficiencies, above all. While their priority improvement metrics don’t differ heavily from retailers’ priority improvement areas, the difference lies in the size of the logistics provider. With size comes complexity, but also efficiency, where the cost per delivery goes down, but the difficulty in managing and tracking orders goes up,” said Stephane Gagne, vice president, product, FarEye.

Retailers and logistics providers must work together to achieve superior deliveries

How retailers and logistics providers work together to achieve the pinnacle delivery experience – one that simultaneously reduces cost to deliver while increasing customer satisfaction will be crucial. Outsourced delivery networks have become a way for retailers to increase speed to deliver (64%) and reduce cost (37%) of last-mile delivery, however, it comes with the sacrifice of less control of the consumer experience.

FarEye’s initial report findings denote that 84% of retailers that have outsourced their delivery networks want more control of their delivery networks. Specifically, 33% of retailers are challenged by logistics providers’ inability to provide reliable information and they rank carrier performance as the top factor that inhibits delivery speed.

Logistics providers’ last-mile delivery growth priorities

Over the next year, 77% of logistics providers expect their budgets for last-mile delivery technology to grow. Eighty-two percent of logistics providers claim they will likely change or buy a new last-mile delivery solution in the next 1-2 years. Forty percent of logistics providers expect to buy a last-mile delivery platform in the next five years, vs. building their own in-house (40%). Similar to retailers, logistics providers are also evaluating electric vehicles (80%), autonomous vehicles (44%) and drones (38%) to make their fleets more sustainable and efficient, over the next five years.

Research Methodology

The FarEye Eye on Last-mile Delivery research was released in two parts, in January and February 2023. FarEye analysed responses from 300 leaders across retail and logistics with responsibility for logistics and retail operations in the U.S. (32%), EMEA (36%) and APAC (32%) regions.

FarEye’s Delivery Management platform turns deliveries into a competitive advantage. Retail, e-commerce and third-party logistics companies use FarEye’s unique combination of orchestration, real-time visibility, and branded customer experiences to simplify complex last-mile delivery logistics. The FarEye platform allows businesses to increase consumer loyalty and satisfaction, reduce costs and improve operational efficiencies. FarEye has 150+ customers across 30 countries and five offices globally. FarEye, First Choice for Last Mile.

Cathay Pacific Cargo Rebrands

Posted on by David Priestman

Cathay has announced the launch of Cathay Cargo, a rebrand of its cargo business, and a change of name from Cathay Pacific Cargo. The change aligns with the airline’s overarching brand redesign, and reinforces the existing strong brand association and perceptions held by its customers. Cathay Cargo aligns with the same purpose, vision and values of our master brand Cathay and all of its subsidiary brands, including Cathay Pacific, the passenger airline, and Cathay, the everyday lifestyle offering.

Cathay Cargo is united behind Cathay’s vision to become one of the world’s greatest service brands, and plays an integral role in helping to fulfil that aspiration through its world-class air cargo network, which transports products that facilitate trade across the entire Cathay network and beyond. Shipping directly to more than 70 destinations worldwide, Cathay Cargo is committed to advancing the development of all destination countries served by Cathay’s more than 200 aircraft.

Group Chief Executive Officer Ronald Lam said: “Cathay’s cargo business has played a vital role in the success of the Cathay Group since 1946, when we carried our first shipment between China and Australia. Our cargo services operate out of our home base of Hong Kong, which is also the world’s busiest international air cargo hub.

“This is an opportune moment to align our cargo business with the master brand as we continue our cargo investments in Hong Kong and the Greater Bay Area for a promising future. This rebrand reflects our Cargo business’ commitment to the same ‘Move Beyond’ ambition as the Group, while building on a strength that the Cathay brand has long been known for – offering leading-edge services to our customers.”

Reflecting this commitment to invest, Cathay Cargo has recently introduced a number of exciting refreshed solutions, including Cathay Priority and Cathay Pharma. Cathay Mail is scheduled for a refresh in March. These services cater to the respective burgeoning demands by customers for effective temperature-sensitive solutions, and efficient and reliable delivery solutions with new digital technology that better meets the requirements for shipment visibility, reliability and speed.

Director Cargo Tom Owen said: “Cathay Cargo continues to innovate new solutions, services and technology for customers as we build towards being one of the world’s greatest service brands. Continued investment in technology and logistics will solidify our position as a leading player in the industry.”

Cathay Cargo has invested in technology in recent years. This includes Ultra Track, a multi-dimensional track-and-trace service that gives customers near-real-time information on the airport-to-airport leg of the shipment journey using low-energy Bluetooth data-loggers; and, Click & Ship, an intuitive online booking service available 24/7 with instant processing and confirmation.

As part of its rebranding campaign, Cathay Cargo’s website has been revamped to reflect the brand ethos, and enable users to easily access popular features such as booking, track and trace, and flight availability, whilst also providing a clear showcase of recent campaign offers and featured solutions. The rebrand will connect Cathay Cargo to the master Cathay brand – a premium travel lifestyle brand offering a range of products and services that create more value for customers and partners. Cathay Cargo will have more exciting initiatives in the coming months as the company works toward a complete rebrand.

Cathay Pacific Cargo Rebrands

Posted on by Keith McKinley

Cathay has announced the launch of Cathay Cargo, a rebrand of its cargo business, and a change of name from Cathay Pacific Cargo. The change aligns with the airline’s overarching brand redesign, and reinforces the existing strong brand association and perceptions held by its customers. Cathay Cargo aligns with the same purpose, vision and values of our master brand Cathay and all of its subsidiary brands, including Cathay Pacific, the passenger airline, and Cathay, the everyday lifestyle offering.

Cathay Cargo is united behind Cathay’s vision to become one of the world’s greatest service brands, and plays an integral role in helping to fulfil that aspiration through its world-class air cargo network, which transports products that facilitate trade across the entire Cathay network and beyond. Shipping directly to more than 70 destinations worldwide, Cathay Cargo is committed to advancing the development of all destination countries served by Cathay’s more than 200 aircraft.

Group Chief Executive Officer Ronald Lam said: “Cathay’s cargo business has played a vital role in the success of the Cathay Group since 1946, when we carried our first shipment between China and Australia. Our cargo services operate out of our home base of Hong Kong, which is also the world’s busiest international air cargo hub.

“This is an opportune moment to align our cargo business with the master brand as we continue our cargo investments in Hong Kong and the Greater Bay Area for a promising future. This rebrand reflects our Cargo business’ commitment to the same ‘Move Beyond’ ambition as the Group, while building on a strength that the Cathay brand has long been known for – offering leading-edge services to our customers.”

Reflecting this commitment to invest, Cathay Cargo has recently introduced a number of exciting refreshed solutions, including Cathay Priority and Cathay Pharma. Cathay Mail is scheduled for a refresh in March. These services cater to the respective burgeoning demands by customers for effective temperature-sensitive solutions, and efficient and reliable delivery solutions with new digital technology that better meets the requirements for shipment visibility, reliability and speed.

Director Cargo Tom Owen said: “Cathay Cargo continues to innovate new solutions, services and technology for customers as we build towards being one of the world’s greatest service brands. Continued investment in technology and logistics will solidify our position as a leading player in the industry.”

Cathay Cargo has invested in technology in recent years. This includes Ultra Track, a multi-dimensional track-and-trace service that gives customers near-real-time information on the airport-to-airport leg of the shipment journey using low-energy Bluetooth data-loggers; and, Click & Ship, an intuitive online booking service available 24/7 with instant processing and confirmation.

As part of its rebranding campaign, Cathay Cargo’s website has been revamped to reflect the brand ethos, and enable users to easily access popular features such as booking, track and trace, and flight availability, whilst also providing a clear showcase of recent campaign offers and featured solutions. The rebrand will connect Cathay Cargo to the master Cathay brand – a premium travel lifestyle brand offering a range of products and services that create more value for customers and partners. Cathay Cargo will have more exciting initiatives in the coming months as the company works toward a complete rebrand.

Rise of Direct-to-Consumer in Europe

Posted on by David Priestman

Nearly six out of ten European organisations (59%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with a total of 18% saying it has increased significantly. By increasing their investment, organisations believe they can improve profit margins, reduce cost, and service customers more effectively.

That’s according to a European Direct-to-Consumer research report by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, polling decision-makers across the UK, Benelux and the Nordics, which points to a dynamic, fast-growing DTC sector.

However, organisations are also facing a range of barriers related to people and technology when it comes to achieving the DTC success they are seeking. These include, in the former category, lack of skilled staff, highlighted by 17% of the survey sample and culture of the company (16%), and in the latter, physical infrastructure (19%) and difficulties identifying the right infrastructure for DTC (16%).

Sustainability and Customer Experience are the key growth drivers of DTC in Europe

The latest technology is key in helping businesses protect themselves from failing to fulfil customer expectations when operating DTC. The survey reveals that many organisations are considering complete categories of products and even their whole range through DTC. Organisations must ensure that they are investing in people and technology and making sure that that their systems and processes are working at optimum efficiency levels. Putting money behind order management and fulfilment will be a key part of that.

42% of the survey sample highlighted investing more in order management and fulfilment technology as a key way of protecting themselves from failing to fulfil customer expectations when operating DTC while 29% referenced creating real-time visibility across all inventory locations.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in Europe: How businesses can break through the barriers and make a success of DTC channels, is now available.

Rise of Direct-to-Consumer in Europe

Posted on by David Priestman

Nearly six out of ten European organisations (59%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with a total of 18% saying it has increased significantly. By increasing their investment, organisations believe they can improve profit margins, reduce cost, and service customers more effectively.

That’s according to a European Direct-to-Consumer research report by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, polling decision-makers across the UK, Benelux and the Nordics, which points to a dynamic, fast-growing DTC sector.

However, organisations are also facing a range of barriers related to people and technology when it comes to achieving the DTC success they are seeking. These include, in the former category, lack of skilled staff, highlighted by 17% of the survey sample and culture of the company (16%), and in the latter, physical infrastructure (19%) and difficulties identifying the right infrastructure for DTC (16%).

Sustainability and Customer Experience are the key growth drivers of DTC in Europe

The latest technology is key in helping businesses protect themselves from failing to fulfil customer expectations when operating DTC. The survey reveals that many organisations are considering complete categories of products and even their whole range through DTC. Organisations must ensure that they are investing in people and technology and making sure that that their systems and processes are working at optimum efficiency levels. Putting money behind order management and fulfilment will be a key part of that.

42% of the survey sample highlighted investing more in order management and fulfilment technology as a key way of protecting themselves from failing to fulfil customer expectations when operating DTC while 29% referenced creating real-time visibility across all inventory locations.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in Europe: How businesses can break through the barriers and make a success of DTC channels, is now available.

Electric Trucks Market Booming, says Volvo

Posted on by David Priestman

Volvo Trucks has now sold more than 4,300 electric trucks globally in more than 38 countries, while in Europe it is leading the way with a 32 per cent share of the market for heavy electric CVs/lorries. In 2022, Europe’s heavy electric CV market grew by 200 per cent to 1,041 units, with Volvo setting the pace.

Roger Alm, President of Volvo Trucks, says: “We are determined to lead the electric truck transformation and our market leading position in 2022, not only in Europe, but also in North America, is proof that we are doing just that. Although the market for electric trucks is still small compared to the traditional diesel variants, the trend is clear: many of our customers are now starting their own shift to electric. We intend to be the catalyst for this transition and aim for 50 per cent of our global sales of new trucks to be electric in 2030.”

Since Volvo Trucks started production of fully electric CVs in 2019, the company has sold more than 4,300 electric trucks/lorries in more than 38 countries around the world. Volvo currently offers the industry’s broadest product line-up of electric models in series production, catering to a very wide variety of operational domains both in and between cities.

“We now have a product portfolio that can cover most types of transportation for all kinds of customers,” adds Alm. “Looking at the goods flow patterns in Europe, it’s clearly possible to electrify nearly half of all those transport operations with our line-up of electric lorries. We see it as our mission to support our customers in making that happen.”

The 10 largest markets for electric lorries, based on number of registrations ≥16 tonnes, in Europe are:

1. Germany – 198
2. Sweden – 169
3. Norway – 150
4. France – 118
5. Switzerland – 103
6. UK – 101
7. Netherlands – 89
8. Spain – 79
9. Denmark – 48
10. Belgium – 17

The Volvo market share and overall growth data referenced for heavy electric CVs/lorries in Europe includes content supplied by IHS Markit.

Electric Trucks Market Booming, says Volvo

Posted on by David Priestman

Volvo Trucks has now sold more than 4,300 electric trucks globally in more than 38 countries, while in Europe it is leading the way with a 32 per cent share of the market for heavy electric CVs/lorries. In 2022, Europe’s heavy electric CV market grew by 200 per cent to 1,041 units, with Volvo setting the pace.

Roger Alm, President of Volvo Trucks, says: “We are determined to lead the electric truck transformation and our market leading position in 2022, not only in Europe, but also in North America, is proof that we are doing just that. Although the market for electric trucks is still small compared to the traditional diesel variants, the trend is clear: many of our customers are now starting their own shift to electric. We intend to be the catalyst for this transition and aim for 50 per cent of our global sales of new trucks to be electric in 2030.”

Since Volvo Trucks started production of fully electric CVs in 2019, the company has sold more than 4,300 electric trucks/lorries in more than 38 countries around the world. Volvo currently offers the industry’s broadest product line-up of electric models in series production, catering to a very wide variety of operational domains both in and between cities.

“We now have a product portfolio that can cover most types of transportation for all kinds of customers,” adds Alm. “Looking at the goods flow patterns in Europe, it’s clearly possible to electrify nearly half of all those transport operations with our line-up of electric lorries. We see it as our mission to support our customers in making that happen.”

The 10 largest markets for electric lorries, based on number of registrations ≥16 tonnes, in Europe are:

1. Germany – 198
2. Sweden – 169
3. Norway – 150
4. France – 118
5. Switzerland – 103
6. UK – 101
7. Netherlands – 89
8. Spain – 79
9. Denmark – 48
10. Belgium – 17

The Volvo market share and overall growth data referenced for heavy electric CVs/lorries in Europe includes content supplied by IHS Markit.

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