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Month: August 2023

Balancing Customer Expectations & Costs in eCommerce Delivery

Posted on by David Priestman

In a world where rising bills seem to be the norm for families and businesses alike, the delicate dance of balancing service quality with cost-efficiency has become a challenge for retailers and ecommerce delivery, writes Gemma Vasey, Business Development Manager, Asendia UK.

As consumers search for ways to stretch their budgets in the face of economic strains, businesses are also grappling with increased shipping, labour and operational expenses. Yet, the decision to pass on these costs to loyal customers is not a simple one, as transitioning from free to paid-for delivery and returns can stir frustration among value-conscious shoppers. So how can they find equilibrium between service excellence and cost-effectiveness, especially in times of economic uncertainty?

The influence of delivery costs on consumer behaviour

Recent surveys spotlight the pivotal role that delivery costs play in shaping shoppers’ purchasing decisions. A report by Asendia underscores this, revealing that 43% of the 8,000 global online shoppers surveyed rank delivery costs as a key consideration. Alongside criteria such as overall value for money (54%) and product quality (50%), the price of delivery exerts a significant influence on consumer behaviour. Moreover, authenticity emerges as a crucial factor in the post-Covid era, with 70% of UK shoppers expressing a willingness to support retail brands they perceive to be authentic, even during economic downturns.

Defining authenticity in the eyes of shoppers

For UK shoppers, authenticity translates to straightforwardly delivering promises (57%), transparent supply chains (41%), commitment to sustainability (39%), clear brand values (39%), and active adherence to those values (32%). Astonishingly, 43% of respondents noted that a brand’s authenticity would make them less sensitive to price increases caused by inflation, a sentiment particularly strong among Generation Z (48%) and Millennials (51%).

These insights underscore the need for brands to optimise their delivery services to provide transparent, fairly-priced, and reassuring shopping experiences. Communicating openly about the necessity of delivery charges can help prevent basket abandonment when policies change. To cater to diverse customer needs, retailers should consider offering an array of delivery options, especially for cross-border shipping.

Asendia, for instance, integrates various delivery choices into their clients’ websites, allowing customers to opt for lower-cost international postal services for non-urgent, lower-value items. Simultaneously, expedited services with enhanced tracking, notifications, and insurance cater to those seeking premium delivery options, and willing to pay for them.

Green delivery is a growing priority

The concept of sustainability is gaining traction among consumers, who are beginning to realise that fast and free deliveries often come at a cost to the environment. Brands that offer more sustainable delivery options not only align with eco-conscious consumers but also contribute to more environmentally friendly practices. Although options like carbon offsetting are not long-term solutions, they can assist retailers in reaching their Environmental, Social, and Governance (ESG) goals. Consideration should also be given to low-emission delivery methods, even though they entail additional supply chain costs.

Emphasising sustainability initiatives opens doors to new customer segments and fuels sales growth as environmentally-conscious consumers prioritise eco-friendly options. By adopting sustainable practices and leveraging intelligent technologies, retailers can transform formidable fulfilment expenses into opportunities to connect with eco-conscious buyers.

Uncovering hidden value

The potential within re-commerce platforms is another avenue for brands to unlock hidden value. Retailers can seize the chance to sell clearance stock and returns to business buyers, contributing to the flourishing circular economy. This strategic move reduces carrying costs and streamlines operations, proving advantageous for retailers aiming to enhance their bottom line.
Collaborating for success

A dialogue with logistics partners can be instrumental in kickstarting these endeavours. Many third-party logistics providers offer valuable advice and support for setting up returns consolidation through their networks, for example, as well as managing stock reuse, resale, donations, or disposal. Amidst these considerations, the tightrope walk between convenience and cost remains an ongoing challenge. As inflation fluctuates and the peak spending season approaches, retailers are better served to explore resource optimisation through inventory recovery solutions rather than resorting to strict shipping and returns policies that could alienate potential buyers.

Utilising delivery strategies

In this landscape, delivery deals can serve as potent marketing tools. While the annual delivery subscription model may work well for industry giants like Amazon and Next , smaller brands may encounter difficulties in efficiently managing costs and operations. In its place, brands can leverage special delivery options as a loyalty reward to strengthen customer relationships. Smart brands harness these opportunities to cultivate customer loyalty and trust, showcasing the intricate interplay between service and cost.

As the cost-of-living crisis persists and retailers grapple with rising overheads, brands are rightly seeking smart ways to offer more, for less. By delivering transparent and reasonably-priced delivery options aligned with consumer values, retailers can cultivate lasting customer relationships, ensuring both shopper satisfaction and their own financial stability in these uncertain times.

Balancing Customer Expectations & Costs in eCommerce Delivery

Posted on by David Priestman

In a world where rising bills seem to be the norm for families and businesses alike, the delicate dance of balancing service quality with cost-efficiency has become a challenge for retailers and ecommerce delivery, writes Gemma Vasey, Business Development Manager, Asendia UK.

As consumers search for ways to stretch their budgets in the face of economic strains, businesses are also grappling with increased shipping, labour and operational expenses. Yet, the decision to pass on these costs to loyal customers is not a simple one, as transitioning from free to paid-for delivery and returns can stir frustration among value-conscious shoppers. So how can they find equilibrium between service excellence and cost-effectiveness, especially in times of economic uncertainty?

The influence of delivery costs on consumer behaviour

Recent surveys spotlight the pivotal role that delivery costs play in shaping shoppers’ purchasing decisions. A report by Asendia underscores this, revealing that 43% of the 8,000 global online shoppers surveyed rank delivery costs as a key consideration. Alongside criteria such as overall value for money (54%) and product quality (50%), the price of delivery exerts a significant influence on consumer behaviour. Moreover, authenticity emerges as a crucial factor in the post-Covid era, with 70% of UK shoppers expressing a willingness to support retail brands they perceive to be authentic, even during economic downturns.

Defining authenticity in the eyes of shoppers

For UK shoppers, authenticity translates to straightforwardly delivering promises (57%), transparent supply chains (41%), commitment to sustainability (39%), clear brand values (39%), and active adherence to those values (32%). Astonishingly, 43% of respondents noted that a brand’s authenticity would make them less sensitive to price increases caused by inflation, a sentiment particularly strong among Generation Z (48%) and Millennials (51%).

These insights underscore the need for brands to optimise their delivery services to provide transparent, fairly-priced, and reassuring shopping experiences. Communicating openly about the necessity of delivery charges can help prevent basket abandonment when policies change. To cater to diverse customer needs, retailers should consider offering an array of delivery options, especially for cross-border shipping.

Asendia, for instance, integrates various delivery choices into their clients’ websites, allowing customers to opt for lower-cost international postal services for non-urgent, lower-value items. Simultaneously, expedited services with enhanced tracking, notifications, and insurance cater to those seeking premium delivery options, and willing to pay for them.

Green delivery is a growing priority

The concept of sustainability is gaining traction among consumers, who are beginning to realise that fast and free deliveries often come at a cost to the environment. Brands that offer more sustainable delivery options not only align with eco-conscious consumers but also contribute to more environmentally friendly practices. Although options like carbon offsetting are not long-term solutions, they can assist retailers in reaching their Environmental, Social, and Governance (ESG) goals. Consideration should also be given to low-emission delivery methods, even though they entail additional supply chain costs.

Emphasising sustainability initiatives opens doors to new customer segments and fuels sales growth as environmentally-conscious consumers prioritise eco-friendly options. By adopting sustainable practices and leveraging intelligent technologies, retailers can transform formidable fulfilment expenses into opportunities to connect with eco-conscious buyers.

Uncovering hidden value

The potential within re-commerce platforms is another avenue for brands to unlock hidden value. Retailers can seize the chance to sell clearance stock and returns to business buyers, contributing to the flourishing circular economy. This strategic move reduces carrying costs and streamlines operations, proving advantageous for retailers aiming to enhance their bottom line.
Collaborating for success

A dialogue with logistics partners can be instrumental in kickstarting these endeavours. Many third-party logistics providers offer valuable advice and support for setting up returns consolidation through their networks, for example, as well as managing stock reuse, resale, donations, or disposal. Amidst these considerations, the tightrope walk between convenience and cost remains an ongoing challenge. As inflation fluctuates and the peak spending season approaches, retailers are better served to explore resource optimisation through inventory recovery solutions rather than resorting to strict shipping and returns policies that could alienate potential buyers.

Utilising delivery strategies

In this landscape, delivery deals can serve as potent marketing tools. While the annual delivery subscription model may work well for industry giants like Amazon and Next , smaller brands may encounter difficulties in efficiently managing costs and operations. In its place, brands can leverage special delivery options as a loyalty reward to strengthen customer relationships. Smart brands harness these opportunities to cultivate customer loyalty and trust, showcasing the intricate interplay between service and cost.

As the cost-of-living crisis persists and retailers grapple with rising overheads, brands are rightly seeking smart ways to offer more, for less. By delivering transparent and reasonably-priced delivery options aligned with consumer values, retailers can cultivate lasting customer relationships, ensuring both shopper satisfaction and their own financial stability in these uncertain times.

Map of Country-specific Supply Chain Regulations

Posted on by David Priestman

As new supply chain due diligence regulations – such as the EU’s Corporate Social Responsibility Directive – continue to evolve, global businesses face the challenge of staying up-to-date with regional legislation and the implications for their operations.

In response, LRQA, a leading global assurance partner, has published an online Responsible Sourcing Regulation Map. Featuring real-time updates on active and upcoming legislation, this interactive tool provides a comprehensive breakdown of the most significant supply chain due diligence regulations impacting businesses worldwide.

Kevin Franklin, LRQA Advisory Managing Director, said: “Navigating global supply chain compliance is an increasingly complex endeavour but becoming all the more urgent as a result of powerful new legislation, particularly in the EU and US. Our Responsible Sourcing Regulation Map offers a clear view into the intricate web of supply chain due diligence regulations. It will serve as a vital tool for business leaders and senior management, enabling them to make informed operational decisions while remaining fully aware and compliant with diverse, fast-changing regulations across nations.”

LRQA’s map shows the due diligence landscape in at least 18 countries, highlighting nearly 30 regulations that are either in effect or proposed. The trend is expected to continue growing in the future, as evidenced by at least 22 of these measures being either proposed or enacted in the past two years alone.

These regulations are specifically related to supply chain due diligence and understanding and complying with these laws are crucial for sustainable growth and success. Interestingly, countries that have weaker due diligence laws such as the USA, China, India, Brazil and Mexico have been found to be at a higher risk for supply chain violations. Without learning about these complexities, businesses can potentially and unknowingly put themselves at risk for a plethora of environmental and labour violations.

In an uncertain geopolitical environment, disrupted by events such as the Russia / Ukraine conflict, LRQA’s map empowers organizations to transition from traditional sourcing practices to ethical and responsible ones. With new suppliers increasingly sought at short notice, the map can help to safeguard against risk from the dynamic regulatory landscape.

Map of Country-specific Supply Chain Regulations

Posted on by David Priestman

As new supply chain due diligence regulations – such as the EU’s Corporate Social Responsibility Directive – continue to evolve, global businesses face the challenge of staying up-to-date with regional legislation and the implications for their operations.

In response, LRQA, a leading global assurance partner, has published an online Responsible Sourcing Regulation Map. Featuring real-time updates on active and upcoming legislation, this interactive tool provides a comprehensive breakdown of the most significant supply chain due diligence regulations impacting businesses worldwide.

Kevin Franklin, LRQA Advisory Managing Director, said: “Navigating global supply chain compliance is an increasingly complex endeavour but becoming all the more urgent as a result of powerful new legislation, particularly in the EU and US. Our Responsible Sourcing Regulation Map offers a clear view into the intricate web of supply chain due diligence regulations. It will serve as a vital tool for business leaders and senior management, enabling them to make informed operational decisions while remaining fully aware and compliant with diverse, fast-changing regulations across nations.”

LRQA’s map shows the due diligence landscape in at least 18 countries, highlighting nearly 30 regulations that are either in effect or proposed. The trend is expected to continue growing in the future, as evidenced by at least 22 of these measures being either proposed or enacted in the past two years alone.

These regulations are specifically related to supply chain due diligence and understanding and complying with these laws are crucial for sustainable growth and success. Interestingly, countries that have weaker due diligence laws such as the USA, China, India, Brazil and Mexico have been found to be at a higher risk for supply chain violations. Without learning about these complexities, businesses can potentially and unknowingly put themselves at risk for a plethora of environmental and labour violations.

In an uncertain geopolitical environment, disrupted by events such as the Russia / Ukraine conflict, LRQA’s map empowers organizations to transition from traditional sourcing practices to ethical and responsible ones. With new suppliers increasingly sought at short notice, the map can help to safeguard against risk from the dynamic regulatory landscape.

Pallet Buffer System can Sequence 460 p/hr

Posted on by David Priestman

Intelligent automated solutions provider Dematic announces the completion of an automated buffer and sequencing system for Vectura AS, Norway’s leading distributor and supplier of logistics services for alcoholic beverages.

The new system is an upgrade to the company’s automated pallet warehouse in Gjelleråsen near Oslo. Vectura, with a 52-percent share of the Norwegian market, delivers 50 million units annually to government-owned Vinmonopolet stores, wholesalers and to the hotel and catering industries. The system provides Vectura with a dynamic pallet despatch buffer that introduces higher levels of automation to its order preparation and dispatch operations.

The automated buffer and sequencing system has been installed on a roughly 700 square meter mezzanine structure. It operates at two levels to make maximum use of space. Pallets are prepared and buffered on one level and then transferred to the dispatch area on the other level using an elevator and transfer cars. The system processes up to 150 pallets per hour and can sequence up to 460 pallets at a time.

Finn Biller, a sales Manager at Dematic, notes, “The pandemic created a great many challenges for completing the project according to plan. Yet, we did manage to complete the new system through mutual flexibility and trust. Together, we have laid the path for greater productivity and higher throughput.”

Håvard Berg, an IT and business development manager at Vectura, confirms the productive cooperation, stating, “We have experienced Dematic as a consistent and supportive partner, always providing the resources required. Our operations never experienced downtime during the entire installation phase. With Dematic’s assistance, we can now accelerate our processes and provide even more efficient and responsive service to our customers.”

Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centres, manufacturing facilities, and service centres located in more than 35 countries, the Dematic global network of over 11,000 employees has helped achieve successful worldwide customer installations for some of the world’s leading brands. Headquartered in Atlanta, Dematic is a member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions.

Pallet Buffer System can Sequence 460 p/hr

Posted on by David Priestman

Intelligent automated solutions provider Dematic announces the completion of an automated buffer and sequencing system for Vectura AS, Norway’s leading distributor and supplier of logistics services for alcoholic beverages.

The new system is an upgrade to the company’s automated pallet warehouse in Gjelleråsen near Oslo. Vectura, with a 52-percent share of the Norwegian market, delivers 50 million units annually to government-owned Vinmonopolet stores, wholesalers and to the hotel and catering industries. The system provides Vectura with a dynamic pallet despatch buffer that introduces higher levels of automation to its order preparation and dispatch operations.

The automated buffer and sequencing system has been installed on a roughly 700 square meter mezzanine structure. It operates at two levels to make maximum use of space. Pallets are prepared and buffered on one level and then transferred to the dispatch area on the other level using an elevator and transfer cars. The system processes up to 150 pallets per hour and can sequence up to 460 pallets at a time.

Finn Biller, a sales Manager at Dematic, notes, “The pandemic created a great many challenges for completing the project according to plan. Yet, we did manage to complete the new system through mutual flexibility and trust. Together, we have laid the path for greater productivity and higher throughput.”

Håvard Berg, an IT and business development manager at Vectura, confirms the productive cooperation, stating, “We have experienced Dematic as a consistent and supportive partner, always providing the resources required. Our operations never experienced downtime during the entire installation phase. With Dematic’s assistance, we can now accelerate our processes and provide even more efficient and responsive service to our customers.”

Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centres, manufacturing facilities, and service centres located in more than 35 countries, the Dematic global network of over 11,000 employees has helped achieve successful worldwide customer installations for some of the world’s leading brands. Headquartered in Atlanta, Dematic is a member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions.

Complete or Phased Approach to Warehouse Automation?

Posted on by Keith McKinley

With labour hard to find and performance at peak under scrutiny, businesses may be tempted to opt for a complete, turnkey warehouse automation project to solve all their problems in one move. But might a stepped approach make more sense? Dan Migliozzi, Head of Sales at independent systems integrator, Invar Group, considers the options.

There can be little doubt that automation is the future for all but the smallest of warehouse operations. New affordable technologies are now within reach of most small to medium sized businesses (SMEs) and these technologies, often involving robotics and AI, are transforming performance across intralogistics processes.

Driven by poor labour availability and increasing customer demands, many businesses will be thinking about a comprehensive review of their operations, and may be tempted to go for a full turnkey approach – introducing a whole raft of systems at the same time. However, whilst this may be appropriate for some companies, others may be exposing themselves to unnecessary levels of risk, and a more considered approach could yield greater gains.

For a major corporation with the luxury of multiple warehouses or distribution centres, and facing challenges or changes to their current operational model, it may be practical, even desirable, to take facilities off-line one by one and rebuild them. For smaller businesses though, this could be a highly risky strategy and may be unviable – a considered, step-by-step approach to the end goal of significant automation may be preferable, both financially and operationally.

Financial benefits

Financially, moving towards automation in planned stages limits the need for often significant up-front capital expenditure, a particular concern for start-ups and other companies in a phase of rapid growth when other demands on working capital can be considerable. A stepped approach that quickly takes advantage of ‘low hanging fruit’ can achieve an early Return on Investment and bring many other benefits – potentially helping to fund subsequent phases of automation.

But even if capital funding isn’t an issue, the risks of an ‘all-in’ approach are significant. Some degree of disruption is inevitable during installation, and even with the most careful planning, highest quality equipment and dedicated vendors and integrators, it’s rare for everything to work straight out of the box. The risk of a major delay or disruption could have a far-reaching impact on the business and may lead to lost sales and reputational damage.

A further consideration is, with a complete turnkey approach it’s usually not possible to revert to the old ways of working while the fixes are actioned. There is no redundancy in this situation.
So rather than playing with the entire operation in a giant sandbox, better by far to identify and address the most urgent or compelling challenges and opportunities as they arise. That way, processes can be better defined and understood, employees at all levels trained and other necessary capabilities – maintenance, for example – built up at a manageable pace.

Planning a phased migration

‘Step-by-step’, however, does not mean ‘piecemeal’. The planning for a stepped migration to more automated operations is just the same as it would be for a turnkey project – indeed the ultimate goals will be just the same – it’s merely a question of how to get there.

Firstly, and obviously, the company needs to know its objectives and requirements. Is automation needed because the business is in, or is anticipating, a period of rapid growth? Growth is good, but for many companies, perhaps in a mature or niche market, higher volumes and throughputs may not be the issue – greater efficiencies, lower costs and perhaps particularly better use of scarce labour may be the imperatives.

The company needs to map and understand its processes from cradle to grave, including processes which are unlikely to be directly addressed by automation. Where are the biggest wins, the greatest challenges, the most acute pain points? Address these first – paradoxically, trying to optimise a process that you know to be already very good often carries a larger downside risk.

Consider scaleability

But the automation plan can’t just address short term issues. The business may need to consider the extent to which the automation is scaleable – can a robotic installation, for example, be scaled up for future growth just by leasing more units, or will there be a point at which the racking and other physical attributes of the warehouse require major change? And if so, should that be done now, even though it may not be needed for some years?

The plan also needs to consider the pace of technological change. Evolution in fields such as robotics is lightning-fast. There is no shame in buying last year’s model if it does the job, but there are risks that equipment and systems may become ‘obsolete’, or worse, unsupported, much quicker than expected. This means that some of the steps in the automation road map may need to cover replacing or upgrading earlier and relatively recent investment steps. Robust continuity planning, in partnership with reputable vendors and integrators, is key.

Planning a stepped approach to warehouse automation cannot be just a top down, or a bottom up, process. It really does require the involvement of every stakeholder in the business. Clearly it needs high level strategic direction to ensure that the plan is aligned with the company’s goals, its financial capacity, and its appetite for risk. Operational input – will the proposals actually meet the requirements of, for example, seasonal peaks. Engineering – does the business have, or can it expect to establish, an adequate maintenance capability or will this have to be outsourced. HR may have views on how staff can be trained, and whether new staff with new skills need to be hired.

Technical capabilities

And then there is installation. Even quite modest steps in automation are likely to involve systems and equipment from multiple manufacturers and vendors and will require some level of integration, both with each other and with existing equipment and systems. ‘Plug and play’ is a much-vaunted term, but it’s hard to find evidence that it really exists in the modern warehouse!
Therefore, it’s important to find a reliable, independent integrator that has the necessary technical capability and in-house software skills to deliver a project successfully over several planned stages – an integrator that supports you every step of the journey.

Complete or Phased Approach to Warehouse Automation?

Posted on by David Priestman

With labour hard to find and performance at peak under scrutiny, businesses may be tempted to opt for a complete, turnkey warehouse automation project to solve all their problems in one move. But might a stepped approach make more sense? Dan Migliozzi, Head of Sales at independent systems integrator, Invar Group, considers the options.

There can be little doubt that automation is the future for all but the smallest of warehouse operations. New affordable technologies are now within reach of most small to medium sized businesses (SMEs) and these technologies, often involving robotics and AI, are transforming performance across intralogistics processes.

Driven by poor labour availability and increasing customer demands, many businesses will be thinking about a comprehensive review of their operations, and may be tempted to go for a full turnkey approach – introducing a whole raft of systems at the same time. However, whilst this may be appropriate for some companies, others may be exposing themselves to unnecessary levels of risk, and a more considered approach could yield greater gains.

For a major corporation with the luxury of multiple warehouses or distribution centres, and facing challenges or changes to their current operational model, it may be practical, even desirable, to take facilities off-line one by one and rebuild them. For smaller businesses though, this could be a highly risky strategy and may be unviable – a considered, step-by-step approach to the end goal of significant automation may be preferable, both financially and operationally.

Financial benefits

Financially, moving towards automation in planned stages limits the need for often significant up-front capital expenditure, a particular concern for start-ups and other companies in a phase of rapid growth when other demands on working capital can be considerable. A stepped approach that quickly takes advantage of ‘low hanging fruit’ can achieve an early Return on Investment and bring many other benefits – potentially helping to fund subsequent phases of automation.

But even if capital funding isn’t an issue, the risks of an ‘all-in’ approach are significant. Some degree of disruption is inevitable during installation, and even with the most careful planning, highest quality equipment and dedicated vendors and integrators, it’s rare for everything to work straight out of the box. The risk of a major delay or disruption could have a far-reaching impact on the business and may lead to lost sales and reputational damage.

A further consideration is, with a complete turnkey approach it’s usually not possible to revert to the old ways of working while the fixes are actioned. There is no redundancy in this situation.
So rather than playing with the entire operation in a giant sandbox, better by far to identify and address the most urgent or compelling challenges and opportunities as they arise. That way, processes can be better defined and understood, employees at all levels trained and other necessary capabilities – maintenance, for example – built up at a manageable pace.

Planning a phased migration

‘Step-by-step’, however, does not mean ‘piecemeal’. The planning for a stepped migration to more automated operations is just the same as it would be for a turnkey project – indeed the ultimate goals will be just the same – it’s merely a question of how to get there.

Firstly, and obviously, the company needs to know its objectives and requirements. Is automation needed because the business is in, or is anticipating, a period of rapid growth? Growth is good, but for many companies, perhaps in a mature or niche market, higher volumes and throughputs may not be the issue – greater efficiencies, lower costs and perhaps particularly better use of scarce labour may be the imperatives.

The company needs to map and understand its processes from cradle to grave, including processes which are unlikely to be directly addressed by automation. Where are the biggest wins, the greatest challenges, the most acute pain points? Address these first – paradoxically, trying to optimise a process that you know to be already very good often carries a larger downside risk.

Consider scaleability

But the automation plan can’t just address short term issues. The business may need to consider the extent to which the automation is scaleable – can a robotic installation, for example, be scaled up for future growth just by leasing more units, or will there be a point at which the racking and other physical attributes of the warehouse require major change? And if so, should that be done now, even though it may not be needed for some years?

The plan also needs to consider the pace of technological change. Evolution in fields such as robotics is lightning-fast. There is no shame in buying last year’s model if it does the job, but there are risks that equipment and systems may become ‘obsolete’, or worse, unsupported, much quicker than expected. This means that some of the steps in the automation road map may need to cover replacing or upgrading earlier and relatively recent investment steps. Robust continuity planning, in partnership with reputable vendors and integrators, is key.

Planning a stepped approach to warehouse automation cannot be just a top down, or a bottom up, process. It really does require the involvement of every stakeholder in the business. Clearly it needs high level strategic direction to ensure that the plan is aligned with the company’s goals, its financial capacity, and its appetite for risk. Operational input – will the proposals actually meet the requirements of, for example, seasonal peaks. Engineering – does the business have, or can it expect to establish, an adequate maintenance capability or will this have to be outsourced. HR may have views on how staff can be trained, and whether new staff with new skills need to be hired.

Technical capabilities

And then there is installation. Even quite modest steps in automation are likely to involve systems and equipment from multiple manufacturers and vendors and will require some level of integration, both with each other and with existing equipment and systems. ‘Plug and play’ is a much-vaunted term, but it’s hard to find evidence that it really exists in the modern warehouse!
Therefore, it’s important to find a reliable, independent integrator that has the necessary technical capability and in-house software skills to deliver a project successfully over several planned stages – an integrator that supports you every step of the journey.

Different Delivery Requirements Across Age Groups

Posted on by David Priestman

Today retailers are increasingly appreciating that the buying behaviour of their customers varies from consumer to consumer, and is much more complex than it has ever been before.

Even though many ecommerce merchants use data-backed buying personas, that provide insight into the purchasing decisions of their customers, many are only truly starting to get to grips with the next part associated with buying personas – and that is appreciating that consumers have delivery personas too. So, what attributes might play out in different delivery personas and how can merchants take advantage of them?

For example, how might preferences relating to the convenience, cost and speed of delivery affect different consumers? What is the difference of opinion relating to deliveries generationally? Does Gen X expect something different to Gen Z? What about Millennials and Boomers? What are their preferences?

A 2023 study of over 8,000 consumers across 10 geographies, including the UK, central Europe and North America reviewed the state of ecommerce and home delivery performance. It investigated how demographics impact online buying habits and delivery preferences. Reflecting on these findings, Johannes Panzer, Head of Industry Solutions (pictured), Ecommerce at Descartes explains what retailers need to consider, so that they can meet the requirements and expectations of their different consumers’ delivery personas.

Providing different age groups what they need

When reviewing the online shopping habits and home delivery expectations of consumers, the survey revealed that the reasons people choose to buy online, and why some consumers are planning to receive more ecommerce deliveries than last year, are similar across all demographics, from Gen Z and late Millennials (18–34 years) to early Gen X and Baby Boomers (55+ years) and everything in between:
• Shoppers have become used to
• The order process has become easier.
• They don’t have to go out of their way to pick up the items they need.

Millennials Vs Gen Z

Although all demographics are driven by the same online shopping factors, they all have different delivery expectations. Older buyers do not have as much experience ordering goods and services online; in comparison with younger shoppers, for whom online shopping is second nature. For instance, younger shoppers have grown up with ‘digital’ and smartphones, and are at ease with digital commerce. Indeed, Descartes’ study points out that Millennials and Gen Z consumers tend to shop online more, spend more money online, and are more likely to increase ecommerce spend (50% vs. 33% of 55+ consumers).

Therefore, as a result of their online buying habits, Millennials and Gen Z expect more from retailers’ ability to execute on deliveries which, today, is a consideration for merchants that are attempting to meet the expectations of younger target groups. Moreover, when confronted with a delivery challenge, younger consumers are more likely to take action against the retailer. For example 80% of 18-34 year olds are likely to take some form of action against a delivery problem – this could include complaining in detail on TikTok, or telling family and friends to avoid a particular brand. This statistic changes to 69% for 35-54 year-olds and to 53% for people over 55.

Further, when planning delivery propositions to meet the expectations of a younger demographic, ecommerce vendors must recognise that these shoppers are most concerned about speed of delivery, instead of low-cost deliveries. In fact, 39% of respondents in the 18–34 age group prioritise speed, compared to just 19% of early Gen X and Baby Boomers. What is more, Millennials and Gen Z shoppers are most interested in sustainable delivery options. Though, while it is a choice – similar to buying organic – it is not a delivery requirement.

What Baby Boomers are interested in

Since Baby Boomers and early Gen X consumers are not prioritising the speed of their deliveries, what do they value in a delivery experience? Price is the main factor driving delivery options for this group. These shoppers are characterised by being ‘the’ cost-conscious delivery persona and are willing to forgo speed in order to save on delivery costs.

For instance, half of the early Gen X and Boomers surveyed prioritised lowest cost – and they both agreed that speed is not important. For 18–34 year-olds, only 30% of respondents prioritised cost. What also stands out is that 47% of the 55+ age group cited less disposable income – a stark increase from 19% in 2022 – as a reason for putting off future online purchases.

Although the 55+ age group purchases less online and is less ecommerce-savvy than Millennial and Gen Z consumers, they are becoming more comfortable with online shopping. In 2023, only 36% of older consumers said they prefer to see a product in person before buying, compared to 55% the previous year.

Where to improve

Customising delivery choices according to the range of delivery personas and appreciating how consumer delivery preferences and expectations vary across the demographic spectrum is an important building block to developing long-lasting customer relationships. Unfortunately, many retailers are falling short in their efforts.

Although the 2023 study reported a 6% improvement in delivery performance over 2022 figures, 67% of consumers surveyed experienced a delivery failure in the three-month evaluation period. Of those consumers affected by delivery issues, 68% took some form of action that translated into negative consequences for the online retailer or delivery company – whether refusing to order from the retailer again, losing trust in the delivery company and/or retailer, posting their dissatisfaction on social media, or telling family and friends to avoid the merchant and/or delivery company.
Additionally, it is also important to point out that, 80% of Gen Z and Millennials were inclined to take some form of action against the retailer, compared with only 53% of the 55+ age group.

Improvements in ecommerce are encouraging a wider array of demographics to buy a wider variety of products and services online. This is resulting in more home deliveries, which is also resulting in more opportunities for merchants to form better relationships with customers during the delivery experience.

However, in light of consumers’ recent average experience of last mile performance, ecommerce merchants must take action to meet the home delivery requirements of their customers more effectively. This means considering and evaluating the values, priorities, and preferences of their various demographics, with a view towards defining and serving multiple delivery personas. This needs to comprise all age groups: including Gen Z and Millennials, who are motivated by delivery speed and convenience – and the cost-conscious 55+ age group that prefers to save money instead of paying more for next-day delivery.

Ecommerce brands that appreciate the significance of these kinds of demographics, or personas, when it comes to delivery, will create opportunities to provide a customised home delivery experience that will enable them to differentiate themselves from the competition. Understanding customer delivery personas: cost-conscious, speed-driven, convenience-motivated, sustainability-focused, etc. and how consumer expectations are changing across age groups will allow retailers to enhance their customer experience, improve brand enthusiasm and loyalty, and ultimately drive their bottom line.

Different Delivery Requirements Across Age Groups

Posted on by David Priestman

Today retailers are increasingly appreciating that the buying behaviour of their customers varies from consumer to consumer, and is much more complex than it has ever been before.

Even though many ecommerce merchants use data-backed buying personas, that provide insight into the purchasing decisions of their customers, many are only truly starting to get to grips with the next part associated with buying personas – and that is appreciating that consumers have delivery personas too. So, what attributes might play out in different delivery personas and how can merchants take advantage of them?

For example, how might preferences relating to the convenience, cost and speed of delivery affect different consumers? What is the difference of opinion relating to deliveries generationally? Does Gen X expect something different to Gen Z? What about Millennials and Boomers? What are their preferences?

A 2023 study of over 8,000 consumers across 10 geographies, including the UK, central Europe and North America reviewed the state of ecommerce and home delivery performance. It investigated how demographics impact online buying habits and delivery preferences. Reflecting on these findings, Johannes Panzer, Head of Industry Solutions (pictured), Ecommerce at Descartes explains what retailers need to consider, so that they can meet the requirements and expectations of their different consumers’ delivery personas.

Providing different age groups what they need

When reviewing the online shopping habits and home delivery expectations of consumers, the survey revealed that the reasons people choose to buy online, and why some consumers are planning to receive more ecommerce deliveries than last year, are similar across all demographics, from Gen Z and late Millennials (18–34 years) to early Gen X and Baby Boomers (55+ years) and everything in between:
• Shoppers have become used to
• The order process has become easier.
• They don’t have to go out of their way to pick up the items they need.

Millennials Vs Gen Z

Although all demographics are driven by the same online shopping factors, they all have different delivery expectations. Older buyers do not have as much experience ordering goods and services online; in comparison with younger shoppers, for whom online shopping is second nature. For instance, younger shoppers have grown up with ‘digital’ and smartphones, and are at ease with digital commerce. Indeed, Descartes’ study points out that Millennials and Gen Z consumers tend to shop online more, spend more money online, and are more likely to increase ecommerce spend (50% vs. 33% of 55+ consumers).

Therefore, as a result of their online buying habits, Millennials and Gen Z expect more from retailers’ ability to execute on deliveries which, today, is a consideration for merchants that are attempting to meet the expectations of younger target groups. Moreover, when confronted with a delivery challenge, younger consumers are more likely to take action against the retailer. For example 80% of 18-34 year olds are likely to take some form of action against a delivery problem – this could include complaining in detail on TikTok, or telling family and friends to avoid a particular brand. This statistic changes to 69% for 35-54 year-olds and to 53% for people over 55.

Further, when planning delivery propositions to meet the expectations of a younger demographic, ecommerce vendors must recognise that these shoppers are most concerned about speed of delivery, instead of low-cost deliveries. In fact, 39% of respondents in the 18–34 age group prioritise speed, compared to just 19% of early Gen X and Baby Boomers. What is more, Millennials and Gen Z shoppers are most interested in sustainable delivery options. Though, while it is a choice – similar to buying organic – it is not a delivery requirement.

What Baby Boomers are interested in

Since Baby Boomers and early Gen X consumers are not prioritising the speed of their deliveries, what do they value in a delivery experience? Price is the main factor driving delivery options for this group. These shoppers are characterised by being ‘the’ cost-conscious delivery persona and are willing to forgo speed in order to save on delivery costs.

For instance, half of the early Gen X and Boomers surveyed prioritised lowest cost – and they both agreed that speed is not important. For 18–34 year-olds, only 30% of respondents prioritised cost. What also stands out is that 47% of the 55+ age group cited less disposable income – a stark increase from 19% in 2022 – as a reason for putting off future online purchases.

Although the 55+ age group purchases less online and is less ecommerce-savvy than Millennial and Gen Z consumers, they are becoming more comfortable with online shopping. In 2023, only 36% of older consumers said they prefer to see a product in person before buying, compared to 55% the previous year.

Where to improve

Customising delivery choices according to the range of delivery personas and appreciating how consumer delivery preferences and expectations vary across the demographic spectrum is an important building block to developing long-lasting customer relationships. Unfortunately, many retailers are falling short in their efforts.

Although the 2023 study reported a 6% improvement in delivery performance over 2022 figures, 67% of consumers surveyed experienced a delivery failure in the three-month evaluation period. Of those consumers affected by delivery issues, 68% took some form of action that translated into negative consequences for the online retailer or delivery company – whether refusing to order from the retailer again, losing trust in the delivery company and/or retailer, posting their dissatisfaction on social media, or telling family and friends to avoid the merchant and/or delivery company.
Additionally, it is also important to point out that, 80% of Gen Z and Millennials were inclined to take some form of action against the retailer, compared with only 53% of the 55+ age group.

Improvements in ecommerce are encouraging a wider array of demographics to buy a wider variety of products and services online. This is resulting in more home deliveries, which is also resulting in more opportunities for merchants to form better relationships with customers during the delivery experience.

However, in light of consumers’ recent average experience of last mile performance, ecommerce merchants must take action to meet the home delivery requirements of their customers more effectively. This means considering and evaluating the values, priorities, and preferences of their various demographics, with a view towards defining and serving multiple delivery personas. This needs to comprise all age groups: including Gen Z and Millennials, who are motivated by delivery speed and convenience – and the cost-conscious 55+ age group that prefers to save money instead of paying more for next-day delivery.

Ecommerce brands that appreciate the significance of these kinds of demographics, or personas, when it comes to delivery, will create opportunities to provide a customised home delivery experience that will enable them to differentiate themselves from the competition. Understanding customer delivery personas: cost-conscious, speed-driven, convenience-motivated, sustainability-focused, etc. and how consumer expectations are changing across age groups will allow retailers to enhance their customer experience, improve brand enthusiasm and loyalty, and ultimately drive their bottom line.

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