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Tag: demand

Cargo Capacity Boosted to Meet Growing Demand

Posted on by David Priestman

Etihad Cargo, the logistics and cargo division of Etihad Airways, has enhanced its operations to respond to rising customer demand across Greater China. The carrier is increasing its total number of flights between China and other markets from 11 in 2024 to a projected 18 by 2025, reinforcing trade connections between major global regions.

To support this growth, Etihad Cargo will utilize a wet-leased 747 freighter, bolstering freight capacity on high-demand lanes and offering customers enhanced flexibility for shipments to and from key global destinations.

In response to the surging market demand, the airline has introduced three more weekly freighter services to Shenzhen and added two additional flights per week to London. These new routes will significantly improve connectivity between China, Europe, and the Middle East, with expanded capacity for the transport of e-commerce, pharmaceuticals, perishables, and other time-sensitive goods.

This strategic capacity increase aligns with Etihad Cargo’s broader objective to expand its global footprint and deliver dependable, customer-focused logistics solutions. The airline remains dedicated to providing agile, efficient freight services while advancing Abu Dhabi’s role as a premier global logistics center.

Commenting on the expansion, Stanislas Brun, Chief Cargo Officer at Etihad Cargo, said: “Etihad Cargo is continuously investing in network growth and capacity enhancements to support the dynamic needs of global commerce. The added services to Shenzhen and London Stansted reflect our dedication to meeting customer expectations through increased access and stronger trade route connectivity.”

By deepening its footprint in China and strengthening links with Europe, Etihad Cargo is unlocking greater freight capacity to facilitate the smooth flow of goods across international markets.

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Industry Urges Supply Chain Resilience After Heathrow Closure

Podcast: Keep Logistics up and Running with Technical Training

Posted on by David Priestman

In this episode of Logistics Business Conversations, we discuss the increasing demand for technical skills in the logistics industry and the training necessary to meet this demand. Host, Peter is joined by Stefan Beke, an expert in technical training from TVH University.

Stefan emphasizes the growing importance of technical expertise as logistics operations become more technology-driven. Key equipment like forklifts are central to efficient logistics, and maintaining them requires specialized skills, especially with the shift toward electric models. This transition has made electrical and electronic skills more essential, areas where many technicians still face challenges.

The conversation also highlights the value of hybrid learning models in technical training. Combining online theoretical content with hands-on practice reduces travel time and costs while providing a comprehensive learning experience. This approach is becoming more popular as it balances flexibility with practical skill development, crucial for career advancement in the logistics field.

Listen to this Logistics Business Conversation by clicking here

Meeting The Demands Of Fast And Free Shipping In E-Commerce

Posted on by Will Priestman

Fast and free shipping has become a cornerstone of success in e-commerce with 75% of consumers prioritizing it when making purchasing decisions. Offering this service presents significant challenges, however, from rising operational costs to balancing customer expectations with profitability.

In this article, we explore these hurdles and the strategies businesses can employ to meet growing demand for fast, free shipping while maintaining operational efficiency.

The Psychology of Free Shipping

Free shipping has a powerful impact on consumer behavior. In fact, roughly half (48%) of consumers abandon their shopping carts at checkout when faced with unexpected shipping fees. The word “free” creates an immediate sense of value, reducing friction in the buying process and increasing the likelihood of purchase.

The “Amazon effect” has further solidified this expectation.

Amazon’s model of offering free shipping as part of its Prime membership has raised consumer standards. Today, customers anticipate free shipping from all online retailers, pressuring smaller businesses to meet this demand without sacrificing profitability.

The Challenges of Offering Free Shipping

You understand the importance of free shipping — most retailers do. But offering it comes with substantial challenges that make it far from automatic:

• Rising operational costs, especially due to inflation, are a major obstacle. Fuel prices, labor shortages and packaging costs continue to climb, pushing profit margins to the brink.

• Balancing profitability with customer satisfaction is tricky. While consumers expect free shipping, offering it can eat into profits, forcing businesses to raise prices or set minimum order thresholds.

Smaller retailers also struggle with the logistical challenges of meeting fast shipping expectations. Without the resources of larger e-commerce giants, staying competitive becomes much more difficult.

Strategies for Implementing Free Shipping

Retailers can adopt several strategies to offer free shipping without sacrificing profitability. Here are several proven approaches:

• Threshold-based free shipping: Encourage customers to spend more by setting a minimum order value to qualify for free shipping. This boosts average order values, helping offset shipping costs.

• Membership and subscription models: Offer free shipping as part of a subscription service, such as Amazon Prime. This generates recurring revenue and strengthens customer loyalty.

• Optimizing shipping and fulfillment: Use efficient packaging to reduce dimensions and lower shipping costs. Implementing a conveyor sorting system helps streamline operations. Zone skipping can also consolidate shipments, reducing the shipping distance and cost. Negotiating better rates with carriers based on shipping volume is another effective way to cut expenses.

• Leveraging data analytics: Use customer data to optimize free shipping strategies. Analyze purchase patterns, average order values and shipping costs to tailor threshold-based free shipping offers. For instance, if data shows customers often abandon carts just below a certain price point, adjust your free shipping threshold accordingly.

• Setting expectations: Transparency is key, with 74% of consumers expecting to see shipping costs before purchasing. Additionally, educating customers on delivery times and potential delays helps manage expectations and maintain customer satisfaction.

• Offer in-store pickup: Provide buy online, pick up in-store (BOPIS) options. This eliminates shipping costs for local customers while driving foot traffic to physical stores. It’s a win-win strategy that can help offset the costs associated with free shipping for other orders.

By combining these strategies, businesses can offer free shipping in a way that meets consumer demands while protecting their bottom line.

Conclusion

As inflation and rising operational costs continue to challenge e-commerce, businesses must find creative ways to maintain free delivery without compromising profitability. Meeting consumer demands for fast and free shipping will remain essential, and companies that can balance cost control with customer satisfaction will thrive.

Adapting to these pressures and keeping a close eye on shifting trends in consumer behavior will be critical to staying competitive in the ever-evolving e-commerce landscape.

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Warehouses Struggle to Forecast Demand

Posted on by David Priestman

A new survey commissioned by ProGlove, leader in wearable barcode scanners, has identified the ongoing struggles of warehouses trying to predict demand patterns accurately. Of those surveyed, just 39 per cent of respondents felt they could accurately predict trends and activity for the holiday season.

Forecasting demand is one of the cornerstones of successful warehouse management. Yet, 51 per cent of respondents stated that forecasting demand was their biggest inventory management concern. In order to forecast demand accurately and avoid stock surplus or shortfalls, organisations need a predictable logistics landscape. Unfortunately, 2022 was not a year for predictability, and 2023 is already continuing on a similar trajectory. The war in Ukraine, inflationary pressures and the impact of the Covid outbreak in China on global supply chains are just a few factors creating an uncertain environment for warehouses this year.

Uncertainty throughout supply chains over the 2022 peak holiday season has continued into 2023

1 in 5 (19%) respondents stated they weren’t prepared for the peak holiday season in 2022. Looking ahead, less than 2 in 5 (38%) expect supply chain issues to be largely resolved next year. The research, therefore, demonstrates that warehouses must develop resilience to counteract what is expected to be a turbulent year ahead. Instead of focusing on the external factors they can’t control, organisations need to look at their internal operations and focus on what they can control.

Building resilience in the warehouse

When asked whether they felt adequately prepared for the changing retail patterns of the peak holiday season, just 12 per cent of those surveyed said they felt ‘very prepared’. Employees are looking for the tools to build preparedness from the shop floor to the C-level. By factoring external instability into their operations as a constant, businesses can move beyond fretting and look to building advanced solutions.

Ilhan Kolko, CPO of ProGlove, commented, “Resilience comes from a well-equipped, motivated and safe workforce with transparent and extensive knowledge of their roles and processes. Investing in human-centred technology, and seeking out efficiency gains built around the human worker, can provide the stability warehouses are looking for. The findings in our survey confirm what has been self-evident to those in the warehousing and logistics industry for a few years. External factors are wreaking havoc on the ability of businesses to predict demand and prepare for new challenges. Organisations need to focus on building agile and efficient processes through data-driven insights into the internal workings of the shop floor. Building certainty in the warehouse protects from uncertainty outside of it.”

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