Revolutionising Logistics 3 Words at a Time

Global location company what3words will be exhibiting at the Retail Supply Chain and Logistics Expo in London from the 28th February to the 1st March. Adoption of the technology in the logistics and e-commerce industry is growing at pace, and the technology is playing a crucial role in helping to tackle the inefficiencies that are caused by inaccurate addressing. Jennifer Christie, Logistics & E-commerce Lead at what3words, (pictured) writes.

Inefficiencies in the Last Mile

The e-commerce boom has led to a rise in deliveries, and today as many as 85% of UK internet users place orders online. However, 74% of the UK population say guests, deliveries or services struggle to find their homes on a daily basis. Inaccurate addresses cost businesses time and money, and damage customer satisfaction. In fact, 56% say that they won’t shop with a retailer following a poor delivery experience.

The last mile accounts for up to 55% of the delivery cost, largely as a result of poor addressing. Globally, 70% of street addresses don’t lead directly to the front door, and postcodes can cover large areas, making it difficult to navigate to precise delivery locations such as entrances to large apartment buildings, rural cottages, or a tucked away side passage.

In fact, over a third UK adults have to add in additional delivery notes to help direct couriers to their front doors. Across the world, thousands of duplicate road names exist, for example, there are 34 “Victoria Roads” in London alone, causing confusion and complication for delivery drivers, and prolonging delivery times for the customer.

The simplicity of what3words addresses

It’s clear that a simple and reliable way to identify and communicate locations could transform the experience throughout the delivery supply chain. This is something that global location technology, what3words, is perfectly positioned for.

what3words is revolutionising the way we communicate location. It has divided the world into a grid of 3m x 3m squares, and given each square a unique combination of three random words, known as a what3words address. Now every loading bay, parking space, and unregistered new build block entrance has its own unique what3words address. For example, ///quiet.going.leaves will take you to a precise entrance to Spitalfields Market in London. The system works offline, is available in 54 languages, and free to download for iOS and Android, or via the online map at what3words.com

Not only is what3words making life more simple and less frustrating, but it is also increasing efficiency rates. In a delivery test conducted by DPD and Mercedes-Benz using what3words addresses, it was found that deliveries were performed 15% faster, cementing its role as a solution to the widespread last-mile problem.

In the UK, what3words is becoming a standard in the logistics industry, with major industry players such as DPD UK, DHL Parcel UK, Evri, Metapack, GFS, and APG all adopting the technology. There’s been incredible momentum in the last six months alone. DHL Parcel UK recently announced a new element to its partnership with what3words; now, all of its retailer partners can add a what3words address field at checkout. boohoo group PLC, one of Britain’s leading fashion groups, has introduced efficient deliveries for customers across its portfolio of brands. The feature has been launched on the checkout pages of boohoo, boohooMAN, Nasty Gal, Burton, Dorothy Perkins, Wallis, Warehouse, Coast, Misspap, Karen Millen and Oasis.

what3words is also being used by logistics companies around the world – DB Schenker and GLS in Germany; DTDC and Ecom Express in India; Aramex in the Middle East, and AxleHire in the United States. And most recently in Vietnam, HSV Group has added what3words address fields at checkout, meaning customers of Reebok Vietnam, BeautyBox and The Face Shop can get their parcels delivered exactly where they need to go.

On-time, Cost per Delivery KPIs for Logistics Providers

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.

Direct-to-Consumer Evolves

A newly released report on the rise of Direct-to-Consumer (DTC) found that decision-makers across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America find DTC channels key to unlocking better customer experiences and achieving higher profit margins.

The research, commissioned by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, highlights these findings about the rise of Direct-to-Consumer models:

• When asked about key drivers for using DTC models over a third (36%) of respondents highlighted access to more customer data to drive business strategy and a further 31% referenced reduced costs
• Almost 9 out of 10 respondents (89%) have seen increased sales through DTC channels over the past 12 months

This report indicates a massive trend that DTC – which will contribute more than one-half of overall sales by 2026 – enhances the customers experience in tandem with ensuring profitability of organization as the biggest benefits of DTC. Further to this the report also reveals that sustainable practices are an emerging focus for DTC brands. Almost half (48%) of the sample say they have the capability to “easily combine separate orders for delivery at the same time”, an approach that reduces environmental emissions by bringing down the number of deliveries needed.

The focus on sustainability is also gathering ground across the wider supply chain, with 30% saying they are looking toward growing the proportion of stock sourced from nearshore suppliers. Long-term scalability and future success with DTC will require proactive moves toward enhanced efficiencies and operational savings. For example, investing in technologies that allow different retailers to collaborate on delivery runs, or incentivize consumers to go for a more sustainable option through a better price on consolidated orders, would benefit everyone.

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

Deposco’s Bright Suite of omnichannel fulfilment supply chain applications is how fast-growing companies rapidly scale their warehouse management and order management operations, so they can see what inventory they’ve got, where it is, and where to position it to fulfil demand when It’s Grow Time™. It’s the only solution that provides this much actionable insight into both your supply chain and the broader marketplace. Streamlined into One Solution, One Focus, One Team. That’s why over 3,000 of the world’s fastest-growing ecommerce and DTC businesses rely on Deposco. We’re supporting over $10 billion in sales and over 51 million consumer orders annually. Last year, we saw total shipment growth increase by 78%.

Deliveries with Game-changing Precision

what3words, the innovative global location technology company and DHL Parcel UK have announced a brand new element of their partnership. Customers, whether small businesses or large e-commerce players can add a what3words field at checkout to enable shoppers to specify exactly where they want their deliveries to go. Once entered at checkout, the what3words address is then seamlessly passed on to DHL Parcel UK so its couriers can find and navigate to delivery destinations with ease, no matter how hard they might be to find.

Last year, DHL Parcel UK announced that it had rolled out the what3words location technology to its UK Parcel App. This new integration represents an exciting milestone in the partnership and a huge opportunity for UK retailers to enhance the addressing information they capture from a customer at checkout.

In the UK, deliveries can be challenging. Addresses aren’t always accurate, street names are often duplicated, postcodes cover broad areas, and specific building entrances can be hard to find. And for new builds, it can take up to 6 months for the address to be registered. In fact, a quarter of people in the UK find that their full postal address doesn’t direct people, deliveries, or services exactly to their front door. Poor addressing can add difficulties for couriers too, and this is something what3words is perfectly positioned to solve.

The benefits of what3words technology will continue to be felt in many ways. Drivers can find delivery locations at the first attempt, so routes can be better optimised. This improves business efficiency, makes the job more enjoyable for couriers, and emissions are reduced in the last mile too.

Peter Fuller, CEO, DHL Parcel UK says: “The latest stage of our partnership with what3words really extends the benefits to more customers and consumers. It gives shoppers the convenience of being able to specify their exact delivery location at the point of check-out and gives retailers even more confidence that their goods will be received on time, without complication. It’s a smart, innovative solution that allows us to improve the quality of the service we offer even further.”

Chris Sheldrick, Co-founder and CEO of what3words adds: “what3words is now being used at critical points throughout DHL Parcel UK’s delivery infrastructure. This means that everyone, from a customer purchasing an item at checkout, right through to the courier can benefit from a precision address. It’s fantastic working with DHL Parcel UK – a true innovator in the space, adopting new technologies to maintain and evolve the world-renowned service that it provides.”

 

 

DeliveryApp invests for 2023 growth

DeliveryApp, the technology-based logistics platform, has selected TrunkBBI as its agency partner for Digital PR and SEO.

Following a competitive pitch process, integrated creative and activation agency TrunkBBI, headquartered in Manchester, has been appointed to work with the innovative deltech platform to support digital activation. The agency has been challenged with elevating DeliveryApp’s brand awareness amongst key audiences as it heads into the new year and supporting with ambitious long-term goals to become the first carbon positive delivery platform in the UK.

Manchester-based company DeliveryApp is a delivery technology platform, primarily designed to connect independent couriers with end users, enabling fast deliveries through its app and website. With a network of over 10,000 independent couriers across the country who collect and deliver parcels personally, the company puts a real focus on the ethical treatment of its drivers, who are paid a flat rate.

Sustainability is an underlying pillar of the deltech platform. With scope to expand its environmental initiatives as electronic vehicles advance, DeliveryApp deliveries are already carbon neutral. The company calculates the carbon emissions incurred in every delivery and offsets   this   through   investment   in   carbon   reduction programmes, facilitated through its partnership with Carbon Neutral Britain. Additionally, DeliveryApp also plants a tree for every completed delivery facilitated through its partnership with Ecologi.

DeliveryApp impressed by agency

Commenting on the partnership, Nebula Norman, Marketing Director at DeliveryApp, said: “Trunk BBI impressed us with their strong vision for our brand. This combined with a talented team and vast amounts of experience, made them the natural choice for DeliveryApp. Their customer- and driver-centric approach, will play a major role in helping will help us build and grow as a brand, and we’re delighted to be working with them on this.”

Jon Butler, CEO at TrunkBBI, added: “We are extremely excited to be appointed to deliver a robust Digital PR and SEO strategy for DeliveryApp, working with the team to drive online visibility, aiming to grow brand awareness amongst delivery drivers, as well as customers across their B2B and B2C offering. This appointment confirms the confidence companies have in our services, and this all comes down to our people who work extremely hard to ensure we are consistently producing brilliant results.

“We are proud to be building a partnership with a company that has such strong ethics in place. The brand’s sustainability initiatives and its fair treatment of drivers is something that aligns with our own values, and we look forward to helping DeliveryApp grow its deserved reputation in the logistics sector.”

 

DHL electrifies last mile with Ford

Ford Pro and Deutsche Post DHL Group have signed a Memorandum of Understanding to accelerate the deployment of electrified vans used for logistics operations worldwide. In doing so, both companies outline their commitment to provide sustainable/green services.

Underscoring the planned collaboration, Ford Pro will equip Deutsche Post DHL Group with more than 2,000 electric delivery vans worldwide by the end of 2023 to enhance its leading position in using electric vans for last-mile delivery worldwide. The inked agreement covers a full suite of solutions to operate the electric fleet including access to Ford Pro’s connected E-Telematics software and charging solutions in order to reduce costs and optimise efficiency as a part of the two organisations’ common zero emission goals.

Ford is targeting zero emissions for all vehicle sales and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035, and carbon neutrality globally no later than 2050.

Deutsche Post DHL Group, the world’s leading logistics company, is committed to strengthen clean operations for climate protection and will invest €7bn in the current decade on its path to net-zero emissions logistics. Deutsche Post DHL Group is targeting a share of 60% e-vehicles used for carbon neutral pick-up and delivery by 2030, now also powered by Ford Pro’s line-up of electrified vehicles including the all-new E-Transit.

Ford and DHL share vision

“Ford Pro and Deutsche Post DHL Group share the vision of greater sustainability and a commitment to electrified solutions, and this agreement is a major step towards millions of deliveries being completed by electrified vehicles around the world. E-Transit is the top-selling commercial EV in North America and since June is also the best-seller in its segment in Europe, meaning the all-electric 2-tonne van is already making big strides to support this ambition,” said Hans Schep, general manager, Ford Pro, Europe.

“Electrification of last-mile logistics is a major pillar to decarbonize our operations. Adding the new Ford E-Transit to our global fleet of around 27,000 electric vans further strengthens our capability of providing green delivery services worldwide. Joining forces to address our logistics specific requirements will drive operational and service efficiency further,” said Anna Spinelli, Chief Procurement Officer & Head of Mobility, Deutsche Post DHL Group.

Ford Pro has already handed over its first E-Transits under the agreement, joining Deutsche Post DHL Group’s electric fleet used for last-mile deliveries in several countries worldwide. The order volume concentrates on the E-Transit panel vans designed for handling express shipments in the Americas and Europe. The vehicles join the Deutsche Post DHL Group fleet at the busiest time of year making more sustainable deliveries possible to customers during peak season. Additionally purchases of Ford Pro Special Vehicles with a customized box for inner city distribution in Germany, were concluded.

The Memorandum of Understanding, signed by Ford and Deutsche Post DHL Group, will potentially allow both companies to explore the co-development of future products as well as new digital and charging solutions. In addition to providing early access to innovative ideas, Ford Pro will also deliver Deutsche Post DHL Group access to test vehicles and monitoring services as the two companies explore to expand their cooperation to a growing number of markets globally.

Home Delivery: Competitive Difference

Peak season home delivery is more complex than ever. Andrew Tavener of Descartes explains how businesses should address the critical challenges.

In the face of peak season order volumes, last-mile delivery has become a trigger point for defining the customer experience. Unfortunately, as consumers head into the holiday shopping season, many are frustrated and taking action against poor performers.

A recent study of 8,000 European and North American consumers found that nearly three-quarters (73 percent) of consumers experienced delivery problems in the October–December 2021 holiday shopping period. The top three issues (see illustration) were related to timeliness: deliveries were late (26 percent); deliveries didn’t arrive when promised (22 percent); and time windows for deliveries were too long and inconvenient (22 percent). Plus, a disgruntled 16 percent didn’t receive their delivery.

This poor delivery performance can be catastrophic for retailers during peak season, especially with many online vendors relying on high sales volumes during the holidays to buoy revenues. Nearly one-quarter (23 percent) of the study respondents refused to order from poorly performing retailers again; nearly a quarter lost trust in both the delivery company (24 percent) and the retailer (21 percent). Additionally, 17 percent of consumers indicated they advised friends and family to avoid the retailer. E-commerce vendors that accept mediocre delivery quality will likely experience hits to their holiday sales tallies as consumers turn to competitors that do find ways to meet consumers’ expectations.

Meeting the delivery performance expectations of holiday shoppers begins well before the product is loaded onto the truck — with visibility into the warehouse. From an inventory management (and customer trust) perspective, retailers must ensure the products presented online accurately reflect available inventory. Furthermore, consumers should be able to choose from various delivery options at the point of sale (POS).

On the home delivery front, while delivery speed remains – for many consumers – a factor in purchase decisions, notably, consumers place more value on retailers keeping their delivery promise. To meet delivery expectations and keep customers happy (preventing failed deliveries and returning for post-holiday purchases), e-commerce retailers must find ways to boost last-mile efficiency, productivity and reliability.

Sustainable home delivery

If all these factors weren’t challenging enough, further research around home delivery sustainability has revealed its increasing importance to a significant percentage of consumers. Indeed, only 38 percent of over 8000 consumers across nine countries in Europe and North America thought that most retailers were doing a good job of sustainable home delivery.

Furthermore, 60 percent of consumers today have environmental importance expectations for their home deliveries – from combining orders, accepting longer lead times for delivery, to having the retailer recommend the most friendly delivery option. And, if we look five years ahead, there is also a growing trend from consumers that the use of eco-friendly vehicles and a retailer’s ability to show home delivery carbon footprint will play a factor in their purchasing choices.

If a proportion of consumers are willing to compromise on convenience to ensure greater retailer sustainability, then the imperative to get efficiency and reliability right holds even greater emphasis, with a focus on making every mile as green as possible.

Competitive differentiator

While critical to an optimised customer experience, final mile delivery is a complex part of the fulfilment process – and is only becoming increasingly more so.

By implementing technology that creates efficiencies across the delivery lifecycle — from dynamic delivery appointment scheduling, delivery route planning, and continuous route optimisation to GPS-enabled real-time mobile tracking, mobile proof-of-delivery, and delivery status notifications — retailers can give consumers more delivery choices, improve delivery reliability, keep customers informed of delivery status, and – crucially – provide different consumers with parameters for home delivery that suit their specific priorities.

Indeed, gearing up with the right technology tools can help e-commerce retailers keep their delivery promise, whatever that may be — a critical factor in building customer loyalty and driving repeat business — by ensuring customers get the products they want, delivered to their door, at the expected time.

Moreover, these tools can also lay the foundation for agile and dynamic home delivery options that meet consumers’ growing needs for both convenience and sustainability.

www.descartes.com

Supply chain challenges in the luxury goods market

Following the pandemic-related slump in 2020, the luxury goods industry has regained its former strength. The global market for personal luxury goods, which includes luxury fashion, decorative luxury items such as jewellery, watches and writing instruments, and beauty items, reached a value of €310bn this year and all indications are for further growth. According to current estimates, the market will grow to €480bn by 2030.

Increasing customer demand and current global uncertainties have made supply chain management a strategic core function, which poses major challenges for luxury brands. This is one of the conclusions from the recent study “Personal luxury: Supply Chain challenges & how to prepare for the future”, developed by Arvato Supply Chain Solutions in cooperation with the international strategy consultancy Roland Berger.

“The market for personal luxury goods offers significant opportunities for growth,” explains Julia Boers, President of Consumer Products at Arvato Supply Chain Solutions. “We commissioned Roland Berger to conduct a study to learn more about current and future developments and obtain detailed information about the market in which we already serve clients.”

The strategy consulting experts analysed the European and American luxury markets intensively. “Important industry experts from different areas were also interviewed, individually speaking to current market developments and their effects on supply chain management,” says Dr. Richard Federowski, Partner Consumer Goods and Retail at Roland Berger.

Four key trends were identified that will have massive impacts on the market for personal luxury goods until 2030. One of them is the emergence of a younger buyer group who holds higher expectations from luxury brands – they not only expect a unique and consistent customer experience through all touchpoints, but also react very sensitively to issues surrounding sustainability. There is also a revelation that selling standardised products worldwide will no longer suffice; local product collections will be expected. This will lead to greater complexity in products.

In addition to stationary trade, omnichannel commerce – the combination of online and offline channels – has become an important growth engine for luxury brands. Buyers demand seamless interactions between the channels coupled with the ability to contact the brand directly online. With the move to increased online sales, expectations for short delivery times and highly flexible shipping options are also increasing.

The fourth emerging factor is new market uncertainties which luxury brands must navigate. Geopolitical and pandemic crises have already led to instabilities in the business environment, and these have had a strong impact on sales processes in various regions or have put a strain on existing logistical processes.

Turning challenges into opportunities

“These complex and multidimensional developments pose major challenges for luxury brands and retailers,” explains Abbas Tolouee, who worked on the study as a senior consultant at Arvato Supply Chain Solutions. “We have identified four critical points that companies must turn into factors of success in order to remain competitive in the long term.”

Luxury brands and retailers face the challenge of offering a luxurious customer experience embodying the brand’s DNA across increasing numbers of sales channels – from initial customer contact, through order placement and including after-sales service. They must have control over all customer touchpoints within the supply chain, which is only possible when there is end-to-end integration of all IT systems and corresponding interfaces. Particularly an online shop must have real-time product availability, provide order status information, and offer several shipping options.

Additionally, speed and punctuality in last mile delivery are essential. The second challenge is inventory management across different regions and channels. To accomplish this, luxury brands and retailers must synchronise all data in real time and invest in intelligent inventory optimisation technologies and forecasting tools to anticipate demand, plan supply and detect fraud.

To get a handle on rising operating costs, luxury goods manufacturers should increase their operational efficiencies through automation and digitalisation. Warehouse services solutions should include a cloud-based IT infrastructure with fully integrated and automated supply chain processes that ensure high operational efficiency. This also ensures that errors and product losses are minimised, and inventory control is optimised. Transparency surrounding the CO2 footprint is also extremely important, especially for the younger target group. It is not enough to know the origin of the product and to measure its impact on the environment. Companies must monitor sustainability throughout the entire supply chain and define a company-wide framework to meet the expectations of their customers.

“This is where partnerships with experienced logistics service providers such as Arvato Supply Chain Solutions offer an advantage,” explains Tolouee. “We not only support our clients in developing holistic sustainability concepts for transport, packaging and storage optimisation, but we also offer a number of practical solutions which we have already developed to assist our clients in mastering these challenges.” Those solutions also form part of the study, and selected examples are reviewed in depth.

CLICK HERE to read the complete study: “Personal luxury: Supply Chain challenges & how to prepare for the future”.

GSLS transforms operations with Descartes’ solutions

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that GSLS, a provider of cash management solutions to retail, hospitality, financial services and public sector organisations, is maximsing its fleet efficiency with Descartes’ cloud-based route planning and optimisation and mobile proof of delivery (POD) solutions. Descartes is helping GSLS pursue its growth strategy by achieving a fully digital chain of custody for cash management while driving cost savings, improving fleet efficiency and delivering customer service excellence.

“Providing exemplary cash management solutions for our clients requires levels of accuracy, efficiency, traceability and security that are second to none. We recognised that growing our market-leading position required a data-driven approach to process improvements, underpinned by technological innovation,” said Fiacra Nagle, Chief Executive, GSLS. “Descartes’ route optimisation and mobile proof of delivery solutions, integrated with our vault management and cash processing solutions, have given us that end-to-end, digital chain of custody while also increasing the efficiency of our operations.”

Part of Descartes’ route planning and execution, mobile and telematics suite, Descartes’ route planning and optimisation solution helps brands, retailers and logistics providers achieve more agile, efficient and sustainable routing, improving fleet resource management by generating additional delivery capacity and reducing costs. Descartes’ execution helps drivers perform their daily routes, keeps managers aware of the progress and provides estimated-time-of-arrival (ETA) to notify customers of their deliveries.

Descartes’ mobile application helps drivers execute the route, with POD supporting customer service excellence and order accuracy through real-time mobile communication. For GSLS, Descartes has improved the efficiency and usage of its fleet of over 80 secure armoured vehicles while reducing overall fleet mileage. Sustainability improvements are also supported by removing paper from the supply chain.

“As the market-leader in secure cash logistics in Ireland, GSLS prides itself on customer service excellence and faultless cash management execution,” said Pól Sweeney, EMENAR VP Fleet Sales at Descartes. “We’re delighted to help GSLS enhance these services by facilitating a fully digital chain of custody that supports accuracy, auditability and security of operations; offers tangible efficiency savings; and provides a platform for future growth.”

 

‘Twin peak’ challenge ahead for FMCG

The European FMCG market will likely experience an unparalleled ‘twin peak’ of consumer demand in the fourth quarter of 2022 as a winter football World Cup and Christmas arrive back-to-back for the first time.

Palletways Group pallet movement figures across Europe identify a 16% jump in pallets in the three months leading up to and including the 2021 football European Championship Final, compared to usual summer pallet movement trends. This surge is in addition to the festive rush, where there is a typical 25% jump in average daily movements in the 90 days leading-up to Christmas Day compared to the first quarter of the calendar year.

The potential for a 2022 ‘twin peak’ represents a once-off challenge for pallet networks, hauliers, retailers, and manufacturers, as they consider how to manage an uptick in movements and get

FMCG goods from factory to consumer on time and in line with demand.

Luis Zubialde, Palletways Group Chief Executive Officer, said: “As we head towards this ‘twin peak’ and our customers and members face the challenge of managing different demands, everything we invest in, whether innovative technology or member support, comes together to provide unrivalled customer service excellence.

“Data management to predict how our operations must adapt to pressures not by the day, but by the hour, is critical. Our cutting-edge software tools combined with experienced, knowledgeable analysts enables us to consider factors, like European and national events, and predict the impact on network-wide operations. Predictive analytics enable us to speed processes up in our 20+ hubs across the continent and provide access to international markets quickly.”

Predictive analytics also underpin the full Palletways service offer whatever the market conditions, including Saturday morning pallet delivery and home pallet delivery (Pallets to Consumers).

Mike Harrison, Palletways UK Operations Director, said: “Our approach to data and predictive analytics is a crucial reason why we now maintain the highest number of members in Palletways UK history. It supports members in delivering excellent services for their customers.

“Our members work exceptionally hard all-year round. The effectiveness of predictive analytics is only beneficial if highly motivated people use the data to improve their operations and go the extra mile for customers during their peak periods. This quality is one of the key features of our members.”

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