REPORT: Rise of E-commerce and Returns Culture

Körber’s 2023 State of Shipping and Returns Survey reveals that 70% of e-commerce consumers have experienced a delayed online order in the last six months, affecting their overall view of the brand.

Consumer behaviour, preferences and expectations continue to challenge manufacturers, retailers and 3PLs alike. Körber’s 2023 State of Shipping and Returns survey finds that 90% of respondents are less likely to buy from a brand again after a poor online shopping experience, while 29% say they are increasingly willing to share a negative review online. These are among the central findings from online shoppers in 2023.

The recent survey gathered insights from 2,200 consumers across eight global regions on their post-purchase experience between the moment they click the “buy” button and when the product reaches their doorstep. A significant number of consumers (70%) experienced shipping delays without any reason provided for the delay (35%). With consumers looking for speed and convenience as the deciding factors when they purchase online, these delays drive customer dissatisfaction and affect brand decisions.

“Customer expectations have only grown more complicated post-COVID,” explained Chad Collins, CEO Software at Körber Business Area Supply Chain. “Körber’s latest research reveals that a good shopping experience can make a loyal customer for life. On the contrary, a poor experience can leave a wake of destruction. The importance of a frictionless customer experience cannot be emphasised enough. Brands need seamlessly integrated technologies to overcome these challenges and ensure that consumer expectations are met.”

One area of opportunity for businesses is enhancing shipping visibility and accountability to help avoid unexpected delays. And when delays invariably occur, have a plan in place for customer communication to update expectations and provide potential appeasement to create customer loyalty. 38% of consumers were not offered any compensation, refund or discounts on their recent delayed order, yet 83% indicated that is important to them.

Körber’s 2023 State of Shipping and Returns Survey looked at changing consumer expectations and what drives customer satisfaction. In February 2023, Körber polled 2,200 consumers across the US, Canada, Brazil, Mexico, Australia, Germany, France and the UK.

CLICK HERE to access the full report.

 

Accell Reduces Supply Chain Complexities

Kinaxis Inc., an authority in driving agility for fast, confident decision-making in an unpredictable world, has announced that Accell Group has deployed Kinaxis’ RapidResponse platform, digitally transforming its supply chain, providing solutions to supply chain complexities.

Based in Heerenveen, Netherlands, Accell Group is a European market leader in e-bikes and Europe’s second largest supplier of bicycle parts and accessories. The company is leveraging RapidResponse to gain the agility and flexibility needed to react to changes in demand and disruption.

“We knew that in order to remain a market leader, we needed a supply chain that could withstand disruption and adapt to change,” said Jon San Andres, Group Planning Director at Accell. “With Kinaxis we are able to gain complete visibility into our supply chain, and better plan for any scenario.”

With Kinaxis, Accell Group has end-to-end visibility of its supply chain, and the ability to balance all aspects of the demand and supply plans instantly and continuously, taking into consideration material restrictions, production capacity and market volatility. RapidResponse provides the ability to run multiple simulations and collaborate in real-time.

“We continue to see accelerating customer growth in European markets, and we understand the unique supply chain requirements they need,” said John Sicard, Kinaxis CEO. “We are excited to continue to work with Accell Group in bringing concurrent planning to its supply chain.”

The Accell and Kinaxis teams were supported by bluecrux, a value chain consulting company, with broad business experience in successful planning transformations. Accell, Kinaxis, and bluecrux blended into one team, efficiently melting cultures and methodologies. Bluecrux took on the role to dive into the Accell business context and processes, bridging across organisation, process, RapidResponse and Accell systems. Bluecrux also supported Accell and Kinaxis in driving the data and change management streams, where high quality data sets and full user adoption are adding to the success of the project.

“Using their sound methodology on how to manage advanced planning solution implementations, bluecrux helped us taking the first step in the digitalisation of our planning processes,” San Andres said. “Bluecrux is smoothly blending their business process experience, with their understanding of RapidResponse and their overall change management expertise.”

 

Mounting Solutions Provider at LogiMAT

Havis, a global provider of technology mobility and mounting solutions, is exhibiting at LogiMAT 2023 at Booth G32 in Hall 4, where visitors can discover its expansive range of industry-leading solutions for transportation & logistics, warehouse & distribution and more.

As a long-standing strategic partner of leading technology providers such as Zebra, Panasonic, Dell and Getac, Havis boasts an impressive range of technology mounting, docking and charging solutions. From the kerbside and front of store to the warehouse and last mile, Havis solutions enable the technology to keep businesses moving forward.

At Booth G32, Havis is offering an exclusive first look at its new MD-501-K Rugged Mounting Solution. With a lightweight, durable design, Havis says the MD-501-K is extremely versatile and allows for multiple mounting configurations. The MD-501-K features easy-to-use knobs that allow the user to adjust the mount quickly and easily with no tools required. Havis believes this feature is a game-changer for the warehousing, material handling & logistics industries, making it faster and simpler than ever before to customise a device and keep it securely mounted in any position.

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cargo-partner at Transport Logistic

The international transport and info-logistics provider cargo-partner will once again be represented at the leading logistics fair in Munich from May 9 to 12, 2023. This year, cargo-partner will take the event as an opportunity to celebrate its 40th anniversary together with customers and partners and present its service portfolio in the areas of e-commerce, emergency, warehousing and digital solutions.

Held in Munich every other year since 1978, transport logistic is the world’s leading trade fair for logistics, mobility, IT, and supply chain management. After the fair was hosted as a purely virtual event in 2021, this year marks the first instance of transport logistic returning to a fully in-person event after the COVID-19 pandemic.

Just as in previous years – including the successful online event two years ago – cargo-partner will be participating at the fair in Munich along with other international logistics providers to present its service portfolio and discuss the latest industry developments. The cargo-partner booth is located in hall A5, booth no. 408.

This year, cargo-partner will take the event as an occasion to celebrate the 40th anniversary of the company’s founding. In addition, the cargo-partner team will be presenting the company’s comprehensive range of transport and logistics solutions, with a special focus on e-commerce, emergency transport services, global warehousing capabilities as well as the company’s growing portfolio of digital supply chain management solutions, including the SPOT platform and its Purchase Order Management module.

Stefan Krauter (pictured), CEO of cargo-partner, said: “transport logistic is one of the most important annual gatherings of the global logistics industry. Following our motto ‘we take it personally’, our team is excited to join this event and we truly enjoy this opportunity to meet our valued customers and partners again in person after years of lockdowns and online meetings.”

In 2023, the organizers expect over 2,300 exhibitors and over 64,000 visitors from around the world, including many visitors from Germany. cargo-partner has been represented with its own offices in Germany since 2000. Today, the logistics provider’s representation in Germany includes seven offices in Munich, Düsseldorf, Frankfurt, Hamburg and Stuttgart with nearly 200 employees as well as a state-of-the-art warehouse facility in Sottrum near Hamburg offering 10,000 sq m of storage space.

Meanwhile, cargo-partner’s worldwide network continues to grow. In 2022, the logistics provider opened new branch offices in Spain, Mexico, Greece, the UK and Indonesia, as well as warehouse expansions in Slovenia, Croatia and China. Looking ahead, the company has placed a strategic focus on further strengthening its network in Western Europe.

 

XPO Appoints Operations Director for Europe

XPO, a leading provider of innovative transport and logistics solutions in Europe, has appointed Emmanuel Arnaud as operations director – Europe, effective immediately. He reports to Luis Gomez, XPO’s president – Europe, and will serve on the executive board of the European business.

Arnaud is a high-impact transport and logistics executive with more than two decades of success leading initiatives for operational excellence, technological innovation and sustainability. Prior to XPO, he held senior positions during 18 years with GEFCO, most recently as divisional CEO with responsibility for road, air and sea freight, and customs and logistics operations. In earlier management roles, he established a customer-centric culture that aligned GEFCO’s sales and marketing operations in 40 countries and developed blue chip account relationships.

Gomez commented: “Emmanuel is a tremendous asset to our European business and joins us at a time when we are unlocking potential across a wide range of verticals. His deep understanding of the connections among operations, sales and customer service will be invaluable in implementing our end-to-end solutions. I look forward to working closely with Emmanuel as we continue to execute our growth strategy.”

Arnaud began his career in France with Groupe Giraud, and then served as general manager of TNT Logistics entities, providing just-in-time supply management for the fast-moving consumer goods (FMCG) and automotive sectors. He holds a master’s degree in corporate finance from Institut Mines-Télécom Business School and a bachelor’s degree in law from Université d’Évry.

XPO’s innovative service offerings include technology-enabled truckload, less-than-truckload, truck brokerage, managed transport, last mile and freight forwarding. The company tailors its solutions to customer-specific needs across a range of consumer, trade and industrial sectors and world-class events.

 

Trade Groups Come Together Over Safety

The coming together of five organisations with shared visions for the safety and security of global trade will take advantage of unified information and data sources to bring greater awareness and understanding of issues with the goal of producing preventative output.

A Memorandum of Understanding (MOU) was signed on 16 March 2023 by representatives of the five organisations:

  • Cargo Incident Notification System (CINS)
  • Confidential Human Factors Incident Reporting Programme (CHIRP)
  • Container Owners Association (COA)
  • International Cargo Handling Coordination Association (ICHCA)
  • Ship Message Design Group (SMDG)

The participants have a commonality of purpose to create a framework for cooperation that enables each group to benefit from each other’s activities in respect of their strategies in areas of joint interest. These will, in the immediate future concentrate on improved safety during the global transport and handling of goods that have the potential to cause injury to the workforce and/or damage to the environment and the goods themselves.

John Beckett, Chair of ICHCA, commented: “This unique grouping of industry leaders has the potential to coordinate data, research and best practices across the broad spectrum of the international movement of cargo. A key goal is to create an awareness throughout the freight industry, amongst operators, regulators and policy makers as to practical and effective measures to improve safety.”

A fundamental part of the group’s output will be publications, an aim that is close to the heart of Deputy Chair of CINS, Dirk Van de Velde: “As an example of where immediate attention is required, container ship fires are high on the list,” he said. “The combined knowledge, experience and database resource of the signatories to this MOU, managed in a coordinated manner, have massive potential to leverage change in safety processes. We will be publishing guidance on the treatment of lithium-ion batteries, among other cargoes, in the near future.”

In search of practical changes that will alleviate such dangers, the MOU calls for coordinated efforts both on regional and international issues of common concern and engagement with relevant regulatory bodies including the IMO and other appropriate United Nations agencies.

Other stated aims include working together to initiate innovative worldwide surveys and studies that can assist with the furtherance of these organisations on behalf of their members and associates. There will also be sharing of research findings and publications to strengthen information exchange, while avoiding duplication of effort by pooling resources.

“CHIRP Maritime is delighted to be part of the MOU,” added CHIRP’s David Watkins. “CHIRP Maritime will work with our partners to collect information on operational cargo-related accidents and incidents and share learning with the wider maritime community to promote best practices in the supply chain and reduce the number of cargo incidents on board ships and terminals

Caption: Adam Parnell – Chirp, Dirk Van de Velde – CINS, John Beckett – ICHCA, Mark Lefebvre – CINS, Patrick Hicks – COA

 

 

Asia-Pacific SC Consultancy Expands to Europe

A leading end-to-end supply chain consultancy, TMX Global, is expanding into the EMEA market with a central London location and the strategic hire of Gerry Power, UK Head of Country.

Surging demands, supply shortages and inflationary pressures are putting increasing strain on supply chains throughout the EMEA region, driving an increasing need for businesses to be more resilient, agile and adaptable to fuel future growth. As the EMEA region continues to navigate its way through several years of disruption and upheaval, TMX’s specialist knowledge in designing supply chains of the future will help prepare organisations across the region to stay ahead of the disruption and gain a competitive advantage.

Founded in 2010, TMX Global is a specialist supply chain consultancy with offices in Australia, Singapore, Vietnam, New Zealand, Thailand, and Malaysia. The new London office is located at One Kingdom Street, Paddington – where TMX joins tech giants Microsoft and Accor.

In 2021, TMX Global (formerly TM Insight) acquired Xact Solutions in a move that saw the consultancy double the size of its team and secure its position as the largest independent supply chain and business transformation firm in the Asia Pacific region.

The organisation’s clients include Coca-Cola Japan Bottlers Inc, UNIQLO, Australia Post, BMW, Asahi, and Australian supermarket giant Coles. As it kicks off its EMEA expansion, TMX Global is working with one of the UK’s most trusted brands and largest specialist clothing, beauty, home and food retailers.

To lead the expansion, TMX Global has appointed industry heavyweight Gerry Power as UK Head of Country. Gerry has more than 30 years’ experience in the supply chain sector, with 22 of those spent leading TNT operations in India and Malaysia. He has also held senior leadership roles delivering strategic growth in the aviation, 4PL, and e-commerce space across both UK and Asian markets.

Power said: “I’m delighted to join TMX and head up the organisation’s expansion into the Europe and the UK. Events of the past three years have posed threats to supply chains in the EMEA region like we’ve never seen before. From Brexit to the pandemic, to the current challenges of the conflict in Ukraine – supply chains have been thrown into the spotlight and we’re seeing more organisations explore how they can ensure their operations are more robust, agile and flexible. I’m excited to replicate TMX’s commitment to designing and delivering bespoke and tailored end-to-end supply chain strategies that help provide clients with a competitive edge in the UK.

“Our base in central London provides us with a great location to service our clients across the UK as well as throughout Europe and I see enormous scope for growth in this region. Now that we’re on the ground, we’re assembling a best-in-class team to help future proof supply chains for our clients locally.”

Travis Erridge, Co-Founder and CEO at TMX Global, said: “In the past few years, there’s been an increasing demand for strategic supply chain expertise around the world and as a result we’ve always had our sights on global expansion. This entry into the EMEA market is a significant milestone for us, as we invest in full delivery teams and an office in central London. We’re also delighted to secure the appointment of Gerry Power to lead our expansion and consider this an exciting time to be part of TMX Global’s growth. We look forward to announcing more strategic hires as we strengthen our team on the ground throughout the region.”

Milan Andjelkovic, Co-Founder and COO at TMX Global, added: “The UK is an important market for the supply chain industry, and we see strong alignments in the TMX approach and the business needs of organisations in this region. As a result of ongoing economic and political disruption worldwide, the pace of change is only accelerating in supply chains throughout the UK. Our team of industry leaders are committed to innovation, and we’re excited by this unique opportunity to establish ourselves in the centre of London and share our experience and expertise with the EMEA market.”

 

Netherlands tops DHL Globalisation Index

DHL and New York University’s Stern School of Business have released the new DHL Global Connectedness Index 2022, an in-depth report on the state of globalisation and its prospects. Analysing data from 171 countries and territories, it reveals how flows of trade, people, capital, and information move around the world.

The report shows that international flows have been remarkably resilient in the face of recent shocks such as the Covid-19 pandemic and the war in Ukraine. After a slight decline in 2020, the composite DHL Global Connectedness Index rose back to above pre-pandemic levels in 2021. The currently available data points to a further increase in 2022, despite slower growth in some flows. International trade in goods was 10% above pre-pandemic levels in mid-2022. International travel remained 37% below 2019 levels in 2022, but doubled compared to 2021.

“The latest DHL Global Connectedness Index data clearly debunks the perception of globalisation going into reverse gear,” John Pearson, CEO of DHL Express, concludes. “Globalisation is not just a buzzword, it’s a powerful force that has transformed our world for the better. By breaking down barriers, opening up markets and creating opportunities, it has enabled individuals, businesses and entire nations to flourish and thrive like never before. As we continue to embrace globalisation, we can build a brighter future that benefits us all, creating a world that is more interconnected, more prosperous and more peaceful than ever before.”

US and China: Geopolitical rivalry frays connection

The DHL Global Connectedness Index provides evidence that the US and China are decoupling in many fields. Looking at 11 types of trade, capital, information, and people flows (such as merchandise exports, M&A transactions, and scientific research collaboration), the share of US flows with China declined for 8 out of 11 types since 2016. In the same period, the share of China’s flows with the US decreased for 7 out of 10 types with data available for China. Several of these were large declines. Nonetheless, the US and China are still linked by far greater flows than any other two countries that do not share a border. Furthermore, the data shows that, so far, the decoupling between these two countries has not led to a broader fragmentation of global flows between rival blocs of countries.

No evidence of trend towards regionalisation – globalisation has increased

Analyses in the DHL Global Connectedness Index also show that predictions of a shift from globalisation to regionalisation have not – at least yet – come to fruition. The average distance traversed by trade, capital, information, and people flows has increased over the past two decades, and trade flows even stretched out over longer distances during the Covid-19 pandemic. The only category that displays a clear recent shift toward regionalisation is people flows. This is due to the dramatic change in travel patterns during the Covid-19 pandemic.

“It remains an open question whether trade patterns will become significantly more regionalised in the future,” says Steven Altman (pictured), Senior Research Scholar and Director of the DHL Initiative on Globalisation at NYU Stern’s Center for the Future of Management. “Many companies and governments are focused on nearshoring to regionalise supply chains, and there are substantial business benefits that can come from regionalisation. On the other hand, more than half of all trade already happens within regions, and the benefits of long-distance trade are still important, especially as inflation remains high, economic growth has slowed, and container shipping rates have come back down.”

Ranking of most globally connected countries

In the country ranking of the DHL Global Connectedness Index 2022, the Netherlands was again the most globally connected country. Singapore ranked second overall and first in terms of the size of international relative to domestic flows. The UK has the most globally distributed flows. Among the 55 most globally connected countries, there are representatives from every world region.

The DHL Global Connectedness Index

Published regularly since 2011, the renowned DHL Global Connectedness Index provides reliable findings on globalisation trends by analysing 13 types of international trade, people, capital, and information flows. The 2022 edition is based on over four million data points from 171 countries, accounting for 99.7% of the world’s gross domestic product and 96% of its population. A collection of 171 one-page country profiles provides concise summaries of individual countries’ globalisation patterns.

The report was commissioned by DHL and authored by Steven A. Altman and Caroline R. Bastian of New York University Stern School of Business.

Gebrüder Weiss Continues to Grow

The international transport and logistics company Gebrüder Weiss posted turnover of 3.01 billion euros for fiscal 2022. This translates into a year-on-year gain of 18 percent (2021: 2.54 billion euros), and builds on the positive trend of recent years. “We have succeeded in adhering to and advancing our strategic goals in a challenging environment. We have expanded our position in the core markets of Central and Eastern Europe, the United States and Asia, while moving forward with our focuses on digitalization and climate neutrality by 2030. The rewarding results across our divisions are proof positive that we are a solid organization that is fit for the future,” says Wolfram Senger-Weiss, CEO at Gebrüder Weiss. The equity ratio also rose and has been restored to its previous level of 60 percent (2021: 57 percent); this increase underlines the company’s resilience and demonstrates that Gebrüder Weiss offers its workforce secure jobs.

The Land Transport division posted 1,479 million euros in sales, a gain of 16 percent (2021: 1,277 million euros). The Home Delivery service performed at last year’s level, delivering some 1.53 million shipments to private households in Austria and Eastern Europe (2021: 1.58 million consignments). As a result, Gebrüder Weiss maintained its market leadership in this segment. Major progress was also reported by Air & Sea, which closed fiscal 2022 with sales at 1,272 million euros, a plus of 24 percent (2021: 1,024 million euros). This surge was driven mainly by the high freight charges of the shipping companies and airlines. DPD Austria, which is partly owned by the Gebrüder Weiss parcel service, was able to sustain its volumes: in 2022 it shipped 66 million parcels (2021: 66.5 million).

International network expanded

Despite economic challenges in 2022 deriving from the war in Ukraine, energy issues and rising inflation, Gebrüder Weiss adhered to its investment strategy. A total of 67 million euros were devoted to consolidating the company’s own network and augmenting its international locations and services. The main focuses were Germany, Hungary, Romania and the United States, along with Turkey and Georgia. The latter two countries are chief links on the Middle Corridor, along which the logistics specialist extended its services to Central Asia and China.

In the key German logistics market, Gebrüder Weiss was able to cement its position in both Air & Sea and Land Transport. In southern Germany, the renaming of the Bavarian freight forwarding company Lode as Gebrüder Weiss Waldkraiburg was concluded. The continued expansion of the land transport network is planned for the south of Germany, with the takeover of the Rentschler shipping company (Baden-Württemberg) in early 2023 marking a first step. Having an enlarged network naturally prompted growth in the workforce: employee numbers rose by six percent to some 8,400 (2021: 7,900)

Continued focus on digitalization and sustainability

The year 2022 also saw the company sustaining its digitalization strategy “Best of Both Worlds,” which Gebrüder Weiss views as a winning combination of operational and digital competence. This included the next stage in the rollout of the digital service portal myGW, which delivers real-time information as to the exact whereabouts of customers’ goods – thus ensuring optimum transparency along the entire supply chain. “Our goal is to give our customers the best solutions for their supply chains, while confining our environmental impact to a minimum. Toward that end, we are constantly investing in our logistics terminals and digital tools, while simultaneously training our staff and identifying environmentally friendly transport options,” Wolfram Senger-Weiss explains.

To underscore the company’s commitment to sustainable goals and its pledge to contribute to climate protection globally, Gebrüder Weiss published a Sustainability Report in 2022. In line with its targets, the logistics specialist intends to achieve carbon neutrality at all of its terminals by 2030. One key element in this transition is an increase in power from regenerative sources; last year Gebrüder Weiss installed four new photovoltaic systems at sites in Germany, Austria and Switzerland. All told, 22 such systems are now already in operation, reducing CO2 emissions by 1,110 metric tons annually. In 2023, the rollout will continue in these countries and in Eastern Europe.

Nor has time stood still when it comes to alternative drive options. After successful long-distance trials with the company’s own hydrogen-powered trucks, Gebrüder Weiss is planning further investments in this technology. In 2023, five new H2 powered trucks are due to hit the roads in Germany. Moving forward, the number of electrically powered vans used in urban goods deliveries is due to further increase in Austria and Eastern Europe.

For 2023, Gebrüder Weiss is anticipating a renormalization of the logistics industry. Shipment numbers are currently declining somewhat, and the cost of transport by air and sea has dropped to 2019 levels. As a result, lower sales are expected. Global geopolitical factors may bring additional challenges. Wolfram Senger-Weiss: “The pandemic has proven that the logistics industry can perform under pressure and react swiftly to changing conditions. In the past year, Gebrüder Weiss has been able to further solidify its financial base and drive innovations – while remaining close to our customers and answering their needs with relevant digital services. In light of the current economic forecast, the high inflation rate and the war in Ukraine, we are – needless to say – circumspect and concerned. However, ultimately we remain a strong organization and that gives us confidence.”

PTV Group and Conundra Continue Integration

PTV Group, Econolite and Conundra, along with backers Bridgepoint and Porsche have announced the further integration and strategic reorganization of the companies into two strong and distinct businesses serving their respective end markets: Mobility and Logistics.

In order to form a new pure-play software Logistics business, PTV Logistics and Conundra are integrating their respective resources to offer state-of-the-art software solutions for route planning and optimization with best-in-class algorithms and data, as well as additional use cases to enhance savings in logistics costs and emissions. Rebranding for Logistics is in progress and will be announced shortly.

Structure and leadership is as follows:

The PTV Logistics group joins forces with Conundra to form a global software provider for logistics solutions in route planning and optimization. This combined group will be led by newly appointed CEO, Steven De Schrijver, former CEO and Co-founder of Conundra. Abbas Mohaddes, former CEO of Econolite is appointed to Chairman of the Advisory Board for both businesses.

Mohaddes said, “Our focus remains to be market and demand driven, offering superior products and services to better plan and manage our transportation systems, sensitive to desire and needs of users, travellers and alike. We are committed to embrace Environmental, Social, and Governance (ESG) in support of global Mobility for Humanity.”

Carsten Kratz, Partner, and head of the DACH region at Bridgepoint, added “We made great progress during 2022 with the integration of PTV and Econolite, while acquiring Conundra and other enhancing assets. This rebranding and reorganization are the logical next steps in enhancing our growth and our quest for global market leadership. This is a big milestone for us, and we’ll continue to invest in both businesses.”

Lutz Meschke, member of the board of management responsible for investment management at Porsche SE, stated “The new strategic setup of the mobility and logistics businesses marks yet another important milestone in the development of PTV, Econolite, and Conundra. We look forward to further supporting the development of both businesses.”

Steven De Schrijver, Logistics group, Chief Executive Officer, added “Our goal is to provide exceptional optimization tools, that meet and exceed the expectations of the global Logistics marketplace.”

PTV Logistics is a leading global software company for planning, calculating, and optimizing transport logistics to save time and costs. With more than 40 years of experience and record-breaking algorithms in route planning and tour optimization, the software empowers logistics companies to realize the theoretical savings potential of route planning automation in practice.

 

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