Subscribe

Tag: retail

Packaging For Ecommerce vs. Retail

Posted on by David Priestman

Packaging is a critical element in the delivery process, serving not only as a protective layer for products but also as a key touchpoint for branding and customer satisfaction. However, the requirements for e-commerce and retail packaging differ significantly due to the distinct challenges each channel presents. From safeguarding products to creating memorable customer experiences, businesses must navigate these differences to stay competitive. Here’s how. 

Balancing Protection and Practicality 

One of the most significant distinctions between e-commerce and retail packaging lies in product protection. E-commerce packages must endure extensive handling, long-distance transportation and exposure to various environmental conditions. To address these challenges, businesses often rely on sturdy corrugated boxes, impact-resistant inserts and void fillers like air cushions or paper stuffing to shield items from damage during transit. The focus is on durability and functionality so that products arrive intact regardless of the journey. 

In contrast, retail packaging prioritizes visual appeal and ease of handling within a store environment. While it still provides basic protection, it’s designed to stand out on shelves and capture consumer attention. Lightweight materials and sleek designs are common, allowing packaging to emphasize branding while maintaining practicality for in-store displays. For example, an elegant cardboard box with bold visuals works well for retail shelves but would not withstand the physical demands of e-commerce shipping. 

The Role of Branding and Presentation 

Branding plays a crucial role in both channels but manifests differently based on customer interactions. In e-commerce, packaging is often the first physical connection a customer has with the brand, making the unboxing experience an essential marketing tool. Custom mailer boxes, personalized thank-you notes and branded tissue paper can be used to elevate this interaction, turning it into a memorable moment that can lead to social media shares and increased brand loyalty. 

For retail, packaging must catch the eye amidst a sea of competitors. Bold colors, unique structural designs and clear product information are prioritized to help customers make quick purchasing decisions. Retail packaging often conveys the product’s benefits at a glance, standing out on crowded shelves. 

Efficiency in Fulfillment and Delivery 

Efficiency is vital in both e-commerce and retail packaging as well, but the focus varies depending on the channel. E-commerce packaging must prioritize space optimization to reduce shipping costs and maximize the number of packages transported per shipment. Lightweight, right-sized boxes or padded mailers are commonly used to streamline logistics while maintaining protection. Automating processes with tools like automatic conveyors can further enhance efficiency, allowing fulfillment centers to handle high volumes of orders quickly and accurately. 

Retail packaging, on the other hand, focuses on storage and display optimization. Products need to be shelf-ready and easy to handle for store staff. Packaging must balance durability for bulk shipping with the ability to be displayed attractively upon arrival. Tamper-evident features and stackable designs often play a key role in retail packaging strategies. 

Addressing Customer Expectations 

Consumer expectations are a driving force in packaging decisions. E-commerce customers demand their products arrive in perfect condition with minimal waste. Sustainable packaging options, such as recyclable materials and biodegradable mailers, have become increasingly important.  

Conversely, retail customers are drawn to packaging that reflects quality and innovation. Reusable or multifunctional packaging designs can add value, enhancing the perceived worth of the product. 

Why Understanding Packaging Differences Matters 

For logistics and supply chain professionals, understanding the distinct demands of e-commerce and retail packaging is essential for reducing costs, safeguarding products and enhancing customer satisfaction. By tailoring strategies to the unique needs of each channel, businesses can streamline fulfillment processes and maintain operational efficiency. 

When done right, thoughtful packaging design can transform a functional necessity into a powerful tool for success, enabling businesses to thrive in today’s fast-paced and competitive marketplace. 

Read Similar

Sustainabile e-commerce Packaging at LogiMAT 2025

Sustainability in Retail Transportation Management

Posted on by David Priestman

In today’s retail landscape, sustainability is no longer just a buzzword – it’s a fundamental concern for consumers, that has an impact on retailers. The demand for eco-friendly products and environmentally responsible companies is on the rise. In fact, according to Descartes’ 2023 consumer sentiment study on home delivery sustainability, a sizable 41% of respondents indicated they regularly or always make purchasing decisions based upon the product or company’s environmental impact.

What is more, it’s no secret that freight transportation (i.e., over-the-road, ocean, rail and air) is one of the top causes of greenhouse gas emissions, representing 8% of global greenhouse gas emissions. Therefore, with an increasing spotlight on the environment, we wanted to know what companies were doing about transportation sustainability or not, and added it to Descartes 7th Annual Global Transportation Management Benchmark Study – the findings, of which, are useful to retailers.

To find out more, we divided transportation sustainability efforts into four categories, ranging from no action to a daily concern. The overall response showed that 31% of respondents indicated they did nothing, 19% reported on their transportation carbon footprint, 27% factored it into their strategic plans and 22% made sustainability a component of their daily transportation decisions.

In essence, we discovered that 50% of businesses are actively addressing sustainability in transportation, presenting an excellent opportunity not only to make a positive impact on the planet; but also to cater to a market hungry for sustainable choices. Chris Jones (pictured), EVP, Descartes explains more.

Taking this exploration further for retailers, we examined how management perceives the importance of transportation management and its correlation with company financial performance. We discovered that companies whose management regarded transportation as a competitive advantage (57%) were far more likely to take action compared to those who did not prioritise transportation management (48%). Similarly, in terms of financial performance, the numbers were compelling, with 58% of top performers taking action, contrasting with 44% of less successful companies. This then raises a question of retailers about the extent to which they can perceive how transportation could enable competitive advantage?

Additionally, differences in sustainability actions among businesses that recognise the value of transportation management and top financial performers, versus other respondents makes sense. In the benchmark study, we see these respondents more interested in strategies and actions that improve transportation management performance; and most transportation management improvement programs have a positive and measurable impact on the environment too – again, something which is important to consumers and, inadvertently, the retail sector at large.

Reducing CO2 footprint, fuel consumption and waste generated are all results of transportation management performance improvement programs that reduce distance per delivery, empty miles, and vehicle wait times and eliminate paper-based processes. So, if there is a perception that most sustainable transportation efforts result in less efficient supply chains, this needs correcting.

In fact, sustainable transportation programs are also an opportunity for organisations, including retailers, to capture more business. The home delivery sustainability study showed that consumers are more willing to buy from companies that can showcase sustainable supply chains, with 60% expressing a preference for environmentally-friendly delivery options. Equally important for B2B companies is the opportunity to gain more business from companies that are looking at their supply chains’ partners to help reduce Scope 3 Emissions, as defined by the United States Environmental Protection Agency and the Corporate Sustainability Reporting Directive (CSRD) initiated in January 2023. This standard requires more large businesses and SMEs that trade in the EU to conduct sustainability reporting to stricter standards from January 2024.

Conclusion

It’s clear, now more than ever, that retailers have a unique opportunity to distinguish themselves by embracing sustainability in their transportation management efforts. This not only meets regulatory requirements – but also aligns with the preferences of eco-conscious consumers and contributes to a greener, more sustainable future. As well as this, retailers who make this a priority will also simultaneously cut costs, boost customer satisfaction and grow their business. How many opportunities are there for retailers and businesses alike to create this kind of win, win, win, win situation?

Mounting Inventory Visibility Challenges add Pressure

Posted on by David Priestman

Today, at its 2023 European Exchange customer conference, Manhattan Associates Inc. (NASDAQ: MANH) announced the findings of its latest international omnichannel research, highlighting how retailers are increasingly digitizing their offering in efforts to improve customer experiences and maintain market share, with inventory visibility being key.

THE CHANGING FACE OF THE STORE

Trending in the right direction, 54% of retailers reported that their customers could buy in-store and return online (50% in 2022), and if the product was out of stock in-store, 48% provided buy online and return in store options (46% in 2022). However, retailers also commented that on average they only had an accurate indication of inventory across their entire operations 70% of the time (down from 74% in 2022).

Shoppers expect all retail touchpoints to be connected, frictionless and increasingly personalised. “If you don’t know where a third of your inventory is, or what it is that you have, that’s a lot of stock that is either not being sold, marked down or at worst thrown away,” commented Henri Seroux, SVP EMEA at Manhattan Associates.

“It’s vital that retailers have solutions with the flexibility and agility to allow them to recognise and act on shifting consumer behaviour in near ‘real-time’. With access to accurate data, retailers can deliver actionable insight into the hands of their associates, enabling them to add value to every customer’s unique path to purchase,” Seroux continued.

FRICTIONLESS COMMERCE MEETS FRICTIONLESS ENGAGEMENT

It is clear consumers are keen to engage actively cross channels when looking to purchase products and 84% will start their buying journey online (82% in 2022). However, 16% (17% in 2022) of retailers still reported that their organisation’s in-store and online operations continue to run as separate functions, suggesting that while year-on-year, more retailers are offering seamless shopping experiences, there is still room for improvement.

In terms of how consumers prefer to engage with retailers before and after buying a product, overall, email (47%) remains the preferred engagement channel, followed by direct in-person contact with the store team (43%). Interestingly, social media is now the preferred channel of engagement for four in ten (40%) consumers, with this preference more likely amongst younger consumers, peaking with the age group 25-34 at 55%.

Natalie Berg, retail analyst, author, and founder of NBK Retail commented: “The research shows retailers are making progress when it comes to seamless omnichannel experiences. As the role of the physical store evolves past simply the transactional, the roles of associates must also develop beyond purely assisting the sale too. Armed with the right technologies and accurate inventory and customer data, store associates have the power to educate, inspire and ultimately create long-lasting brand loyalty, even during times of economic flux.”

PROTECTING POCKETS & THE PLANET

The perception, and at times reality, that green products come at a price premium means that shoppers are deprioritising these purchases in favour of low-cost alternatives with only 45% of consumers considering sustainability an important factor when choosing where to shop, down from 50% last year.

Younger generations are more likely to consider a retailer’s environmental/sustainability efforts compared to older consumers, with 55% of 18–24-year-olds reporting it as a top or important consideration for them. 17% of the 24-35 age bracket went further still and said they would actively avoid retailers if they were not environmentally conscious, compared to only 10% of over 55s saying they would boycott these same brands.

“The future of our planet is not something that we can or should be forced to compromise on as consumers or retailers, yet clearly, in the current economic climate, affordability is taking priority over sustainability. This year’s research highlights how important unification across omnichannel commerce and supply chain is, as an avenue to lessen the economic burden on consumers, but also, as a way to address the longer-term environmental impact unchecked consumerism is having on our planet,” finished Seroux.

Retailers to Reduce Cost and Impact of Returns

Posted on by David Priestman

New global research from DHL Supply Chain among e-commerce decision makers in retail and consumer goods businesses reveals that the rise in returns is driving a major re-evaluation of policies and processes. Nearly half of the businesses surveyed are considering changes to returns handling processes to bring down the cost and environmental impact of returns.

Returns handling processes that aren’t designed for the current large volumes are a major source of the challenge. Retailers are struggling to effectively process and extract maximum value out of returned items leading to financial loss as well as environmental waste. According to the research, 17% of businesses are turning to disposal as their primary method for handling returned items that aren’t being restocked and sold.

With returns increasing on average 19% in the last two years, recent inflation is causing businesses concern and hastening the need for change.

A lack of integration between e-commerce and other channels is exacerbating the problem as it reduces the ways in which returned items can be restocked and resold. Designing product flows and cycles in the most efficient, and environmentally friendly way is key to tackling this challenge. DHL’s omnichannel returns handling capabilities bring together returns from all sources and its digital returns system enables colleagues to ‘grade’ items to determine the best way to handle the product, whether restocking at full price or discounted rate, repairing, reselling on a secondary marketplace or recycling. DHL then has the capabilities to fully manage the goods through each route, from specialist repairs to charitable donations.

While the financial burden of returns is being felt more acutely due to global economic instability, environmental concern remains one of the main drivers for change. A third of businesses stated they are already calculating the carbon emissions associated with returns and the same number plan to start doing so. What’s more, nearly nine out of ten retailers have plans or targets to reduce carbon emissions associated with returns.

As well as looking at returns handling, businesses are exploring the use of technology to drive down volume such as virtual fitting rooms. Meanwhile, many businesses are considering changes to their customer returns policies with a quarter of those surveyed exploring charges for returns not made in-store. However, these changes are being approached with caution due to concerns they could impact customers.

Nabil Malouli, Senior VP E-commerce & Returns Global, DHL Supply Chain, said: “We’ve reached a tipping point in returns both financially and environmentally, and retailers are right to examine their current returns processes and reverse supply chains. Our research shows that customer experience remains the number one priority for retailers but that doesn’t have to be sacrificed with dramatic changes to returns policies. Innovative ways to bring down overall volumes, combined more sophisticated returns handling capabilities allow retailers to offer faster refunds, quickly restock across multiple channels, repair for resale, and recycle responsibly. Enhancements like these have the potential to drive-up revenue and reduce waste, while also enhancing the overall customer experience.”

The full research findings can be found here. All figures are from an industry survey conducted by YouGov in March 2023 of 1,059 senior decision-makers in e-commerce retail across 5 markets: US, UK, Germany, Japan and Mexico.

Key findings:

• Over the last two years, returns have increased on average 19%
• 54% of businesses are concerned about the cost of returns
• 91% say inflation is driving re-evaluation of returns processes and policies
• 42% are considering changes to their customer returns policies
• 47% are considering changes to their returns handling processes
• 40% want to drive down the volume of returns being disposed of
• 29% currently calculate the carbon emissions associated with returns, 32% plan to start doing so
• 40% have plans to invest in any automation and robotics to improve e-commerce fulfilment and returns processes
• 57% are investing or plan to invest in technology initiatives to reduce returns volumes such as virtual fitting rooms
• 41% of businesses’ e-commerce returns are not integrated with non-e-commerce channels
• 23% are planning to introduce charges for returns not made in store
• 44% are considering plans to reduce the timeframe in which customers can return items
• 46% have concerns that changes to returns policy could impact customer loyalty
• 58% want to be able to offer faster refunds
• To reduce the financial impact of returns, the top priorities are (in order):
. Reducing the volume of returns
. Faster processing of returns
. Reducing the timeframe in which returns can be made
• 72% believe that giving consumers multiple returns options (drop off, collection etc) is positive for customer loyalty

Which Countries Have Highest E-commerce Levels?

Posted on by Keith McKinley

It’s no secret that e-commerce has grown rapidly in recent years, helped along by global events, such as the Covid-19 pandemic which encouraged more consumers to shop online versus in physical stores.

With access to the internet being easier than ever before, the established global e-commerce network Ubuy wanted to know which are the ‘shopaholic’ countries – those which had seen the highest volume of online purchases.

In a new report analysing worldwide spending data, Ubuy compared the amount spent per country in relation to each country’s average annual income and population. Those that had spent the most money in relation to their annual income were deemed the most ‘shopaholics’.

Ubuy’s research found that, globally, around $3,913,058.90 is recorded in e-commerce spending annually. Using the most recent world population figures (7,888,408,686 people), Ubuy calculated that this is equivalent to $496 spent per capita – approximately 5.7% of an average income ($8,742) on e-commerce alone.

In first place was Lebanon, recording an annual e-commerce revenue of $3,269. While this may not seem like a large number, this is equal to $585 per capita with a population of 5,592,631 people. The average household income for Lebanese people is $$4,323 per year, making the amount spent on e-commerce equate to around 13.5% – a significant amount.

In contrast, China recorded a massive $1,240,968 per year in e-commerce revenue. This was equivalent to $879 per capita for China’s population of 1,412,360,000 people. In terms of household income, the average income was around $7,572 per year, with e-commerce spending equating to 11.6% of their income annually.

The research found that, overall, the majority of countries had recorded relatively large volumes of e-commerce revenue – a testament to how much e-commerce has grown in recent years.

Commenting on the research, Faizan Khan at Ubuy said: “Our research revealed which countries have recorded the highest proportional volume of e-commerce revenue annually, in relation to the average household income for each country.

“It’s interesting to see that many countries actually spend more of their annual income on e-commerce than the global average, highlighting how prominent this spending platform is in many people’s lives.

“As a well-established e-commerce platform ourselves, we’ve seen first-hand that online spending has grown massively in popularity in recent years, particularly following the pandemic. However, it was interesting to break down the global data and see just how these spending trends have emerged in different countries.

“Most notably, our research also revealed that many of the countries that had the highest volume of ‘shopaholics’ were located in South Asia and the MENA region.”

Broken down by country, the top 10 ‘shopaholic’ countries were:

  • Lebanon – $3,269 per year, 13.5% of average income
  • China – $1,240,968 per year, 11.6% of average income
  • Iran – $15.878 per year, 10.3% of average income
  • Kyrgyzstan – $531 per year, 9.1% of average income
  • South Korea – $109,842 per year, 8.4% of average income
  • Sudan – $1,406 per year, 8% of average income
  • Moldova – $842 per year, 7.9% of average income
  • Mongolia – $761 per year, 7.5% of average income
  • United Kingdom – $176,444 per year, 7.2% of average income
  • Bhutan – $137 per year, 7.1% of average income

CLICK HERE to access the full research.

Manhattan Benchmark Reveals Retail Winners

Posted on by Keith McKinley

Manhattan Associates Inc., in partnership with Google Cloud and Zebra Technologies, has announced the findings of the industry’s first real-world analysis of Unified Commerce in specialty retail. The Unified Commerce Benchmark for Specialty Retail, conducted by Incisiv, assessed 124 retailers across 11 specialty retail segments on the implementation of 286 key attributes of Unified Commerce.

Based on insight from real purchases, returns, and customer journeys across digital and physical channels, the benchmark reveals the common attributes of successful retailers and the opportunities for others to improve their customer value and modernise operations. Of the 124 retailers benchmarked, 15 emerged as leaders. These brands are Academy Sports + Outdoors, American Eagle Outfitters, Belk Inc., Crate & Barrel, Levi’s, Macy’s, MAC Cosmetics, Neiman Marcus, Nordstrom, Pandora, REI Co-op, Saks Fifth Avenue, Sephora, UGG and Zales.

In today’s rapidly evolving ecosystem, retailers need complete visibility on and insight into every aspect of their business, from back-end to customer-facing. Unified Commerce solutions combine a retailer’s front- and back-end systems to establish a single view of the business. That single view informs better decision-making and enhanced customer experiences, while enabling brands to identify and respond to trends quickly, ultimately driving stronger revenue growth by up to 6X. However, consolidating systems and building a cohesive Unified Commerce solution can be quite challenging.

Retail Challenges

The benchmark identified the following common challenges in retailers’ efforts to adopt this new model:

  • Personalisation – Retailers must be able to identify shopper intent and curate a personalised experience that meets their expectations. However, only 38% of the retailers studied give their store associates access to shopper purchase history and wish lists across all channels. Only 20% of the retailers studied provided personalised product recommendations and offers. As a category, digitally-native vertical brands (DNVBs) outperformed the broader retail cohort in this area, with 42% offering advanced personalisation capabilities – 16 points ahead of the overall group examined.
  • Real-Time Inventory Visibility – Visibility into allocatable and saleable inventory and rich findability are critical for retailers wanting to provide a seamless omnichannel experience. Only 29% of the retailers studied provide real-time inventory statistics on their product detail pages.
  • Convenience and Flexibility – Today, convenience is about more than just speed of delivery. Convenience encompasses providing multiple payment and delivery options and the ability to make changes to an order after the sale. Only 15% of the retailers studied provided the option to change fulfilment method post order confirmation. On an average, only 27% of the retailers provided the ability to return store purchases online.

Driving Strong Growth

“Shoppers don’t see channels the way retailers do. Unified Commerce can only provide the highly customised shopping experience expected by today’s consumers if there is true visibility of inventory availability, and flexibility during and after the sale,” said Manhattan Associates president and CEO, Eddie Capel. “Embracing a Unified Commerce model can drive strong business growth, high revenue opportunity, lead to competitive advantage and heightened customer loyalty that every retailer covets. With the right technology and solutions, they can outperform their peers by as much as 6X.”

“Zebra Technologies is helping retailers globally optimise their inventory and engage their associates to improve productivity and deliver an elevated customer experience,” said Bill Burns, Chief Executive Officer, Zebra Technologies. “This new benchmark highlights the important role that real-time inventory visibility, front-line worker enablement, and fulfilment flexibility play in driving Unified Commerce, and we have the right solutions to deliver these benefits.”

“In order to deliver on the promise of Unified Commerce, retailers must connect digital and in-person experiences, and all of the data and systems that enable them,” said Carrie Tharp, VP of Retail and Consumer at Google Cloud. “Manhattan Associates’ partnership with Google Cloud on this benchmark shows how retailers can make it easy for customers and store associates to find the right products online and instore by implementing a unified commerce strategy backed by data and AI.”

New Battleground

Giri Agarwal, Chief Strategy Officer at Incisiv commented: “Unified Commerce is the new battleground for retailers to differentiate themselves. Our 2023 Unified Commerce Benchmark shows that leaders who have adopted unified commerce deliver highly nuanced, seamless customer experiences across channels, leveraging technology and data to drive revenue growth. The insights from this benchmark won’t just help retailers keep up, it will help them stand out.”

Click HERE to view the complete 2023 Unified Commerce Benchmark for Specialty Retail.

 

Logistics Experts: Prepare for Easter Peak Trading

Posted on by David Priestman

Courier experts at DeliveryApp have revealed how companies can prepare for the Easter peak trading season. From ordering household essentials to gifts for a loved one, customers are used to receiving parcels with ease. Retail spending in the UK for Mother’s Day gifts was predicted to reach £1.34 billion in 2021, meaning demand for gifts to arrive in the time ahead of the big day is crucial. Research revealed that in 2022 sales surged twice, almost two weeks before Mother’s Day by 80%. Interestingly, revenues rose by 72% of the daily average on Mothering Sunday itself.

Peter Board, Commercial Director at DeliveryApp, a UK-wide same-day delivery tech platform has given top tips for companies on how they can best prepare for peak trading periods such as Mother’s Day, whilst keeping up with demand for fast delivery.

1. Consider the impact of peak periods on last-mile delivery
During peak selling periods most companies will need additional support for fulfilment and delivery, but for smaller businesses it can often present more of a challenge. Consider the cost benefit of finding temporary versus permanent resource to ensure productivity levels are most effective. Additionally, consider the importance of employee and delivery personnel’s welfare – setting increased drop targets or challenging fulfilment goals during peak season can be counterproductive, and negatively affect employee wellbeing. In the last-mile delivery phase where pressure can be high – it’s harder to maintain control and standards, so bolster support throughout the supply chain.
2. Investing for key periods is an investment in future customers
Whilst the additional cost of hiring support drivers may be over facing in the lead up to peak trading periods, the alternative can often be a far costlier situation. A lack of logistics support to fulfil orders to eager customers can result in undelivered or spoiled goods, customer frustration if a failure to deliver for the key date, and therefore potential refunds.
3. Tailor your messaging to customers
E-commerce brands need to ensure they communicate any potential delays to customers during the peak shipping season. Unfortunately, some delays do happen but be proactive and transparent in communication with customers about any issues that may arise. For key trading periods, it is advised that you should let customers know of shipping deadlines so customers can have their orders shipped on time. If you’re offering same-day or next-day delivery, be honest with how realistic that may be during these peak periods and if your courier partners can support this.
4. Partner with the right logistics company for your business needs
Partnering with the right logistics company can help make peak trading seasons more manageable. When seeking a reliable courier service, one of the most important factors you will be looking for is a service provider who can ensure their service is seamless and goods are delivered on time. By using more agile delivery services, e-commerce companies can meet the needs of their customers with networks of self-employed courier drivers who offer the benefits of both flexibility and reliability.
5. Consider the environmental impact
Peak trading periods mean increased deliveries and therefore increased journeys. In the UK, Black Friday alone contributed 429,000 metric tons of greenhouse gas emissions and the shipping, logistics and ecommerce sector contributes around 4% of the world’s total emissions. Consider your overflow drivers, whether they have access to green fleets of vehicles, if they operate a hubless service or offset carbon emissions with their deliveries to mitigate some of the environmental effects.
6. Tracking transparency can prevent costly customer service
If customers are keen for a package to arrive before Mothering Sunday, there’s increased frustration when delivery timeframes aren’t met, and resulting pressure on customer service teams if there’s a lack of transparency. Late deliveries are one of the top frustrations amongst customers who take to social media and other channels, requiring increased work for customer support staff, or longer waits for already aggrieved shoppers. The short-term failure to prepare can result in the loss of lifetime customers, strain on support staff and damage to TrustPilot reviews, online sentiment and overall brand perception of your business.
7. For smaller businesses, consider pooling deliveries to save on costs
If you’re operating a smaller business with harder to send parcels, options such as a day van hire and driver solution could mean using one reliable service to deliver multi-packages, rather than multiple consignments with couriers who are harder to track for your customers.

Board concludes: “Peak trading periods put enormous pressure on couriers to accommodate customer demand, whether it’s Mother’s Day, Black Friday or Christmas – retailers need to have a sustainable strategy to meet rising consumer demand. At DeliveryApp, we’ve created an innovative courier work overspill solution. If your courier business needs some help during these times, you can book an A to B delivery whenever you need it. Our professional couriers ensure prompt and safe deliveries, with a unique real-time tracking technology to ensure your customers know exactly where their parcel is on it’s journey. For brands, last-mile delivery is often one of the costliest and least efficient parts of the chain during key retail periods – it’s important that they plan, prepare and partner with the best resources, technology and logistics partners possible to ensure a successful delivery.”

Pallet Live Storage Fills Grocery Shelves

Posted on by David Priestman

An innovative Pallet Live Storage installation can play a key role in supporting grocery retailers as they strive for market leading growth, according to Edward Hutchison, Managing Director of BITO Storage Systems.

Providing up to 50% more storage capacity than traditional racking on the same footprint, a Pallet Live Storage (PLS) system can contribute significantly to accommodating sufficient stock to meet growing demand from a grocery retailer’s customers.

Supporting a retailer’s need to maintain customer service in tandem with achieving sales growth is one of the biggest challenges placed on a distribution centres (DC), particularly when it comes to handling the sheer volumes involved and fast turnaround required by everyday bulk stock lines, such as soft drinks.

Pressure intensifies when these lines experience peaks, such as during a hot summer – particularly in large cities or on the coast. If one store runs out of a line of soft drinks on a very hot day, there’s a good chance that others in the region will experience a similar issue. All will want more but storage limitations mean there’s a chance that not every store will get the amount they require, which will have a knock-on negative impact on the grocery retailer’s level of customer service.

The best way to ensure such situations are avoided is to maximise the amount of storage that can fit within the constraints of a DC to provide efficient order fulfilment for retail stores. The traditional storage format in grocery DCs is standard pallet racking offering ground floor and first level picking with multiple levels of bays above. It is not unusual in particularly crowded DCs to find bulk stock items that are continually fed to stores being located on the DC floor. These configurations allow a DC to carry out case picking and give it the opportunity to take a pallet and ship it directly to a store. For smaller stores with a lower turnover, they might ship a half pallet.

However, for those grocery DCs that need greater flexibility to meet a variety of demands from customers within a limited space, PLS offers an ideal solution. It provides a dense storage and order picking system that contributes to innovative, efficient and agile grocery logistics operations. On a relatively small footprint, pallets can be located ‘in the air’ on several levels of inclined roller lanes, with delivery lanes for pallet loads of bulk stock lines – such as soft drinks – on the ground floor. This provides dense storage and rapid access to orders.

There are many innovative design variations that can be added to suit specific needs. For example, instead of using pallet racking uprights, the pallet live flow lanes could be constructed above a mezzanine structure, which could itself accommodate a number of bulk delivery lanes between each column on the ground floor for easy and rapid access. Introducing a such a solid structure for the ground lane gives added protection against the powerful and heavy lift trucks used in a DC.

Reach trucks can be used to place pallets delivered from Goods In on the upper levels of the PLS. Entering the rear of the lane, the pallets move down the roller lanes to provide a continuous feed of product for the pick face on the aisle at the front of the lane. Systems can accommodate traditional pallets, Euro-pallets handled short-sided and half pallets handled long-sided.

The flexibility in such a design allows products that need to be sent immediately to stores to be picked directly from the flow lane and transported to Goods Out. If the ground floor delivery lanes are getting close to empty, then stock stored in the lanes above can be brought down and pushed through to the other side of the lane for order pickers to continue their pick. The space efficiency such a system delivers makes the investment well worth it, giving a DC the capacity to stock items in sufficient quantities to avoid running out – even during peaks.

In addition to being an efficient storage method, PLS operates on the FIFO (First In First Out) principle, ensuring the product rotation that is important for grocery store replenishment: pickers always get the first product sorted by the ‘best before’ date. Furthermore with this solution, when bulk products a hit peak, a DC will have the ability to react on customer demands quickly, delivering straightaway irrespective of the amount ordered by a store manager. Any demand in any store can be fulfilled at any time – and that is the goal of any logistics operation.

A further benefit is that the PLS can accommodate seasonal items on the flow lanes in the upper levels, allowing the grocery DC to take advantage of quiet time to get those products out to stores early. When seeking a supplier to provide a PLS system, it makes sense to find a long-established company and has proven itself over the years as being a very trustworthy partner for grocery retail operations. With solutions that are priced competitively and an experienced team of experts to create and deliver projects on time, the company should be able to work closely with the client to develop customised solutions and work around existing operations.

On-time, Cost per Delivery KPIs for Logistics Providers

Posted on by David Priestman

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

Logistics providers’ priorities for performance improvement differs by company size

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

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

Retailers and logistics providers must work together to achieve superior deliveries

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

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

Logistics providers’ last-mile delivery growth priorities

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

Research Methodology

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

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

Inventory – the Next Normal

Posted on by David Priestman

A new survey suggests that a single view of inventory is becoming increasingly important in retail logistics.

At its 2022 ‘European Exchange’ customer conference – this year staged in Berlin – supply chain software leader Manhattan Associates Inc. revealed the findings of its latest international research, ‘Recalibrating For The Next Normal’. It described a retail landscape where the lines between physical and digital commerce are becoming increasingly opaque and complicated.

“Shopping habits have changed forever,” commented Henri Seroux, SVP EMEA at Manhattan Associates. “There can be no return to the status quo, with 83% of retailers now claiming they operate a level of interconnection between their online and in-store functions.”

“As the retail industry recalibrates for this next normal, the ability to navigate disruption, while enhancing the physical and digital customer experience will become increasingly important; as will the technologies that allow retailers to fulfil in-store and online orders in an agile, sustainable and profitable fashion,” Seroux continued.

Single view of inventory

When it comes to fulfilment, the ‘one size fits all’ approach no longer works and retailers are reacting to this. Natalie Berg, retail analyst, author and founder of NBK Retail commented: “While the vast majority of surveyed retailers stated that they have a level of interconnection between their online and in-store functions (83%), only around half are offering buy in-store and return online (50%), or buy online and return in-store (46%). And, only 6% of retailers believed that they had an accurate overview of their inventory across their entire business (in-store and online) 100% of the time.

“Shoppers today expect to shop on their own terms with more than a third (34%) considering click & collect to be the most important delivery method, followed by contactless/curbside pickup at 19%. This finding highlights the importance of offering consumers choice when it comes to fulfilment options and the need for a retailer to possess a single view of inventory, as keeping that all important customer promise just got a whole lot more complicated,” Berg added.

Almost a quarter of consumers (24%) now expect shop assistants to be able to check availability in a nearby store if a product is out of stock, or order that product for home delivery or collection, highlighting the blending of the physical and digital retail spaces.

Seroux continued: “40% of consumers still favour traditional sales checkout in-store, whereas, 19% would like to use more digital methods such as self-checkout on the shop floor with a shop assistant via a mobile device (8%). Interestingly, almost two-thirds (63%) of retailers agreed that checking stock availability was the most important customer-facing duty performed by their shop assistants in 2022.

“Over the last decade bricks & mortar spaces were seen as liabilities in a digital era. However, the perception of the physical store has been fundamentally changed by the impact of the pandemic.

“Today, many retailers are evaluating the roles of their stores, recognising their added value as strategic hubs for online sales, not least as a fulfilment hub for click & collect, returns, endless aisles, same-day delivery and more. While digitalisation and frictionless shopping are certainly two of the big winners from the pandemic, the research shows that we should not be too quick to discount the importance of human interaction or the role of the physical store in the era of digital commerce,” finished Seroux.

Key research findings:

• 51% of consumers reported environmental/sustainability efforts were important to them in shopping
• 26% of retailers believe creating a more environmentally aware and sustainable supply chain is one of their top three priorities for 2023
• 74% of surveyed retailers provide shop assistants with handheld devices that show a consolidated view of inventory across the network
• If a return is made in-store 99% of retailers make the product available for resale with 38% making it available online, 25% putting it on the shop floor and 27% doing both
• 68% of retailers reported that they were now operating micro-fulfilment strategies in efforts to service the numerous channels used by today’s hybrid consumers
• 65% would like to have a choice of couriers and delivery dates, and 18% would like a choice of couriers with different cost options

• Survey: 3,500 adult (18+ years’ old) consumers and 700 management or senior-level retailer respondents, representing Tier 1 retail organisations (generating more than $100m in annual revenue) were surveyed, in France, Germany, Italy, The Netherlands, UK and USA.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.