The global e-commerce logistics market is expected to grow at 9.69 percent through 2020, primarily because of growth in the cross-border e-commerce market, which is expected to increase at a rate of more than 28 percent worldwide.
The Coca-Cola Co. bottler in Rio de Janeiro used to deliver crates of drinks in the city’s Copacabana area by truck until a parking ban forced the company to rethink its distribution strategy. The big cargo vehicles now arrive early in the morning, park at designated sites and transfer the goods to motorcycles that make the final delivery to customers.
The goal of omnichannel retailing is to create a seamless and transparent experience for the customer that enhances the retailer's brand. To date, the omnichannel retailing focus has been largely on the selling experience and not how the retailer gets the goods into the customer's hands. However, customers measure the entire shopping experience, including delivery. Omnichannel selling is making retailers responsible for home delivery, whether they like it or not, and last-mile delivery performance is the last word about the retailer in the customer's mind.
Uber's mission is to offer "transportation as reliable as running water, everywhere for everyone". And perhaps "everything": it has begun experimenting with local delivery services, with the aim of becoming as disruptive in logistics as it has been in the taxi business.
Google, Amazon and DHL are working on drones that could someday deliver packages straight to your doorstep. Unfortunately, most drones would struggle to carry something as heavy as a textbook more than a dozen kilometers on battery power.
Analyst Insight: Fourth-party logistics providers (4PLs) are gaining traction in the final delivery service provider industry. The explosion of order-direct to customer delivery has created a need for final delivery service providers with varying capacities and capabilities. 4PLs can provide a network of regional final delivery companies. The creation of strong 4PL players has captured the trust of manufacturers and retailers. – Lisa Kennedy, Project Manager, Tompkins International
The present business models being employed by e-retailers and their shipping partners are becoming increasingly unsustainable, according to a report from Transport Intelligence, a research and analysis firm focusing on the global logistics industry.