coverstory
What is new and exciting today is quickly becoming the norm tomorrow – so e-tailers and their supply chains had better be constantly innovating
Charles Brewer, CEO, DHL e-commerce
4.1 % of total retail sales conducted online 36.4 % e-commerce sales growth 2012-2017(% pa)
China’ s 206 billion e-commerce market is second to the US and will continue to grow
The first e-commerce warehouse spaces began in the main cities of Beijing, Shanghai and Guangzhou but their reach continues to extend. rather than rely on partners like the UPS and FedEx. Recently, it unveiled its first Boeing 767 in a fleet of Prime Air branded cargo airplanes for a service that is expected to grow to 40 aircraft.
Although Amazon insists it has no plan to fully replace its logistics partners, with Amazon taking a sizable chunk of the market for itself, and with its ability to expand beyond its own Amazon Prime customer base, it is very evident that FedEx and UPS are facing a potent new competitor.
Questions are now being raised on whether Bezos’ big bet on aviation, first with cargo planes and soon possibly with drones, could transform the package-delivery business model.
Technology – a gamechanger
Furthermore, with delivery promises to be met at the click of a button, technology is set to play a greater role in transportation. Innovations such as driverless trucks, platooning( several trucks following each other closely to reduce air friction and save fuel), drones, and automated guided vehicles used in warehouses and unloading freight in ports will be the order of the day. Integration within industries also holds key. Amazon joining hands with US Postal Service for Sunday deliveries and Walmart buying Jet. com are prime examples.
Addressing product and service innovation at DHL, Charles Brewer shared,“ We have a range of approaches in play to address the exciting challenges in the last mile. This ranges from Parcel Lockers to Service Points, from trunk delivery to drone delivery. This is an extremely exciting space and we can all expect continued developments and more innovative solutions to meet customers evolving needs.”
Earlier this year, during the Cargo Facts Asia conference in Hong Kong, Steven Li, director of Strategic Partnerships at Cainiao, Alibaba’ s logistics arm, urged the air cargo industry to change to meet the growing demand from rapidly expanding cross-border e-commerce. One-third of the $ 3 trillion global e-commerce market is cross-border trade, which is growing faster than domestic sales, said Li.
“ Sellers and buyers need quick response times, flexible services, complete visibility from pick up to delivery. Air freight companies need to integrate more with other logistics companies, market places and transactions. IT capabilities will be very important in the future,” he said.
Li also explained that Alibaba marketplaces were experiencing bottlenecks with air freight, due
0.4 % of total retail sales conducted online 23.9 % e-commerce sales growth 2012-2017(% pa)
E-commerce spend in India consists mainly of online travel but online retail continues to grow – particularly in the main cities.
India’ s logistics infrastructure still constrains efficient retail logistics and e-fulfillment.
1.4 % of total retail sales conducted online 18.3 % e-commerce sales growth 2012-2017(% pa)
Online sales in Mexico went from $ 2.8 billion in 2010 to $ 6 billion in
2012. Retailers have begun leasing warehouses specifically dedicated to their e-commerce business
2.2 % of total retail sales conducted online 12.5 % e-commerce sales growth 2012-2017(% pa)
Moscow and St Petersburg dominate the online retail market, and most existing fulfillment centers service these cities
Growth will depend on further improvement in the logistics infrastructure in more remote areas of Russia
Small Mexican cities generally combine their distribution centres with their regular business but this will change as e-commerce grows across Mexico
3.4 % of total retail sales conducted online 12.5 % e-commerce sales growth 2012-2017(% pa)
The number of people with internet access in Brazil surpassed 100 million in 2013
Online retail is growing in popularity in Latin America, with nearly $ 20 billion in sales coming from Brazil aloneextend.
Brazil’ s logistics warehouses are mainly located on the major roads in that lead to the hub of e-commerce retail in Downtown Sao Paulo.
Source: www. 2flow. ie
6 | OCTOBER 2016 www. stattimes. com