Brussels (Belgium), 29/06/2021 - The supply chain continues to face immense pressure in response to e-commerce growth, challenging global markets and customers’ expectations. With added strain and uncertainty from the COVID-19 outbreak, fulfilment efficiency is more crucial than ever.
- During lockdown in 2020, 65% of sales were made online, compared to 34% pre-crisis
- 78% of customers would consider not using a retailer again if a delivery was missing or late three times
- 62% of retailers don’t have access to intelligent real-time data
In its latest ebook, Optimising first to final mile when fulfilment efficiency matters most, supply chain technology company Zetes explores the reasons behind failed deliveries and the cost to retailers and the environment. Reflecting upon the pandemic’s impact, it explains how market leaders are achieving sustainable delivery excellence through technology that enhances human capability.
Relentless customer demand
The COVID-19 outbreak has accelerated the shift away from physical stores to online shopping, with six out of ten consumers saying that they will continue to buy as much online post-outbreak. To stay competitive, retailers are under pressure to offer fast delivery with real-time updates. However, in fast-growing e-commerce markets, failed first delivery rates can be as high as 20%.
Financial, brand and environmental consequences
The retailer or driver is likely to bear the cost of failed deliveries (estimated to be 15 euros per delivery) and customer loyalty is also compromised. 420,000 tons of C02 is generated by delivery vehicles solely to handle re-deliveries.
Supply chain solutions
From first to final mile, every touchpoint in the supply chain is an opportunity to optimise delivery. Market leaders achieve flawless fulfilment by gaining control through scalable technology that enhances human capability and shares data. This includes automation, vision-based and multi-modal voice picking technology, next generation ePOD (electronic proof of delivery), predictive analytics and proactive alert management.
“The pandemic is creating long-term e-commerce opportunities, but only for retailers prioritising technological investment in supply chain visibility and control.” Tiago Conceição, Transport Solutions Expert at Zetes
Tiago Conceição, Transport Solutions Expert at Zetes: “Modern supply chains are complex and multi-tiered. As parcel volumes and customer demands rise, mitigating failed deliveries is paramount for a sustainable future. The pandemic is creating long-term e-commerce opportunities, but only for retailers prioritising technological investment in supply chain visibility and control.”