E-commerce logistics: How the key market trends market - and technology solutions reshape the logistics
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E-commerce logistics: How the key market trends
and technology solutions reshape the logistics
market
Dr. Eleni Zampou
Innovation Project Manager, Logistics and Supply-Chain
ELTRUN: The eBusiness Research Center
Athens University of Economics and Business
Who we are
is the E-Business is Research Center of the Athens University of
Economics and Business and belongs to the Department of
Management Science and Technology. It was established in 1994.
TT
5 40+ 100+
Research groups Members Research and industry
projects
Rethinking urban Energy and Applying big data Cognitive logistics Ongoing
transportation carbon efficiency solutions to operations through collaboration on
through advanced in the Supply transform e- dynamic and ad-hoc online grocery
tools and supply Chain commerce logistics collaborative logistics and
chain collaboration networks related challenges
Contents 1. Key aspects 2. Innovative 3. Partnerships 4. Key trends 5. The e- fuelling the technologies and acquisitions shaping the e- commerce growing transforming in the e- commerce logistics complexity of e- replenishment commerce logistics market ecosystem commerce and distribution logistics market logistics processes
Key aspects fuelling the growing complexity of e-
commerce logistics
New set of
Growth of e- Growing
consumer
commerce competition
expectations
More fulfilment Economics are
and delivery the challenge
options to solve
The e-commerce growth was doubled in the Post-Covid era
New market growth opportunities in specific product categories
New set of consumer expectations turns logistics from cost
source to a growth opportunity
87% stated that they’d be highly more likely to
shop again with an online merchant following a
positive delivery experience.
61% of e-commerce shoppers said they decided to
purchase from one retailer over another because they
provided more delivery choices.
55% of consumers said that they will switch to a
competitor if that competitor offers a faster service.
46% of shoppers abandoned their shopping cart
because the delivery time was too long or not stated.
Consumers who get groceries delivered at
least weekly are more likely to prefer 49% of customers stated that, clear communication
delivery subscription plans, to buy regarding delivery time is the most important element of
online and pick up in store or collect the delivery.
deliveries from parcel lockers.
73% of consumers said that
receiving the delivery in a convenient
time slot is more important than
receiving it quickly.
Same day delivery is the new the norm intensifying competition
Key players employ varying fulfilment and delivery options
Only 10% of international retailers make a profit from the
online channel
Retailers are absorbing part of the cost of
last-mile delivery
Absorbing a part of the last-mile delivery
cost can potentially hurt retailers’
profitability by 26%Contents 1. Key aspects 2. Innovative 3. Partnerships 4. Key trends 5. The e- fuelling the technologies and acquisitions shaping the e- commerce growing transforming in the e- commerce logistics complexity of e- replenishment commerce logistics market ecosystem commerce and distribution logistics market logistics processes
Innovative technologies cover the three key areas of e-
commerce logistics operations
Logistics and delivery
Planning, forecasting 01 03
and inventory
management
Sample text
02
Warehouse and in-store backrooms
automationMany of these solutions have already been implemented…
In - car delivery
▪ GM and Volvo, and Honda offered
delivery to a customer’s car when it
is parked at home or office
▪ Provided by Amazon and Migros
▪ Ocado built automated order ▪ Waitrose is the first retailer in Britain
fulfilment centres for Kroger in the US, to offer this service
Morrisons in the UK, Casino in France, ▪ The Dutch supermarket chain,
Sobeys in Canada, and the ICA Albert Heijn, a subsidiary of Ahold
Group in Sweden Delhaize, is also experimenting with
▪ The Alibaba store, “Hema,” is this service
designed as both a store and delivery ▪ Amazon offers the Amazon Hub
center with overhead conveyor belts. Apartment Locker
Warehouses automation In - home delivery…in corporate and productive environment
Autonomous vehicles
▪ Ford, Walmart, and delivery service
Postmates are collaborating to
design a service for delivering
groceries and other goods to
Walmart customers using
autonomous vehicles.
▪ DB Schenker has tested long cargo ▪ UPS has ordered 10,000 Generation
bikes that can carry two containers of 2 Electric Vehicles
packages
▪ Amazon has 100,000 custom
▪ UPS recently piloted e-bike delivery electric delivery vans on order
after deploying it in European cities. along with another 1,800 electric
▪ Amazon and DHL are also piloting e- vans
bike delivery in New York.
▪ Picnic, a Dutch online supermarket,
▪ Velove, a Swedish company, offers an
delivers orders in electric vans
electric cargo bike for faster deliveries
Cargo bikes Electric vehicles… while others have been in trial phase
Sleek electric cargo
bikes
▪ A new delivery vehicle from a
German startup called Ono looks like
a tiny truck. But it’s actually an
electric bike, narrow enough to easily
move through traffic and even fit in a
bike lane when necessary.
• 7-Eleven was the first to successfully ▪ Roxo lean into FedEx Freight Direct
complete a Federal Aviation
Administration approved drone
delivery in July 2015
• Since then, several retailers –
including Amazon – have piloted
these.
Drones Robots… covering, however, a wide range of processes
Inventory management
and placement
▪ Zara uses Radio Frequency
Identification (RFID) to track
garments and reduce out of stocks.
▪ Walmart moved back room
inventory onto the top shelves on
the shop floors to improve real time
visibility and reduce ‘ghost
inventory.
▪ Amazon and P&G joined forces to ▪ Amazon has applied A.I to inventory
sell products such as diapers directly management.
from P&G’s warehouses, ▪ Metro Mymarket has applied AI to
▪ Zalando and Adidas - one of stores replenishment.
adidas’ distribution centers was
linked up to Zalando’s inventory
system.
▪ YOOX NET-A-PORTER and Valentino
Connected inventory AI-enabled inventory
and forecastingContents 1. Key aspects 2. Innovative 3. Partnerships 4. Key trends 5. The e- fuelling the technologies and acquisitions shaping the e- commerce growing transforming in the e- commerce logistics complexity of e- replenishment commerce logistics market ecosystem commerce and distribution logistics market logistics processes
159 partnerships and acquisitions by key market players have
been recorded in the period 2018-2020
#28 #93
e.g. Kroger with Mirakl, e.g. Carrefour and Rappi,
Instacart with Costco partnerships with digital
intermediary platforms, such as
Instacart, Glovo, Postmates or
Uber Eats.
#38
2. CAPABILITY
e.g. Kroger and Microsoft,
Ocado with retailers including Partnerships for automating
warehouses or jointly develop
Kroger, Casino, Coles, Sobeys and
solutions in areas such as AI,
Morrisons cloud computing or voicePartnerships and acquisitions concern different strategic
goals and capabilities
Launching marketplaces Entrance to new markets Offering new services Promoting innovation
Strategic
• Kroger with Mirakl • Farfetch, Alibaba and • UPS with Stamps to offer • DB Schenker with start-up
• Carrefour France - with Richemont in global luxury discounted shipping rates accelerator Plug and Play
Mirakl/ 52% SMEs industry • UPS with ShopRunner to offer • Ahold Delhaize partnering to
• Instacart with Costco in free two-day shipping and launch Artificial Intelligence
prescription delivery returns for Retail Lab
• Alibaba with hypermarket • DB Schenker with Magento
chain, Sun Art Retail Group • FedEx and BigCommerce to
Ltd SMEs
• Kühne + Nagel acquired
Indonesian Wira Logistics
Augmented Voice – based In-vehicle Shipment Warehouse Digital
Blockchain Shelf cameras Robotics
reality shopping applications visibility automation strategy
Capability
• Flipkart Walmart Walmart Carrefour Audi and Kuehne + Kroger Ocado 7-Eleven
acquired and Canada and Alibaba Nagel use acquired has
Scapic VeChain with Google and Ocado Kindred entered
• Alibaba in China Focal Zebraxx technolo Systems strategic
acquired Systems gy and partnershi
Infinity AR Haddingto ps with
n Adobe
Dynamics. and
Microsoft
Microsoft
and FedEx… as well as distribution capabilities and alternatives
Launching or expanding home Expanding the click and collect Autonomous Crowdsource Electric Delivery
Drones
delivery points network vehicles d services Vehicles Robots
• Amazon Walmart- UPS with • UPS
• Uber Eats and Carrefour in • Amazon Australia with Myer on acquired Kroger and
France and Belgium – delivery Click & Collect Joyrun ARRIVAL Flight Nuro
Distribution
self-
within 30 mins. • Amazon with Next stores driving to buy Forward launced
startup with autonomo
• Glovo with Carrefour in Ngong • Amazon's new Counter service 10,000 of us grocery
Zoox its electric CVS delivery in
And Rongai Towns, Kenya) with bookstore chain Giunti and
• Morrisons with Amazon and the network of Fermopoint and vehicles Health Houston
• Walmart to UPS
customers SisalPay stores. Inc. with
• Ahold Delhaize acquired • InPost (post lockers) partners with
Cruise wholesa
FreshDirect, a Grocery Delivery with Lidl (affiliate
Service based in New York City. • DHL Group and Lidl announced le
of pharma
• 7-Eleven with delivery platforms that 500 DHL Packstations will be General
Postmates, DoorDash and installed at Lidl stores nationwide ceutical
Motors) distribut
Google, Uber Eats, Instacart this year. • UPS with
and Grubhub • Ahold Delhaize would expand its or
trucking Ameriso
• Lidl with Buymie (on demand partnership with BP. platform
groceries) Ireland. urceBer
TuSimple gen,
• Aldi UK in collaboration with
Deliveroo -30 mins grocery
delivery to London
• FedEx makes major foray into
eCommerce by buying
ShopRunner
• DB Schenker’s with uShip.
• SEKO Logistics and BringgContents 1. Key aspects 2. Innovative 3. Partnerships 4. Key trends 5. The e- fuelling the technologies and acquisitions shaping the e- commerce growing transforming in the e- commerce logistics complexity of e- replenishment commerce logistics market ecosystem commerce and distribution logistics market logistics processes
Seven key trends shape the e-commerce logistics market
Revisiting the supply chain
Investments in new e- design
commerce fulfilment and last
mile logistics start-ups Growth of parcel shop and
locker networks
04
03
Specialized e-commerce 05
logistics companies are
emerging Direct customer
opportunities for
02 consumer product
06 brands
Partnerships
and acquisitions Returns are
the new
01 07
normal
Market
TrendsSpecialized last mile and e-commerce logistics companies
are emerging
▪ Online platform for food 02
ordering and delivery
▪ On-demand delivery services
UNICORNS ▪ E-Commerce logistics company
SEMICORNS ▪ Self-driving vehicles, drones, robots
▪ Tech-enabled fulfilment services to
e-commerce businesses
▪ AI-based fleet management &
vehicle tracking systems, AI-based
delivery management software
MINICORNSMore than $ 12 billion have been invested in start-up logistics
companies since 2015
03
▪ Around USD 28
billion has been
invested, almost all New Data, HiveBox,
Nuro, Delhivery, Ninja
of which was raised Van, Instacart,
Xpressbees
in 2015 or later
▪ Most funding goes
to startups working
on last-mile and Best
freight platforms i.e. Shippo, ShipBob
Instacart, Manbang,
and Flexport
Note:
▪ New last-mile delivery models: Offer innovative last-mile delivery services to retailers and individuals by using crowdsourced delivery,
drones, AVs, etc
▪ New entrants in the parcel business: Act as a traditional parcel business: include pickup, sorting, and delivery
▪ B2B e-commerce specialists: Provide a specific value-chain-focused solution to online retailers (e.g., return logistics, e-fulfillment,
conversion optimization)Revisiting the supply chain design to include stores and
micro-fulfilment centres
04
Retail stores becomes a Adding micro-fulfilment
strategic key asset centers (Mini-CFCs) can
make last-mile delivery
quicker and more cost-
effective solution
▪ Using existing stores rather than new warehouses— ▪ Several leading grocers including Walmart, Ahold
could be the entry gate to same-day delivery for Delhaize, Amazon, Albertsons, Nordstrom and
aspiring retailers. Woolworths, Carrefour have been partnering with
▪ The Alibaba store, “Hema,” is designed as both a technology start-ups (e.g. Alert Innovation, Takeoff
store and delivery center and consumers within Technologies, Food-X ) to explore mini-CFCs.
three kilometers receive grocery orders in 30 ▪ Kroger revamps distribution plan to add Mini-CFCs
minutes. and Ocado is also trialling its Ocado Zoom service
in London using mini-CFCs.Fast growth of parcel shop and locker networks
05
▪ Since 2018 the total global number of ▪ The key success factors of an
locations has increased by 36% independent are:
▪ More than 1.2m parcel shop and locker – open / agnostic network, many locations,
locations worldwide (over 890,000 parcel long hours, awareness
shops and more than 350,000 locker ▪ 48 leading networks including
locations) – Hive Box with 150,000 lockers
▪ Two business models differ between – DHL Pakstation with 3,500 locations.
operators: – Amazon’s locker network locations in the US and
the UK have increased by 50%.
– Most (but not all) carrier-owned networks
– Finland’s Posti recently will significantly expand its
handle only their own volumes parcel locker network so that, by 2022, there will be
– Most independent networks are open to a 4,000 Posti parcel lockers in Finland, meaning up to
range of carriers. In some cases they act as 85% of Finns will have a Posti parcel locker less than
first tier supplier, working directly with one kilometer from their home.
retailers, while in other cases they act as a – Other major operators are include Best, UPS Access
subcontractor to their carrier partners Point, InPost, FedEx, Sposter/China Post, Hermes,
DPD (La Poste) and GLS (Royal Mail).
▪ 13 locker manufacturers including KEBA, TZ
and ZhilaiDirect customer opportunities for consumer product
brands
06
▪ Product subscriptions models is the way
forward.
✓ 46% of the consumers want to automate repeated
purchases through product subscriptions
✓ 96% of consumer product firms seeing subscription
models as a means to provide more convenience
and value to customers
▪ Brand loyalty programs are a big attraction.
✓ with 59% of consumers selecting this as the reason
they buy from brands
▪ Many are already seeing the fruits of their
efforts.
✓ 5% of Unilever’s North America sales are online,
with a growth rate of 50% and P&G and Shopee
drove record sales on Show Me My Home initiative
▪ Shared warehouses and logistics can be used
for last-mile delivery
✓ 97% are considering joining forces with other
consumer product firmsReturns are the new normal reaching up to 30%
07
That sweater you don’t like is a trillion-dollar
problem for retailers.Contents 1. Key aspects 2. Innovative 3. Partnerships 4. Key trends 5. The e- fuelling the technologies and acquisitions shaping the e- commerce growing transforming in the e- commerce logistics complexity of e- replenishment commerce logistics market ecosystem commerce and distribution logistics market logistics processes
The e-commerce logistics market includes "old" and "new"
players
Logistics /3PLs /Parcel Retailers and Marketplaces Specialized e-commerce fulfilment companies
delivery companies /
Walmart, Alibaba, Byrd, Rakuten Super Logistics, ShipBob,
Couriers
Carrefour, ShipMonk, Red Stag Fulfillment, Fulfillify,
DHL, Amazon, Kroger eFulfillment Service, FedEx fulfilment, Fulfillment
United Parcel Service, JD, Lidl, 7-Eleven, by Amazon, Deliverr
FedEx Corporation, Kaufland, Costco,
Maersk Logistics, DB Asda, Ocado Brands with B2C Parcel shop / locker
Schenker, channels networks
Kuehne+Nagel Inc., On-demand logistics and Unilever, Miele, Lego, Postis, Keba, Collect+
NYK logistics., Union delivery services providers P&G, J&J delivery, InPost, Doodle
Pacific Corporation,
Glovo, parcel2go, Technology providers for last mile delivery and
and BNSF Railway
Postmates, DoorDash warehouse automation
Company,
Uber Eats, Grubhub, Starship Technologies, Nuro, Routific, Loginext,
ARAMEX, XPO
Instacart, De liveroo, Ocado, TeleRetail, Parcelly, Onerail, Shippo ,
logistics
Swiggy, Zomato, Delhivery ShipHero, BringgThank you!
Dr. Εleni Ζampou
zampoueleni@aueb.gr
ELTRUN, The E-Business Center
Dpt. of Management Science and Technology
Athens University of Economics and Business
Tel. : +30 210 8203663
www.aueb.gr | www.eltrun.grYou can also read
