RETAIL DETAILED LOGISTICS: FUTURE AND DYNAMICS
What is the common feature between a car dealer, a bank and a supermarket?… They all use POSM (Point of Sale Materials) extensively. How their leaflets, stands, posters or cardboard bags get to retailers is all about logistics, the purpose of which is to optimize inventories and their movements. In these cases, it is more precisely related to « retail detailed logistics« .
Xperts Council worked on retail detailed logistics a few month ago, following the announcement of the sale of the French leading retail detailed logistics firm, Staci.
What is retail detailed logistics?
It is the subset of logistics (mostly B2B) that handles marketable and non-marketable goods in need of complex supply-chain management. But it remains very broad: detail picking, invoicing, KPIs monitoring are all involved in this sector.
In 2016, €25bn were invested in logistics in the European Union . Compared to such figures, retail detailed logistics looks minor, but it is growing fast. For example, Staci has increased its revenue from €54 to €154 million between 2006 and 2016. Eurodislog, another big player, expects a rise of income by 20% in 2017.
How to account for such developments? The case for e-commerce.
One fundamental factor behind this dynamic is the evolution of e-commerce, which should be worth $4 trillion in 2020 . Besides stimulating investments in logistics, this growth also raises customers’ expectations.
Indeed, e-commerce is not just about buying anything from anywhere anymore. Impeccable customer service has become paramount too. Parcels must be quickly delivered. The tweet of an unhappy customer can strip an e-retailer of all credibility.
Consequently, logistics has come to be key in securing customers’ loyalty and retail detailed logistics has become more attractive thanks to its adaptability.
Would you rather be excellent at one thing or average at ten?
This sector is adapted to the dynamics of e-commerce. But it is only profitable to diversify its services when all of them are well-executed. Otherwise, it can result in poorer quality (and lower costs) or higher costs (and better quality). In the future, this trade-off could divide retail detailed logistics into specialized sectors and make it lose its specificity.
Another issue raised by high expectations relates to environmental protection. How to deliver parcels within 1 hour (as promised by Amazon Prime now) while reducing its carbon print?
This analysis of retail detailed logistics is precisely what Experts carefully selected by Xperts Council highlighted to our client, whose questions had then all been answered.