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DHL study: 60% of companies yet to implement<br />

e-commerce strategy despite recognizing its importance<br />

OHIO: DHL Supply Chain, the<br />

Americas leader in contract logistics<br />

and part of Deutsche Post DHL Group,<br />

says about 60 percent of companies<br />

admitted they have yet to implement<br />

e-commerce strategy despite<br />

recognizing its importance.<br />

In its latest research report titled<br />

“The e-commerce supply chain:<br />

Overcoming growing pains” on the<br />

evolution of e-commerce supply<br />

chains, DHL said the respondents said<br />

there are several barriers to<br />

implement their e-commerce<br />

strategies, which include changing<br />

customer expectations, pace of<br />

delivery, and limitations in existing<br />

infrastructure.<br />

The new insights are from a global<br />

survey of nearly 900 decision-makers<br />

responsible for logistics or supply<br />

chain management and e-commerce.<br />

Respondents hailed from all the major<br />

industry sectors, including retail,<br />

consumer goods, life sciences, high<br />

tech, auto and engineering and<br />

manufacturing.<br />

The report reveals that 70% of B2C<br />

c o m p a n i e s a n d 6 0 % o f B 2 B<br />

companies are still working towards<br />

the full implementation of their<br />

strategy, even though 70% of<br />

respondents rate e-commerce as 'Very<br />

Important' or 'Extremely Important' to<br />

their business in terms of volume and<br />

revenue.<br />

GLOBAL NEWS<br />

“E-commerce is a primary driver of<br />

business growth. Companies know<br />

they can no longer afford to operate<br />

without a comprehensive omnichannel<br />

strategy that develops a deep<br />

personal relationship with each<br />

individual customer, but many are at a<br />

loss for how to continue to keep up<br />

with customer demands,” said Jim<br />

Gehr, President, Retail, DHL Supply<br />

Chain, North America.<br />

“Both B2B (61%) and B2C (65%)<br />

respondents rated e-commerce as<br />

having the biggest effect on customer<br />

retention and satisfaction, and the<br />

number is only expected to increase in<br />

the next 3-5 years. That is why it is<br />

mission critical for supply chains to<br />

provide greater predictability,<br />

flexibility and speed to continuously<br />

maximize service levels.”<br />

The evolving demands of e-<br />

commerce also mean that in the next<br />

3-5 years over 50% of businesses will<br />

be making material changes to their<br />

distribution strategy. To deal with this<br />

pressure many companies are opting<br />

to partner with a third-party logistics<br />

company (3PLs) to augment their inhouse<br />

resources and capabilities,<br />

enabling them to quickly and<br />

effectively scale to capitalize on e-<br />

commerce opportunities.

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