Opportunity - Issue 94

E-COMMERCE
a customer-centric and economically sustainable
delivery service, consider two aspects: consumers’ price
sensitivity and delivery options such as same day, next
day, or a specific delivery window.
LONG TERM
In the mid to long term, focus on two areas:
Refine the omnichannel strategy
The online competition will continue to grow as
consumers are now accustomed to buying online
and more businesses are embracing e-commerce. In
light of these shifts, consider the best way to manage
your omnichannel strategy. Most businesses either
sell their products solely on their websites or they
use a combination of brick-and-mortar marketplaces
and websites. The most effective approach is to adopt
a tailored product-range strategy, which can be
implemented in one of two ways:
•Offer a differentiated range of products
Because consumers typically buy different types
of products online than they do in stores, develop
an online offering that focuses on the products
that people tend to buy online. For example, online
shoppers often buy bulky items that they can easily
review online, such as kitchen aids and gaming
consoles, rather than items they want to hold before
they buy, such as a tennis racket.
• Sell different products on different sites
To ensure a clear distinction between product
quality and to maintain profit margins on premium
products, consider selling different product ranges
on different sites. For example, sell premium
products on your website, and sell standard products
on marketplaces such as Amazon.
Optimise last-mile delivery
Recent events have strained supply chains and revealed
that businesses with resilient and agile supply chains
are best suited to adapt to unpredictability. In light of
the events of the past 12 months and the acceleration
of e-commerce, consider the level of outsourcing
versus the strategic investment required to build lastmile
capabilities. Most companies rely on third-party
logistics providers. However, a self-managed supply
chain allows businesses to control services, quickly
switch or onboard suppliers, and increase security.
The grocery category is moving toward ultra-fast
delivery, defined as less than two hours from click to
delivery. Consumers continue to signal that they prefer
ultra-fast over in-store shopping or slower deliveries,
and the Covid-19 e-commerce surge presents shippers
and logistics providers with significant headwinds.
There’s a non-linear relationship between cost and
lead time for last-mile delivery. Lastmile
costs now play an elevated role in
ensuring future financial viability and
sustainable growth.
As a shipper or logistics provider, if
you want to play in the last-mile space,
you will need to tackle the complex
balance between needs and cost. The
good news is that your customers, your
products and your needs – not the
prescribed chase of the giants – are
what will truly determine how much
you should spend on your last mile.
The needs-based segmentation can appear overwhelming,
but it can be centred around some important
dimensions. Three such dimensions are consumer
centricity and sustainability; reliability and control; and
flexibility and resilience.
___ __ ___ __ _ _
During this time,
traditional demand
triggers are not as
relevant, so new
behaviour signals
will need to be
monitored by tracking
leading indicators
___ __ ___ __ _ _
Consumer centricity and sustainability
As e-commerce accelerates and large players increase
their influence, you must start obsessing over how
you are going to provide consumers with unparalleled
service. Two areas are crucial:
• Seamless experience
New e-commerce consumers expect a seamless
experience across channels. You must design and
implement a continuous experience across all digital
(website, mobile application, alerts, etc) and physical
touchpoints throughout the customer journey.
• End-to-end visibility
It’s not merely about delivering at hyper-speed
and on time. Consumers today want end-to-end
visibility into the delivery process through nearreal-time
notifications and pictures upon delivery.
This visibility is essential to best-in-class customer
experience. You must develop the technological
capabilities to provide it.
___ __
As a shipper or
logistics provider, if
you want to play in
the last-mile space,
you will need to
tackle the complex
balance between
needs and cost.
The needs-based
segmentation can
appear overwhelming,
but it can be
centred around
some important
dimensions. Three
such dimensions are
consumer centricity
and sustainability;
reliability and
control; and flexibility
and resilience.
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