CEVA Logistics signs three-year deal with LUSH

CEVA Logistics has announced it has been awarded a three-year deal to manage and deliver LUSH products to its stores across the UK and Ireland.
With this new agreement, CEVA will be responsible for moving the full range of items sold by LUSH.
As a further part of the value-added solution, CEVA’s shared user network will be utilised to perform final mile delivery to almost 80 stores and ensure full visibility of all products as they are moved.
“We are delighted to be working with LUSH Cosmetics as their official supply chain logistics provider. Our shared values mean LUSH will benefit from CEVA’s approach to minimising our combined impact on the environment through environmentally responsible logistics solutions. We will use our experience and expertise to deliver and add value to their supply chain operations and ensure a focus on continuous improvement,” Eddie Aston, CEVA’s UK, Ireland and Nordics Managing Director said.
“CEVA really stood out during the tender process with their dedication and hard work to deliver precisely what we need across our distribution network. We are delighted to be working with them,’ Dan Payne, LUSH’s Logistics Manager said.

Linfox opens warehouse in Vietnam

Linfox has opened a warehouse and distribution centre in Bac Ninh to service Hanoi and the northern Vietnam region.
The new facility is part of a strategic partnership with multinational fast-moving consumer goods company, Unilever.
The 100,000-square-metre site is one of the largest warehouse and distribution centres in northern Vietnam, offering 70,000 pallets positions, 60,000 square metres of ambient storage space and multi-tenancy.
The warehouse is equipped with cutting-edge technology such as a Microlistics system for warehouse management, and radio frequency (RF) devices to complete warehouse activities.
“The facility is strategically located at the VSIP Integrated Township and Industrial Park in Bac Ninh province, 20 kilometres from central Hanoi with connections to all major road systems, ” Linfox International Group CEO, said Greg Thomas.
“This will provide customers easy access to their inventory and will optimise distribution across the region.
“When designing the facility, we focused on incorporating many environmental features.
“The facility features motion sensored LED smart lighting to lower energy consumption and minimise the environmental footprint. We’ve also installed a rainwater harvesting system to reuse the rainwater and reduce the risk of stormwater flooding. This facility represents Linfox’s commitment to sustainability,” he said.
The new Bac Ninh facility is a significant investment for Linfox as the company expands into the Mekong region, with further investments planned in the near future. Operations will commence at the facility in March 2019.

E-commerce logistics market growth starting to slow

The latest report from Ti shows a market still expanding rapidly, but one in which competition, challenges and new entrants are raising questions over future development opportunities
The global e-commerce logistics market grew by 18.2% in 2018. Still a relatively nascent sector, e-commerce logistics growth is well above that seen in other logistics markets. Emerging markets are showing the fastest expansion, but even in developed economies, growth rates in nominal terms are usually in double-digits. Ti expects the global market to grow at an expected nominal 2018-2023 compound annual growth rate (CAGR) of 11.8%.
Ti’s latest figures suggest the cross-border component is a significant driver of this uplift. Cross-border e-commerce is bringing supply chain stakeholders into direct contact and challenging the status quo. But while gaining access to millions, if not billions, of new customers is an attractive proposition for e-commerce companies, targeting purchasers in foreign markets is not the easiest of strategies.
The report also examines the trend for offering more omni-channel retail solutions, likely to be a key requirement moving forward. This is largely driven by the purchasing behaviour of consumers, who demand a seamless experience enabled by the use of different channels to order, pay, collect and return products. They demand more delivery and returns options and leverage retailers against each other to get the best value for their money.
In addition, Global e-commerce Logistics 2019 examines e-fulfilment and last mile cost structures, and provides analysis of structural variations by geography and retail sector.
The report authors spoke extensively with senior management and leaders at the largest e-fulfilment and last mile providers globally, as well as with niche e-commerce logistics providers. A common theme was the threat posed by global retail platforms managing their own logistics requirements whilst also offering services to third parties.
The entry of players such as Amazon, Alibaba and JD.com is forcing many to consider what the future of e-commerce logistics might look like. The report’s lead author, Viki Keckarovska, senior research analyst at Ti, said: “While some would say that Europe’s legacy infrastructure and market structures are unfit for the new e-retail world, it could equally be argued that Europe boasts probably the most efficient logistics and transport sector in the world. Ti’s discussions with logistics executives and leaders in the market suggest Europe’s legacy infrastructure is seen as a hindrance to the development of efficient e-retail distribution networks, with facilities in the ‘wrong’ place and markets which were more focused on B2B rather than B2C deliveries.”

Electric trucks are the way to go: ALC

The Australian Logistics Council (ALC) is disappointed that the final report of the Senate Select Committee on Electric Vehicles has missed clear opportunities to boost the uptake of EV in the freight logistics sector.
“There is clearly a willingness within this industry to move towards greater use of EV in freight delivery. It is disappointing that the committee has not supported that positive attitude by explicitly addressing freight vehicles in its recommendations to the government,” said ALC CEO Kirk Coningham.
“It is especially perplexing that the committee recommends establishing national EV targets for light passenger vehicles, light commercial vehicles and metropolitan buses – but is silent on establishing a similar target for heavy vehicles.
“It is similarly disappointing that the report did not take the opportunity to recommend a review of the Australian Design Rules, to that they can better accommodate the unique size and shape of some electric freight vehicles.
“ALC is pleased that the report does make recommendations on some of the issues raised in our submission, including the need to facilitate the rollout of charging infrastructure and ensure the energy network is able to sustain a reliable supply of energy to power EV.
“However on the whole, these recommendations fall well short of the type of action that is needed to hasten the uptake of EV in the freight logistics sector.
“One opportunity that was clearly missed was a recommendation to establish a Low Emission Vehicle Contestable Fund, similar to one already operating in New Zealand.
“Indeed, the report specifically refers to the New Zealand fund in its commentary and notes its benefits – but does not follow through by recommending a similar initiative for Australia.
“Just last week, the New Zealand Government announced a further round of projects to be supported though its fund, including projects specifically focused on the freight sector designed to showcase the capabilities of long-haul heavy electric vehicles.
“Similar initiatives will need to be adopted in an Australian context if freight logistics operators are to be encouraged to incorporate EVs into their own operations. This is something ALC will be pursing in its pre-Budget submission and in ongoing discussions with the Federal Government.
“The ALC’s Electric Vehicles Working Group will continue to pursue these matters with all political parties in the lead up to this year’s federal election,” Mr Coningham said.

Australia Post to operate largest electric vehicle fleet

A new order for an additional 1,000 three-wheeled electric delivery vehicles (eDV) by Australia Post is set to make it the nation’s largest electric vehicle fleet operator.
Australia Post group chief operating officer Bob Black said the 1,000 eDV boost its existing fleet of electric postie vehicles – including electric pushbikes – and creates a range of benefits for posties, customers and the environment.
“We are proud to soon be operating Australia’s largest fleet of electric vehicles, and hope this will set the standard across Australia,” Mr Black said.
“With parcel volumes growing – on average, close to 10 per cent each year for the last three years – and letter volumes declining, we’re always looking for ways to ensure our posties continue to play an important and sustainable role in the community.
“These vehicles offer additional carrying capacity, so our posties can deliver more parcels than ever before directly to the customer’s door – and can perform additional functions, such as collecting mail from street posting boxes.”
Along with delivery benefits, Mr Black said the electric vehicles also offer added safety and environmental protections.
“The eDV are safer than the traditional motorcycle. They are easier to see on the road, more stable, have increased rider protection and lower on-road speeds, all of which reduce a postie’s exposure to incidents and serious accidents.
“We started trialling eDV in 2017 and we’ve since deployed them in all states. We have worked closely with our posties to make improvements along the way.
“Our posties love the eDV because they demonstrate our commitment to providing safer and more sustainable employment into the future, given consumers are sending fewer letters and relying more and more on their postie to deliver their parcels.
“They will also help us achieve our commitment of reducing our carbon emissions by 25 per cent by 2020.”
Deployment of the additional 1,000 vehicles is expected to start from June across all states.
Along with the additional 1,000 eDV Australia Post will also roll out an additional 4,000 electric pushbikes, bringing its total to 5,980 over the next three years.

Forget Christmas: why we’re planning for a non-stop peak

Paul Soong

Especially during the holidays, customer satisfaction revolves around one thing: did my gift or Christmas food hamper arrive on time? It’s estimated that Australians spent $25 billion collectively last Christmas. And behind every dollar spent were people in the transport and logistics industry working frantically to ensure each step of the supply chain runs smoothly. Fortunately, there are solutions that can help with ensuring the smooth flow of goods in peak periods that all businesses must consider.
But first, let’s address the notion of peak periods. One of the biggest challenges transport and logistics companies face is the evolving retail cycle. Traditionally, we could expect peaks with Christmas and then Boxing Day. Now, things are busy all year with the addition of Singles’ Day, Black Friday, Cyber Monday, Click Frenzy and countless other sales events to the Australian retail calendar.
From a transport perspective, the peak is smoothing out and many organisations aren’t coping well with the requirement for a constant level of scalability. What options do these businesses have? Do they scramble to find extra drivers? Use a gig-economy model for unexpected peak periods? Invest in establishing an overrun service (such as what Fastway Couriers has with Blu Couriers)? Or simply work longer hours in attempt to cope with the increasing demand?
There are two areas that will greatly increase operational efficiency and put businesses in a good position to deal with peak periods.
The first area in which there’s a long way to go is visibility. Transport and logistics companies need visibility of what’s happening with their fleet and drivers to manage expectations for customers, operations and management, especially during peak periods (expected, or not).
Closing the gap in visibility starts with determining your goals and assessing your ability to meet those goals. Businesses should be asking themselves: does an existing system meet your current and future needs for all necessary modes of transportation? Does it interface well with other systems and can you easily add future interfaces? And most importantly, does the system accommodate your business process? If a business can get this foundation right, it will be starting in a good place for all of the other details.
Most supply chains use a variety of logistics service providers, transport service providers and others. As soon as the chain of custody of a particular order or shipment transfers to another party, the degree of visibility changes. This has resulted in many companies exploring establishing a multi-party supply chain ‘control tower’ through which all activities are coordinated and controlled. But, while this is where technology is headed, there remains a lot of operational and cultural challenges before it is widely adopted.
The second key piece is to optimise — and then optimise again. Many in the industry continue to take an ‘if it isn’t broken, don’t fix it’ attitude toward supply chain management. Particularly at peak times, there is a clear opportunity to be constantly reviewing and refining processes and procedures that are not optimal.
This starts with having quality data — and putting it to work. For example, if a vehicle breaks down on route to make a delivery, often companies would call on the nearest driver to step in. While that driver might be closest, adding an additional drop off could impact a number of deliveries down the line. Instead, the use of data and analytics in this situation can identify the best available driver to step in, with minimal impact on other orders.
It’s never too early to plan ahead. Businesses should not be planning for peak to start in October this year — with the market flattening out, this needs to be happening now. To be forewarned is to be forearmed!
Paul Soong is the regional director, ANZ, of BluJay Solutions.

Online disappointment: 53% deliveries are late

More than half of Australians (53%) have been left disappointed during the festive season after online orders failed to arrive on time, new research from location mapping company HERE Technologies has revealed. West Australians are the worst off with three in five left empty handed, while Tasmanian shoppers are the least likely to be left hanging during the festive season (41%).
With retailers and logistics companies struggling to meet booming digital shopping demands, late deliveries (47%) or inaccurate estimated delivery times (39%) topped the frustrations of online Christmas shoppers. The trauma of waiting for parcels to arrive before a festive event has caused stress and anxiety for 43% of buyers, and one in five has had to rush in-store for a last-minute gift when an online order failed to arrive on time.
“Order tracking in the last leg of the purchase is a crucial issue for retailers to address, as there is a clear mismatch between what customers expect and what is currently provided by retailers,” said head of Oceania at HERE Technologies Daniel Antonello.
“We know shoppers want to have more visibility and real-time information on their online orders, in fact 90% want to be able to track their parcel in the same way they can see where a Deliveroo or UberEats driver is with their dinner.”
“Given most of the frustrations faced by shoppers relate to shipping challenges, there is a huge opportunity to improve supply chain management and customer service with tracking technology, which our research shows customers would be willing to pay a premium for.”
Ensuring a seamless delivery could also boost sales for retailers, given three quarters (76%) highlighted punctual delivery as the most important consideration when shopping online during Christmas, and almost a fifth (19%) would pay more for an item from a store that they trust to deliver on time.
Despite the risk of late deliveries, many Australians still opt to do their festive shopping online. Over a third (36%) of Australians split their Christmas shopping list between online and instore, with almost twice as many men (21%) choosing to do their shopping exclusively online than women (12%). Some shoppers also opted to take things into their own hands by using ‘click and collect’ (38%), of which millennials were the most likely to decide to head instore to pick up their online purchase (18-35, 44%).
The research was based on a survey conducted by PureProfile of 1,004 participants between the ages of 18 to 65 across Australia.
Other key research findings include:

  • Top shopper frustrations when doing Christmas shopping online include:
    • Delivery is late (47%).
    • Inaccurate delivery date/time (39%).
    • Retailer does not provide regular updates on my order (34%).
    • Inability to track my order like I can for a Deliveroo/UberEats order (29%).
  • To avoid the frustration of a late festive delivery, shoppers have:
    • Completed online shopping earlier (71.9%).
    • Chosen to click and collect (37.9%).
    • Paid more for an item from an online store they trusted would deliver on time (18.5%).
  • When looking into the millennial shopper, findings revealed:
    • 1 in 5 millennial shoppers would pay more for an item from an online store they knew would deliver on time.
    • A quarter of 26-34 wanted to be updated when stocks were replenished.
    • Younger millennials (18-24) most likely to pay for express shipping (31%).
    • The younger the shopper, the more likely he/she would only do his/her festive shopping online.
      • 27% (18-24)
      • 24% (25-34)
      • 15% (35-44)
      • 8% (45-54)
      • 8% (55-65)
    • Older consumers (55-65) more likely to double check an item instore first before deciding to purchase online (48%).


Study reveals winning logistics strategies for the last mile

Increasing urbanisation is making the last mile of delivery more complex and critical for the success of e-commerce companies, according to new research and market research.

With over 600 million more people forecast to live in urban environments by 2030 and new technologies creating opportunities for both service enhancement and disruption, online retailers and their logistics partners are being challenged to embrace bold new approaches in order to survive and compete. In the white paper, Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer, DHL and Euromonitor have identified the four main trends that are shaping urban last mile transportation –localised delivery, flexi-delivery networks, seasonal logistics and evolving technologies –and ways in which companies can adapt their supply chains to the changing market environment and achieve competitive advantage.

“The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively. It’s not just about transportation, but about companies’ overall approach to managing inventory –getting the right items to the right place at the right time. DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks,” Katja Busch, Chief Commercial Officer, DHL said.

The white paper found that the major urban trends all create various challenges in terms of cost, service impact and organisational strain. For example, the growth of seasonal logistics as a result of increasingly popular holidays and promotional days such as Asia’s Singles’ Day or national Cyber Days, places significant pressure on logistics companies to build up additional capacity and hire resources to cope with short-term volume surges, which can in turn be difficult to predict. Urban customers’ demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralised networks with local fulfilment and distribution infrastructure, which can require more accurate balancing of inventory.


Australian consumers demand faster online delivery, according to report

According to a recent survey by SOTI, 61% of Australian consumers rate the speed of online delivery as the most important factor when buying online.
“Immediacy is an increasingly crucial aspect of the shopping experience. Consumers want their purchases straight away and expect retailers and e-commerce businesses to provide better delivery options,” Michael Dyson, Managing Director Australia & New Zealand, SOTI said.
While fast delivery was the top priority for most consumers, free returns (49 per cent), click and collect (33 per cent) and being able to specify a delivery time (30 per cent), were also among the most important aspects of online delivery for consumers.
“If retailers want their online delivery options to be in line with customer expectations, their supply chain and 3PLs need to provide a faster and more convenient delivery process. Some retail and e-commerce companies have started offering same day delivery options. This adds pressure on logistics providers to ensure they are able to keep up with this, and often this option comes with restrictions such as customers being required to live within a particular area.”
Investing in technology
The survey also found that over 53 per cent of Australian consumers are increasingly interested in new technologies, such as self-propelled vehicles and drones, being used to improve delivery times.
“Retail logistics providers need to understand and meet the demands of their customers or they will find themselves left behind. This means investing in new delivery methods and the technologies which support these approaches,” Michael said
Putting value back in delivery
While research showed that speed of delivery is key for Australian consumers, only 34% of survey respondents indicated that they would be happy to pay a premium for new delivery services.
“The supply chain industry needs to find a way to either make the new technologies affordable when they enter the market, or, convince consumers that it is worth the slightly higher delivery price,” Michael said
“Consumers have become accustomed to getting free delivery, as so many retailers have offered it for years, so it has become de-valued in a way. The supply chain must add value back into delivery services and new technologies present an exciting future for e-commerce logistics.”

Logistics and data: It's a match!

At a recent logistics roundtable discussion, Louise Robertson from Australian last-mile solutions provider Localz declared that tech in the logistics industry’s should be more like Tinder. Logistics & Materials Handling finds out why.
Consumer behaviour is changing drastically. The taxi and hotel industry, the music industry and the media industry have all experienced significant disruption through digital concepts and have had to adapt accordingly.
One particular industry that has seen disruption on a large-scale is the dating industry, namely through Tinder, one of the world’s most popular apps for meeting new people. Tinder has been ranked by Apple as the most downloaded lifestyle app in America for nearly two years. According to data released by Tinder, 15 per cent of the population are using the app, equating to more than 3.5 million people.
Launched in 2012, Tinder is a free app and works by users swiping right if they like the look of someone, or swiping left to pass. The app uses a double-opt in method, only allowing two users to chat online when they mutually match. Tinder has made over 1 billion matches to date and more than 26 million matches take place on the app every day, according to data revealed by the company.
Louise Robertson, Chief Marketing Officer at Localz ­– a global last-mile solution specialist – thinks that the logistics industry needs to be more like Tinder. “Modern consumers are well informed. They are more engaged, connected and educated than ever before and carry real-time information with them in their pockets.”
The popularity of Tinder, and other similar apps, is largely attributed to its ease of use and simple mechanism. It’s a simple concept, with an intuitive menu and convenience that allows to users to access on the go.
The individual economy
According to Tim Andrew, Co-Founder and CEO of Localz, the changing behaviour of the consumer is presenting the logistics industry with a number of challenges.
“The on-demand economy is interpreted by most people as instant fulfilment. It’s all about what I want, when I want and how I want. That heightened consumer expectation and demand of being able to dictate the hour at which a delivery will turn up, we call the individual economy or Iconomy,” Tim says.
We now live in a connected digital age that redefines the way we live, the way we connect with each other and the way we consume. This has allowed an app like Tinder to change the norms around how people date and meet potential romantic interests. This same change in consumer mindset has increased the delivery expectations of consumers and placed increase pressure on logistics companies and retailers, Tim says.
Recent research carried out by Localz revealed that 94 per cent of consumers would choose a different shop or brand based on delivery or collection options alone. The researchers found that customers want to define the time and place that their delivery or service will occur and at a very minimum know when their delivery or service is coming. They also want to be able to change those details to suit their needs.
According to Tim, companies must offer flexible delivery services that are relevant to their customers, as individuals with specific needs, or they are at risk of seeing customer move their loyalties. “This is the behaviour of the individual economy,” Tim says.
The irrational, emotional, uneconomic consumer
Localz recently organised a roundtable event in Melbourne. The event was an opportunity to exchange ideas and information among executives and representatives from associations and local government on the challenges currently being faced by the retail and logistics industry. With a particular focus on meeting the demands of consumers who are irrational, emotion and uneconomic – but in control.
“Aussie retailers are under increased pressure to let go of the old processes, operations and logical order that optimise their efficiencies to deliver these discerning consumers,” Louise says.
James Westlake, Chief Revenue Officer at Localz, presented on the importance of data in providing the modern consumer with what they want. “You can always serve your customer better if you know them. We have had an explosion in the ability to collect data. But in Australia we are a bit behind. Often on an order there is no email, no phone number, no ID etc. If you compare this to a logistics provider in the EU, they wouldn’t touch without this kind of data,” James says.
The importance of data was echoed around the room, regardless of sector or role. Jonathan Reeve, E-commerce Fulfilment Consultant, said that it’s not that consumer motivation has changed. For him, people are still motivated by tangible things like convenience. “We’re motivated by a mix of tangible things, like convenience, and psychological and social aspects. All of these have remained largely the same over the years. It’s the context that has changed, we now have so much choice. The array of choices is now enormous for a consumer, that’s the big difference,” Jonathan says.
Jonathan attributes much of the success of Amazon to its ability to offer cheap and convenient delivery. He elaborates and argues that where Amazon already operates almost everyone has an amazon success story to share ­– and the hero of the story is the delivery experience. Having the ability to offer same day or, at the least, next day deliver is what has given Amazon the competitive edge, Jonathan says. According to him, it is the company’s collection of consumers’ data that will take Amazon’s success to the next level.
“The more data you have, the better you can run your supply chain. Humans are largely habitual, often ordering the same things in a cycle. If you look at Amazon, it is likely that in the future customers will receive deliveries containing products that Amazon predicts they will need, based on the data it has about their usage and past purchases. And if they get it wrong, there will be a box to send back what you don’t need,” Jonathan says.
The future of the high street
As consumers move more towards online shopping and digital-only outlets, Jonathan believes the high street has to adapt. “High street stores will have to change, but the retailers that give the customer every option are going to be the performers,” Jonathan says.
The omni-channel shopping experience changed everything – people want the same seamless service and experience that they have online, instore, Jonathan says. “This will have an impact on the physical store and tech can benefit the high street experience too. People need a reason to come to the store, it needs to become more of an experience than just buying something that could easily be ordered from home. Only 10 per cent of purchases are made online, that still leaves 90 per cent of purchases in Australia as face-to-face,” he says.
Jonathan believes that if businesses are timely and relevant in their communications and offers, consumers will be less cautious about data and start to volunteer information. He thinks that with this, retailers will be able to do more with the data and create a more competitive product.
Enticing the customers instore also presents benefits for the retailer, so long as the consumer has a good experience. Localz research found that 69 per cent of customers who collect a delivery in-store are likely to make an additional purchase when collecting that item. Retailers with brick and mortar stores are able to provide a mixed channel experience that increases their sales.
Why “Sorry, we missed you.” isn’t good enough
When asked what customers found the most frustrating about their recent delivery experiences, the Localz survey results revealed that 40 per cent rated receiving a “we missed you” card as the most annoying.
Getting delivery right the first time is not just good for the customer, but also cheaper for the logistics provider. “Increased first time delivery rates reduces the cost of delivering, so it doesn’t just have benefits for the consumer,” Louise says.
The second most annoying aspect for survey respondents was having no visibility of when the delivery was arriving. “It’s clear that control of when something gets delivered and visibility of what is happening through that process is key in logistics,” James says.
According to James, this has led to an increase in customers demanding ever smaller delivery windows. “When asked what was considered a reasonable delivery window, 30 per cent stated one hour and 47 per cent stated two hours. That’s 77 per cent of people believing an acceptable delivery window is under two hours or less. That’s a big challenge for logistics.”
In addition, receiving an accurate and up-to-date estimated time of arrival was stated as being very important to 47 per cent of customers and important to 36 per cent of customers. Much like Tinder, having information about potential love interests in real-time at the touch of a button is what many users like about the app.
The ability to communicate with a driver was less important than receiving an accurate estimated time of arrival, supporting the idea that many consumers are happy to manage their purchases online via a smart phone or PC, rather than an in-person service.
“There are clearly some challenges for retailers and delivery providers to meet the expectations of the on-demand consumer,” James says.
“Customers want simple, fast delivery with short delivery windows and transparency of what is happening through the process. They are also saying that the cost of delivery and collection services is still very important to their purchase decision. Reducing the cost of collection and delivery services, while still maintaining a high-quality service, is key to success for retailers and delivery providers.”

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