Recent research revealed by Frost & Sullivan finds that global logistics spending is expected to reach $10.6 trillion in 2020, with transportation accounting for the majority at 70%.
Emerging technologies such as cloud computing, big data, and crowd sourcing, coupled with an influx of tech-savvy start-ups, are revolutionising the space of urban logistics.
About two fifths of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities.
The research predicts the logistics market will rapidly move toward mobile freight brokerage-type, on-demand deliveries and autonomous technology, such as the use of drones and delivery bots which are set to solve the last mile delivery challenge by being more cost-effective to end users with lesser regulatory mandates.
“Spiralling last-mile delivery costs and changing customer demands are causing retailers to rethink their strategies and look toward new business models such as click-and-collect, locker boxes, on-demand and autonomous solutions,” said Vijay Narayanan Natarajan, Visionary Innovation Senior Research Analyst at Frost & Sullivan. “Moreover, the influx of start-ups in logistics has enabled innovative solutions that not only provide value-creation customized solutions for the consumer, but also tackle the inefficiencies currently witnessed.”
Further trends and developments driving growth include:
Digital freight brokering platforms reducing empty miles by 8% to 10%;
Shift toward low-emission and zero-emission solutions, such as use of low-carbon vehicles or bicycles;
Fleet operators expanding their strategies by developing urban distribution centers for effective logistics management; and
Retailers focusing on compact stores to reduce capital expenditure and bring products closer to a growing urban customer base.
A survey of 1,009 Australian consumers who shop online has revealed a demand for better delivery services.
CouriersPlease (CP) – a parcel delivery service – carried out the survey which included online shoppers who had made at least three purchases online in the last 6 months. The results indicated that more than 50 per cent of participants wanted after-hours delivery.
Specifically, 60 per cent of respondents wanted weekend parcel delivery services and 52 per cent wanted after-hours delivery of their online shopping purchases.
An additional survey of 193 online sellers found similar results. Also conducted by CP, this survey found that 67 per cent would choose same-day delivery services and weekend parcel delivery services for their customers whenever possible.
The findings also indicate that both online retailers and shoppers would like to see more parcel collection and drop off points for customers to collect and return their online orders (39 per cent and 38 per cent respectively).
CP CEO Mark McGinley, said: “Online shoppers live busy lives and often can’t or simply don’t want to wait around for their package to arrive. Our solution to this problem was to develop an extensive network of free and secure, drop-off and collection points. With over 1,000 POPShop retail outlets nationwide, shoppers can pick up their package at a nearby location, and at time that best suits them – including weekends and after-hours.”
“In continuing to offer more flexibility to our customers, CP is working to implement new services this year to improve the delivery process for our online retailer customers and their shoppers. These new technologies will provide consumers with greater visibility over the parcel delivery journey and streamline the overall customer experience.”
Small business parcel delivery service Sendle has teamed up with StarShipIT, a cloud based app created to automate and simplify the process of shipping orders, to give Australia’s e-commerce retailers access a simpler complete shipping solution, the duo say.
As of 30 March, StarShipIT’s customers running stores on e-commerce platforms such as Magento, Shopify, BigCommerce, WooCommerce, eBay and Etsy can opt to deliver through Sendle’s door-to-door delivery service, receiving a free upgrade to Sendle Premium, with national flat-rate pricing starting at $5.59.
Setting up an account and rate card with a shipping provider could previously take weeks to months. The Sendle-StarShipIT integration will enable online retailers to start shipping from their e-commerce platforms instantly and there are no minimum order quantities.
Unlike the post office which restricts maximum parcel weight to 22kg, Sendle delivers packages across the spectrum from 500g up to 25kg at an affordable national flat rate pricing and is 100 per cent carbon neutral.
Small businesses using Sendle can save time by automating fulfilment through StarShipIT, which automatically imports orders from all selling channels. Users can also batch print labels, invoices and pick-up slips and book a parcel pick up through StarShipIT.
Commenting on the partnership, Sendle CEO and Co-founder James Chin Moody said, “StarShipIT is a market leader in providing beautiful fulfilment solutions for eCommerce. Our integration gives Australia’s eCommerce community the ability to streamline the process from setup to shipping so they can focus on growing their business instead of sweating the small stuff.”
Rebecca Percasky, COO of StarShipIT, said, “I’m excited for what this partnership will offer Australian small businesses. A Sendle-StarShipIT integration has the potential to truly revolutionise their eCommerce fulfilment from check-out to the point of delivery and beyond.”