Omni-channel – Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Fri, 14 Jun 2019 12:06:24 +0000 en-GB hourly 1 https://wordpress.org/?v=4.9.10 FedEx drops Amazon in the US https://www.logisticsmanager.com/fedex-drops-amazon-in-the-us/ https://www.logisticsmanager.com/fedex-drops-amazon-in-the-us/#respond Tue, 11 Jun 2019 10:45:03 +0000 https://www.logisticsmanager.com/?p=37345 FedEx has decided not to renew its US domestic contract with Amazon.com, saying it wants to focus on the broader e-commerce market. Amazon represents just under 1.3 per cent of total FedEx revenue. In 2018, FedEx Express’s US domestic package revenue was $12.8 billion. Total group revenue was $65.5 billion. The move comes at a […]

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FedEx has decided not to renew its US domestic contract with Amazon.com, saying it wants to focus on the broader e-commerce market.

Amazon represents just under 1.3 per cent of total FedEx revenue. In 2018, FedEx Express’s US domestic package revenue was $12.8 billion. Total group revenue was $65.5 billion.

The move comes at a time when Amazon is expanding its logistics operations. It has just launched a scheme offering workers in the US a $10,000 incentive to leave and set up their own delivery company delivering parcels for Amazon.

In a statement, FedEx said its decision would not affect any existing contracts between Amazon.com and other FedEx business units or relating to international services.

“As previously disclosed, Amazon.com is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 per cent of total FedEx revenue for the 12-month period ended December 31, 2018.”

And, said FedEx: “There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.”

FedEx cuts costs in face of weak European market

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Consumers back ASOS returns policy change https://www.logisticsmanager.com/consumers-back-asos-returns-policy-change/ https://www.logisticsmanager.com/consumers-back-asos-returns-policy-change/#respond Mon, 10 Jun 2019 13:00:57 +0000 https://www.logisticsmanager.com/?p=37317 Three quarters of serial returners support ASOS’s new returns policy, according to a survey by Whistl. The research found that those who are classified as serial returners were predominately in favour of the changes with 76 per welcoming the change. However, support for the idea was only 63 per cent among younger consumers and 66 […]

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Three quarters of serial returners support ASOS’s new returns policy, according to a survey by Whistl.

The research found that those who are classified as serial returners were predominately in favour of the changes with 76 per welcoming the change. However, support for the idea was only 63 per cent among younger consumers and 66 per cent among less affluent shoppers.

Some eight per cent of shoppers disagree with the changes and this increased to 16 per cent when related to ASOS shoppers. Argos shoppers were the most negative with 19 per cent against the changes.

Consumers who support the policy changes think others are being dishonest and negatively impacting on everyone else by making items second-hand and pushing prices up. And those who were against the policy think it is against the principle of being able to buy and return and worry that genuine customers might be unfairly penalised.

“Although the changes brought in by ASOS created a lot of debate at the time, our research indicates that the changes are widely welcomed, even by those who are considered to be serial returners,” said Whistl marketing and communications director Melanie Darvall. “It’s a good lesson for retailers when looking at developing their return policies for online purchases.  If explained well and seen as reasonable, the general public will welcome them, no matter how controversial they may first appear.”

Retailers get tough on serial returners

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Free delivery doesn’t increase parcel returns https://www.logisticsmanager.com/free-delivery-doesnt-increase-parcel-returns/ https://www.logisticsmanager.com/free-delivery-doesnt-increase-parcel-returns/#respond Mon, 20 May 2019 13:33:07 +0000 https://www.logisticsmanager.com/?p=36991 Retailers that offer free delivery for online purchases do not seem to experience an increase in the number of items returned, according to a study by Whistl. It found that 60 per cent of respondents did not pay for delivery and despite clothing, shoes and electronic equipment purchases being returned at a higher return rate […]

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Retailers that offer free delivery for online purchases do not seem to experience an increase in the number of items returned, according to a study by Whistl.

It found that 60 per cent of respondents did not pay for delivery and despite clothing, shoes and electronic equipment purchases being returned at a higher return rate than all other category purchases, this was not due to free delivery.

The research found that 18-24 year old consumers are more likely to check the returns policy prior to purchasing items for the garden or outdoors, car accessories and DIY.

Those looking for free returns were mostly female in the 55-75 age bracket or were living in the South-East of the UK.

And 53 per cent of those sampled stated that if a ‘returns policy did not meet expectations, it would make them much less likely to use that retailer’.

Retailers get tough on serial returners

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Amazon introduces click and collect option https://www.logisticsmanager.com/amazon-introduces-click-and-collect-option/ https://www.logisticsmanager.com/amazon-introduces-click-and-collect-option/#respond Fri, 17 May 2019 09:19:12 +0000 https://www.logisticsmanager.com/?p=36979 Amazon has launched Counter in the UK and Italy that allows customers to collect their Amazon parcels in-store at a partner location such as retail outlets and convenience stores. Counter partners include NEXT, Italian bookstore chain Giunti and the network of Fermopoint and SisalPay stores across Italy. Amazon is looking to bring onboard more partners […]

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Amazon has launched Counter in the UK and Italy that allows customers to collect their Amazon parcels in-store at a partner location such as retail outlets and convenience stores.

Counter partners include NEXT, Italian bookstore chain Giunti and the network of Fermopoint and SisalPay stores across Italy. Amazon is looking to bring onboard more partners across the UK both small and large businesses.

Delivery to an Amazon Counter location is available on the tens of millions of items sold on Amazon.co.uk and Amazon.it. It works with One-Day and Standard Shipping and is available at no extra cost to Prime members.

After shopping online, customers can select a Counter pick up point as their delivery location at checkout. Once their package arrives in store, they receive a notification with a unique barcode as well as the address and opening hours of their selected store. Customers have 14 days to collect their parcel.

When in store, staff will scan the barcode, retrieve the package, and hand it to the customer.

“The ability to collect Amazon parcels from hundreds of NEXT’s UK stores provides a helpful and exciting new service for UK consumers,” said Next PLC chief executive Lord Wolfson. “Amazon Counter combines the internet’s power to offer unprecedented choice with all the convenience of local stores. In a tough retail environment, our aim is that Amazon Counter will contribute to the continued relevance and vibrancy of our stores.”

* Amazon is set to be the largest investor in Deliveroo’s latest funding round, which has been launched to raise $575 million.

Doug Gurr, Amazon UK country manager, said: “We’re impressed with Deliveroo’s approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options.”

The money will be used to expand Deliveroo’s engineering team based in its London headquarters, as well as expanding its delivery reach.

This takes the total Deliveroo has raised to date to $1.53 billion.

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Drop shipping to disrupt retail operations https://www.logisticsmanager.com/drop-shipping-to-disrupt-retail-operations/ https://www.logisticsmanager.com/drop-shipping-to-disrupt-retail-operations/#respond Wed, 08 May 2019 11:01:51 +0000 https://www.logisticsmanager.com/?p=36847 Retailers and manufacturers that have adopted a high degree of electronic collaboration have benefited most from drop shipping, according to a study by DiCentral and the Centre for Supply Chain Research at Lehigh University. The study, “Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping,” explores the impact felt by retailers and […]

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Retailers and manufacturers that have adopted a high degree of electronic collaboration have benefited most from drop shipping, according to a study by DiCentral and the Centre for Supply Chain Research at Lehigh University.

The study, “Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping,” explores the impact felt by retailers and manufacturers of evolving consumer shopping behaviours.

Participants shared the operational and financial implications associated with making the transition from brick and mortar stores to online and e-commerce, particularly when products are shipped directly from the manufacturers.

It is suggested that those who have adopted a high degree of electronic collaboration have benefited most from drop shipping.  Retailers have greater visibility into the manufacturers’ behaviours thus increasing confidence that products ordered are received and shipped within given time frames.

66 per cent of manufacturer respondents found that drop ship implementation has already led to increased revenue, particularly those that provided drop ship for no more than 40 per cent of their total business.

Retailers noted a lack of systems integration such as WMS to be the greatest obstacle to drop ship implementation. Other barriers included a lack of executive involvement and budget constraints. And for manufacturer, competing priorities followed by lack of systems integration are the main obstacles.

“Enterprise drop ship has been around for decades but has recently gained popularity due to the growing consumer expectations for broader assortment and category selection,” said Thuy Mai, president and chief executive of DiCentral. “In an effort to improve the customer experience and increase revenue, retailers are expanding their virtual inventory without incurring additional carrying and fulfilment costs by utilizing drop ship programs.”

“The drop ship model is positioned as a vital component of the modern retail landscape,” added Dr Zach G Zacharia, associate professor of supply chain management at Lehigh University. “Clearly, the more we understand how drop ship operates, the better prepared retailers and manufacturers will be to take advantage of the opportunities and avoid the risks that will arise in this new retail reality.”

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Free delivery set to increase https://www.logisticsmanager.com/free-delivery-set-to-increase/ https://www.logisticsmanager.com/free-delivery-set-to-increase/#respond Thu, 25 Apr 2019 10:44:46 +0000 https://www.logisticsmanager.com/?p=36664 Free delivery is predicted to increase as retailers compete for online sales – while spending on logistics will increase by a third over the next five years, according to a survey of retailers by law firm TLT. The survey found that 73 per cent of retailers expect more companies to offer free delivery. Spending on […]

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Free delivery is predicted to increase as retailers compete for online sales – while spending on logistics will increase by a third over the next five years, according to a survey of retailers by law firm TLT.

The survey found that 73 per cent of retailers expect more companies to offer free delivery. Spending on logistics would increase from nine per cent of turnover to 12 per cent.

However, 33 per cent of retailers said free delivery is becoming increasingly difficult for them to offer. The report said that retailers that don’t charge for delivery would have to find efficiencies elsewhere, while those that do will need to offer consumers value in a different ways – such as branding or product quality.

The survey found that 62 per cent of retailers already offer next day delivery (or faster) and this is set to rise to 83 per cent in the near term.

Some 19 per cent currently offer same day delivery and this is expected to rise to 29 per cent in the coming years.

The increase in returns is a major driver of investment in logistics. The average proportion of returns is now 27 per cent, according to the retailers surveyed. However, in some sectors returns can be 58 per cent. For others, the proportion can be as low a two per cent.

Free returns boost buying

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AO.com picks BluJay for drop shipping https://www.logisticsmanager.com/ao-com-picks-blujay-for-drop-shipping/ https://www.logisticsmanager.com/ao-com-picks-blujay-for-drop-shipping/#respond Tue, 23 Apr 2019 13:56:53 +0000 https://www.logisticsmanager.com/?p=36636 Online retailer AO.com has selected BluJay Solutions’ DropShip solution to enable direct shipping of its fast-moving consumer products. “Our last-mile delivery is central to our business model and customer relationships,” said AO head of retail development, Jennifer Hollowood-Smith. “We can’t afford to compromise on quality, and we are excited to be working with BluJay. With […]

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Online retailer AO.com has selected BluJay Solutions’ DropShip solution to enable direct shipping of its fast-moving consumer products.

“Our last-mile delivery is central to our business model and customer relationships,” said AO head of retail development, Jennifer Hollowood-Smith. “We can’t afford to compromise on quality, and we are excited to be working with BluJay. With their systems on board, we are perfectly placed to capitalise on the market and take our business into the next phase of growth.”

BluJay’s DropShip solution helps streamline ao.com’s transactional processes, enabling it to maintain on-time deliveries.

The solution includes access to BluJay’s Commerce suite, its Global Trade Network of logistics firms and the hundreds of suppliers in its DropShip network, catering to potential future product expansions.

AO builds £15m Brexit stockpile

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Transformation projects squeeze profits at ASOS https://www.logisticsmanager.com/transformation-projects-squeeze-profits-at-asos/ https://www.logisticsmanager.com/transformation-projects-squeeze-profits-at-asos/#respond Wed, 10 Apr 2019 11:00:32 +0000 https://www.logisticsmanager.com/?p=36495 ASOS saw its profits squeezed in the first half by increased costs due to investment in logistics and IT combined with a fall in gross margins despite a strong increase in sales. The online retailer increased sales by 14 per cent to £1.3 billion, but pre-tax profit was down 87 per cent to £4 million. […]

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ASOS saw its profits squeezed in the first half by increased costs due to investment in logistics and IT combined with a fall in gross margins despite a strong increase in sales.

The online retailer increased sales by 14 per cent to £1.3 billion, but pre-tax profit was down 87 per cent to £4 million.

Chief executive Nick Beighton said: “We grew sales by 14 per cent despite a more competitive market. ASOS is capable of a lot more. We have identified a number of things we can do better and are taking action accordingly. We are confident of an improved performance in the second half and are not changing our guidance for the year.

“We are nearing the end of a major capex programme. While this has inevitably involved significant disruption and transition costs, the global capability it now provides us gives us increased confidence in our ability to continue to capture market share while restoring profitability and accelerating free cash flow generation.

The company characterised full year 2019 as “the culmination of several years of transformational change for ASOS as we develop our logistics infrastructure and expand our global reach, while driving warehouse efficiency and reducing delivery costs through greater levels of local fulfilment”.

ASOS had to double staffing levels at its new US distribution centre in Atlanta because it underestimated the surge in demand after it became fully operational in February.

It said: “To help clear the backlog of orders, the US web site was pointed back to Barnsley before local fulfilment from Atlanta could be gradually stepped back up. The issues experienced within our US warehouse were caused by staffing levels rather than systems.

“Staff levels at the facility have been nearly doubled (to 1,532) and during the week commencing 25 March we restored our service delivery promise and full local fulfilment from Atlanta. We acknowledge we have disappointed a number of our customers and we have acted fast to rebuild their trust via targeted outreach.”

IN the UK, ASOS increased maximum daily output at its Barnsley distribution centre by ten per cent last year.

“Focus at this site is now on driving further efficiencies and maximising throughput. As part of this, H1 saw the installation of a dynamic buffer, representing a further step in warehouse automation. This technology predicts demand throughout the day, having these items picked and brought closer to the packing bench in advance, further reducing processing time as well as generating efficiencies in re-picking items from returns.

“Dealing with returns, our new facility in Doncaster is now fully operational as a UK and ROW facing site, increasing processing capability alongside the existing Selby operation. ASOS now has seven sites processing returns across five different countries. A new returns processing system is currently being implemented across our facilities which will improve productivity by c.10 per cent and remove the requirement for additional returns facilities in the medium term.

It is now testing the automation at its Berlin warehouse ahead of going live later this month.

“Automation go live will raise the throughput speed in this warehouse closer to levels achieved at our Barnsley distribution centre, in turn allowing us to improve our next day delivery ordering cut off times across Germany. Next day delivery is already available to customers across the EU and is a competitive proposition to our customers. The increase in throughput speed will therefore allow greater volume to be routed via road freight, generating further delivery cost efficiencies alongside the reduction in labour cost per unit.”

Following completion of the current investment programme, ASOS said it would have “built world class automated facilities to our own specific needs in three regions to support sales growth for the next two to three years. From here we will focus on optimising efficiency across the global warehouse footprint we have built.”

Looking ahead, Beighton said: “Global online fashion is a growing, £220bn+ market. We now have the tech platform, the infrastructure, a constant conversation with our growing customer base who love our own great product and the constantly evolving edit of brands we present to them. We believe that ultimately there will only be a handful of companies with truly global scale in this market. We are determined that ASOS will be one of them”

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Urban logistics scheme to be developed in Reading https://www.logisticsmanager.com/urban-logistics-scheme-to-be-developed-in-reading/ https://www.logisticsmanager.com/urban-logistics-scheme-to-be-developed-in-reading/#respond Tue, 02 Apr 2019 13:44:50 +0000 https://www.logisticsmanager.com/?p=36327 A dedicated 134,430 sq ft urban logistics scheme is to be developed in Reading by McKay Securities, the REIT. Known as Theale Logistics Park the scheme is expected to reach practical completion in December 2019. Readie Construction has been chosen to build the property for which marketing has already begun. Simon Perkins, chief executive of McKay, said: “Located […]

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A dedicated 134,430 sq ft urban logistics scheme is to be developed in Reading by McKay Securities, the REIT.

Known as Theale Logistics Park the scheme is expected to reach practical completion in December 2019. Readie Construction has been chosen to build the property for which marketing has already begun.

Simon Perkins, chief executive of McKay, said: “Located adjacent to junction 12 of the M4, five miles from the centre of Reading, providing strong connectivity to the wider UK motorway network and last mile delivery routes.

“The Theale site is well placed to benefit from the on-going low levels of supply of quality mid-size distribution space in the Thames Valley alongside the continued growth of e-commerce supporting the logistics sector. Theale Logistic Park’s strategic edge-of-town position will be attractive to a diverse range of potential occupiers such as online retailers, third-party logistics operators and last mile distributors.”

The location is already an established logistics hub with local occupiers including Amazon, Bunzl, Direct Wines, Ikea and John Lewis.

Demolition of a former warehouse on the site completed last year, and the new facility will increase the floor area by 39 per cent, in line with McKay’s strategy to redevelop and add value to the asset having acquired the site in 2015.

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Delivery Group acquires ONEPOST https://www.logisticsmanager.com/delivery-group-acquires-onepost/ https://www.logisticsmanager.com/delivery-group-acquires-onepost/#respond Tue, 26 Mar 2019 12:30:24 +0000 https://www.logisticsmanager.com/?p=36180 The Delivery Group has acquired ONEPOST in a move that will take combined group turnover to £250 million, managing almost a billion items of mail and packages in the UK and Internationally. The Delivery Group has been striving to expand its “service-range and geographical footprint, and ONEPOST fits perfectly into our plans,” and together, it […]

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The Delivery Group has acquired ONEPOST in a move that will take combined group turnover to £250 million, managing almost a billion items of mail and packages in the UK and Internationally.

The Delivery Group chairman Paul Carvel.

The Delivery Group has been striving to expand its “service-range and geographical footprint, and ONEPOST fits perfectly into our plans,” and together, it strives “to become the premier systems-driven “one stop provider” in the post, package and parcel distribution sector,” said The Delivery Group chairman Paul Carvell.

“The Delivery Group clearly identified the quality of our service, our staff and complementary focus on direct and marketing mail, and we in turn have been impressed with their commitment to people, partnerships and service performance,” said ONEPOST co-founder Graham Cooper.

“Their automation and transport technology is second to none, and will bring significant benefits to our customers with improved tracking, delivery accuracy and give us access to a wider range of service,” he added.

 

£2m hub for The Delivery Group

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