How the Ecommerce Boom Triggered a Transformation in Retail Logistics
B2C ecommerce sales have exploded in recent years – we call it the ecommerce boom. As ecommerce continues to grow, online retailers have to figure out what this will mean for their distribution network infrastructures.
The people at 2 Flow created the infographic below that offers us facts and statistics on how the e-commerce boom has triggered a transformation in retail logistics.
The Delivery Paradigms Shaping the Future of Global Logistics
Digital Trends Impacting Logistics
- In developing markets mobile users are leading the e-commerce charge.
- This pattern will accelerate as Millennials increasingly form a larger proportion of each country’s population, driving the size of the consumer pool which is ‘technologically savvy’.
Population & Consumption Influences the Future
- Increases in urbanisation will create more concentrated consumer markets. These changes in consumer behaviour will transform the logistics/warehousing needs.
- Millennials will increasingly comprise the majority of the population.
Global Trade Flows Shifting
- Since 2000, there has been dramatic growth in containerised traffic around the world, with total shipments increasing by 290% in 2013.
- Because of the pressures of this demand, trade routes have changed to better meet capacity in both the North American and European markets.
First Mile Facilities Expand
- Due to the growth of e-tailing and the corresponding space requirements to install more sophisticated facilities, automated picking and sortation systems are becoming more prevalent.
- There is a noticeable trend of the total floor area getting larger, with modern ‘first mile’ distribution facilities comprising a floor area of more than 1 million sq ft.
Last Mile Space Contracts
- E-commerce retailers have started to include smaller urban warehouses to shorten delivery routes and provide quick delivery services to online customers.
- These smaller urban facilities within urban community catchment areas, as well as a variety of ‘click and collect’ options for immediate pick up or same delivery options, are coming to the forefront.