How the Ecommerce Boom Triggered a Transformation in Retail Logistics
B2C ecommerce sales have exploded in recent years. 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.