How the Ecommerce Boom Triggered a Transformation in Retail Logistics

Infographics

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.

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Conclusion

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.

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