Truck and Track Winter 21/22 www.truckandtrack.com 20 DESCARTES As the challenges facing retailers and the logistics sector continue, Andrew Tavener, Head of Marketing, Descartes, discusses how software solutions can unlock customer experience objectives and sustainability goals simultaneously for competitive advantage. After an unusual Christmas in 2020 - followed by another year of lockdowns and COVID restrictions - British consumers look set to go large and make up for lost time this year, causing greater demand than ever. Although the first stumbling block for many retailers will undeniably be the huge influx of orders, have logistics providers anticipated the avalanche of returned goods likely to make their way back to the warehouses? The lack of breathing space between the Christmas supply chain chaos and January sales / returns mania may cause problems for many businesses, and those who have not implemented an effective strategy to ensure efficient operations under heightened pressure will certainly struggle to perform well. The shortage of HGV drivers in the UK shows no signs of slowing down, and as driver pools deplete whilst the steep shift towards online purchasing continues, logistics providers run a high risk of stretching themselves too thin. And, whilst the general public may sympathise with the difficult circumstances facing providers, consumer expectations of the quality of delivery remain higher than ever. From convenient and timely deliveries to overall environmental performance, British shoppers are growing increasingly hard to please. Things won’t get easier on their own. For retailers vying for both the consumer pound and longer-term customer loyalty, meticulous planning and a forward-thinking approach is vital. Those who fail to implement an effective and environmentally responsible strategy that optimises logistics operations and prepares for every eventuality risk providing an inadequate service – and will ultimately fall behind. Withstanding the Pressure Recent studies found that British consumers spent £10.4 billion online in October 2021, a 58% rise since 2019 and a clear indication that shoppers are choosing e-commerce sites over bricks and mortar stores to make their purchases. Whilst retailers welcome the boost in sales, research has also highlighted that 60% of 16-34-year olds have returned an online order within the last year. With a doubled workload, logistics providers tasked with managing both the out-bound and return journey must streamline their operations in order to meet both demand and fulfil brands’ and retailers’ promised services. Managing demand while meeting consumers’ eco-expectations to gain a competitive edge
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