The explosion of e-commerce – providing consumers with a multitude of ways to select, buy, receive and return goods – has highlighted the need for solid distribution networks.According to Elaine Low, regional MD for the South East Asia and Pacific region at Ceva Logistics, this is clearly evident in the East where e-commerce has been booming. “It is changing everything we know about logistics. It has resulted in changed behaviour among consumers who are no longer just opting to buy high-end, luxury products online as we saw in the early days, but now anything and everything is bought through e-commerce.”With that has come the need for faster delivery and faster return-logistics.“We have seen a massive increase in even basic essential items now being bought online rather than in brick and mortar stores. The quantities and the order sizes have increased and supply chains are having to adapt very quickly to this new environment.” According to research by Ceva Logistics, over two thirds of shoppers (68%) are expected to continue purchasing their essential goods online after the health threats of Cov id-19 have subsided.“This expected long-term shift to e-commerce spans all socio economic groups,” she said. While Covid-19 has been an accelerant for online commerce, it has also made it clear that consumers want to see as little delay as possible after clicking a button. “Warehousing closer to the consumer with fast-moving distribution networks will become the norm,” said Low, indicating that more inventory was going to be the way forward. “Retailers are also indicating that building buffer stock is important and having it available for customers is necessary. That means more space will be required to hold more stock.”She said transportation networks would also need to be more robust in the future. “As online volumes increase there is more pressure on lead times – and deliveries have to keep up. More and more companies are looking at multi-carrier solutions to get products to customers as quickly as possible.”Another important development was that of the contactless environment, said Low. “QR codes, for example, are not new, but we can expect to see more use of these in the future as the trend to reduce touch points and contact continues.”She said the growth of e-commerce would require logistics companies to become far more agile and flexible, leveraging all of their capabilities.“The positioning of warehouses and the last-mile distribution capability are going to become critical aspects in delivering the best e-commerce experiences to customers,” said Low.
INSERT: Over two thirds of shoppers (68%) are expected to continue purchasing their essential goods online after the health threats of Covid-19 have subsided.