From the comments made at UKWA’s recent Annual Conference there seems to be a realisation that the current online order fulfillment model is not sustainable and some recalibration of consumer expectations is essential, says UKWA’s CEO, Peter Ward
It was extremely pleasing to welcome some 120 delegates from across the logistics spectrum to UKWA’s recent Annual Conference. With high quality speakers – all experts in their individual field – the Conference was intense, highly informative and absolutely ‘on message’.
Held in Chester, the two-day event took the theme ‘Transforming Logistics for the Digital World’ and, given the buzz around the conference hall and the interaction between speakers, delegates and sponsors both during the formal sessions and throughout the times set aside for networking, it was clear that the conference agenda had successfully identified many of the challenges and issues our industry is facing.
For example, during a fascinating panel discussion on day one of the conference, delegates heard how four leading retailers are adapting their businesses and working with their third party logistics services providers to overcome the risk to their profit margins that the inexorable rise of online shopping has brought.
Ben Farrell (John Lewis), Chris Warn (Pentland Group), Ian Bartholomew (Urban Outfitters) and Rob Redmile (Dixons Carphone) agreed that the retail sector – and the logistics companies that serve it – risks becoming involved “in a race to the bottom” as it struggles to satisfy consumer demand for low priced goods as well as cost-free and virtually immediate delivery.
From the comments made, there seems to be a realisation that, for many retailers, the current online order fulfillment model is not sustainable and some recalibration of consumer expectations will be essential. One member of the panel stated that, quite simply, the rise of e-Commerce has put many retail companies on “the road to less and less profit.”
But, of course, the ‘Digital Genie’ is out of the bottle and the retail sector’s ongoing need to service today’s technology-enabled consumer means that the logistics industry is under greater pressure than ever before to develop new working practices and adopt technology-led solutions that allow it to keep pace in the digital age.
And, while our industry has always been robust, resilient and shown a ready willingness to embrace change, the fact is that any company choosing to ignore or failing to engage with the new world of logistics faces a very real risk of being left behind forever.
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