With lockdown creating even greater demand for online shopping, Rodney Steel, CEO of the BCMPA – the Association for Contract Manufacturing, Packing, Fulfilment & Logistics, highlights how its members are working round the clock to make sure Christmas is still delivered.
The latest lockdown restrictions on traditional retail shopping activities are combining with the seasonal demand peaks of Black Friday and Christmas, to continue the inexorable growth towards online sales and deliveries made direct to consumer (DTC). The pressures on warehouses and logistics operations are massive.
The increase in online shopping was already on a fast-rising trajectory, but the coronavirus crisis has hugely impacted on this trend. Even before the second lockdown, surveys were showing that nearly three quarters of UK consumers would be avoiding shopping in-store this Christmas, and Barclays is predicting the busiest ever online retail season with sales already running 50 per cent higher than this time last year. For brand owners, the challenge has been to adapt to meet this increased demand and importantly, mitigate any damage to their reputation through an inability to cope.
To avoid the risk of being unable to service these heightened demands particularly over the festive period, many companies are employing third party fulfilment and logistics providers to ensure they have the necessary skills and resources. The outsourcing of these elements helps to spread the load and provide sufficient infrastructure, staff and space to make deliveries possible.
As well as the impact of the lockdown on shopping habits, the BCMPA attributes the growth in online sales to several other factors, including the opportunity for smaller brands and marketeers to now sell directly to their consumers via e-commerce stores rather than through resellers.
Whereas major brands usually have the firepower and finance to switch to new ways of selling, for many smaller brands it can be unknown territory. This again is where outsourcing makes total sense, enabling businesses to tap into the expertise of BCMPA members across the supply chain to deliver their products to customers, at the same time ensuring they derive the full brand experience.
Whether it be creating the Christmas and limited-edition gift packs that form part of our festive celebrations or the picking, packing and despatching of consumer goods from warehouse direct to homes, BCMPA members are able to provide a complete end-to-end service.
The agility and responsiveness of outsourcing companies make them the perfect partners in this important part of the supply chain, and their efforts will provide the much needed help Santa will need to deliver Christmas on time.
Rodney Steel
Chief Executive, BCMPA
Comments are closed.