Analysing Cost Pressures On E-Commerce Logistics (RCD Ep10)
L-R clockwise. Leon Bailey-Green (Editor, Upper Clash), Claire Muir (Fulfilment and Contract Logistics, Seko Logistics), Richard Keegal (Head Of Operations, Mindful Chef), Dov O’Neil (E-commerce & Logistics Consultant), Laetitia Arfi (Global Sales & Marketing Director, APG eCommerce Solutions), Nick Fox (Head of Logistics Europe, Link Theory).
In this discussion we look at some of the factors affecting costs associated with e-commerce logistics.
Theory and Mindful Chef are two very different businesses – luxury designer fashion and meal kits respectively – but, like all brands, their consumer delivery proposition and logistical set up is crucial to the success of their direct-to-consumer offer.
Making sustainable choices sometimes comes at a cost but for Mindful Chef the planet is as important as people and profit. “Every decision we make has to have sustainability in mind” revealed Richard Keegal, the brand’s Head of Operations.
Nick Fox, Head of Logistics at Theory, advocates investing in better warehousing systems which helps teams to improve productivity; as a countermeasure to rising wage costs.
Dov O’Neil, e-commerce and logistics consultant, wants to see innovation in returns. “As return rates creep up some companies may end up with 20-30% of stock in circulation generating them no value” he said.
Nick, Richard and Dov were joined by Seko‘s Claire Muir and Laetitia Arfi, from APG Ecommerce Solutions, for this discussion hosted by Upper Clash editor Leon Bailey-Green.
Laetitia and Claire spoke of price rises announced by carriers, as they increasingly look to cover capex investment and reach profitability in peak periods. They opined on measures some carriers are putting in place to cover themselves when retailer forecasts are below – or above – expectation.
The discussion also ventured into the relationship between marketing and operations teams, as logistics becomes an ever important part of the customer proposition. As well as new ways to handle returns, including thoughts on Royal Mail’s new collection service.
Scroll down for the long edit.
Why carrier prices are rising – 2 minutes 22 seconds
Marketing cost or logistics cost? – 1 minute 45 seconds
Royal Mail’s return collection– 1 minute 34 seconds
The minimum wage impact on warehousing – 1 minute 46 seconds
Managing the rise of returns – 1 minute 52 seconds