Page 15 - Packaging News Magazine Nov-Dec2020

November–December 2020 | www.packagingnews.com.au INDUSTRY INSIGHT | E-COMMERCE 15
and this partnership with SEKO Logistics will enable us to do that at great scale. We are very proud to have been chosen by SEKO Logistics as their key supplier of home compostable packaging solutions and look forward to mak- ing positive change together and a real dent in the world’s plastic problem.”
A DISCONNECT
The explosive growth of digital retailing has, however, also created imbalances between retailers and consumers. A new report from Manhattan Associates, for instance, found that at a time when retailers’ e-commerce operations are under more pressure than ever before in Australia, research has uncov- ered a major disconnect between the online shopping delivery options retailers think are
most popular, compared with actual con- sumer preferences.
The survey of 2000 Australian consumers and 100 large retailers found that the largest group of consumers – 34 per cent – said they consider home delivery in two or more work- ing days to be the most useful option when online shopping, whereas only six per cent of retailers said that this was the most popu- lar delivery option with their customers.
“Our research findings indicate a major divide between what retailers believe is the desired delivery option, compared with what consumers really want or find most effective,” Raghav Sibal, managing director for Manhattan Associates, ANZ, said.
“This could mean that the delivery options retailers are offering today are not in line with consumer expectations, leading to unnecessary pressure on already stretched supply chains to deliver goods quicker than consumers actually expect or need them.”
LOGISTICS ISSUES
While there’s an obvious issue in misunder- standing customers, the finding also high- lights an area of significant financial waste.
“Covid-19 has created an incredibly dif- ficult business environment for many Australian retailers,” Sibal said. “They can’t afford to be carrying any needless costs, such as paying extra to deliver products faster than consumers actually expect.”
The research found that distribution cen- tres (DCs) are bearing almost the full brunt of the increase in online orders, with only 9 per cent of retailers saying they fulfil online orders from retail store stock. Most retailers (40 per cent) deliver from a regional DC using their own delivery vehicle, 28 per cent deliver from a regional DC using a cou- rier and 28 per cent direct from a supplier.
“Brick and mortar retail stores are cur- rently experiencing a massive reduction in foot traffic and the number of people pur- chasing in store,” Raghav said.
This pandemic is a reminder of just how important it is for retailers to have real- time insights into their supply chain operations and product inventory.”
“Retailers could be using this as an oppor- tunity to pivot their in-store workforce to fulfill online orders, which would help to ease the pressure on warehouse operations and also add flexibility and cost-effective- ness by fulfilling orders from the location closest to the delivery point.”
Retailers also indicated that their inven- tory visibility had room for improvement, with only six per cent of respondents saying they have accurate inventory insight 100 per cent of the time. The biggest group of retail- ers (45 per cent) said they only have visibil- ity 26-49 per cent of the time, while another 36 per cent said they only have visibility 50-75 per cent of the time.
“Retailers can’t sell what they can’t see, and this concerning lack of stock visibility, especially when the bulk of retail activity is currently online, is risking lost sales opportunities,” Raghav said.
“This pandemic is a reminder of just how important it is for retailers to have real-time insights into their supply chain operations and product inventory so they can stay informed and react quickly to sudden changes in the market.”
Raghav’s challenge to retailers (and the packaging industry) is a sharp one: as if it hasn’t been hard enough already. But, it’s worth remembering that it’s exactly these type of challenges that can forge a stronger, hardier business (and economy) in the future. ■