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Supply chain learnings from the pandemic
The shift to online shopping was already well underway before the COVID-19 pandemic accelerated it, and has continued to grow throughout 2022.
Nine out of ten British grocery shoppers intend to carry on shopping online post COVID-19, according to figures from market research company Mintel. Overall, retail sales volumes fell 1.4% in the month to September 2022 and were 6.9% lower than in September 2021, with the largest month-on-month change in food sales, which have fallen 1.7% since August 2022 as the cost-of-living crisis impacts household budgets.
ONLINE RETAIL SALES BEGIN TO FLATTEN
Online retail sales rose 1.2% in September 2022 compared with August 2022, which may reflect households switching to cheaper products online, where customers are able to price match, in the run-up to Christmas. Online retail sales remain 8.3% lower than in September 2021, with the most significant fall in sales in household goods as consumers cut back on non-essentials.
DELIVERY MARKET RECEIVES SIGNIFICANT INVESTMENT
Almost £10 billion was invested into the super-fast delivery market globally over the course of the pandemic. The rise of technology has also played a vital role in switching behaviours, allowing consumers to shop using both apps and the internet across a multitude of devices, resulting in quick and easy purchases. Throughout the growth of internet shopping, customer expectations have also risen, as individuals and businesses expect a faster, more flexible delivery at very little, or no cost. However, rural delivery can be made more efficient and environmentally friendly through a variety of methods. Across the supply chain, learnings can be applied from sectors which have already established their efficiencies in the new trading world, such as clothing and grocery retailers.
SUPERMARKETS INTRODUCE ECO-FRIENDLY DELIVERY SLOTS
Sainsbury’s, Ocado and Morrisons have introduced eco-friendly green delivery slots for their customers in efforts to reduce the carbon footprints of each delivery. The concept works by customers selecting an eco-time slot on checkout, which is indicated by a green van icon, to select a delivery van which is already in the customer’s area, thus making deliveries more fuel efficient. In addition, one-hour delivery timeslots enable customers to pick a time which will suit them, therefore reducing the amount of return trips required due to missed deliveries.
ONLINE GROCER SLASHES VAN EMISSIONS BY A THIRD
Ocado currently has a fleet of 1,700 delivery vans, with the company keeping its diesel-powered vehicles for five years, and electric vehicles for eight years as they will generally operate within urban areas and travel fewer miles each day. Ocado has successfully reduced its vans’ carbon dioxide emissions by 33 per cent from 2012 to 2018. The company also recycles carrier bags (if you hand them back to the driver). Unwanted supplies of food products are donated to food banks and charities. Similarly, Morrisons is committed to recycling its plastic bags, and has pledged to make all of its packaging recyclable by 2025.
Michelle Gardner, Deputy Director – Public Policy, Logistics UK, said: “As society continues the return to ‘normal’ – or the ‘new normal’, as our post-pandemic lives have been designated – it is vital that innovations are shared between businesses to ensure the continued evolution of the supply chain. Customer expectations for fast, efficient deliveries, honed during the pandemic, continue to be high and it is vital that businesses across the supply chain continue to identify opportunities for cost and time efficiencies.”
*www.logistics.org.uk/campaigns/logistics-and-the-economy
Published On: 24/11/2022 16:00:48
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