World Retail Voice Blog Post
The increasing importance of logistics for online sales
At the World Retail Congress in Paris in September, 5 leading Founders and CEOs in ecommerce discussed the battle between online-only (pure-play) retailers and their multichannel (online and high-street) competitors.
The consensus of the panel formed of Africa Internet Holding, PriceMinister (Rakuten Group), Myntra.com, Appliances Online was that they anticipate pure play, as we see it now, being dead. To summarise, they perceive high street stores of the future being windows of inventory and the front end of retail will increasingly be the courier or delivery company that meets the customer at their door step.
As the channels blur into one continuous shopper journey, to ensure they continue providing a customer-centric, channel-agnostic shopping experience, retailers need to focus on the consumer not the channel. So what if the online retailing company simply started their own logistics service? An interesting example of this is the Africa Internet Group (“AIG”).
Africa Internet Group is a clear ongoing success story and is already the leading internet group in Africa. They are now consolidating their logistics and supply chain capabilities under the newly launched business unit, AIG-Express. The objective of AIG-Express is to create a logistics platform in each of their operating countries, which combines the capabilities of their own warehousing and fleet operations and selected 3PL partners onto a seamless service offering to all their group companies.
Does a consolidated supply chain management service make sense to the bottom line, increase customer service and limit the risks associated fully on 3PL partners?