Fruit Logistica 2016 Logistics Hub Session 4 lin

Innovative perishable logistics concepts for
the emerging produce e-commerce markets
Danie Schoeman

© 2016 Danie Schoeman & Company.
Global retail e-commerce keeps on
clicking …
$1.077
$1.316
$1.592
$1.888
$2.197
$2.489
25.9%
22.2%
20.9% 18.6% 16.4%
13.3%
5.1% 5.9% 6.7% 7.4% 8.2% 8.8%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
$-
$0.500
$1.000
$1.500
$2.000
$2.500
2013 2014 2015 2016 2017 2018
Retail e-commerce sales worldwide,
2013-2018 (US$ trillions)
eMarketer: Retail Sales Worldwide Will Top 22 Trillion This Year, Dec 2014

… and clicking. Both sides of the globe
6.5% 7.2% 7.8% 8.5% 9.1% 9.8%
12.4%
15.9%
19.6%
23.8%
28.6%
33.6%
2014 2015e 2016e 2017e 2018e 2019e
Share of retail sales made online
expected for US and China
US China
306 349 394 443 494 548473
672
911
1208
1568
1973
2014 2015e 2016e 2017e 2018e 2019e
Projected size of e-commerce markets
for US and China (In US$ billions)
US China
By 2017, China's e-commerce market is expected to exceed US$
1 Trillion and more of what people buy will be bought online.
eMarketer, 2015; Alibaba Group 2015 Annual Report

The consumer’s newfound power
Web (search, comparison
shopping, etc.)
Social (social network,
reviews, community, etc.)
Digital content (video,
editorial, etc.)
Company website
Mobile (apps, mobile Web)
In-store device (kiosk,
associate device, etc.)
Tablet (apps, Web)
Call centre
Branch / outlet /store
External
digital
touchpoints
Branded
digital
touchpoints
Traditional
touchpoints
Depth
Forrester report: Welcome To The Era Of Agile Commerce, 2014

Millennials and Generation Z are the most avid online grocery
shoppers.
Mind the gap – the generation gap
9%
17%
22%
30%
28%
35%
48%
57%
57%
55%
a
b
c
d
e
Order online for delivery to
home
Already using Willing to use
5%
6%
11%
19%
20%
21%
40%
56%
60%
55%
a
b
c
d
e
Use online automatic
subscription
Generation Z
(15-20)
Millennials
(21-34)
Generation X
(35-49)
Baby Boomers
(50-64)
Silent Generation
(65+)
Nielsen: The Future of Grocery - E-Commerce, Digital Technology and Changing Shopping Preferences around the World, 2015

Mind the gap – the generation gap
2%
4%
10%
18%
14%
28%
46%
61%
64%
66%
a
b
c
d
e
Use virtual supermarket
{white space}
9%
17%
22%
30%
28%
35%
48%
57%
57%
55%
a
b
c
d
e
Order online and pick up inside
the store
Generation Z
(15-20)
Millennials
(21-34)
Generation X
(35-49)
Baby Boomers
(50-64)
Silent Generation
(65+)
Millennials and Generation Z are the most avid online grocery
shoppers.
Nielsen: The Future of Grocery - E-Commerce, Digital Technology and Changing Shopping Preferences around the World, 2015

Foods with benefits - who’s willing to pay
more?
24%
32%
32%
33%
30%
a
b
c
d
e
Very important {with line 2
expansion}
Very important
15%
23%
26%
29%
31%
a
b
c
d
e
Very willing to pay premium
{with line 2 expansion}
Very willing to pay premium
Generation Z
(15-20)
Millennials
(21-34)
Generation X
(35-49)
Baby Boomers
(50-64)
Silent Generation
(65+)
Generation Z and Millennials are most willing to pay a
premium for foods that contain certain health attributes.
Nielsen: Global Health & Wellness Survey, 2014

Touch points of the ever connected
consumer on her shopping journey
The consumer’s shopping journey is not linear anymore.
Web SocialCompany website Mobile Call centreBranch/store
Purchase
Forrester report: Welcome To The Era Of Agile Commerce, 2014
Trust
Evangelize
Friend
Discover
Search
Research
Compare
Decide
Use
Get help
Share
Personalize

Touch points that matter for the
consumer on her shopping journey
Touch points that matter are different for different categories.
Web SocialCompany website Mobile Call centreBranch/store
Purchase
Forrester report: Welcome To The Era Of Agile Commerce, 2014, Deloitte: Navigating The New Digital Divide, 2015
Trust
Evangelize
Friend
Discover
Search
Research
Compare
Decide
Use
Get help
Share
Personalize
Apparel
Electronics
Baby/toddler
Furniture/
Home
furnishings/
Home
improvement
Food/beverage

Global
Average
United
States
United
Kingdom
Germany Japan Brazil Russia India China
South
Africa
Nigeria
Electronics 77% 83% 84% 90% 53% 86% 71% 79% 96% 60% 65%
Fashion and apparel 76% 87% 85% 88% 84% 75% 64% 84% 97% 47% 65%
Services 76% 80% 76% 77% 82% 70% 63% 82% 87% 79% 80%
Books 73% 82% 82% 80% 70% 75% 52% 70% 89% 64% 71%
Tickets 64% 74% 69% 63% 79% 65% 51% 79% 71% 69% 47%
Music and games 62% 74% 75% 66% 65% 62% 43% 65% 69% 64% 57%
Home appliances 59% 46% 65% 58% 67% 70% 62% 67% 83% 41% 52%
Beauty products 57% 50% 56% 62% 68% 59% 53% 68% 85% 41% 45%
Home furnishings 53% 56% 65% 66% 59% 48% 43% 59% 65% 34% 30%
Sports and outdoor 52% 56% 53% 66% 52% 49% 51% 52% 78% 35% 35%
Toys, kids, and babies 49% 48% 53% 49% 61% 47% 44% 61% 75% 38% 34%
Household items 45% 36% 48% 40% 60% 35% 36% 60% 84% 31% 35%
Groceries 45% 26% 60% 36% 52% 29% 31% 52% 90% 31% 30%
What do consumers buy online?
Electronic goods, apparel, and books are among the most
popular online categories.
>75% have bought the category online
%respondents who say they have bought online in the past three months
50%-75% have bought the category online <50% have bought the category online
AT Kearney: Connected Consumers Are Not Created Equal: A Global Perspective

Online shopping baskets are changing
55%
50% 49%
43% 40% 37% 35%
30%
23% 21% 19% 18% 17% 15% 14% 13% 11% 11%
Global average: Percentage who have ever purchased the category online
Selected durable categories Selected consumable categories
Nielsen: Global Connected Commerce - Is e-tail therapy the new retail therapy?, 2016
Once consumers get over the trial barrier, retailers who get the
assortment, convenience and online experience factors right
will benefit from frequent purchasing patterns of consumables.

61%
31%
4% 4%
Stores Online Catalog Mobile
Consumers’ hearts still lie with the store
Consumers spend the majority of their shopping time in stores.
A.T. Kearney: Omni-channel Shopping Preferences Study, 2014.

Consumers still prefer buying groceries in
the store
38%
48%
53%
67%
70%
73%
76%
77%
79%
79%
91%
58%
19%
46%
31%
23%
22%
18%
8%
16%
18%
8%
Books, CDs, DVDs & video games
Designer goods
Electronic items
Clothing
Footwear & accessories
Home furnishings
Furniture
Alcohol
DIY & home improvement materials
Cosmetics & toiletries
Groceries
Consumer preference where to buy goods
Buy mostly from store Buy mostly online
Don't buy these items
Displaydata: Rethinking Retail Series: Reinventing the store shelf edge in the age of omni-channel shopping, 2014; AT Kearney: Recasting the
Retail Store in Today's Omnichannel World, 2013
7%
9%
13%
15%
24%
To find
promotions or
special offers
To compare
prices
To spend time
with friends
and family
To try, test or
try on products
To fill an
immediate
need
Why consumers shop
in physical stores
1.
2.
3.
4.
5.

Technology: both the culprit and the
hero

Digital disruption has already happened
• The world’s largest taxi company owns no taxis
• Largest accommodation provider owns no real estate
• Largest phone companies owns no telecommunications
infrastructure
• World’s most valuable retailer own no inventory
• Most popular media owner creates no content
• Fastest growing banks have no actual money
• World’s largest movie house own no cinemas
• Largest software vendors don’t write the apps
• a
Silicon Republic: How digital disruption changed 8 industries forever, 2015

The digital influence factor
17%
20%
23%
30%
29%
29%
29%
35%
37%
31%
35%
39%
49%
52%
55%
55%
59%
62%
Food/Beverage
Misc. Supplies
Health/Wellness
Apparel
Baby/Toddler
Entertainment
Automotive
Home Furnishings
Electronics
Digital and mobile influence by category
Digital influence Mobile influence
Deloitte: Navigating the new digital divide - Capitalizing on digital influence in retail
The influence of digital devices on the shopping journey are
shaping how customers shop and make buying decisions.

The influence of social media
Generation Z
(16-25)
Millennials
(26-35)
Generation X
(36-55)
Baby Boomers
(56-65)
Silent Generation
(65+)
There is a clear correlation between age and social networks’
influence on buying decisions.
Adapted from AT Kearney Connected Consumers Study
5%
12%
22%
33%
32%
14%
22%
29%
32%
35%
e
d
c
b
a
abcdefghijklmnopqrstuvwxyzab
cdefghijklmnopqrstuvwxyz
Yes 1 Yes 2 No
Yes, but I only occasionally base my
decision upon what's happening in
my social network
No, I rarely or never base my decision upon
what's happening in my social network
% respondents globally
Yes, I frequently base my decision
upon what's happening in my social
network

44%
35%
52%
68%
61%
22%
49%
42%
29%
33%
e
d
c
b
a
Yes 1 Yes 2 No
3%
4%
6%
7%
5%
12%
19%
24%
31%
32%
e
d
c
b
a
Yes 1 Yes 2 No
Regional influences of social media are
vastly different
Generation Z
(16-25)
Millennials
(26-35)
Generation X
(36-55)
Baby Boomers
(56-65)
Silent Generation
(65+)
US consumers are less influenced by their social networks than
consumers in China.
my social network
% respondents in USA % respondents in China
network
No, I rarely or never base my decision
network

44%
35%
52%
68%
61%
22%
49%
42%
29%
33%
e
d
c
b
a
Yes 1 Yes 2 No
3%
4%
6%
7%
5%
12%
19%
24%
31%
32%
e
d
c
b
a
Yes 1 Yes 2 No
Regional influences of social media are
vastly different
Generation Z
(16-25)
Millennials
(26-35)
Generation X
(36-55)
Baby Boomers
(56-65)
Silent Generation
(65+)
US consumers are less influenced by their social networks than
consumers in China.
my social network
% respondents in USA % respondents in China
network
No, I rarely or never base my decision
network
Similar profiles:
• UK
• Germany
• Japan
• South Africa
Similar profiles:
• India
• Russia
• Brazil
• Nigeria

Digitally influenced consumers spend
more
Shoppers are 29
percent more
likely to make a
purchase the same day when
they use social media to help
shop either before or during
their trip (90 % vs. 70 %
conversion).
Consumers who
use social media
during their
shopping process are ≈4x
more likely than non-users to
spend more or significantly
more on purchases as a result
of a digital shopping
experience.
Respondents who
consider
themselves
somewhat or very influenced
by social media are 6x more
likely to spend significantly
more than non-users (42 %
vs. 7 %) due to their digital
shopping experiences.
Deloitte: Navigating the new digital divide - Capitalizing on digital influence in retail

Creating a seamless customer experience
11%
15%
25%
26%
32%
58%
92%
Channel partners /
marketplaces / affiliates
Dedicated mobile /
mCommerce site
Catalog / Call Center
Social channels
Downloadable mobile
app
Online / eCommerce
Stores
Which selling channels do you offer
today?
Customer service is the driving force of channel convergence
towards omni-channel.
2%
4%
5%
5%
7%
10%
11%
23%
32%
Minimized backorders
Inventory allocation
Replenishment efficiency
Packing efficiency
Fill rate
Order cycle time
Freight costs
Service levels
Customer service
What is your priority in omni channel
fulfillment?
RSR Research: Retail Supply Chain Execution: New Requirements To Meet New Demand Benchmark Report 2015; 2015 19th Annual Third-Party
Logistics Study.

A brave new world
25%
27%
40%
57%
52%
43%
47%
19%
29%
48%
48%
48%
52%
55%
Digital channel growth outpaces store growth, putting
new pressures on supply chain
Uncertainty about variable supply chain costs
Long supply chains and new product introduction
cycles hamper responsiveness
Competitive pressures drive us to create shorter
customer order-to-delivery cycles
Pressure from competitors to achieve same-day
fulfilment to consumers
Consumer demand has grown more unpredictable
How we fulfil it has changed due to cross-channel
shopping
Top business challenges around supply chain execution
Leaders Followers
Leaders are more focussed on a customer centric selling model
than the followers.
RSR Research: Retail Supply Chain Execution: New Requirements To Meet New Demand Benchmark Report 2015

Sourcing flexibility – a winning trait
42%
44%
34%
49%
56%
41%
41%
51%
51%
47%
47%
41%
45%
48%
48%
52%
55%
58%
58%
61%
61%
65%
68%
68%
Ship from store DTC
Drop ship from vendor DTC
Store-to-store transfer for click & collect
In-store purchase of online inventory for shipment DTC
Online visibility into in-store inventory
Same-day delivery
In-store reservation of inventory for in-store purchase
DTC fulfilment from our DC
Same-day ship
Ship to store from "Direct" DC for click & collect
Drop ship from vendor direct to store
In-store inventory pick for click & collect
Very valuable operational opportunities in customer order fulfilment processes
Leaders Followers
Leaders see new fulfilment options such as “click & collect” and
DTC* as some of their most valuable operational opportunities.
*DTC = direct-to-consumer
RSR Research: Retail Supply Chain Execution: New Requirements To Meet New Demand Benchmark Report 2015

Evolving supply chains
of companies had re-
structured their distribution
network in the last year.
of the cases the distribution
re-structuring had involved
relocating distribution centres
to a lower cost country.
More Fewer
National DCs 49.5% 50.5%
Regional DCs 58.5% 41.5%
Global DCs 52.8% 47.2%
of respondents cited the
main reasons for the
distribution re-structuring
were predominantly related
to cost.
indicated that they were
establishing more regional
(multi-country) distribution
hubs.
75% 20%
50%
58%
How has the structure of your
distribution network changed?
European supply chains are evolving to become more product-
and/or channel-specific enabling them to adapt to different
customer and product service level requirements.
Transport Intelligence Global Distribution Strategies Survey 2008

Emergence of direct-to-store delivery aka
DC bypass
DC bypass strategies
• Direct shipment to
customer
• More regionalized
distribution
• Velocity based networks
using cross-docking
CEIBS Port of Barcelona Logistics Chair: Direct-to-store distribution impact on European Ports, 2008
Offshoring logistics
• Cargo consolidation from
China and other Asian
sourcing countries
• Value added logistics
activities
• Multi-country distribution

Direct-to-store aka DC bypass – how it
works
Traditional centralized European
distribution
Direct-to-store distribution
Deconsolidation
centres or
Regional DC
Multiple
inbound
flows
Suppliers
Continental DC
Consolidation
platform
Suppliers
CEIBS Port of Barcelona Logistics Chair: Direct-to-store distribution impact on European Ports, 2008

DC Bypass at UPS
Shanghai,
China
Los Angeles,
CA
New York, NY
Cologne,
Germany
Guadalajara, Mexico
Laredo, Texas
Direct-to-Store Illustration
Consolidated freight is
broken down into individual
shipments at destination
port or gateway for direct-
to-store delivery.
UPS, Supply Chain Digest, When Does “DC Bypass” Make Sense?, 2008

DC Bypass for Air/Sea Freight at Bakers
Footwear Group
Overseas
Goods
In-Transit
Allocations Domestic
Factory CFS Facility Carriers
3PL
Warehouse
Corporate
Office
Retail Stores
ARC - Bypassing the Distribution Center, 2013
Accept receiver and
examine store needs
Allocations
Delivers to stores
Inventory &
sales needs
Cartons delivered
and received into
the system
PLD is transmitted
to small package
carrier
Destination labels are
printed and applied
based on allocations
Labelling is shifted to the factory

DC Bypass for Sea Freight Bakers
Footwear Group
Factories CFS Facility
Ocean
Vessel
3PL
Warehouse
Corporate
Office
Retail Stores
Overseas Floating
Warehouse
Last Minute
Allocations
Domestic
ARC - Bypassing the Distribution Center, 2013
Serialised labels
printed and applied
to cartons
Container arrives and
a receiver message is
sent to corporate
Cartons delivered
and received into
the system
Cartons are
scanned into the
container
Visibility to the
container through
web based tracking
Cartons are scanned
and destination
labels are printed
and applied
PLD is transmitted
to small package
carrier
Accept
receiver and
examine
store needs
Last minute
allocations
Delivers to stores
Inventory &
sales needs

Requirements for direct-to-store aka DC
bypass
• Products need to be allocated earlier than in a
traditional environment
• Sensing of products demand must be accurate
and reliable
• Volume and scale to ensure full-container load
(FCL) shipments
• Reliability of transit times and cargo visibility
from origin to destination
• Visibility across the supply chain
• Products need to be packaged “customer or store
ready” and labelled as close as possible to origin
www.inboundlogistics.com: Optimize 'Obnoxious Freight' With DC Bypass, 2006; How to Develop a Direct-to-Store Delivery Model, 2010

Is a direct-to-store delivery model right
for you?
• Time sensitive products
– Perishable products such food, flowers, etc.
– Trendy items that are fast old-fashioned such as clothes, electronics, etc.
– Promotional products for trade shows, concert events, products launch etc. and collectibles.
• Seasonal products
– Heating or air conditioning units
– Snow shovels, fertilizer, and lawn mowers, etc.
– Seasonal sports products
– Items for short, high-volume periods such as Christmas decoration items, back-to-school products,
Valentine’s day, etc.
• High unit value products
– Jewellery, routers or other products that require security.
• Obnoxious freight
– High unit volume products that do not palletize efficiently or aren’t compatible with standard storage
layouts such as furniture, outdoor equipment, automotive replacement parts, and outdoor toys.
– Heavy products such as major appliances.
– Easily damaged items such as glass.
www.inboundlogistics.com: Optimize 'Obnoxious Freight' With DC Bypass, 2006; How to Develop a Direct-to-Store Delivery Model, 2010

• Increased speed to market
• Reduced end-to-end inventory
carrying costs and warehouse
costs
• Reduced cargo damage and
losses
• Reduced transportation costs
• Lower per unit supply chain
cost
• Increased margin
• Quicker cash-to-cash cycle
• Improved distribution network
efficiency
• Reduced physical assets and
deferred investments
Benefits of direct-to-store aka DC bypass

of online shoppers
in China say they
are going direct to
brand sites.
The myth that retailers are closest to the
customer
3%
8%
12%
17%
23%
24%
29%
30%
41%
44%
Other
Better experience
Customization / personalization
Better service
Good stock availability
Better warranty / guarantee
Love of brand / loyalty
That’s all I needed - one brand
Full range or more choices
Lower price
Reasons consumers buy directly from
a brand or manufacturer
35%
56%
52%
of consumers globally have
already bought products
directly from brands or
manufacturers.
of online shoppers
in the USA say they
are going direct to
brand sites.
Consumers are shopping directly from manufacturers and many
no longer distinguish between retailers and their favourite
brands.
PwC: Demystifying the online shopper 10 myths of multichannel retailing, 2013

From the brand owners and
manufacturers point of view
5%
9%
22%
23%
41%
We compete with retailers’ private-label offerings
We battle for shelf space with other brands
We share consumer data and insights to enable better
planning, though we act on those insights separately
We continue to work with retail partners but we are
also committed to expanding our competing direct-to-
consumer strategies
We work together to serve consumers through a
variety of marketing, sales and service programmes
How do you view your relationship with retailers as it relates to consumer
engagement? (% respondents)
41%
of respondents say they expect to sell products directly
to consumers over the next 12 months - up from the
24% who say they currently offer direct-to-consumer
sales.
Economist Intelligence Unit: New directions: Consumer goods companies hone a cross-channel approach to consumer marketing, 2012

Why brand owners and manufacturers
want to go for direct-to-consumer
5%
8%
13%
30%
35%
36%
44%
59%
69%
70%
We have no plans to ever market or sell directly to consumers
We don’t currently market or sell directly to consumers but we
may in the future
Thwart private-label sales
Use as testing ground for new products
Gather consumer insights to improve marketing programmes
Cross-sell (eg, line extensions or bundling)
Gather consumer insights to improve product
Increase interaction with brand
Increase sales
Enhance brand awareness
What are the objectives of your direct-to-consumer initiatives? (%
respondents)

Brand owners and manufacturers are
going for direct-to-consumer
5%
10%
21%
25%
40%
Other
Through third-party, direct-
to-consumer sites (eg,
Alice.com, Amazon)
Directly to consumers (eg,
through your website or
social media sites)
Through wholesale
distributors
Through retail partners
How do you see percentages of your
total sales shifting over the next 3
years through the following channels?
(Average % respondents)
21%
4%
22%
25%
29%
Don't know
Other
We have increased the % of
spending on trade promotion
to complement DTC…
We have shifted some trade
promotion budget to DTC
programmes
Our % of trade promotion
spending has not changed
What has been the impact of your
direct-to-consumer programmes on
trade promotion? (% respondents)

When consumers “bypass retail”
78.4%
Amazon
36.6%
Brands
46.6%
Online retailers
is the No. 1 digital source for researching products
is the No. 1 digital shop for buying products
58.4%
Google
22.7%
Brand website
14.9%
Digital retailer site
Brandshop: 2015 Digital Consumer Preferences Survey, September 2015

Not all brand categories are created equal
30.2%
36.9%
38.0%
55.9%
56.7%
Beauty & skincare
Food products
Household & consumer
goods
Electronics
Clothing & apparel
Product categories that US digital
buyers prefer to purchase directly
from the brand, by industry (% of
respondents)
Brandshop: 2015 Digital Consumer Preferences Survey, September 2015

Reasons to consider the move to direct-
to-consumer or “retail bypass”
• Loyalty of retailers to a brand based on:
– Their margins.
– How they can leverage the brand for their own purposes.
– How much marketing support/money they can acquire.
• This forces a brand in a long term mindset and model to:
– Become operationally lean due to smaller margins.
– Increase profit through streamlining manufacturing by e.g. moving the factory to China.
– Develop content around the training of retailer employees and with high retailer employee churn
this becomes a vicious and continuous cycle.
• This leaves the brand with little time and resources to focus on consumer needs.
• According to a IBM study: Less than a third of retailers are able to accommodate
the 90% customers who want better personalisation, and “are willing to spend 20
minutes to set up their information to help the retailers give them a better
experience”.
• The most effective content creator for the marketing strategy is the brand - the
creator of the brand story, and the product (s). A brand's ability to effective tell
stories creates stronger bonds than any retailer could - both pre and post sale.
Econsultancy: Why brands need to move to a direct to consumer model, 2014; IBM: you need a personalised customer experience to breach
real and digital worlds, 2013

Benefits of direct-to-consumer or “retail
bypass”
Strengthened brand image by telling the brand story as its intended direct
to the target market
Aggregate an incredibly rich source of consumer data, which was
previously controlled by retailers, delivering insights into consumer needs,
and buying behaviours
Creating direct social connections builds meaningful direct conversations
building a greater understanding of needs, likes, and dislikes without the
'retailer filter'
The harnessing of data provides local knowledge for global brands,
allowing for the penetration into new global markets
Better experiences build brand advocates or fans
The combination of data, direct connections, and meaningful consumer
conversations organically develops lifetime strategies
Econsultancy: Why brands need to move to a direct to consumer model, 2014

• Fresh comes first
– Its about the product not the service
– Make-to-order model - processing centre capable of trimming and slicing to each
customer’s order
• Product mix
– Perishables 75%; packaged goods 25% vs traditional 50%/50% model
• A shorter supply chain
– Cutting out the middle man and ensure quality
– Vertical integration lowers inventory
What we learned from Dell – the
FreshDirect case
strategy+business: What FreshDirect Learned from Dell, 2003
• Limited SKUs
– Maximize volume per item
• No promised land in the “last mile”
– Doesn’t offer same-day delivery - only next-
day delivery
– Controls the cost of the “necessary evil” of
home delivery
• Its all about speed and cost
Dell’s edge in speed created a cost
advantage that ultimately redefined
the PC industry. Its competitors,
saddled with longstanding channel
relationships and make-to-stock
manufacturing models, have been
struggling for years to make the
transition to the Dell model, but
they still remain short of the system
Dell created from scratch.

Amazon user? Be careful what
you wish(-list) for!

Anticipatory shipping
US Patent Office: Patent US8615473 B2 - Method and system for anticipatory package shipping
Expedited
service path
Non-expedited
service path
Tender to common carrier
at fulfilment centre
Tender to
common carrier
at hub
Private
carrier
Fulfilment
centre
Common
carrier

• They are the No 1
online store in the US
• They collect data while
you browse – even
mouse hover!
• Big data
• Advanced data mining
techniques
• Machine learning
algorithms
• Predictive analytics
How do they do it?

We already have predictive commerce!
www.toolsgroup.com

Amazon Prime Air
Amazon.com

Amazon Fresh
fresh.amazon.com

“That said, everything is
indeed Fresh. This'll save
me a lot of time, but it
means I'll never go
anywhere other than work
or home again. Actually,
that's not true, they don't
sell beer yet. :)
Amazon Fresh – from a customer
https://www.flickr.com/photos/adpowers/1280742907/in/photostream/

Amazon in talks to lease
Boeing jets to launch its
own air-cargo business
The online retail giant is looking to
expand its delivery operations to
avoid the bottlenecks caused by
overwhelmed carriers such as UPS.
Amazon.com is negotiating to lease 20
Boeing 767 jets for its own air-delivery
service, cargo-industry executives have
told The Seattle Times.
The online retail giant wants to build out
its own cargo operations to avoid delays
from carriers such as United Parcel
Service, which have which have struggled
to keep up with the rapid growth of e-
commerce.
Own air-delivery service?
A Boeing 767 arrives at Boeing Field ferrying parcels for
UPS. Amazon is considering venturing into the same
territory as UPS and FedEx, acquiring similar freighters
for its own air cargo service.
(Dean Rutz / The Seattle Times)
http://www.seattletimes.com/business/amazon/amazon-in-talks-to-lease-20-jets-to-launch-air-cargo-business/

Could be a game-changer
as Amazon is awarded
sea freight forwarder
licence by US FMC
Amazon has continued its much anticipated
foray into the freight and logistics sector –
yesterday the US Federal Maritime
Commission (FMC) awarded one of its
Chinese subsidiaries an Ocean
Transportation Intermediaries (OTI) licence
that allows it to operate as a sea freight
forwarder.
Registered in 2004 by Amazon founder Jeff Bezos
as Beijing Century Joyo Courier Service Ltd, the
Sea freight forwarder!
© Frank Gartner
http://theloadstar.co.uk/game-changer-amazon-awarded-sea-freight-forwarder-licence-us-fmc/

What’s next Jeff?
Use the what?
Mendhak - flickr

Final thoughts
• Omni-channel retailing means that customers engage with
the brand, rather than with the channel – all customers
need to have full access to the retailer’s offer through all
channels during all times of the shopping journey
• A truly omni-channel strategy requires a total overhaul of
all operations
• Traditionally, supply chains were designed around a
network of stores - now they need to be re-engineered
around customers
• Speed and agility are key for future success
• The potential for vertical and horizontal collaboration
exists e.g. the sharing of delivery networks and collection
points

What are the three things you hope to
achieve?
“Demosthenes, the greatest
of Athenian orators, was
asked what the three tests of
a great speech were. “Action,
action and action‟ was his
reply.”
James C. Humes

Danie Schoeman
+27 82 940 6028
danie@danieschoeman.com
www.danieschoeman.com
There’s more to talk about, so let’s have
coffee …

Disclaimer
This document has been prepared by Danie Schoeman and Company
to provide background information on the subjects mentioned herein,
the forecasts, opinions and expectations are entirely those of Danie
Schoeman and Company. This presentation was prepared with the
utmost due care and consideration for accuracy and factual
information; the forecasts, opinions and expectations are deemed to
be fair and reasonable. However there can be no assurance that
future results or events will be consistent with any such forecasts,
opinions and expectations. Therefore the authors will not incur any
liability for any loss arising from any use of this presentation or its
contents or otherwise arising in connection herewith. Neither will the
sources of information or any other related parties be held responsible
for any form of action that is taken as a result of the proliferation of
this document.

Fruit Logistica 2016 Logistics Hub Session 4 lin

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (18)

Semelhante a Fruit Logistica 2016 Logistics Hub Session 4 lin

Semelhante a Fruit Logistica 2016 Logistics Hub Session 4 lin (20)

Mais de Danie Schoeman

Mais de Danie Schoeman (20)

Fruit Logistica 2016 Logistics Hub Session 4 lin