In Focus: DHL Supply Chain's Overcoming Growing Pains Report
E-commerce offers increasingly powerful sales and growth opportunity for businesses, but as this continues, DHL has highlighted the need for supply chain strategy changes in its 'The E-Commerce Supply Chain Overcoming Growing Pains' report.
To help B2B and B2C businesses understand the biggest challenges and opportunities in e-commerce, DHL completed a survey with 900 decision makers in both B2B and B2C businesses across the world to discover:
- How far have companies come in building the next-generation supply chain?
- Are companies’ supply chains agile enough to support rapid growth?
- What are the biggest e-commerce challenges facing companies today?
- What types of supply chain strategies, networks and operating models are employed today, and how will these change in the next three to five years.
What did they find?
When asked, DHL found B2B respondents have caught up with B2C respondents. 38% and 31% respectively, have fully executed their e-commerce strategies. However, there is still a high percentage of respondents – 70% (B2C) and 60% (B2B) – who haven’t fully executed their e-commerce strategy.
Responding to e-commerce challenges, respondents highlighted that customer expectation is a challenge in both B2B and B2C businesses and stated that customers base their purchasing on how well companies can meet their demands. As a result, 57% (B2C) and 53% (B2B) rate customer service as being an extremely important factor to consider.
When asked about distribution methods, DHL discovered that no e-commerce distribution method is dominant. Respondents revealed that most companies use at least two methods, with 47% (B2B and B2C) outsourcing part of its fulfilment to a third-party logistics (3PL).
As a whole 70% of respondents rated e-commerce as very/extremely important to their business for volume and revenue and believe that their online revenue will increase by 21% (B2C) and 16% (B2B) over the next three to five years.
DHL Group key facts
CEO of Global Business Services: Dr. Frank Appel
Head of e-commerce solution: Ken Allen
Head of Supply Chain: John Gilbert
Headquarters: Posttower, Germany