More than a third of Christmas Click & Collect shoppers experienced order issues
More than a third (36 percent) of Christmas Click & Collect shoppers encountered issues with their orders, according to the second annual JDA/Centiro Christmas Customer Pulse report (conducted online by YouGov).
Of those that encountered any of the issues listed, not having a dedicated area in-store for ‘Click & Collect’ purchases (31 percent), long waiting times due to lack of in-store staff (31 percent), and staff being unable to / taking a long time to locate items in-store (24 percent) were cited as the primary reasons that potentially had a negative impact on Christmas ‘Click & Collect’ customers’ shopping experience.
Overall, problems with online orders continued to impact retailers over the festive period, with 33 percent of online Christmas shoppers stating they had experienced issues with their purchases (an increase from 31 percent the previous year). Of those shoppers that had encountered any of the problems listed, 48 percent had suffered from late deliveries or never received their goods; a further 48 percent had suffered from missed deliveries including when they were at home. Unsurprisingly, more than three-quarters (77 percent) of Brits said they would be likely to switch to shopping with an alternative retailer next Christmas as a result of a poor online Christmas shopping experience.
“While online retail continues to see unprecedented growth in the UK, Christmas shoppers continued to be plagued with problems concerning their online orders. While issues with home deliveries are nothing new, more worrying for many retailers is that this Christmas exposed cracks in their ‘Click & Collect’ operations,” said Jason Shorrock, vice president of retail strategy at JDA.
“Shoppers are showing a growing preference for ‘Click & Collect’ as it offers them the convenience they crave and it is vital that retailers get it right. However, without the effective management of staff, stores and inventory, retailers risk damaging customer relationships. Ironically, at a time when the online channel continues to grow, the in-store experience is becoming ever more important. As the survey findings show, today’s online customer has no qualms about taking their business elsewhere if retailers don’t meet their expectations.”
Despite the perceived issues, the research highlighted that a growing number (41 percent) of online Christmas shoppers opted to use ‘Click & Collect’ services this Christmas compared to 2014 (39 percent). Furthermore, of those respondents that used ‘Click & Collect’ services this Christmas, nearly one in four (24 percent) said they would use ‘Click & Collect’ more next Christmas, 56 percent said they used Click & Collect to avoid delivery charges, while 49 percent said it was more convenient than home delivery. A quarter of online Christmas shoppers (25 percent) said they chose to shop specifically with a retailer that offered ‘Click & Collect’ over one that solely offered home delivery.
Product availability also dictated online Christmas shoppers buying behaviour – 12 percent of online Christmas shoppers said they shopped with an alternative retailer as a result of their preferred one not having the items they needed online. A further 9 percent said they shopped with an alternative retailer as their preferred one didn’t have delivery times that suited them. The research also revealed that nearly a quarter (23 percent) of online Christmas shoppers ordered items earlier than planned, as a result of ordering deadlines mandated by retailers. Interestingly, nearly a fifth (19 percent) said that Christmas ordering deadlines meant they shopped in-store as opposed to online.
“Today’s online customer is now demanding shorter order-to-delivery windows and greater choice over where and when goods are delivered. For retailers, this means ensuring they have full visibility over their inventory and their delivery networks. In the lead up to Christmas, many retailers added much more delivery capacity to deal with spikes in demand, but it is clear customer expectations still aren’t being met. It is also evident that retailers need greater insight into their carrier networks so they can offer more flexible and convenient delivery options,” said Niklas Hedin, CEO of Centiro.
Over the last few years, online sales events such as Black Friday and Cyber Monday have grown in popularity. Indeed, the research highlighted that 49 percent of online Christmas shoppers did at least some of their Christmas shopping during sales events. Of those respondents, 10 percent said not all the items in their basket were still available by the time they reached the online checkout; while 8 percent said they didn't want an item once it was received, so they returned it.
"The anecdotal evidence is that retailers coped a lot better when it came to pre-Christmas sales events this year, as they were able to spread demand over a week rather than single day. However, such events do encourage ‘impulse buying' that has an impact on product availability and growing return volumes. These issues continue to pose questions of retailers’ supply chains and will ultimately dictate if they had a successful Christmas and a profitable New Year,” added Jason Shorrock.
To download the JDA/Centiro Christmas Customer Pulse 2016 report, click here
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected too trip 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.