Nov 23, 2020

XPO Logistics study shows confidence in on time fulfillment

XPO Logistics
covid-19
Holidays
Ecommerce
Georgia Wilson
2 min
Online holiday shopping
XPO Logistics’ latest study, shows a high level of confidence from consumers and retailers in relation to on time fulfilment for holiday orders...

Conducted on behalf of XPO Logistics by Statista in October 2020, a recent study released by the supply chain solutions provider included responses from retailers and consumers in the US, UK, France and France with a specific focus on holiday shopping behaviours for 2020 amind the COVID-19 pandemic. 

With multiple retail analysts predicting that there will be a shift in spending to ecommerce, a dominant trend for Q4. Overall the study discovered that both consumers and retailers were almost universally positive about the capabilities of supply chains to meet increased demand, despite safety restrictions. 

Consumer findings

  • 85% of respondents believe their online purchases will arrive on time
  • 51% prefer online purchasing of gifts, while 27% prefer to shop in store
  • 60% reported that prices are the most important factor when making a purchase during the holidays
  • While consumers reported drawbacks when it comes to online shopping such as the inability to view merchandise (30%), only a few had concerns relating to damaged goods (12%) or return processes (9%)

Retailer findings

  • 91% of retailers feel prepared to manage the surge in ecommerce order, with 57% planning to offer sales earlier 
  • 62% have or plan to add outsourced supply chain support from 3PLs and transportation providers
  • 60% have or plan to add warehousing support

“For more than seven months, we’ve been steadfast in supporting our customers’ supply chains during COVID-19, while maintaining the utmost safety for our workers. Now we’re seeing an unprecedented level of new interest from e-commerce and omnichannel retailers as they turn to outsourced logistics. Our technology and scale are immense advantages for these customers in managing the consumer experience,” commented Malcolm Wilson, chief executive officer of XPO Logistics Europe.

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital.

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Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

Cainiao
Alibaba
Logistics
Tmall618
3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.

 

Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 

 

For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 

 

What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 

 

  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 

 

Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 

 

Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 

 

 

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