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Technology Newsmaker Q&A Archana Vidyasekar

Friday, August 18, 2017 - 07:00
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Archana Vidyasekar is the Global Research Manager, Visionary Innovation Research Group, at Frost & Sullivan. She spoke to Aftermarket Business World about some of the challenges of delivery and logistics in the e-tailing era.

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How has the e-tailing/online channel affected expectations when it comes to delivery?

More omni-channel expectations have put pressure on the supply chain to deliver more flexible delivery options. For example, self-collection from lockers/boxes or from stores has emerged as a key delivery option among all manufacturers looking to offer online products. This pressure is also moving up the value chain, compelling manufacturers to also innovate with the transportation options for cargo.

Are there different approaches when it comes to business-to-business delivery versus business-to-consumer deliveries?

Business-to-business deliveries tend to be scheduled with larger batch sizes, and are typically inter-continental and inter-city. Business-to-consumer deliveries are more frequent, smaller size and involved more intra-city movement. B2B online retail, however, is growing to become a huge opportunity as well. It is expected to reach more than $6.7 trillion by 2020, twice as a big as online B2C e-commerce.

Are companies finding ways to balance customer demands for lower cost and faster delivery with the fact that last-mile delivery is often expensive and (in some cases) inefficient?

Last mile now accounts for over one-third of the overall cost of delivery. The above-mentioned tactics such as self-collection is a way to reduce the transportation cost.

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