{"id":2226,"date":"2019-04-04T12:08:46","date_gmt":"2019-04-04T12:08:46","guid":{"rendered":"https:\/\/loginextsolutions.com\/blog\/?p=2226"},"modified":"2025-10-14T12:55:51","modified_gmt":"2025-10-14T12:55:51","slug":"how-retail-and-e-commerce-can-scale-fast-with-perfect-logistics-optimization","status":"publish","type":"post","link":"https:\/\/www.loginextsolutions.com\/blog\/how-retail-and-e-commerce-can-scale-fast-with-perfect-logistics-optimization\/","title":{"rendered":"Everything CPG! How live logistics planning boosts customer retention and lowers costs | LogiNext"},"content":{"rendered":"

How Retail and E-commerce can Scale Fast with Perfect Logistics Optimization<\/strong><\/h1>\n

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In the US Retail hit $6 trillion in 2018<\/a>. |  E-commerce would hit $735 billion by 2023<\/a>. <\/span><\/p>\n

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Customer demand is increasing and so is the total volume shipped. Lesser control over fleet availability with a shortage of drivers, and an international trade unease, Freight rates keep fluctuating, if not increasing. High demand and volume are pushing companies to scale, however lack of proper tech enablement and resource shortage, the companies end up slowing their growth.<\/span><\/p>\n

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What happens when delays, failed deliveries, inefficient delivery experience occur<\/strong><\/h2>\n

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It\u2019s a fast world. Now, more than ever, the effect of delays, failed deliveries, bad delivery experience is compounded.<\/span><\/p>\n

Companies are always on the radar. The incentive to switch is high, and the cost for such switches are low.<\/span><\/p>\n

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Who gets impacted and how?<\/strong><\/h2>\n

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Two surveys were conducted. One, a general survey with over 5000 respondents (which did not include any client’s customers). And the second across controlled groups (client\u2019s customers across the retail, e-commerce, and CPG sector) (3000+ respondents). <\/span><\/p>\n

{Here, the client refers to identified players (for the survey) in retail, e-commerce, and CPG sector)<\/p>\n

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 <\/p>\n\n\n\n\n\n\n\n
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Impact of delays<\/span><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n\n

General group<\/span><\/p>\n<\/td>\n

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Controlled group<\/span><\/p>\n<\/td>\n<\/tr>\n

First instance of delay: Less likely to use the same brand\/delivery service<\/td>\n\n

31%<\/p>\n<\/td>\n

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24%<\/p>\n<\/td>\n<\/tr>\n

Second instance of delay: Less likely to use the same brand\/delivery service<\/td>\n\n

46%<\/p>\n<\/td>\n

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29%<\/p>\n<\/td>\n<\/tr>\n

Repeated delays: Likely to dissuade others from using brand\/delivery service<\/td>\n\n

38%<\/p>\n<\/td>\n

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46%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Delays, failed deliveries (and overall a bad delivery experience) erodes the market capitalization.<\/span><\/p><\/blockquote>\n

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The responses from both groups (to the same questions) were consistent and hence validated each other. However, the controlled group is 21% more likely to dissuade others to use the brand\/service.<\/strong> <\/span><\/p>\n

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This means that when customer\u2019s loyalty isn\u2019t recognized or rewarded with service improvement, then they would have a much bigger impact on your timeline than new customers who haven\u2019t invested in the brand that much.<\/span><\/p><\/blockquote>\n

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So, if you think business would be fine without on-time deliveries (each time), then you might get pushed out of the market in 3 years by someone else offering a better delivery experience<\/a>.<\/span><\/p>\n

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Case stories – A few downs and ups<\/strong><\/h2>\n

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\"CPG<\/p>\n

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There are many examples of companies that didn\u2019t pivot on time or didn\u2019t gauge the moving trends towards customer needs.<\/span><\/p>\n

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Toys R Us was a behemoth in retail, but as they got \u2018too secure\u2019 in their standing of brick and mortar, they missed the realization that customers wanted a higher degree of convenience with next-day home deliveries, live tracking of their packages, and on-time deliveries (as promised).<\/span><\/p>\n

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Companies that don\u2019t innovate with changing customer needs face their decline head-on. <\/span><\/p><\/blockquote>\n

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Another example is the oft-repeated one, Amazon. They never once focused on solidifying their position with higher margins. Even with losses, they moved to secure their customer retention model. It\u2019s not the discounts, it\u2019s the delivery experience that sells.<\/span><\/p>\n

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In the east, and pushing benchmarks, Alibaba has rewritten the entire \u2018new retail\u2019 concept, opening the next age of \u2018experience\u2019 led shopping.<\/span><\/p>\n

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How to survive \u2013 How to scale \u2013 How to succeed<\/strong><\/h2>\n

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Survive \u2013 Scale \u2013 Succeed<\/span><\/p><\/blockquote>\n

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\"Future<\/p>\n

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Seamless processes with automated shipment movement. G<\/span>oing down to root causes of delays\u2026<\/span><\/p>\n

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