The challenges of logistics #3: A sociocultural challenge

In recent years, the world of logistics has undergone constant change and has been faced with a host of challenges. 

In this series of 6 articles, we analyse the issues and their impact on businesses. #3

A sociocultural challenge

In an age where the customer is king, consumption patterns are changing. Customers' expectations of the supply chain are increasingly demanding, and corporate values play an important role in the eyes of consumers. 

"The supply chain is now at the heart of the customer promise," says Stéphane Tomczak, founder of Deliver, the leading annual event for e-commerce and logistics.

Today, sustainable development is a major issue that influences customers' purchasing decisions. Deliveries and e-commerce have a significant impact on the environment. Customer attitudes are changing, and they are looking for environmentally friendly delivery solutions. Beyond the environmental impact, customers have other requirements. Over the years, e-commerce has evolved significantly. Tracking and fast, careful delivery have become essential requirements for consumers.

Companies have to respond to these multiple demands and offer solutions that meet customer expectations. Changing consumer attitudes and consumption patterns are influencing business decisions.

‍Quick Commerce

The concept of Quick commerce has emerged and has won over the public, who are looking for ever-faster delivery. Companies such as Gorillas, Cajoo, Getir and Flink have entered this sector by promising extremely fast delivery times, generally between 10 and 15 minutes. This model has been popular since 2017. However, this new mode of consumption also represents a challenge for existing businesses, with the emergence of formidable competitors on the market. 

Last Mile Delivery

Future logistics trends will also have a significant impact on the logistics sector. Last-mile delivery (LMD)*, for example, represents a real challenge. This stage of the delivery process is currently problematic and generates considerable costs for many companies.

The latest study by Cushman & Wakefield proves it: "The last stage of transport, before the customer receives the goods, is the most complicated, the most inefficient and the most expensive. Depending on the calculation, 'last mile' costs represent between 28% and 58% of the total cost of transport."

With the development of new modes of consumption, many other issues are arising for companies. Globalisation, overconsumption and obsolescence are forcing companies to constantly rethink their supply chain. 

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‍*Last Mile Delivery: A term used to describe the transport of goods from the nearest distribution center to the final destination.

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Last episode : The challenges of logistics #2: An economic challenge

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