KEEPING UP WITH THE E-COMMERCE BOOM

Smart Supply Chains for the E-commerce Boom

Covid-19 has left an indelible mark on the retail world. With global lockdowns causing stores to close and online shopping increasing rapidly, retailers had no choice but to quickly adapt to new market dynamics in order to boost e-commerce sales.

The e-commerce sector was already growing at a steady pace prior to the pandemic, but widespread lockdowns caused it to soar. In 2020, retail e-commerce sales worldwide topped $4.28 trillion, according to Statista, a 27.6% increase on the previous year. By 2022, e-retail revenue is projected to grow to an impressive $5.4 trillion.

As consumers move more of their shopping online, their expectations have risen. Along with increased optionality, immediacy has become a must. As a result, same-day delivery, along with a range of other customer preferences, is quickly becoming the new standard across all industries. This is driving businesses to innovate and adjust their e-commerce growth strategies to keep up with evolving expectations and demands.

The permanence of this overwhelming shift to online consumption will rely on how well retailers satisfy their customers. As such, companies looking to capitalise on a consumer desire for convenience and immediacy must move quickly to build their capabilities in order to prevent a staggering halt to their online growth.

Increase in E-commerce Statistics

Statista estimates that the total number of global digital customers will reach 2.14 billion in 2021. That’s 27.2% of the world’s population who are doing their shopping online – and it’s only going to continue growing. While many developed markets are approaching maturity, markets in the developing world are on the cusp of exponential growth.

For example, online marketplaces are a major economic growth opportunity in Africa, which currently accounts for less than 0.5% of global e-commerce, according to the United Nations Conference on Development and Trade. This represents significant potential for e-commerce market growth. In response, DP World has sought to tap into the potential and growth of the market by launching DUBUY.com, a digital platform that provides a B2B e-marketplace with end-to-end supply chain solutions for Africa.

Effective e-commerce supply chain management and e-commerce industry solutions, goes beyond just creating a website or selling products online. It involves adapting to emerging consumer expectations and building resilience against potential disruptions. Strategies such as near-sourcing and port-centric logistics can help achieve this.

E-Commerce Growth Strategies

Businesses using port-centric logistics can create powerful opportunities that cannot be matched by ‘landlocked competition’. As a leader in port-centric logistics, we know that operators of ports and terminals are in a unique position to deliver significant value to their client’s bottom lines. And now, more than ever, it is crucial that companies look to the ports for services beyond the container yard in order to access newer and better import-to-market solutions for their e-commerce growth.

Near-sourcing enables companies to move their e-commerce warehouses closer to customers, accelerating order fulfillment and simplifying the management of the e-commerce boom. Moreover, by near-sourcing consumer products, companies can customise, change, or amplify any order and drive greater demand.

The growing need for port-centric logistics has most recently been highlighted by the online furniture retailer, Made.com, who have recently doubled their warehousing operations at our London Gateway Logistics Park in response to continued growth in customer demand for exclusive designs.

Retail & E-Commerce Industry Solutions in Supply Chains

Companies that are integrating digitalisation into their supply chain networks are also set to have a competitive advantage amid the ongoing e-commerce boom.

Our recent Trade in Transition research suggests that organisations worldwide are embracing this message and realising that digital adoption will be key to significant efficiencies and supply chain resilience in an age set to be dominated by the rapid growth of the e-commerce industry.

In the last decade, big data tools have advanced significantly. They efficiently provide supply chain executives with predictive analytics that can help shape new strategies for transportation and logistics. These tools consider all variables inside the supply chain, as well as traffic, weather and social trends, to create an accurate plan which better manages the e-commerce boom. This is key for retailers looking to decrease time and cost in their supply chains.

Since 2020, SeaRates has been a part of the DP World family. It offers a sleek service that manages cargo movement at every step of its journey, giving customers unparalleled visibility of their products. Prior to setting off, the SeaRates Distances and Time tool can provide a detailed image of a cargo’s journey, along with an estimate of how long it will take to reach its destination. Meanwhile, the SeaRates Marketplace enables businesses to view and compare the cost and speed of available shipments.

Investing in digital maturity can significantly enhance competitive advantage and improve key performance indicators, such as time to market, cost efficiency, product quality, and customer satisfaction.

At DP World, we understand that transforming a supply chain to better cater to ever-evolving consumer behaviors, especially in the face of a pandemic, can be challenging. However, with our expertise in port-centric logistics and leading digital tools, we are committed to helping businesses implement effective e-commerce growth strategies. By optimising supply chains, enhancing last-mile delivery, and leveraging advanced technology, we ensure businesses can thrive in the rapidly evolving digital marketplace, no matter where they are.

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