Last Mile Brief: 19/01/2023: Maersk’s latest market update points to growth of PUDOs
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In today's Last Mile Brief, we've news on 2023 last mile insights from Maersk, more on the fallout over last mile delivery disruptions in the UK, as well as DHL's new fulfillment centre in Germany.
Today’s headline story: Maersk’s latest market update points to growth of PUDOs and use of local last-mile operators
Maersk’s first market update of the year has forecast growth of out-of-home delivery and use of PUDOs, as well as an increase in the use of local last-mile operators.
“With many businesses still struggling with counting the costs of strikes and delays during peak period, 2023 might be the year many decide to reconsider their delivery options offering,” says the shipping giant.
According to Maersk, one way to alleviate inflationary pressures is to use multiple last mile carriers per destination, as well as having the flexibility to switch carriers swiftly, both in terms of technology and physical tasks.
Maersk also expects that due to delays, 2023 we will see “a preference for alternative delivery options, such as PUDOs, click and collect and parcel lockers.”
The Danish logistics company adds that “ensuring they have the right last mile carrier and option setup will allow brands to drive up their Net Promoter Score (NPS), which directly impacts conversion and retention in online sales.”
The same is true for brands delivering to multiple destinations, argues Maersk. It states that using local last mile carriers can “not only help increase their NPS, but also drive down costs as local last-mile rates are generally lower than rates of pan-European integrators.”
Finally, Maersk adds that with sales going down or stabilizing across the region, brands are looking for growth beyond their home markets.
“Having access to the right local last-mile carrier setup is key for success. To support our customers in this process, Maersk E-Delivery now provides customs clearance directly to Ireland and a competitive transit time from UK and other non-EU countries to the Irish market,” says Maersk.
Europe round up
- “Evri’s phone number is even harder to find than my parcel,” says the Guardian’s Consumer Affairs correspondent.
- The Guardian has also weighed in on the performance of Royal Mail’s CEO during yesterday’s select committee hearing, describing it as “a shocker”.
- During the aforementioned committee hearing, the CEO of Royal Mail was probed over his half-a-million-pound salary and £140,000 bonus.
- DHL Supply Chain has opened its largest fully-automated robotic fulfillment centre in Germany for Peek & Cloppenburg.
- Waitrose has begun a sushi delivery service with aid of Deliveroo.
- Just Eat: Takeaway’s shares have risen over 10% despite reporting a drop in orders.
- La Poste is is to launch a series of trials across the country exploring the possibility of stopping daily postal deliveries.
- Food couriers in Estonia have been spared from meeting language proficiency requirements after an agreement on the legislation collapsed.
- Amazon will not cut jobs in Italy but is likely to let go of employees in Britain and Spain, say unions.
North America round up
- Poor weather conditions, including freezing rain, have prompted Canada Post to suspend delivery in the Barrie area.
- After seeing demand surge for its services over the pandemic, meal kit companies are struggling to keep the momentum going, writes Modern Retail.
- More Kenyans are now ordering food online, according to a new report.
- Amazon is set to begin a round of layoffs ultimately affecting more than 18,000 employees in the largest job cull in its history.
- Amazon is offering FBA sellers a single monthly limit on the amount of inventory they can send to and store in its fulfillment centres.
News from the rest of the world
- The revenue of China’s parcel delivery sector is expected to grow this year, the country’s state regulator said on Tuesday.
- Hello Fresh of New Zealand has admitted that it was technical problems that led to some of its customers being overcharged.
- Inspectors from SafeWork New South Wales and NSW Police will visit Sydney this week to ensure food delivery riders and platforms are complying with new safety laws.
- DHL Supply Chain has opened an e-commerce fulfilment centre for Adidas in Luhari, India.
- The South African Post Office has been accused of planning to slash staff salaries by as much as 40%.
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