Online delivery gathers speed
‘Quick-commerce’ is here and it is shaking up the logistics sector
The famous American football coach and National Football League (NFL) executive, Vince Lombardi is credited with saying “It takes months to find a customer … seconds to lose one.” Lombardi’s quote is applicable to the evolution of online retail. That is, inconsistentproduct delivery times affect customer satisfaction and retention.
Customer expectations are moving towards an instantaneous delivery model, which is having an impact on traditional supply chain models. The new phrase in the supply chain management lexicon is ‘q-commerce’ (quick-commerce), a term that refers to the delivery of small quantities of goods to customers almost instantly (<30 minutes) whenever they need them.
The move towards q-commerce has significant real estate implications with retailers having to develop an urban logistics strategy. In Europe, the Swiss-based real estate company, Stoneweg has launched a partnership with Spanish company Glovo, a multi-category delivery start-up. The pair plan to acquire more than 50 last-mile logistics properties in key locations identified by Glovo.
Urban logistics strategies are in their infancy in Australia. However, the evolution of customer requirements will see them become more prevalent as organisations strive to provide more innovative customer service and shorten delivery windows.