Urban logistics in the ecommerce industry - Aricia Ltd

Urban logistics in the ecommerce industry David Cockrell

August 11, 1994

A&M Records, Universal Music Group, Interscope Geffen A&M, Polydor Records http://www.sting.com/discography/album/16/Albums

We live in a different era Products

Products & Services

Customer Centric

Relationship Centric

1970s

1990s

2000s

Today

Four leading eCommerce markets set to double in size to £645bn by 2018

OC&C Strategy Consultants, PayPal & Google

UK e-Retail sector home delivery key numbers

£114bn £104bn £91bn £78bn £68bn 2011

2012

2013

2014

2015 Institute of Couriers, IMRG CapGemini surveys

Worldwide eCommerce grocery market penetration

16.6%

7.2%

South Korea

Japan

6.9%

United Kingdom

5.3%

5.2%

France

Taiwan

Kantar Worldpanel's study, The Future of E-Commerce in FMCG 29/09/2016 http://www.kantarworldpanel.com/global/News/Global-e-commerce-grocery-market-has-grown-15-to-48bn

Warehouse take-up by occupier type 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 3PL

2008 Automotive

2009 Food Production

2010

2011

Grocery Retail

2012 High St Retail

2013 Manufacturing

2014 Online retail

2015 Parcel

2016 Other

Savills Commercial Research

UK eCommerce Grocery

10,100 vans

Tesco Sainsbury’s ASDA Ocado Morrison's

In the news last week 19th January 2017  Online shoppers could be banned from accepting parcels at work under radical plans to cut congestion in London

Transport Commissioner Mike Brown recently blamed a surge in Christmas present deliveries for contributing to gridlock. A ban on personal deliveries was today recommended by London Assembly members.

In the news last week

Greggs to trial delivery service in London

UK Population

Live in Major Urban Conurbations

Statistics: Office of National Statistics & Mapmechanics

UK Population

Major Urban Conurbations Urban Areas Small Towns Villages Small Villages and Hamlets Open Country / Sparse Dwellings

Total

2015 Pop

%

21,949,058 29,584,067 5,444,741 4,032,454 2,650,963 1,448,812

33.71% 45.44% 8.36% 6.19% 4.07% 2.23%

65,110,095 100.00%

Statistics: Office of National Statistics & Mapmechanics

UK Elderly Population

Over 65s

Statistics: Office of National Statistics

UK Elderly Population (65+)

2015 Pop Major Urban Conurbations Urban Areas Small Towns Villages Small Villages and Hamlets Open Country / Sparse Dwellings

Total

3,105,077 5,395,128 1,162,220 899,685 572,385 272,661

11,407,156

Statistics: Office of National Statistics & Mapmechanics

How Britain lives

Type of Property

Count

Percentage

Detached

5,720,797

20.6%

Semi-Detached

7,708,364

27.8%

Terraced

7,083,064

25.5%

Flat

7,233,005

26.1%

Total

27,745,230

100% Statistics: AddressAnalytx™ and Ordnance Survey

How Britain lives

Region

Percentage

Type of Property

Scotland

39.5%

Flats

Wales

29.7%

Terraced

London

56.1%

Flats

Northwest

34.5%

Terraced

Southeast

25.5%

Detached Statistics: AddressAnalytx™ and Ordnance Survey

Cohorts within the population

Millennials Boomers GenX GenY GenZ

Silver Surfers / Digital Boomers  Boomers are largest growing demographic with 12.4 million new users added from this age range (80.4% growth)  Pew Research reports 8% growth for Twitter and 10% for Instagram  Boomers account for 75% of the UK’s wealth  ‘Baby Boomers’ have transitioned into ‘Super boomers’ ,this cohort has become more tech savvy, trend-driven and culturally aware.

The challenges of eCommerce in urban areas  Road speeds & congestion  Parking  Order Picking: In-store or dark store  Delivery to: Store (Click & Collect), Home, Office, Locker…other  Delivery time windows  Speed of order completion (click to delivery)  Cost of deliveries  Many van drivers don’t own cars!  ‘Ugly Freight’ fulfilment

Addressing the challenges

An integrated approach in fleet management

Route Scheduling & Optimisation Software Satnav / MDT Telematics system

An integrated approach in fleet management

Customer Database

Scheduling Software

Satnav / MDT

Telematics

An integrated approach in fleet management

Customer Database

Scheduling Software

Satnav / MDT

Telematics

Using data driven solutions     

Maps Geocoding / Co-ordinates Road Speeds Width, weight & high restrictions Location Intelligence (location analytics)

Digital mapping  Up-to-datedness across operation  Same source  Scheduler  Satnav  Telematics  Customisations

Geocoding / co-ordinates  Premise level (rooftop)  Ensure db. stores improved data to at least 5 decimal place  Stored against customer records and flows downstream within operation (Scheduler, Satnav, telematics)

Geocoding / co-ordinates

Premise level geocoding saves 30 seconds per drop, per van, per shift

What is 50 hours of capacity?

 4 vans (leased or owned)  10 driver shifts  Fuel, Insurance, MoTs, Pensions, NI, Wear & Tear

Statistics: 0.5 minutes x 2,000 vans x 3 shifts

Road speeds    

Use the best historic speed data you can afford ToD, DoW, WoY Seasonality Use live traffic on day of delivery to refine routes & issue awareness

Restrictions: Width, weight & height  Certify routes generated by the route optimisation system and Satnav are achievable in your fleet of vans  Affects on PVA & KPI  Fleet mileage

Location Intelligence  Capture and re-use data from MDT’s / Telematics systems  Invest in 3rd party supplementary data sources  ONS Census  Geodemographics  Address cleansing  AddressAnalytix™  Red Routes

Address validation & cleansing    

Still problematic Continuous batch cleansing Validation of customer amendments Ease of tagging premise level co-ordinates

Location Intelligence - Improving ‘time at door’ allocation AddressAnalytix™ - Understand what type of premise you’re delivering to and type of building  Purpose built flats (and size of block)  Flats above shops  Semi-detached  Detached  Terraced

Location Intelligence - Improving ‘time at door’ allocation Red Routes – Allow additional time for parking and walking between delivery address and van

What does the future hold?

Grocery by bicycle

Expansion of fast-food     

UBER Eats Deliveroo Henchman JustEat Hungry House

Expansion of collection points    

InPost Amazon Locker Doddle CollectPlus

Continual urban challenges  Population increases will push volumes harder and faster  Continual focus on consumption within cities  Vertical growth of town and cities  Finite road and parking space to achieve fulfilment  Smaller time windows  Night time delivery hours?  Rural demand  Rise of tech savvy ‘digital / super boomers’

The solutions: Present & future

The solutions: Present & future     

Final mile platforms for major cities Eco-solutions: bike, small electric, run Reduced impedances: UAV, bike, cart Cycle Super Highway, pedestrianised areas Hub vans

The solutions: Final mile specialists Renault KangooEV

Nissan ENV-200

Mercedes E-Vito

Mercedes E-Vito

Goupil G5

Toyota

Bullitt Bike

Renault Twizy

Cargocycle

The solutions: Autonomous vehicles

The solutions: Integrated

The future of e-commerce: bricks & mortar

Amazon Warby Parker Bonobos Birchbox Casper Blue Nile Ocado

Final thoughts

Must embrace geospatial technology to improve customer service and free-up capacity in existing fleets now Get deliveries right first time, every time!

Final thought

“You can achieve optimal performance by the aggregation of marginal gains. It means finding a 1% margin for improvement in everything we do” Sir Dave Brailsford

David Cockrell [email protected] www.mapmechanics.com

Mapmechanics is a leading specialist in the provision of digital mapping, location-based services (LBS) and geographic information systems (GIS) for business intelligence (BI), the Internet of Things (IoT) and Smart Cities, mobile app development, sales & marketing, logistics, insurance telematics, scheduling optimisation, territory management and drive-time analysis. Through the allmapdata brand, we provide a broad range of digital geospatial datasets as well as GIS and locational software solutions to create actionable B2B or B2C insights to enhance your logistics operations, business intelligence and customer insight. We help clients to gain efficiencies within their existing processes, find new business opportunities, understand and take full advantage of the geographic and geodemographic elements of their market space and customers’ demands, reduce the cost of new business and identify new opportunities. In addition to our digital mapping and geospatial data division, we own the leading optimisation software brands Truckstops, the vehicle routing optimisation system and Optisite for supply chain network distribution planning, modelling & analysis. For 30 years, we have provided location-based intelligence and technologies that help companies to increase profitability whilst offering excellent customer service. We also help organisations identify the best solution for their specific business needs together with consultancy, bespoke development, training and technical support. Visit www.mapmechanics.com for more information.