Growing convergence between retail and logistics

The success of models such as Checkers Sixty60 has changed what South African consumers expect from delivery services, with speed, convenience and real-time visibility increasingly becoming standard requirements rather than added benefits. According to Nompilo Mathe, marketing coordinator of SA Cargo, more retailers are likely to adopt similar delivery models as customers become accustomed to receiving purchases quickly and tracking them throughout the delivery process. The continued growth of e-commerce and online shopping is reinforcing this shift. “More consumers now have access to local and international online shopping platforms, making it easier and more convenient to purchase goods from retailers around the world. This is creating greater demand for reliable, efficient and faster delivery services,” she said. This is driving a closer convergence between retail and logistics. Delivery is no longer simply the final stage of an online purchase, but an increasingly important part of the customer experience. Logistics providers are consequently having to adapt their services to provide faster turnaround times, greater visibility and more flexible delivery options. For retailers, a reliable and convenient last- mile service is also becoming an important point of competition. “At SA Cargo, our focus has been on improving efficiency and responsiveness across our logistics operations. One of the key developments we have introduced is airfreight, which provides speed and reliability and is increasingly becoming an important solution for businesses involved in cross-border e-commerce. Industries such as pharmaceuticals and electronics are increasingly turning to airfreight to keep critical cargo moving quickly and efficiently,” said Angelique Renshof, national sales manager at SA Cargo. She said the speed and efficiency of airfreight enabled businesses to meet expectations for faster delivery while improving the overall customer experience. Another key trend shaping the CEP sector is the growing demand for visibility throughout the delivery journey. Customers expect regular updates from the time an order is placed until its final delivery. Technology is helping logistics providers meet these expectations through real-time tracking, data- driven personalisation and closer integration between logistics, e-commerce and marketing. As competition between e-commerce platforms increases, delivery performance and the customer experience are becoming key differentiators. However, port congestion, infrastructure constraints, fuel price volatility and global economic uncertainty continued to place pressure on supply chains, said Renshof. “These factors require logistics providers to remain agile and responsive. We address them through integrated logistics planning, expanded bonded storage facilities and close collaboration with customers and supply chain partners to minimise disruptions and keep cargo moving efficiently.” “SADC trade needs to become more integrated, particularly through the harmonisation of customs and regulatory processes, improved infrastructure and stronger transport corridors. Greater integration across rail, road, air and ports would improve connectivity and reduce cross- border delays.” She said greater digital integration was also needed, along with better support for cross- border e-commerce and small and medium-sized enterprises. LV