Page 27 - LUA July - August 2023 Magterz and Online

OPPORTUNITIES
Logistics is an enabler of e-commerce.
Data by logistics consulting firm Knight
Frank shows that the cost of transportation
represents 50% to 75% of the retail price of
goods. With an estimated 5 billion internet
users, and a 2022 e-commerce sales sector
valued at $5.7 trillion, this represents a
massive proportion of the total value of the
e-commerce industry.
Logistics and e-commerce have
developed a symbiotic relationship and
created excellent user experiences – from
the click of a mouse at online checkouts,
to the fulfillment of the order at the
customer’s chosen delivery location.
The evolution of e-commerce gives
small and medium-sized enterprises
(SMEs) a unique opportunity not just to
boost sales, but also to position themselves
for long-term success — although it is
important to realize that competition is
stiff. As consumer expectations continue
to evolve, SMEs reliant on logistics
service providers must be able to offer
cost-effective services that combine
convenience with speed. To this end,
As the world’s largest express data insights to increase sustainability many players are employing innovative
transportation company, FedEx has throughout the value chain. FedEx technology to deliver more tailored
evolved with the logistics sector, giving Dataworks is focused on optimising our shopping and shipping experiences that
the business a unique perspective as network and end to end operations to increase the chances of a sale.
one of the main facilitators of the global improve efficiency through intelligent One potential pitfall is the significant
e-commerce expansion. network planning, route optimisation, gap between SMEs’ assessment of how
load consolidation and providing greater they’re meeting customer expectations
CHALLENGES TO LOGISTICS visibility by leveraging artificial intelligence and how consumers view the experience.
ADAPTING TO THE BUSINESS and predictive tools to proactively monitor Our analysis shows that the biggest
LANDSCAPE shipments. This enables us to minimise expectation gaps occur around having
South Africa is only the 42nd largest disruptions, improve customer satisfaction, an efficient returns service and access to
online shopping market, despite being and mitigate financial risks by enhancing customer support.
ranked 33rd by per capita GDP. This supply chain resilience. The delivery service can have a
difference can be attributed to several Recently, we’ve launched FedEx critical impact on a small business’s
factors, inadequate road infrastructure Sustainability Insights, a revolutionary tool reputation. For this reason, it’s
and sometimes insufficient address that enables customers to access near real- increasingly important for businesses
data. Logistics companies that remain time emissions data. The tool is designed to to work with a logistics partner that can
technologically innovative are looking to provide new levels of transparency to our take their business to the next level.
overcome such challenges by utilizing GPS customers and create a feedback loop for As the logistics landscape continues to
systems, and robust delivery fleets. making our own operations more efficient. grow, with increasing trust in the online
Beyond this, there is also unequal access Additionally, we have incorporated Electric retail sector, businesses of every size need
to reliable internet connectivity, limited Vehicles into the Gauteng Fleet, to meet the to consider how an equitable partnership,
digital literacy, and low technology adoption demand of fast and efficient service while with an expert logistics company.
rates in certain communities, which hinder prioritising planet earth. 1 ecommerceDB
the growth of e-commerce and logistics. Shipments are also expected to be quick
There is a growing environmental and efficient. This makes it even more Natasha Parmanand is the Managing
consciousness, where consumers are important for e-commerce businesses to be Director of FedEx Express Sub-Saharan
increasingly inclined towards businesses supported by a reliable logistics company Africa Operations. Parmanand has been
that prioritise sustainability. FedEx is that can expertly manage the delivery of the with FedEx for nine years and is based in
harnessing the unmatched power of our product and do it in a sustainable manner. Johannesburg, South Africa.

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