Key points of the “Leaders in Logistics Summit 2022.”
E-commerce is an industry that is complex and constantly changing. Its fast-growing technologies and trends are letting behind a traditional street-side business.
Our team spent two days in Copenhagen for the Leaders in Logistics summit. These two days were full of cutting-edge discussions. Along with other leaders, we discussed the most pressing challenges and our role in shaping the future of logistics.
What did we learn from the Leaders in Logistics summit 2022?
Sustainability
One of the most popular topics at Leaders in Logistics was sustainability.
With sustainability becoming a significant value for consumers, the logistics industry looks to reduce emissions.
There are examples of companies who are taking steps to reduce their carbon footprint and make a difference in this sector:
- An Post commits to becoming carbon net-zero by 2030 with a 50% reduction by 2025. All urban deliveries are 100% electric.
- Singapore Post aims to have a 35% reduction in emissions by 2030
- PostNord aims to be fossil fuel-free by 2030.
- Aramex plans to achieve carbon zero by 2030 and switch all vehicles worldwide to electric or hydrogen in three years.
Same day delivery
Same-day delivery has the potential to change the way we shop fundamentally. More than half of retailers offer same-day delivery, and 65% plan to offer it in two years.
56%
of online consumers between 18-34 years expect to have same-day delivery. Whereas 61% of consumers are willing to pay more for the same-day delivery
49%
of shoppers say that same-day delivery makes them more likely to shop online
96%
of customers consider “fast delivery” to mean same-day delivery
25%
More than 25% of shoppers would abandon a cart online if same-day shipping weren’t available.
Lockers
Investment in lockers continues to rise. Lockers are available to consumers 24/7, usually within a short walking distance.
Some talks covered the sustainability benefits of lockers – it means fewer miles driven, increased efficiency, and fewer emissions – actually, most locker growth was powered by convenience.
PostNord CEO Annemarie Gardshol mentioned that they plan to double the number of lockers to 12k by the end of the year and reach 20k by 2025.
Lockers also needed to adapt to the return of more flexible lives for consumers after an extended time at home. By using these networks, carriers can reduce the amount of failed deliveries – a key element needed to sustain growth.
Conclusion
What will the logistics marketplace look like in five to ten years? That’s still an open question. These aspirations and progress were great to hear, but can they translate to all markets? To make significant changes globally, it’s not just carriers who need to act – consumer behavior also will need to shift.
Same-day delivery is still mostly applicable to customers within a small radius of the business. Delivering on the same day is much more expensive and requires a more hands-on deck.
Carriers cannot continue to deliver growing volumes and hope to be sustainable. In short, more volume = more miles = more emissions.
The last two years taught us that we should adapt the future of logistics to drive meaningful change for a more sustainable and prosperous world.
