Proving the Business Case for the Internet of Things

Businesses failing to unlock ecommerce, says DHL

Steve Rogerson
July 23, 2019

Businesses must urgently solve their ecommerce supply chain problems to unlock the full value of this powerful channel, according to a DHL report that shows most companies have failed to implement an ecommerce strategy fully despite recognising its importance.
The report found that 70% of B2C companies and 60% of B2B companies are still working towards the full implementation of their strategy. But both B2B and B2C customers rate customer service as the most important aspect of ecommerce. Thus pressure to fulfil customer expectations continues to challenge businesses building out their ecommerce offerings.
The research study on the evolution of ecommerce supply chains shows that, despite understanding the vital importance of ecommerce on customer retention and satisfaction, most companies have failed to implement fully an ecommerce strategy.
The insights are from a global survey of nearly 900 decision-makers responsible for logistics or supply chain management and ecommerce.
They reveal that 70% of B2C companies and 60% of B2B companies are still working towards the full implementation of their strategy, even though 70% of respondents rate ecommerce as “very important” or “extremely important” to their business in terms of volume and revenue.
The report also uncovered the major barriers to full strategy implementation, which include changing customer expectation, pace of delivery and limitations in existing infrastructure.
"It's clear to see the importance of considering quality customer service within the ecommerce strategy,” said Nabil Malouli, global ecommerce product lead at DHL Supply Chain, “but with customer expectations constantly evolving and changing, companies are under pressure to keep up with building out their ecommerce offerings and the new supply chains they require, resulting in the challenge of full implementation. Supply chains need to keep up with, and respond to new business models, service expectations and technological needs of customers in order to capture new ones and retain existing ones."
The evolving demands of ecommerce mean that in the next three to five years over half of businesses will be making some type of change to their distribution strategy. To deal with this pressure, many companies are opting to partner with a third-party logistics companies (3PLs) to augment their in-house resources and capabilities, enabling them to scale quickly and effectively to capitalise on ecommerce opportunities.
"What companies need in the ecommerce journey depends on where they are coming from,” said Malouli. “They are all in different places in terms of implementing their ecommerce strategy, which means they will have different strategies and expectations about how to move forward with their supply chains. Many companies opt to partner with a 3PL to help them respond to this changing environment while ensuring they have the expertise and flexibility to meet changing customer expectations."