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Dec 8, 2020 at 9:29 PMThe initiative ‘The Economic Makers’ highlights the central role of logistics in handling the growing online trade in its new thematic issue. It is assumed that the majority of the population, i.e., shoppers, do not know the effort involved in shipping an order. And the demands are constantly increasing.
(Bremen) Even during the Corona crisis, the already booming online trade is experiencing additional growth. According to a recently published market study by the Federal Association of E-Commerce and Mail Order Germany (bevh), revenues in the online sector grew by 9.2 percent in the first half of 2020 compared to the previous year. While almost all shops and stores had to close to avoid infection risks, ordering online took on a completely new significance. This year’s Christmas business is likely to significantly reinforce this development due to the ongoing Corona pandemic.
420 Million Packages in November and December
According to a current study by Rakuten Advertising, the vast majority of Germans (65 percent) will shop for Christmas gifts and more online. According to the forecast of the Federal Association of Parcel and Express Logistics (BIEK), approximately 420 million packages are expected to be delivered in Germany in November and December. That would be 60 million or about 20 percent more packages than in the previous year.
While most consumers are familiar with online orders, few are aware of the important supply function of logistics for the smooth processing of online trade. In light of the steadily growing importance of e-commerce, the initiative ‘The Economic Makers’ informs about the multifaceted functions of logistics in online trade in its own thematic issue ‘Ordered Online – Delivered Home: No Online Shopping Without Logistics’.
Publication is Part of a Series
The publication is part of a series available for free download on the Economic Makers’ website. With this thematic issue, the initiative aims to raise public awareness of the achievements and functions of logistics for the economy and society and to highlight the importance of logistical processes for each individual.
The publication sheds light on the complex logistical service spectrum behind online trade using practical examples. It becomes clear that far more than the widely visible transport services are necessary for its logistical processing. While the execution of transport is indeed indispensable for online trade, logistics properties also play an important role as hubs of the entire supply chain at all value creation stages.
Products Must Be Stored and Picked
Products, goods, and commodities must be stored, transshipped, picked, and possibly further processed before they can be delivered to customers. This requires the necessary storage and logistics space along with connections to a powerful transport infrastructure.
Furthermore, the publication makes it clear that logistics service providers – to relieve trading companies and allow them to focus on their core services – take on tasks along the entire value chain, such as storage and packaging, supply chain planning, and data handling, and sometimes accompany the entire setup of an online shop.Special Challenges for Logistics Providers
Such a service portfolio, combined with increasingly demanding customer requirements, presents many logistics providers with special challenges and requires innovative approaches and solutions, particularly in the area of warehouse management. The thematic issue of ‘The Economic Makers’ also closely examines returns management. Customers now expect a straightforward complaint and return processing, making returns logistics a significant success factor for online retailers.
Online Shopping Intensifies During Corona
“The service of ordering online is very well known to the general public and is being used even more during Corona, especially now at Christmas. Much less known to people, however, is how much logistics is behind online trade and that it is logistics that enables convenient ordering and receiving. We want to explain this better to the public to achieve greater appreciation for logistics,” says Frauke Heistermann, spokesperson for the Economic Makers.
The thematic issue provides extensive background information and seamlessly connects to the existing publications of the Economic Makers.
Download the Thematic Issues
Photo: © The Economic Makers
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