CSCMP's Supply Chain Quarterly
July 17, 2019
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July 9, 2019

DHL Supply Chain research reveals most companies have yet to fully implement an e-commerce strategy

Pressure to fulfill customer expectations continues to challenge businesses building out their e-commerce offerings

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WESTERVILLE, Ohio (July 9, 2019) - DHL Supply Chain, the Americas leader in contract logistics and part of Deutsche Post DHL Group, today launched its latest research report on the evolution of e-commerce supply chains. The study shows that, despite understanding the vital importance of e-commerce on customer retention and satisfaction, several barriers to implementation exist.

The new insights are from a global survey of nearly 900 decision-makers responsible for logistics or supply chain management and e-commerce. Respondents hailed from all the major industry sectors, including retail, consumer goods, life sciences, high tech, auto and engineering and manufacturing.

The report reveals 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 e-commerce as 'Very Important' or 'Extremely Important' to their business in terms of volume and revenue.

The report, titled "The e-commerce supply chain: Overcoming growing pains", also uncovers the major barriers to full strategy implementation, which include changing customer expectations, pace of delivery, and limitations in existing infrastructure.

"E-commerce is a primary driver of business growth. Companies know they can no longer afford to operate without a comprehensive omni-channel strategy that develops a deep personal relationship with each individual customer, but many are at a loss for how to continue to keep up with customer demands," said Jim Gehr, President, Retail, DHL Supply Chain, North America. "Both B2B (61%) and B2C (65%) respondents rated e-commerce as having the biggest effect on customer retention and satisfaction, and the number is only expected to increase in the next 3-5 years. That is why it is mission critical for supply chains to provide greater predictability, flexibility and speed to continuously maximize service levels."

The evolving demands of e-commerce also mean that in the next 3-5 years over 50% of businesses will be making material changes to their distribution strategy. To deal with this pressure many companies are opting to partner with a third-party logistics company (3PLs) to augment their in-house resources and capabilities, enabling them to quickly and effectively scale to capitalize on e-commerce opportunities.

"At DHL Supply Chain, we have the benefit of two decades of e-commerce experience across some of the most demanding supply chain applications," said Gehr. "Our expertise and experience enable our ability to seamlessly respond to fluctuating demand with proven labor solutions and flexible capacity that ensure our customers always have what they need to meet the requirements of theirs," Gehr said. "Even though every company is at a different place along the e-commerce strategy implementation continuum, it is always about delighting the customer. And partnerships with a 3PL are able to deliver the productivity, visibility and agility customers demand."

For full insights on the research findings and how supply chains are evolving to solve the challenges posed by e-commerce, please download the report below.

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Media Contact:
Nicole Porter
DHL Supply Chain
(614) 865-8437
nicole.porter@dhl.com

50 Years DHL
In 2019 DHL is celebrating 50 years since the company's founding by three entrepreneurs in San Francisco in 1969. DHL began as a disruptor to the traditional delivery industry, circumventing bureaucracy with an innovative new service to deliver documents by air overnight. Since then, DHL has grown into a globe-spanning family of DHL companies with about 380,000 employees in over 220 countries and territories that covers the entire spectrum of logistics and supply chain services. DHL's customer-centricity and can-do culture have fueled five decades of innovation - from the DHL 1000, one of the first word processing computers in the world, to using the purpose built StreetScooter, an environmentally friendly delivery vehicle powered by an electric drive and developed by Deutsche Post DHL Group. With the Mission 2050 commitment to reach zero group-wide emissions by 2050, DHL is continuing to be a trailblazer in the logistics industry.

DHL - The logistics company for the world
DHL is the leading global brand in the logistics industry. Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as "The logistics company for the world".

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 61 billion euros in 2018.

More information: http://supplychain.dhl.com/LP=1211?utm_source=PR-Multiple&utm_medium=PR&utm_campaign=ECommerce2019&utm_term=AO-Ecomm-PR-July2019&utm_content=Always-On&sfid=7012S000000qfTHQAY&nu_ref=AO-Ecomm-PR-July2019

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