COVID impact on the last mile – Accenture update

The most recent Accenture report on the impact of COVID on the last mile illustrates dramatic statistics about the shift in consumer adoption of new shopping behaviors.

Globally, store-based retailers experience exponential growth in eCommerce, there is a 71% increase in online orders in Europe and over 80% in Canada, US and APAC.

Globally, there is an 192% increase in click & collect order.

Foot traffic analysis demonstrates that behaviors have shifted, and consumers are not returning to in-store shopping activities quickly.

The huge shift to ecommerce is likely to continue. 169% is the expected future increase in ecommerce purchases from new or low frequency users.

In a world where more inventory is local, post and parcel organizations networks are less relevant. They must act now – or risk losing business to new entrants.

How to reroute the future?

  1. Enable seamless and low cost local to local

    Set up local delivery depots to accept local parcels and include these parcels on the right routes.

  2. Return to profitability with analytics and automation

    Use new automation technologies, operations data and advanced analytics to drive more efficiency and lower unit costs.

    In order to deal with fluctuating volumes and geography, small scale and local sorting operations (e.g. robots) are often preferred over large sorting center

  3. Redefine your role in the ecosystem

    The ecosystem is evolving quickly - are you? Clearly define the offering and then identify partners and opportunities.

More insights and examples? Watch our webinar with Brody Buhler, global managing director of Accenture’s post and parcel industry group and Prime Vision’s commercial director Dirk van Lammeren.