EG INDUSTRIAL AND LOGISTICS SUMMIT 2016: E-commerce will evolve much faster in the next five years than it has previously, and only retailers and tech companies that adapt will survive.
“Technology will continue to change at an incredible rate,” Andrew Smith, strategy director at LondonMetric Property, told delegates at the summit.
He added: “The next five years will move much faster, and we also have the younger generations who have embraced it more, which is pushing it forward at a much quicker rate.”
The rise in faster deliveries is pushing retailers to get products much closer to the consumer so they can arrive on time.
Tom Woodham, director at PwC, said: “People are wanting more stuff more immediately and they are willing to pay for delivery if they can get a faster deal elsewhere.
“Pretty much every retailer we speak to has not got enough capacity in the south east of England and so I think the pressure will increase in that area more. When we talk to people about supply strategies it is the south east that causes the most headaches.”
Five years ago Domino’s Pizza was the only business that could offer within the hour delivery, and it has around 270 shops in the South East.
“That gives you an idea of how much space you need to be able to offer within-the-hour delivery,” said Smith.
Retailers are having to consider alternative delivery methods and are relying on technology to improve their methods.
However, the panel agreed that the use of drones as a delivery method in the future will be unlikely.
Smith said: “it would only ever be small parcels, if at all. When you consider air traffic control issues, people trying to shoot them out of the sky – it really is a head-scratcher.”
Woodham added: “Technology will help us to interact with deliveries better through interactive technology, rather than getting products to us from the sky.”
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