2023 is set to be a “complex” year for carriers and retailers

The e-commerce delivery sector in 2023 is set to be “complex” according to speakers and attendees at this year’s The Delivery Conference (TDC), with retailers, carriers and 3PLs stressing that agility and flexibility will be essential over the next 12 months as they continue to grapple with uncertainty over consumer spending and supply chain disruptions.

The Delivery Conference 2023 was held in London yesterday (February 7) and discussed everything from retail and delivery trends and challenges to technology in the final mile, cross border delivery, returns and sustainability.

In his closing remarks, Ton ter Laak, Senior Vice President of Sales at Auctane, which owns TDC organizer Metapack, said that the conference has highlighted how “in 2023 customer centric thinking will be at the forefront,” but it will need to be done in an “affordable” way and with the environment in mind.

“We asked visitors at TDC what their key word was to describe the e-commerce delivery sector in 2023,” he explained. “And that word was complex, with many also highlighting the importance of flexibility in the months ahead.”

Metapack used TDC to launch its Ecommerce Delivery Benchmark Report 2023, which was carried out alongside consultancy Retail Economics. Speaking about the upcoming trends for 2023, Richard Lim, CEO of Retail Economics, predicted that a more cost conscious consumer will emerge in 2023, with less demand for convenience and experience. He also noted that sustainability and returns will be huge issues for the industry in the coming year.

The battle for survival

Speaking during a panel on “The battle for survival in 2023,” David Stock, Vice President of Marketing in Europe for UPS, noted that getting the right balance between capacity and volume will be key during the year ahead, but it will be challenging, and firms will need to be able to “pivot quickly” to meet changing demands.

“Retailers and carriers will need to consider how they can be agile and resilient,” he said. “They will also need to be able to easily pivot to back-up plans if required.

“Choice, convenience and control will shape delivery in 2023,” Stock continued. “Consumers want control of their delivery and more transparency. UPS is currently working on better tools to support the recipient and drive our net promoter score. We want to create more value and within this there are still many opportunities to accelerate growth.”

In the same panel discussion, Shopify’s Head of Revenue for the EMEA region, Jim Rudall, stressed how many consumers have changed their shopping habits over the past six months as the cost-of-living crisis has kicked in.

“Retailers and carriers need to understand what that means for their business,” he said. “They also need to understand how they can better engage with consumers. The process of understanding this change is the biggest challenge in 2023.”

Collaboration is key

Meanwhile Gary Page, General Manager of Customer Delivery and Collection Operations at John Lewis, highlighted the importance of collaboration in 2023, between retailers, carriers and customers. “How can we all work together in a way that brings about the best result?” he said. “Data can help with this.”

Page noted how John Lewis’s collaboration with Clipper Logistics helped create the Clicklink retail-focused click and collect solution. “During peak, this network helped shield us from all the turbulence occurring in the UK parcel delivery networks,” he added.

In the “Roadmap for the future of the industry” panel session, Toby Hay, Managing Director of E-commerce Marketing at FedEx Express Europe, echoed Page’s comments noting that “partnership is the new leadership in the current e-commerce delivery industry.”

Hay also noted how diversification and customisation will be key in 2023. “It will be important to de-risk the supply chain where you can, but drive economy at the same time,” he said. “The key is to not put all your eggs in one basket. No-one can predict what will happen one year from now, but diversification in the supply chain will help limit risk.

“We also see that within the logistics industry we are not just judged against our competitors, but our services are also judged against all other digital services available to customers. With this in mind, increased customisation will be a key trend in the logistics industry in the future. Data will be used to create mass personalisation leading to more predictability in the delivery experience,” Hay added.