3PLs – 78% of your competitors plan to offer same-day delivery by 2023

The rise of e-commerce in the GCC is changing traditional supply chains significantly.
E-commerce, Online retail, Last mile, Gcc, Middle east

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Over 80 per cent of retailers in the Middle East use store inventory to fulfil digital orders while 78 per cent of logistics companies expect to provide same-day delivery by 2023, according to a new report.

The report by Zebra Technologies Corporation, a market leader in rugged mobile computers, barcode scanners and barcode printers, highlights the myriad of ways e-commerce will impact last mile logistics in the GCC.

According to the report, “Future of Fulfilment Vision Study”, some 29 per cent of retailers expect the use of stores as fulfilment centres to increase over the coming five years.

Retailers are investing in retrofitting stores to double as online fulfilment centres and shrinking selling space to accommodate e-commerce pickups and returns.

These end-user clients for 3PLs believe that a network of stores can get digital orders faster and more efficiently than a handful of centralised warehouses. Their customers are increasingly demanding a seamless, faster purchasing journey, and in response they are demanding better solutions from 3PLs.

As a result, a staggering 40% of third-party logistics companies globally expect to offer delivery within a two-hour window by 2028. Many of them will be turning away from the current hub and spoke distribution model to instead embrace new Uber-style solutions.

Some 87 per cent of survey respondents expect to use crowdsourced delivery or a network of drivers that choose to complete a specific order by 2028, in order to achieve these two-hour and same-day KPIs.

Jim Hilton, manufacturing and transportation and logistics global principal, Zebra Technologies said: “Driven by the always-connected, tech-savvy shopper, retailers, manufacturers and logistics companies are collaborating and swapping roles in uncharted ways to meet shoppers’ omnichannel product fulfilment and delivery expectations.”

“Zebra’s Future of Fulfilment Vision Study found that 89 per cent of survey respondents agreed that e-commerce is driving the need for faster delivery. In response, companies are turning to digital technology and analytics to bring heightened automation, merchandise visibility and business intelligence to the supply chain to compete in the on-demand consumer economy,” he added.