Accurately balancing supply and demand management, optimizing inventory levels, and forecasting future needs is challenging.
A Logistics Maturity Score for Brands Aiming for e-Commerce Growth
In order to help brands assess their e-Commerce logistics capabilities, leading global logistics provider GEODIS, in collaboration with professional services consultancy Accenture, has devised a methodological approach to measure the level of e-Commerce readiness. Called "Maturity Score", it determines challenges brands have to face to rapidly adapt their logistics infrastructure to changing retail purchasing habits.
In their recent, original research study of brands developing their e-Commerce sales channels1, GEODIS and Accenture Interactive had identified five key logistics’ capabilities needed to build and maintain flourishing ecommerce operations.
On this basis, they have devised a methodology that evaluates each e-logistics capability and converts companies’ practices into scores. The average score across the 200 companies involved in the research are a middling 58; one third of brands earned “high maturity” scores of 67 or greater; one third achieved “average maturity” with scores of 51 to 66 and the remaining third recorded “low maturity” scores of 50 or lower.
These key capabilities are skilled inventory management, agile distribution networks, flexibility of transport options, IT and software optimization and, most crucially of all, the quality of the customer experience.
Commenting on the survey’s results Ashwani Nath, Vice President and global head of e-Channel solutions, GEODIS explains, “The level of the Maturity Score is a strong indicator of a brand’s preparedness for significant e-Commerce sales growth. Few brands excel at any of the 5 key logistics capabilities and even fewer excel at all of them”.
Challenges vary in accordance with the level of maturity. “Brands at the more mature end of the spectrum tend to struggle with flexible shipping options and, at times poor inventory management, while at the lower end brands are challenged by integration of their stores with e-Commerce networks resulting in operational inefficiencies” says Nath.
GEODIS offers brands to assess their own level of maturity along with an e-Commerce expert.
The White Paper entitled ‘Getting e-Commerce Logistics Right: Faster, Leaner, Scalable’ is available for download on the GEODIS site
1 ‘Getting e-Commerce Logistics Right: Faster, Leaner, Scalable’. The study involved phone and online interviews with 200 companies, which achieve sales revenues between $100 million and $20 billion across Europe and the US and covered a variety of sectors including electronics, fashion, home care and furnishings among others.