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Logistics service providers must tech-up or be left behind: study

LOGISTICS service providers (LSP) risk being left on the shelf as both as Amazon and its customers evolve, according to a new study by the UK's Transport Intelligence. 

Logistics service providers must tech-up or be left behind: study
22 February 2016 - 23:18

Logistics service providers must tech-up or be left behind: study
LOGISTICS service providers (LSP) risk being left on the shelf as both as Amazon and its customers evolve, according to a new study by the UK's Transport Intelligence. 
One of the key findings of Ti's newly-released report, "Global e-commerce Logistics 2016", is that as consumers continue to place their items in Amazon's basket in ever-increasing numbers.
That means LSPs cannot afford to cut ties with the e-commerce giant without losing significant volumes. 
The report presents an in-depth analysis of the intricate and dynamic e-commerce sector, on a global scale, providing overviews and analysis of key factors shaping the market.
"This includes consumer preferences and expectations, as well as new technologies and how they are being received," said a synopsis of the report.
Ti analysts have reviewed not only the market as a whole, but also the individual supply chain models of both global and regional e-tailers. 
Companies profiled include those operating purely online, as well as those with multi- and omni-channel business models. 
They include Alibaba, Amazon, CNOVA, eBay, JD.com, John Lewis, Tesco and Walmart. In addition, the report includes an overview of the activities and strategies of logistics providers within the e-commerce market, including Clipper Logistics, DPDHL, Japan Post, SEKO and XPO Logistics.
The role of technology will continue to hold significant sway. 
"New ways for consumers to track and interact with deliveries, an increase in omni-channel adoption among retailers, the growth of wearable warehouse technology and growing fears about cyber-attacks are some of the ways in which technology will change the landscape of the sector dramatically in the next few years," said the synopsis. 
Those LSPs able to work with retailers to create the most efficient and cost effective services will be the ones who prosper. Others will find themselves shelved, said Ti.
Said Ti economist David Buckby: "Any provider that establishes a strong reputation in e-commerce logistics and finds a formula which yields a consistently decent margin is set for years of success."

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