What does the future of
transport and logistics look like?

As e-commerce and the Internet continue to influence the buying and selling of products and services,
so too will they heighten expectations for ‘just-in-time’ delivery.

With a dramatically changed business landscape and rising consumer expectations, the Just-in-Time logistics sector looks set for significant growth

Consumers’ expectations around transport and delivery are rising. Deloitte asked consumers (in both B2B and B2C environments) what they thought ‘fast shipping’ meant; with most respondents saying it means they get their hands on the goods they want ‘within two days’.

Only a year prior to this, these consumers said ‘fast shipping’ meant ‘within three or four days.’ But, “Even as customers’ expectations have increased, their willingness to pay for fast shipping has fallen, with 64% unwilling to pay anything extra for two-day delivery,” Deloitte notes.

Why this urgency for delivery?

Rising demand for faster delivery ties in with consumers’ growing need to be gratified as quickly as possible. These new demands come in the midst of a sustained shift toward online shopping.

“Increased Internet access and better tools for online shopping have been driving a growing volume of shipments and the proliferation of possible delivery locations for companies engaged in delivering goods,” Deloitte says.

Associates in charge of logistics studies explain that the Deloitte Holiday Survey found, for the first time, that customers planned to spend just as much online as in stores last year. And, as more sales move from brick-and-mortar to online, the demands on transport networks will shift further.

“Where a single truck once moved a large load from a distribution centre to a single retail location, the same volume of goods may now travel the last mile on many trucks, each of which may be less than full, with less predictable routes to stores and homes.” – Deloitte

Deloitte says businesses are beginning to ask for similar value creation in B2B logistics transactions. “One survey in Canada already shows that nearly half of all businesses receive ‘a less-than-full’ truckload freight, and they are now asking for specialised or expedited smaller deliveries to meet their operational needs,” the firm reports

How companies can respond to changing logistics requirements

Growing expectation for faster and cheaper shipping is leading to the rise of a ‘crowd logistics’ marketplace. In this arena, the sharing of transport and logistics assets could support transporters in achieving more – by leveraging their own freight associates’ capacities.

For instance, by leveraging an adjacent network, a regional transporter could use another transporter’s trucks and trailers to deliver outside his or her usual routes.

“Regional parcel carriers already collaborate with each other, but technology platforms could help reduce co-ordination costs and broaden collaboration between long-haul transport companies,” Deloitte says.

Imagine if a retail customer you service is not able to fulfil customer requirements for faster delivery. The retailer’s business is likely to become unsustainable. Research shows that crowd-sourced logistics businesses are helping companies service a growing demand for deliveries.

ParcelBright and Veeqo in the UK and DoorDash in the USA are examples of a few companies that are pioneering an urban delivery model through crowdsourced vehicles and warehousing.

Rising costs necessitate a change in operations

DHL’s research shows that anticipatory logistics is driven by increasing customer (B2B and B2C) demand for shorter lead times – from order to delivery.“First experiments are being made by retailers and transporters to anticipate demand. In a transport context, predictive maintenance will continue to become a key area of focus thanks to the Internet-of-Things which is enabling vehicles capable of predicting a logistics or maintenance need,” Heutger says.Imagine if you could predict the number of loads a client will require in three-months? In the run up to seasonal sales periods, you can plan for retail customers stock to arrive in advance and service your trucks and trailers before your need to get them on the road to deliver.

In South Africa, transporters will face increased pressure on their margins as government adds on a further 52 cents a litre to bolster its General Fuel and Road Accident Fund from this month – making up a total increase of 11% on the current levies from R4,78 to R5,30.The fuel levy increase came into effect on 1 April, along with other key business-influencing tax increases, such as a hike in the general value-added-tax (VAT) rate from 14% to 15%.

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It’s all about the right location

Market shifts always mean new opportunities. The trends are clear: market position and location are going to increasingly important in reaping the opportunities emerging today. North Point Ballito brings you a range of advantages:

  1. You’re minutes from the airport
  2. You have easy access to the N2, R102 and two international harbours (Durban Harbour 40 minutes, Richards Bay 90 minutes)
  3. A location opposite Ballito’s New Town Centre
  4. Upgraded roadways and electrical substation
  5. A major pool of multi-talented people within a close commute
  6. The centre of a growing metropolis linking Umlhanga, La Lucia, Ballito and Tongaat
 What North Point Ballito provides
  • 24 hour surveillance and perimeter security
  • Engineered double-lane road network
  • Excellent visibility from the N2 & R102
  • Architectural consistency, ClearVu fencing and attractive urban landscaping
  • 51 serviced platforms covering 380,000sqm
  • 14ha of green and indigenous space

With flexible zoning, a wide range of site sizes and features to choose from and an affordable down payment to secure your spot, you’ll be part of a community of innovators in Ballito. Keen to know more? Drop your details below and arrange a site visit.

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