The Delivery Conference 2023
What we learned from the opening sessions.
And we’re back! The first in-person Delivery Conference since the COVID-19 Pandemic. There’s a great energy as retailers, carriers and supply chain partners re-unite to tackle some of the industry’s biggest challenges.?
There’s a different tone about this year. We’re used to seeing stats about peak being the biggest on record. But this year there’s an acknowledgement that the climate is tough.?
We start with the statement that: Global consumer spending will be reduced by 253 billion, with retailers facing a rise in material costs of 57% and 38% dealing with supply chain disruption.
What’s the message??
Make every delivery count. And we as an industry, need to create a blueprint to survive and thrive.
Let’s dive into this in more detail.
What do we know about Peak 2022?
What impacted Peak 2022?
Well of course we must mention the Royal Mail strikes, this had a profound knock on effect to other carriers in the market.?
Those able to take on volume at short notice were able to step in and manage capacity. There was a huge regional variance, with the North West most heavily affected and the South East least affected.
Let’s look ahead to the coming year.
In an extensive study of 8000 consumers by Retail Economic and Metapack, 57% said inflation was their biggest concern for the economy and personal finances, this rises to two-thirds if we look at the UK only (the study was global).?
This was a year where inflation hit 11.1% and food inflation even more at 16%.?
When it comes to purchasing behaviour, the study has identified four groups of consumers:
Necessity Shoppers: I will make purchases only when necessary (40%)
Postponers - Delay or purchase less often (22%)
Value Hunters - Will switch to cheaper brands (10%)
Carry On Spenders - I will purchase as normal (27%)
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The message is that you need to understand your customers and their priorities.?
What does this mean for retailers, how should they focus their efforts?
Ultimately retailers are facing a persistent balancing act - how can they protect profitability against maintaining excellent customer service.?
Let’s move on to a fascinating panel from:
David Stock VP Marketing, UPS
James Roper, Founder IMRG
Jim Rudall, Chief Revenue Officer Shopify
Gary Page, General Manager, John Lewis
And chaired by Patrick Wall, Founder Metapack
The discussion moves through digitising supply chains to the labour and skills shortages across the industry. The prevailing message is, we’re in uncharted water but those poised to thrive are those utilising their data effectively in way to improve the customer experience as consumers are squeezed and ultimately many are spending less.
Key takeaways include:
Spend time understanding where your margins are. Where are your opportunities? Where is revenue leakage? Without this information you’re running blind.
From James Roper, a man at the forefront of the retail and eCommerce market for the past two decades, we hear the message that crises trigger change, innovation and growth. We should always remember the lessons of the past that the brands who take advantage of digital innovations now, are those who will remain ahead of the curve.
And we’ll wrap up with a poignant reminder from Gary Page that the retail businesses that will thrive are those able to maintain customer’s trust at a time when many have less disposable income, look after their quality of service and product and ultimately provide value and a reason to shop with you over others in market.?
One thing’s certain, there’s never been a greater time for innovation, and the need for agility to weather the unpredictability of a global recession in the shadow of COVID-19.
If you're at the event today, do stop by stand 6 and say hello to the GN TEQ team or drop us a message, we're always happy to chat.