Lq presentation-d metzler-v3.0
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Transcript of Lq presentation-d metzler-v3.0
September 26, 2013 Executive Exchange
Emerging Trends and Innovations:
By: Dick Metzler, Transportation Marketing and Sales Association
September 26th, 2013 Executive Exchange
A Focus on eCommerce Fulfillment … Now and the Future
September 26, 2013 Executive Exchange
Me:
Quick Introduction:
Value Proposition:
•Knowledge
•Connections
•Recognition
•Solutions
• 300 Members
• $300B Revenue
• $190M Budget
• All modes plus transit, media and suppliers
… and others in T&L
Board Roles:
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September 26, 2013 Executive Exchange
What is Innovation?
“The term innovation can be defined as something original and
new that ‘breaks into’ the market or into society.”
According to ->
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September 26, 2013 Executive Exchange
Discussion Outline:
• A quick walk down memory lane
• What is driving eCommerce Logistics?
• Examples of e-trends that are emerging in various shapes and forms
• What does it all mean?
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September 26, 2013 Executive Exchange
Past Innovations: Containerization
In 1956 Malcolm McLean became the “father of containerization” …
… no matter what the Brits claim to the contrary.
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September 26, 2013 Executive Exchange
Past Innovations: Federal Express
In the early 70’s Fred Smith created a market no one thought was there.
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September 26, 2013 Executive Exchange
Past Innovations: Intermodal
Intermodal, stack train and land bridges have changed both domestic and international supply chains forever … one reason
rail is “cool” again!
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September 26, 2013 Executive Exchange
Emerging Trends: eCommerce Fulfillment
E-Commerce CAGR = 14%, “Showrooming” is real, retailers are scrambling
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• 2013 Retail eCommerce = $258.9B
• 20-60% of all shopping visits involve “showrooming”
− 50% smart phone users research in store
− M-Commerce is 18.7% of total
− <10% buy from retailer’s website
− 53% buy from Amazon
− Average order value = $281
• UPS 40% B2C; Redirect delivered 20% of Surepost volume in Q2
Source: eMarketer, January, 2013; Stifel September, 2013
September 26, 2013 Executive Exchange
Emerging Trends: Amazon
Is Amazon using fulfillment to sell stuff or selling stuff to become a 3PF?
Can Amazon continue in it’s current form given the high costs?
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September 26, 2013 Executive Exchange
Emerging Trends: “Crowdsourcing”
Few clear plans for profit and scale ... and no consumer same day mandate
Headline: Wal-Mart may get customers to deliver packages to online buyersReuters – May 28 2013
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September 26, 2013 Executive Exchange
Emerging Trends: Store Fulfillment
“Empire Strikes Back” with SFS, STS, BOPIS and Omnichannel Marketing
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September 26, 2013 Executive Exchange
Emerging Trends: Delivery Lockers
Basically a drop box in reverse, but may not have same convenience factor
Drop Box
Avoids P/U Cost
Lockers
Avoids Residential Delivery cost
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September 26, 2013 Executive Exchange
Emerging Trends: 3D Printer
One in every home and business in the future? Already for more than prototypes and service parts? Implications for fulfillment?
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September 26, 2013 Executive Exchange
Emerging Trends: 4,000 MPH Freight
New York to Hollywood, CA in 45 minutes ... Maybe, but not anytime soon.
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September 26, 2013 Executive Exchange
What Does It All Mean? Our industry has had a rich, but spotty record in innovation over time.
− Some created new solutions and new ways of doing business, and …
− Others were convergence of existing services and solutions.
The “Wild West” of eCommerce is revenue and marketing driven.− Some may never be scalable and cost-effective (or maybe not yet?).
− Maybe some of us old freight humps just “don’t get it” – OR -
− Maybe adult supervision could help with feasibility, scalability, profitability.
− Maybe the old and the new need to come together to create innovation, scalability and cost-effectiveness.
Who knows how this will sort out, but it would be a big mistake for legacy T&L to ignore the new world order being driven by eCommerce.
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