As the festive season closes in, the Vice-president, operations of leading courier company, DHL Express, South Africa has recently disclosed that with the growing attention on e-commerce, retailers need to pay careful attention to their supply chains, as operations and delivery are key to client satisfaction, maximizing brand exposure and increasing revenue. Oliver Facey, while making reference to the 2015 Benchmark report series, stated that November and December drive 30% more e-commerce revenue than non-holiday months. “This surge highlights the impact of holiday season spending habits and why retailers need to optimize their service levels should they want to capitalize on consumers’ increased spending power over this period.” Facey says that while Africa’s e-commerce industry is still relatively small in comparison to more mature markets, it continues to grow steadily each year, especially in light of consumers having increased access to the internet via mobile technology and a fast growing middle class.
“Many platforms offer free or express shipping options, promotions and discounts. All of these are geared to drive and maximize sales when consumer spending is at its peak. This is a crucial part for retailers, as overselling a product or service and then being unable to deliver has the potential to do far more harm than good and so retailers need to ensure their supply chain management is agile enough to handle the increased volume. To maximize profitability, retailers need quick, smart, cost-effective methods to fulfill orders accurately across multiple sales channels. Effective reverse logistics is also essential for managing returns and keeping the industry moving.” She concluded by saying that it is essential for retail operations to perform optimally during this busy period, as it’s an opportunity to demonstrate their capabilities to a larger audience. In the short term it will maximize profits, but in the long term, it delivers returns customers.
