Matt Sims, Burges Salmon: “Ecommerce in retailing is creating a massive strain on infrastructure”

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There’s three main challenges in
logistics in infrastructure in the UK at the moment for retail. The first is the
heavily congested road and rail systems the second is the land constraints and
the lack of land which is available for industrial use and the third is a skills
shortage both haulage workers and construction workers which is going to be
further exacerbated by Brexit. The government really needs to get to grips
with all these issues. They need to invest heavily in the road and rail
systems otherwise the UK is going to get left behind from the rest of the world –
the likes of Hong Kong and Singapore – and they also need to address the skills
shortage both in haulage and construction workers. Ecommerce in retailing is creating a massive strain on infrastructure it’s both the supply
of goods to consumers online and it’s dealing with returns. For example after
Black Friday there was five million parcels that came back to retailers at a time
when they were desperate to get them back into the shops again. Personalisation
in deliveries is going to be the big thing this year in retail. Retailers want to
move from a blunt, same delivery option for all consumers to reward those
consumers that shop frequently with them. That’s going to require massive cost and
analysis of all that data to understand how they should alter their supply chain
logistics to deliver that personalisation in deliveries.

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