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The white paper found that the major urban trends all createvarious challenges in terms of cost, service impact andorganizational strain. For example, the growth of seasonallogistics as a result of increasingly popular holidays andpromotional days such as Asia’s Singles’ Day or national CyberDays, places significant pressure on logistics companies to buildup additional capacity and hire resources to cope with short-termvolume surges, which can in turn be difficult to predict. Urbancustomers’ demands for speed and convenience are forcing retailersto overhaul their warehousing networks, replacing centralizednetworks with local fulfilment and distribution infrastructure,which can require more accurate balancing of inventory.
Evolving technologies are creating opportunities for newdisruptive challengers to enter the market, while also reincumbents to invest prudently and incorporate new skills intotheir workforce. To overcome these challenges, DHL and Euromonitorhave jointly identified the F.A.D. (Flexible transport networks,Automation and Data) model as a framework that will help retailersand logistics operators to ensure their competitiveness over thelast mile. By improving their performance in increasing automation,managing data and building flexibility into their networks,e-commerce companies in all markets will be able to better manageinventory and increase the efficiency of their last-mile deliverynetworks.