By BEUMER Group
To meet the transformation that e-commerce surges have brought upon them, CEP businesses are being forced to keep up with developments.
Challenges in adjusting to current e-commerce drives
Christopher Kernhan is the Managing Partner at the global management consulting firm, Pacific Consulting Group, and he is a leading consultant to the logistics sector. Of the e-commerce transformation, he says:
“It is no longer enough to focus on small optimisation gains on a network designed for stable, almost static, operations when operating in a dynamic world, both structurally and in terms of the pace of growth.”
E-commerce changes not just year to year, but month to month, Kernahan says.
“Online operators with new product offerings are looking at new modes of contracting and executing delivery. The delivery of fresh food during the pandemic is a case in point – legacy postal parcel operators do not ordinarily have capabilities to manage cold chain but are now having to adjust on the fly.”
– Christopher Kernahan, Managing Partner at Pacific Consulting Group
At the same time, CEP businesses are facing competition from startups and dynamic businesses who want to push the boundaries of what innovations in technology can offer, simply because customers are demanding it and don’t understand why legacy players can’t deliver it. The transformation involves a huge change of mindset for CEP companies.