ParcelHero’s head of consumer research, David Jinks MILT, will tell the prestigious Digital Ship Maritime CIO Forum, to be held in London next week, that the impact of internet shopping means global commerce and logistics will be transformed within a decade.
‘From Amazon’s own aircraft and shipping services, to deliveries direct to consumers’ fridges; and from Blockchain and the IOT to 3D printing – the impact of e-commerce means global supply chains will be transformed by 2028.’ That’s the stark message international delivery expert ParcelHero’s Head of Consumer Research, David Jinks MILT, will deliver to an audience of leading maritime, information and IT professionals at this year’s Digital Ship CIO Forum in London on June 21.
At a time when US trade policies seem to be the biggest threat to the global supply chain, David will tell delegates from BP Shipping, the European Space Agency, UK Major Ports Group, etc, that in fact 72-year old Mrs Jane Snowball will have a far bigger impact on the industry than President Trump.
David will say: ‘When, back in May 1984, a 72-year-old Gateshead grandmother, named Mrs Jane Snowball, purchased groceries from her local Tesco store in the world's first ever online home shopping transaction, a chain reaction was started, the full impact of which is still only beginning to be realised. From the BHS collapse to House of Fraser’s current woes it’s carnage on the High Street; and that this tsunami will reach global trading network next.’
The conference, Shaping the Digital Supply Chain Ecosystem, is being held this year at The Waldorf Hilton, Aldwych, and many of the world’s leading logistics and digital information professionals will be gathered at this critical moment for the global supply chain.
David predicts companies such as Amazon will use their own logistics services to drive international trade; bypassing traditional global logistics providers. David will tell the Forum: ‘Amazon Prime Members spend twice as much as non-members with the e-commerce giant and it uses free deliveries, one-hour services, etc, as a hook to gain new members. By persuading retailers to use its Fulfilment by Amazon Pan European/US services, Amazon will create new shipping patterns and transform the industry. It’s all part of its avowed aim to be the pipeline through which everything is delivered.’
David will warn: ‘Think about what you see on your doorstep. Amazon Logistics now delivers most of your Amazon packages, not the Royal Mail, for example. And don’t go thinking Amazon Logistics is only about delivering its own products. That’s not the half of it. It has moved into Chinese/US logistics as a provider of entire services. Amazon Logistics+ is targeting small and mid-sized Chinese wholesalers – they might be Amazon sellers, they might be Alibaba users - selling to the US. So How long before Amazon controls its own fleet of ships too?’
‘And don’t go thinking Amazon won’t at least consider leasing its own vessels. Amazon already runs its own aircraft fleet! As of January, Amazon Air had a fleet of 32 Boeing 767 freighters flying out of Kentucky.’ David will add.
Meanwhile, closer to home, home deliveries and e-commerce are transforming the requirements of the UK’s supply chains. David will tell delegates a new hub & spoke logistics model will feature mega hubs on city outskirts feeding small hubs inside urban areas. Electric vehicles, droids and drones can then be used for final mile deliveries as the crackdown on diesel intensifies.
And David will ask ‘ Why must you go to the mountain when the mountain can come to you? Amazon has patented floating warehouses called Airborne Fulfilment Centres that sort items en route and could be used at special events etc. AFC’s would be in position over major cities ready for peak delivery times and would be ideal for music festivals and sporting events.’
David will also point to other new technologies that will fundamentally change global supply chains. “The Internet of Things means appliances such as fridges and coffee machines will soon be re-ordering our supplies of coffee or milk automatically. That means demand can be anticipated, cutting down on storage requirements. And our internet purchases in the future will be delivered to our car boot, or even into our kitchen, while we are out. And soon smart packaging will alert shoppers where a product is in the aisles and enable our pie to communicate cooking instructions direct to the microwave!’
Finally, David will discuss an entirely new dimension in the supply chain: 3D printing. ‘Already domestic printers have moved beyond plastics and resins to producing items in steel and titanium that build up from fine strips. But what of larger items such as car parts, plastic furniture etc? It’s probable manufacturers and e-commerce retailers will develop a hybrid manufacturing and distribution centre, creating and despatching larger items that can’t be produced on a home 3D printer.’
David will conclude: ‘Perhaps one day the only thing we ever ship globally will be strips of plastic and metals for use in domestic, hybrid manufacturing/distribution centres and High Street printers. 3D printing will certainly create a new dimension in supply chains as products are made available for delivery literally hot off the press.’