Hoe logistiek bijdraagt aan een maximale

consumer convenience in een multichannel omgeving: België als case study.

Luc De MunckManaging Director bpost International

agenda

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• European perspective• Case study Belgium• Beyond The Netherlands and

Belgium

3

Wordwide e-commercemarket is growing with an

average of 19% a year

European e-commerceMarket is growing with an

average of 13,4% a year

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What are European customers delivery and return

expectations? ?

Easier return procedures

More convenient deliveries: consumer wants to decide how, when and where Better information

and transparency concerning : Shipping conditions, delays, damaged or lost packages

Convenience

5

European regulatory

initiatives?.

Consumer Rights Directive 2011/83/EC

Harmonisation off premise and distance contracts (B-to-C parcel delivery) Increased information and transparency.

Initiatives on 3 levels

Before orderingAt deliveryAt return

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EU Commission - Green Paper: An integrated parcel delivery market for the

growth of e-commerce

Create an integrated

delivery market that provides e-retailers and consumers with the solutions they need

Issues dealt with Convenience: Greater convenience and transparency for

consumers Costs: More cost effective delivery solutions, notably cross-

border Interoperability: A greater level of interoperability between

operators along the delivery chain, and better coordination between e-retailers and delivery operators

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Is this enough for the consumer?

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Understanding the e-commerce delivery

and return needs

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48%

7%22%

16%7%

Delivery at home

Delivery at work

Delivery at pick-up point

Delivery on appointment

Other

Delivery preference

Home delivery

remains the preferred

way to receive parcels

10

4%

40%

55%

Choice of favorite company

Choice of cheapest delivery option

Choice of most suitable delivery option

Cost or convenience?

The customer is looking for a compromise

between cost and

convenience

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1 - 3 parcels

4 - 10 parcels

11 -20 parcels

> 20

0 0.5 1 1.5 2 2.5 3

Average of delivery

methodsused

The more the customer

buys online, the more

methods he or she uses.

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21%14%

28%

17%19%

10%

17%18% 10%

1st choice 2nd choice 3rd choice

The drop off at neighbour is

the preferred alternative

when the consumer is not

present at the moment

of delivery.

Preferred alternative

drop off

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11 miljoen inhabitants

60% Dutch speaking

25% annnual growth in B2C e-Commerce

Multilingual and multicultural country

Growth expectation of €20 billion by 2015 (4,6% of BBP)

Belgium Case Study

Less webshops then neighbouring countries

1,4 billion purchases online in 2012

Only 2% of country retailing is internet retailing

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delivery@home4,5 miljon households

Every day at your home

delivery@post office Where you want it

delivery@parcel automate 24/7 parcel automate Focus on urban areas

Where and when you want it

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Is this enough for the consumer?

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17

yy/mm/dd - title presentation - author - qualifier

Albert, 82 year, needs help for his meals, groceries and medication

Nathalie and James both work every day and prefer collection and delivery of their laundry on Saturday morning

Sofie, 23 year, shops every day online and requests a consolidated delivery once per week including groceries

Lillybook, book editor, wants to ship parcels every day and prefers a consolidated delivery once per week for returns and purchases

Singles, families, companies… have new expectations and wishes…

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1 23 4

Young busy families who seek comfort and

time gain

Frequent online shoppers

SOHO’s (small businesses) who are

looking for service

Less mobile and elderly people

We see demand from 4 consumer groups

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Pure players Brick and mortar

Retailers and (local) stores

Supermarkets

Speciality food shops Services (dry-cleaning,

ironing, repairs…)

And interest from several merchant supply segments

Producers (e.g. bio agriculture, …)

We developed 4 features forming a compelling eco-system

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The customer agrees a

delivery time with bpost

All purchases and parcels

are delivered together at that time

The customer can also return

goods (empties,

ironing etc.)

The customer pays for the

goods safely and securely by

banker’s card at the time of

delivery

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…based on 3 building blocksDigital platform

Physical infrastructure

Payment infrastructure__

We are running tests in 4 area’sTurnhout

Geraardsbergen

Sint-Niklaas

Brabant Wallon

a project built…

05/2012pre-trial

2013pilot/further

tests

…step by step

06/2012test

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Beyond The Netherlands and Belgium?

22%

25%

30%

30%

32%

38%

38%

38%

39%

43%

44%

50%

53%

54%

55%

56%

59%

64%

76%

USA

Korea

The Netherlands

Japan

Germany

Argentina

France

UK

Russia

Brazil

China

Mexico

Belgium

Canada

Spain

India

Denmark

Finland

Australia

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Cross border

purchasingRates of

e-shoppers purchasing on

websites located in

another country

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Valu

e

Price

< 2 kg < 30 kg

Minipack

Easy Return

MinipackT&T

< 5 kg

MaxipackT&T

WPOD

EasyReturn+

T&T

GlobifyLandedCosts

Basket value <50€

Basket value <100€

New offerT&T(Q2)

Home Delivery Worldwide

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Give the customer the choice to pick up his parcel

at any PICK UP-POINT anywhere in the world !

Easy CollectSolution

By standardisation of different

international labels

By using the domesticpick-up network of each

specific country

2013Belgium, The Netherlands, Germany, France and Austria Total roll-out for end 2014

ERS offers a solution for Companies needing an

affordable reverse logistics solution free of charge for end customers.

A ‘prepaid’ label which determines that end customer can return a received product to Distant Seller in another country at no charge. The Distant Seller covers the costs of return.

6 Postal Operators confirmed their joining ERS in 2013: CH*, ES, HU, IS*, IT and NO*

Easy Return Solutions

Germany

France

GB

Belgium

The Netherlands

Czech Rep.

Slovakia

Slovenia

Finland

Ireland

Luxembourg

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Consumer centric parcel delivery and return logistics are a key enabler for maximum customer convenience in a multi-channel retail environment

European and worldwide solutions are getting more and better integrated to remove the physical borders and to enable cross-border convenience in a same manner as domestic delivery and returns

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Is it enough?

www.bpostinternational.com

Blog: www.wemoveyourideas.com

@LucDeMunckluc.demunck@bpost.be