The Friday Report: January 14th, 2022

Can Last-mile Delivery Get Even Better?

In a global report by Bringg, 99% of retailers plan to offer same-day delivery by 2025, from the 35% that can do so today. However, only 29% of the retailers believe that they are doing well in hitting their delivery window. Many barriers are stopping delivery time from getting any better. Here are some of the pitfalls:

1. 36% of the retailers noted that the lack of real-time order visibility/tracking was an issue, making it the biggest barrier.

2. The travel distance between warehouse, retail location, etc. to the delivery point is the second-biggest barrier at 24% of respondents.

3. Some smaller barriers such as the number of drivers and the size of fleets available to make the deliveries and dispatch and routing issues are problems with which many retailers are currently dealing.

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Forecasts for Retailers in 2022

Throughout 2021, things have been changing non-stop due to the pandemic. Here are some of the anticipated retail trends for 2022.

1. Labor shortages may continue to become a problem for retailers. With fewer workers in stores, longer checkout lines and a decrease in positive customer service may be part of the “new normal”. There are not enough dockworkers, trucks, or drivers. This means that much of the retail merchandise remains stuck offshore, delaying shipments.

2. As more stores open, consumers are looking for a more elevated experience. To elevate the customer experience, retailers are incorporating more engaging technologies such as virtual reality, hands-on encounters, and in-store app functionality.

3. Within the next five years, 20% of the grocery business will take up online sales. In 2022, online shopping for groceries is anticipated to continue to grow, but rapid delivery services will decrease as retailers are creating their own delivery options.

4. Marketers are becoming more creative and stopping the quest to deliver messages that connect with shoppers. The U.S. digital advertising industry is estimated to reach $41.37 billion in 2022. One major challenge for retailers involves figuring out how much advertising is enough in terms of shopper outreach as consumers often report considering these ads bothersome. Marketers are turning to more creative and personal means to retain customer loyalty.

5. NFTs may be something to look into in 2022. With the popularity of NFTs, retailers are looking into using them to connect with and engage with their loyal fan base.

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Canada Looking to Pause the COVID Vaccine Mandate

To reduce the spread of coronavirus, Ottawa mandated COVID vaccinations for all of those who cross the Canadian/ U.S. border. Having this new rule in effect has cost Canadian trucking companies usage of approximately 10% of their international drivers.

To keep up with the issue, companies are increasing wages to help lure new drivers during their labor shortages. The Premier of Alberta, Jason Kenney, has urged the federal government to pause or extend an exemption for cross-border truckers. Over 32,000 Canadian and American cross-border truckers can be taken off the road with this mandate.

Concerns abound as Canada’s inflation rate is at a high of 48% now. Shortages and shipment delays due to the vaccine mandate, it could continue keeping prices higher for an indefinite period of time.

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