Cost model: Logistics

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A growing online population with evolving buying behaviours will require a dynamic and agile logistics network from UK retailers keen to maximise opportunities in this fast-moving market. Ian Brebner of Aecom looks at the key issues affecting the sector and assesses the costs for an air cargo hub

01 / Introduction

Logistics is a critical component of many retail operations and can have a huge impact on a retailer’s brand. As a result, the logistics sector continues to experience a period of change driven by consumer demands for greater choice and speed of delivery. Alongside this, a digital revolution is spreading through our day-to-day lives.  Technology is enabling us to access vast amounts of information and advertising instantly, which over time can subtly guide our choices. The future of logistics will increasingly become digitally powered and interwoven with how consumers interact with personal technology. 

Portable and wearable technology is increasing, which is likely to drive consumer appetite for greater transactional transparency, more responsive and varied delivery modes and precision in delivery timing. An example is the huge growth in smart speakers interfacing with cloud-based intelligent systems. 

Our ability to make purchasing choices 24 hours a day and from any location – fuelled by this kind of cloud-based technology – is greatly influencing the future of the logistics market. Amazon and Google are driving growth through their technical innovations around the customer interface, creating more responsive customer experiences.

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