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07/27/2000: Smaller distributors forge ahead in B2C fulfilment

Logistics Bureau has identified a severe shortage of distribution companies capable of meeting the needs of an e-commerce economy.

The consultancy is quickly discovering that small niche players, specialising in internet fulfilment and home deliveries, often provide a far better service than their more established counterparts, such as large transport companies.

Logistics Bureau Director Rob O’Byrne said smaller companies that focus on B2C could provide a superior delivery service because they understood their customers’ needs.

“There is not a lot of expertise in the B2C delivery arena,” he said.

“What we’re finding is that the smaller players are forging ahead in the market. These are companies that are solely focused on home delivery, they are flexible and have the right ‘cultural fit’. Larger transport companies that cater to the masses often simply don’t have the know-how.”

He said the more ‘e-competent’ distribution companies were investing in the appropriate technology for order processing, transport management and track and trace systems.

“Good distribution companies know that the most important part of an e-commerce transaction is the delivery,” said O’Byrne.

“If a company’s core business is B2C, it will know that customers want consistent service, a choice of delivery times, evening and weekend deliveries and value-adding technology.

“Unfortunately, a lot of the larger transport companies fail to recognise this and therefore offer a second-rate service.”