The impact of e-commerce on luxury logistics

The luxury sector differs from other sectors because of its exclusivity. Their products are also undoubtedly exceptional and are aimed at particularly demanding and hedonistic consumers. However, with the advent of digital technology and the resulting new trends, there have been profound changes, especially in the field of logistics. The supply chain is larger and the delivery restrictions more complex. In addition, the customer base is growing due to a new generation with new demands, whose shopping basket is smaller than that of the older ones.

To adapt to geographical areas and market segments, the luxury sector has been able to offer a new shopping experience and has switched to e-commerce. But what impact does e-commerce have on luxury logistics?

Luxury goods are being forced to develop a new master plan for their supply chain

Recent years have brought new winds to the luxury sector, where omnichannelism, CSR policies and supply disruptions are very present. The new consumer expectations, the proliferation of references, the release streams of new products punctuated by collections or seasonality are also the main factors that have led to permanent changes in logistics.

Therefore, it is imperative for big brands to establish a new inventory management strategy to work on less recurring and more seasonal products, thus avoiding overstock and therefore overstock. In addition, inventory management is proving to be increasingly complex. Between the management of raw materials, semi-finished products, replenishment and the various distribution channels, the task is far from simple.

In order to be able to adapt both its products and its services to the expectations of a demanding clientele, outsourcing logistics and using a logistics platform for the delivery of the products is one of the most effective strategic means to meet the needs of this new generation.

Adopt an omnichannel model for a better customer experience

With the rise of e-commerce, the omnichannel aspect has become even more prevalent in the luxury sector. However, fearing to falsify their prestige and high-end image, the big brands have been reluctant to appear on the Internet, not to mention the many fakes that circulate on the Internet and greatly damage their image. But in hindsight, they turned to e-commerce nonetheless.

Luxury brands, known for the superior quality of their products combined with exceptional craftsmanship, need to ensure a controlled and careful presence, bespoke and first-class delivery services, but above all impeccable security to prevent theft of goods. Fortunately, there are currently innovative solutions that make it possible to create a real complementarity between retail and online distribution channels, thus improving consumer purchasing processes.

Speed ​​and responsiveness at the core of the customer experience

For a customer experience that is as unparalleled online as it is in physical stores, speed and responsiveness are the keywords luxury homes and large consumers must rely on.

However, the practice of tight flows is the ultimate requirement for a fast and efficient supply chain. This not only minimizes inventory, but also improves supply chain security. The digitization of the latter thus contributes to the optimization of the supply chain, allowing to consume fewer human and material resources while respecting the craft and the core business, improving product traceability and reducing lead times.

To make this possible, however, there must be perfect coordination between all actors in the supply chain. And why not relocate the internal departments and work more collaboratively? One thing is certain: there is a correlation between the speed of order processing, the quality of your service and customer satisfaction.

Transition to a logistics platform

As mentioned above, the speed of order processing and the traceability of the products, but also the tracking of the delivery of packages and quality control are the elements that promote an optimal customer experience. Of course, all of this runs via logistics platforms. This strategic space makes it possible to collect the goods before taking them over and to connect the different locations through a supply network.

In addition to outsourcing the activity of transit and shipping of goods, using a logistics platform is very beneficial for those who work in the luxury sector. Among other things, it enables:

  • Optimization of logistic flows: all logistic processes are centralized in one place;
  • Improved business productivity: Order fulfillment is managed by the platform, allowing brands to focus on high value-added tasks.
  • Maximum customer satisfaction thanks to an impeccable quality of service and fast deliveries;
  • cost reduction Storage and warehouse management.

Thanks to technological advances, it is currently possible to deploy a fully online solution to optimize luxury logistics. Of particular note is Woop, a SaaS platform connecting omnichannel brands with the best carriers. This allows big brands to offer their customers exceptional and responsible delivery. She is also responsible for the development of new customer journeys both in France and internationally. The logistics platform is undoubtedly the essential solution to improve your supply chain and focus on the profitability of your business.

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