Rapid adoption of e-commerce across industries is causing significant disruption to traditional business models and the supply chains that support them.
Perhaps most notably, retail supply chains have been turned
upside down as consumers spend more of their dollars
online, without stepping foot in a store.
It may be an understatement to say e-commerce adoption
has been rapid. The U.S. Department of Commerce estimates
that e-commerce sales accounted for US$394.9 billion
in 2016, a 15 percent increase over 2015. E-commerce
accounted for 8. 1 percent of all U.S. retail sales in 2016, up
from 7. 3 percent in 2015 and more than double the total (less
than 4 percent) in 2007.
Why the shift? The growing ranks of e-commerce-savvy
consumers are taking advantage of easy price comparing,
increasingly speedy fulfilment and home delivery, and other
Recently, AlixPartners surveyed more than 1,000 U.S.
consumers on their e-commerce shopping habits and
preferences. The results paint a picture of a more demanding
consumer who largely gets what he or she wants, when
and where it’s wanted. Also, time is not money to these
consumers: They expect to pay little or nothing for the
convenience of e-commerce, including delivery.
An explosion of data is a;ecting players
in the e-commerce retail and logistics
BY FOSTER FINLEY AND JAMES BLAESER
BEGINS AT HOME