The impact of e-commerce on luxury logistics

The luxury sector is distinguished from other sectors by its exclusivity. Its products are also undeniably exceptional and aim to meet consumers’ demands and pleasure in particular. However, with the advent of digital technology and the new trends that followed, profound disruptions were encountered, particularly with regard to logistics. The supply chain is more comprehensive and the supply constraints are more complex. In addition, its customers are expanded by a new generation with new expectations, whose shopping basket is smaller than that of the elderly.

In order to adapt to geographies and market segment, the luxury segment has been able to offer a new shopping experience and has moved towards e-commerce. But what are the effects of e-commerce on luxury logistics?

Luxury has been forced to move towards a new master plan for its supply chain

These past few years have brought a new wind to the luxury sector where there are multi-channel channels, CSR policy and supply disruptions. New expectations of consumers, proliferation of references, and the flow of new product launches interspersed with collections or seasonality are also the main factors that have brought about permanent changes in logistics.

It is therefore necessary for major brands to develop a new inventory management strategy to work on less frequent and more seasonal products, to avoid excess and therefore inventory. In addition, inventory management has proven to be increasingly complex, between the management of raw materials, semi-finished products, restocking and various sales channels, the task is far from simple.

To be able to adapt both their products and service to the expectations of a demanding customer, outsource logistics and begin to logistics platform To deliver products, is one of the most effective strategic means to meet the needs of this new generation.

Adopt a multi-channel model for a better customer experience

With the rise of e-commerce, the multi-channel aspect has imposed itself even more in the luxury sector. However, for fear of tarnishing their prestige and high-end image, major brands have been reluctant to appear on the Internet, not to mention the many fake products circulating on the Internet, which have severely damaged their image. But with a little hindsight, they’ve nonetheless turned to e-commerce.

Renowned for the superior quality of their products combined with exceptional craftsmanship, luxury brands must ensure controlled and meticulous presence, outstanding and tailored delivery services, but above all impeccable security to avoid theft of goods. Fortunately, there are now innovative solutions that make it possible to create true integration between online retail and sales channels, improving consumer buying journeys.

Speed ​​and responsiveness are at the heart of the customer experience

for one customer experience As incomparable on the web as it is in physical stores, speed and responsiveness are the keywords that luxury homes and major accounts should rely on.

However, practicing tight flows is the ultimate requirement for a fast and efficient supply chain. This not only reduces inventory, but also improves supply chain security. Thus, the digitization of the latter contributes to the optimization of the supply chain, making it possible to use fewer human and material resources while continuing with regard to craftsmanship and core business, to improve the traceability of products and reduce lead times.

But to make this possible, there must be perfect coordination between all the actors in the supply chain. Why not dismantle internal departments and work more collaboratively? One thing is for sure, there is a relationship between the speed of order processing, the quality of your service, and customer satisfaction.

Move towards the logistics platform

As mentioned above, the speed of order processing and product traceability, as well as package delivery tracking and quality control are the elements that promote optimal customer experience. Obviously, all of this goes through logistics platforms. This strategic space makes it possible to collect goods before capturing them and to connect different places by following the supply network.

In addition to outsourcing transit and freight forwarding activity, using a logistics platform is extremely beneficial for those in the luxury sector. It allows among other things:

  • Optimizing Logistics Flows: All logistics operations are centralized in one place;
  • Business productivity improvement: Order processing is managed through the platform, allowing brands to focus on high value-added tasks;
  • Maximum customer satisfaction Thanks to the impeccable quality of service and fast delivery;
  • Reduce costs Warehousing and warehouse management.

Thanks to advances in technology, it is now possible to move to a complete online solution for optimizing luxury logistics. We can especially cite Woop, which is a SaaS platform that connects multi-channel brands with the best carriers. This allows major brands to offer exceptional and responsible delivery to their customers. She is also responsible for developing new customer journeys in France and internationally. Logistics platform is undoubtedly the essential solution for optimizing your supply chain and focusing on the profitability of your business.

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