Fast-growing European fashion e-retailer Zalando has no plans to copy Amazon by broadening its logistics activities into final-mile delivery, according to the company’s logistics chief.
The Germany-based group, with annual sales growth of 20-25%, is expanding its logistics footprint with new warehouses in Germany and other countries, Christoph Stark, vice president logistics, told this week’s European Post and Parcel Services conference in Lisbon.
Addressing an audience of postal managers, suppliers and other industry delegates, Stark explained that customers of Zalando, which heavily promotes “free delivery and free returns”, are “looking for speed and convenience. Being on time is more important than being fast, but speed still matters.”
Asked by moderator Peter Somers whether Zalando would develop its own deliveries like Amazon is currently doing, Stark responded: “I don’t see that. We are very strong in logistics and fulfilment. (But) I do not see us doing the last-mile on our own. Having said that, we are reliant on you and if we feel you are dragging your feet, then …”
Outlining his ‘delivery wish-list’, the Zalando logistics chief emphasised the need for carriers to harmonise their services better, for example with a standardised label that could be used across Europe, to simplify their tracking processes, and to avoid re-directing customers to their own websites for delivery information. “We don’t want that. It’s a perceived conflict,” he said. “It’s critical to make the customer journey as simple as possible.”
Stark said his ‘top wish’ is for carriers to be more flexible with last-mile deliveries. “We need to come up with new ways to be more flexible with the last-mile, by combining with the best of express networks.”
Given that most customer orders are made in the evening, he urged carriers to make systems more flexible by accepting parcels in the evening rather than just by the end of the day. “About 50% of customer orders could be done next-day.” Looking ahead, he told postal managers: “We want to deliver 100% of order next-day. I want you to think more about a second delivery wave.”
Zalando is currently also testing same-day deliveries in Berlin, with orders received by 13.00 being delivered from 18.00 onwards from a warehouse in Erfurt, which is about three hours away. Tests are also taking place in several other German cities.
Stark commented: “I think same-day is here to stay. Amazon has prepared the playing-field and will make sure customers get used to it.”
He added: “Placing warehouses in good locations gives opportunities. For example, there could be opportunities to partner with brands for warehousing through one platform.”
