Global e-commerce players such as Amazon and Alibaba pose a potential threat to logistics providers as they expand their logistics networks, according to a new report published by Colliers International.
Pointing to 'movers and shakers', the report - entitled 'Supply Chain Disruptors: Q2 2017 EMEA', points in the first instance to the strong supporting role ecommerce plays in the logistics real estate sector.
If e-commerce keeps growing at the current rate, it could reach $5.4 tln globally by 2020, more than the UK and France’s GDP combined. This level of expansion creates an ever growing need for warehousing space/logistics services.
Global cross-border e-commerce in particular is on the rise, with 45% of online shoppers expected to buy products from other countries by 2020. This represents a four-fold increase in sales compared to 2014. Thanks to e-commerce giants like Amazon and Alibaba, smaller merchants are increasingly involved in this global trade.
This creates and additional layer of demand for logistics capacity and space, and requires a different logistics approach to handle an increasingly diverse range of products and smaller batches of it.
On the other hand, global e-commerce companies are increasingly involved in the logistics side of their business and invested extensively in logistics to drive their business.
Amazon offers its marketplace sellers outsourced logistics and shipping and is seeking greater control of its delivery network to reduce cost/improve speed of deliveries. In the future it could start offering logistics services to third parties, taking potentially take business from its logistics partners: Amazon accounts for an estimated 5% and 4% of UPS and DHL's revenues, respectively.
Bruno Berretta, associate director, EMEA research - industrial & logistics at Colliers International: 'Unlike Amazon, Alibaba does not invest in logistics and warehousing directly and relies mostly on logistics partners to deliver goods. Although Alibaba does not pose a direct threat to delivery companies such as UPS, its use of technology is impacting on part of the supply chain. Alibaba’s “One Touch” on-line platform offers small/medium merchants a series of export-related services including customs clearance and logistics, and now shipping, bypassing third parties previously involved in this process.'
