Tag: Capgemini

Online accounts for 15% of all retail spend

Posted by | Jan 18, 2008 | |

A record GBP 15.2 billion was spent online in the 12 week run up to Christmas 2007 according to first set of official industry figures for the UK

According to the Interactive Media In Retail Group (IMRG) and Capgemini co-authored report “e-Retail Sales Index’ UK online shopping reached an all time high in the run up to Christmas, with GBP 15.2 spent online in October to December bringing the full year UK e-retail sales to GBP 46.6 billion, up 54% on the GBP 30.2 billion recorded for 2006.

Within key sectors such as electrical goods, the research indicates that growth in online sales does come at the expense of high street retailers.

Anthoula Madden, Vice President at Capgemini UK’s Consumer Products and Retail Team said, “Online growth has proven robust and sustainable over the past year, increasing its share of UK retail from 10p in the pound to 15p. Whilst we are yet to see high streets sales decline there can be no doubt online is growing its share at the expense of bricks and mortar retailers and we believe that this trend will continue.”

December’s e-retail sales were nearly 50% higher than last year’s, although demand for online shopping tailed off significantly towards the end of 2007 with December’s Index only 0.2% higher than November’s, reflecting the credit crunch across the UK economy.

The data, collated by IMRG and analysed by Capgemini’s consumer retail team, reveals that peak online shopping occurred in the first week of December where there was a 9% increase in all online sales. This is later than in previous years, indicating that consumers are making the most of pre Christmas discounting and delaying purchases until the onset of the sales.

The final week of the year only saw a reduction in online sales of 4% (compared with -22% in the previous year) suggesting a tendency to go online to spend Christmas money and vouchers and hitting the online sales post Christmas rather than the high street sales.

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The state of Third-Party Logistics – 2007

Posted by | Nov 7, 2007 | |

A significant focus of the annual State of Logistics Outsourcing: 2007 Third-Party Logistics report this year is on the opportunity for improved collaboration between 3PL providers and users.

A recent study by consulting firm Capgemini, the Georgia Institute of Technology, DHL and SAP reveals that collaboration between companies and their third-party logistics (3PLs) is one of those areas for which both sides of the equation see benefits — but the application of the idea turns out to be a lot harder than the theory.

For the first six years of the annual State of Logistics Outsourcing report, which is based on a survey of 1,568 logistics executives from 61 countries, about 72 percent of the survey respondents described themselves as users of 3PL services. In the past four years, this number has increased to 78 percent to 80 percent.

The 12th annual 3PL report, released late last month, indicates the third-party logistics (3PL) industry is doing many things right. Most users are satisfied with the relationship, with 85 percent reporting that their logistics outsourcing efforts are successful. However, some users do report chronic problems with 3PL providers and a significant number of users say that 3PL information technology capabilities are insufficient.

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Capgemini and DHL assess evolution of business after-market services strategy

Posted by | Oct 4, 2007 | |

Research published today by Capgemini, in partnership with DHL Exel Supply Chain, reveals that after-market service revenues, as a percentage of total company revenue, are set to rise by 50 pct over the next five years. After-market services include exchange, return and repair logistics for the engineering and manufacturing, and hi-tech industries. On average, manufacturing companies are already harvesting 25 pct of their profits from this area. Putting the after-market service at the heart of the company’s product strategy has resulted in considerable investments in optimizing the after-market supply chain.

The large majority of E&M companies today are already experiencing profit margins between 10 and 50 pct in service management. However, E&M companies are expecting even larger profit margins in the next five years.

Roy Lenders, Global Vice President for Logistics and Fulfilment, Capgemini, added:
“Today’s findings reveal that whilst the hi-tech industry is considered a front runner in service logistics developments, it is still five years behind the engineering and manufacturing industry in terms of globalization. But the latter are encountering more difficulties in delivering consistent service and in meeting the service level expectations of their customers. While hi-tech companies are aiming to provide short response times only where necessary and moving to cost efficient service modes where possible, E&M companies are facing ever increasing business requirements. Global reach and consistency are a core focuses in this industry, more than in hi-tech.”

Jacob Verhagen, Vice President, Sales and Marketing, Global Service Logistics, DHL Exel Supply Chain, stated: “This study reveals the extent to which our manufacturing customers are increasingly viewing service management and service logistics as a differentiating factor in setting themselves apart from their competitors. After building an effective service supply chain over the years they are now using this as a vehicle for service differentiation. In an increasingly complex operating environment, centralized supply chain management is a hot topic in most of our customers’ boardrooms and now is a high priority as a core part of business.”

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