Date post: | 20-Jan-2015 |
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Business |
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UKTI - Logistics made easy
Sarah MunroHead of International Marketing
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Contents
1. Setting the scene
2. The logistics process
3. What our customers tell us
4. Things to consider
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1. Setting the scene a booming eCommerce market
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Whether you’re an old hand at international B2C eCommerce or you’re just beginning, the opportunity for growth is huge
“Global B2C e-commerce sales will exceed a trillion euros in 2013, up more than 20% on €924bn recorded in 2012 … more than 120 million people are expected to spend over €100bn cross-border, and B2C cross-border trade is set to triple in value to over
€300bn within 5 years”
A booming eCommerce market
IMRG X-Border Trading Guide 2013
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Source: Britain’s Retail E-mpire, OC&C, 2013 (Source: IMRG, Euromonitor, Google queries, OC&C analysis)1Excludes grocery, 2 man fulfilled and click & collect orders
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Despite this opportunity “Going Global” is usually a reactive decision
Initial decision is opportunity led rather than strategic
Interest from abroad
React to opportunity
Use opportunity to grow customer
base
It wasn’t like I wanted to go to start selling in a particular market, it just so happened that way, we were contacted by an agent in the Netherlands…
SME distributing abroad
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Small businesses have tight
control of their business
UK Distribution
International Distribution
Control Control
When we asked small businesses why they hadn't
actively expanded into overseas markets most cited a
fear of losing control and a lack of understanding of
overseas delivery processes
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2. The logistics process
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Introduction to logistics made easy
Logis
tics
Paym
ent
Web
site
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Why is delivery & logistics important?
The MICROS 2012 International Delivery Report identified 12 key findings required for successful international eCommerce
1. Offer International Delivery2. Make Delivery Charges
Affordable3. Provide A Better Guide To
Customs Charges4. Make Sure Payment Works5. Offer Flexibility6. Be Clear About Where You
Deliver To
7. Target English Speaking Countries
8. Support Foreign Currencies And Payment Methods
9. Support Accurate Address Capture
10. Ensure The Delivery Promise Is Kept
11. Think About Returns & Refunds12. Ensure Customer Services Are
Equipped
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Typical logistics process – Day 1
Customer orders online
Customer orders online Picked & packed Collected by Royal Mail
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Typical logistics process – Day 1 to 2
Delivered to sorting centre Sorted by country at Heathrow
Airfreighted to c.210
destinations via 35 airlines
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Typical logistics process – Day 3-7
Arrival at destination Collection by USPS
Delivery to customer
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Customer buys again !!!
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3. What our customers tell us
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42% of businesses start trading internationally within two years
No significant difference by subgroup
• Length of time since business started, business traded internationally?
Base: All (1,404)
Source: International Product Portfolio Review for Royal Mail, illuminas, July 2013
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Western Europe is the frequent destination for parcel shipping
Source: Worldwide Export Shipper Needs for Parcelforce, Optimisia, March 2013
Germany (17%)
USA (12%) France (11%) Republic of
Ireland (9%) Australia (7%) Netherlands
(7%) Spain (5%) China (5%)
WHERE PARCELS SENT IN LAST 12 MONTHS
MOST FREQUENT DESTINATIONS
Base: All respondents (n=122)C1. Which continents have you sent parcels to in the last 12 months?C2. Which are the three countries (other than the UK) that you send parcels or freight to most frequently?
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4. Things to consider
(delivery times, size/weight limits, preparing mail, prohibited/restricted goods, customs)
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• Customers are looking for a reliable and consistent delivery times
• Unless the item is valuable or for some reason urgent most will be happy with a standard delivery service
• Our delivery times are proven to be well within our delivery aims, which are
• Europe: 3-5 days Rest of the world: 5-7 days
• Average delivery days are monitored and for 2012 were:
• France – 3.8 days Germany 4.8 days USA 5.3 – 7.3 days
Typical delivery times
Source: UNEX Small Parcels Scheme 2012
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Size and Weight limits
• Recent Market study we completed showed that 81% of all items sent overseas were under 2kg*
• For Postal Services:• Royal Mail
• Maximum item weight is 2kg
• Parcelforce Worldwide
• Can accept items up to 30kg
• Dimensions:
• Length + width+ height <=900mm with no one side longer than 600mm
Source: International Product Portfolio Review for Royal Mail, illuminas, July 2013
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Preparing mail - labeling
• Address your mail fully and clearly and always include the postcode and the country in English.
• The country must be written on the last line of the address in CAPITALS.
• The full country name e.g. ‘The United States of America’ must appear as the last line of the address.
• Remember to include a UK return.
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What do these things have in common?
www.royalmail.com/sites/default/files/DangerousGoods_BusinessCustomerBooklet_July2013_0.pdf
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Getting your parcels through Customs• A benefit of our partnerships with overseas postal authorities is ease of
movement through customs.
• All items worth up to £270 must have CN22 customs declaration form attached.
• All items worth more than £270 must have a fully completed CN23 customs declaration form.
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Preparing mail - checklist• Pay the correct postage
• Check size and weight restrictions
• Pack securely
• Check restricted goods
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There are substantial benefits for selling your goods to overseas markets
Delivery is a key part of the value chain
But it’s not complicated you just need to follow the steps
And there is lots of help available
www.royalmail.com
08457 950 950
So in summary …
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Thank-You