FedEx reports strong demand during lockdown

18th September 2020

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Express transport company FedEx Express South Africa has recorded strong domestic demand for its services during lockdown, and credits its employees for meeting this demand and operating in difficult conditions, says FedEx Express Southern Africa MD André Bresler.

One of the core sources of additional domestic demand during lockdown was to deliver goods bought electronically as part of e-commerce, he says, adding that many health and safety protocols had to be implemented to ensure that staff worked safely and parcels delivered appropriately and safely.

“While South Africa has typically lagged behind in use of online shopping, the lockdown restrictions led to a significant change in shopping habits, which we expect will persist even after a normalisation of conditions.”

FedEx also changed delivery options, including allowing clients to provide alternative delivery points to reduce unnecessary trips, and used near real-time communication to improve customer experience.

“Integration between the back-end systems of products suppliers and us, as the final-mile delivery agent, has to be fluid, accurate and time-sensitive. We have to try as much as possible to have real-time systems that enable our delivery personnel to manage delivery challenges, such as arriving at the delivery point but there is no one to collect.

“We rely on the flow and transfer of data, and the stability of these platforms, irrespective of challenges such as load- shedding and disruptions.”

Meanwhile, the Covid-19 pandemic and consequent lockdown affected FedEx significantly, and the company had to get accreditation as an essential service provider. It also had to ensure that employees were supported, had personal protective equipment, and that they understood and followed health and safety practices, says Bresler.

“The safety of our team members was our top priority, as they are the ones who kept commerce moving and delivered essential supplies. It was also important to understand that each team member is an individual who still needs to commute to work, despite transport systems being curtailed during the strictest lock-down stages.

“We are heavily reliant on our people and ensured the correct protocols and procedures were clearly defined and entrenched in our operating methodology,” details Bresler.

He emphasises that the teams understood the gravity of the pandemic and were proud to deliver essential goods and critical supplies to communities in need. Additionally, the teams had to continuously adapt to new challenges, and manage the individual challenges each member confronted.

Bresler credits his entire team for being supportive and adopting a positive attitude to continue providing essential goods.

Digital Shopping

E-commerce has grown in key markets across the continent such as Nigeria, South Africa, and Kenya. The confidence built up in this model of commerce to deliver essential goods during the pandemic is expected to support changes in shopping habits over the long term, he says.

“In the current environment, contactless shopping is necessary, but e-commerce provides consumers with greater choice. We have seen an increase in demand for our delivery services from outlying areas and townships from e-commerce, and we expect this higher demand to continue.

“E-commerce can support economic revival and growth in Africa after the pandemic. However, a key aspect of physical stores – the direct engagement with the client – remains fundamental to online shopping. We expect a change in the way in which shops operate. Shops will possibly carry less inventory, while allowing customers to assess products and engage with staff, and shops may rely on delivery or drop-and-collect channels to get the products to customers,” explains Bresler.

Changes to retail models and logistics supply chains in response to changes in consumer shopping habits can help to lower the cost to serve customers, and make the final-mile delivery more efficient.

“Sales executives and personnel will continue to grapple with effective customer engagement, including with the ability to provide the correct product information for customers at the right time in any engagement channel to enable customers to make informed and qualified buying decisions. “Smaller retailers can benefit from using a third-party platform to handle and deliver their products to customers.

“More effective communication and the exchange of information between parties in the retail supply chain is fundamental to reduce costs along the supply chain and improve services and experiences for customers, with the economic benefits realised by the retailers and their customers,” concludes Bresler.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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