#14 – Logistics and Last Mile Delivery Has Been Commoditised and Is No Longer Owned Exclusively by the Established

Article 6 of the Galton Voysey Manifesto: Logistics and Last Mile Delivery Has Been Commoditised and Is No Longer Owned Exclusively by the Established.

TRANSCRIPT

Kat: Article 6 is logistics and last mile delivery has been commoditized and is no longer owned exclusively by the established. This is something we’ve already touched on in a previous bit, so can you go into any more detail.

 

William: It’s worth talking about in more detail. Just like, 100 years ago, flight and flying was something exclusively given to the rich. Last international logistic was something biggest companies.

 

Kat: What was last mile delivery logistic because I didn’t know until I started here.

 

William: So last mile delivery is that logistics from the final warehouse to the consumer’s home. That is a very, very important part of online shopping because it dictates customer experience. They don’t want to go up to a post office to pick up a product, they don’t want to wait forever, and they don’t want them to leave it outside my house and get stolen by my neighbour. Last mile delivery is very important and it’s also one of the most expensive components. 50 years ago, if you wanted to provide international phenomenal customer experience when it came to logistics you would have to be a very, very big company. You would have to invest billions of dollars around the world to build the logistics capability up.

 

Today, you have companies like Amazon that provides fulfilment by Amazon, you’ve got countless other competitors and what they do is say “Anyone can come in whether you’re a mom and pa shop working in the basement, or you’re a fortune 500 business, come along work with our API and we will make sure that your customers are delighted by that last mile delivery experience. We’re getting the same experience that we can give to our customers as the biggest companies in the world and we’re paid roughly the same price. A lot of things that the generation came before us have built out the infrastructure, the internet was built out by generations before us. Last month, logistics were built up so all these heavy investments and innovation around the infrastructure whether its online payments or security or its last mile delivery. All of that has been built by the people before us which levels the playing field between the big brands and the small brands. It’s why we believe in direct to consumer, why we believe in helping founders build microbrands on the internet as well.

 

Kat: It’s why we believe we can help those founders with microbrands really reach the audience

 

William: A lot of founders don’t know what’s out there, they don’t understand the possibility.  So, especially if a brand has been around for a few decades, in some cases we work with family businesses that have brands that have been around for more than a hundred years. They are so stuck with their thinking about how to run their companies, that when we show them that there’s another way. That is going direct to consumer, cutting out the middleman, working globally, not just selling in certain markets but thinking globally free shipping, they are surprised and usually like it a lot. When the results come in, the rest is history!

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