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Consumer Logistics

Surfing the Digital Wave

Peter J. Rimmer and Booi Hon Kam

Digital technology has changed the way we work, socialize, shop, play and learn. This book offers a stimulating exploration of how digitization has begun transforming the prevailing global logistics system into a self-service and sharing economy, and ultimately provides a vision of the monumental changes likely to overflow into the business landscape.
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Index

Surfing the Digital Wave

Peter J. Rimmer and Booi Hon Kam

3Cs 11314

3D Printing 14, 16, 17, 20, 589, 121, 128

see also additive manufacturing

additive manufacturing 15, 589, 62

altering patterns of international trade 15

becoming the norm 124

consumer 589, 66

/additive manufacturing opportunity space 60

disruptive digital trend, as 47, 6061, 623, 64

effects of 61, 11617, 1289, 135

localization of supply chain 119

enterprise dimension 11, 14, 612

hybrid product, as 11718

Hype Cycle see Hype Cycle

impact of 59

manufacturing technologies dimension 62

market segments dimension 62, 65

print cities 66, 67

print valleys 121

supplying raw materials 1245, 136

technological driver, as 15, 70

4As 146

7Rs of logistics 116, 136, 138, 13940, 41

Adams Gum Company 73

additive manufacturing 15, 589, 62

see also 3D Printing

/consumer opportunity space 60

costs 656

predicted growth in 65

Africa 41, 53, 54, 75

3D printers in 66, 67

low-cost production hubs in 128

Uber in 91, 92, 93

urban agglomerations in 123, 137

Walmart in 107

agility 24, 26, 115, 130

lean thinking and 40

AGVs see autonomous ground vehicles

AI see artificial intelligence

algorithms 49, 91

business intelligence 56, 90

Alibaba Inc. 88, 112

/Suning appliances partnership 112

Taobao Marketplace 889, 112

Amazon.com47

B2C partnership 812, 86

business model 58, 106

Dash Buttons 147

delivery 82, 83, 1078, 12021

Key 95

last-mile delivery see last-mile delivery

On My Way 107

order fulfilment 824

lockers 84

Prime 82, 106

Prime Now 82

Subscribe & Save 1467

American Chicle Co. 73

American Marketing Association 25

AP Moller-Maersk Group 36

apps 53, 70, 73, 80, 120, 144

delivery 95

Go-jek 101

location-based 50

On My Way 107

Uber 9091

artificial intelligence 148

Asia

and the Middle East 66, 13031

East 36, 75

-Pacific 91, 93, 112

South 75

ATM see automated teller machines

Australasia 41, 74, 130, 131, 134

Australia 5, 27, 49, 74,

automated bag-drop machines in 78

Post 7980

sushi train 72

Uber in 91

Woolworth’s Ltd/eBay alliance 11012

automated teller machines 77, 139

Automatic Productions International 73

see also vending machines

automatic shopping 22, 147

autonomous ground vehicles 19

back-sourcing 130

Bamfield, Joshua 108, 109

Bansai, Binny 86

Bansai, Sachin 86

Baumgarten, Helmut 24, 41

Beijing 41, 84, 127

JD.com in 85

Berlin 53, 54

Wall, fall of 32

Bezos, Jeff 82

Big Data 11, 16, 68

see also Internet of Things; logistics

Analytics 19, 22, 50, 52, 56, 58, 119, 144, 146

digital disruption, and 126

in logistics 57

Big W stores see Woolworths Ltd

Bookbinder, James 38

Boston 53, 76, 83, 104

Internet of Things in 54, 55

Brazil 49, 107

bricks-and-mortar retailing 5, 47, 49, 50, 84

C2B model 9

convenience stores 11012

last-mile supply chain, and 934, 110

old-fashioned, as 108

remaking 10810

supermarkets 11012

threats to 58

Bughin, Jacques 7

business logistics see logistics

Cainiao Network 101

California 53, 104

call centres 47, 48, 113

Camp, Garrett 90

Canada 74, 91, 128

catalogue shopping 47, 98, 99, 109

CB Insights 99100, 1034

CDC see distribution

Central and South America 53, 66, 91, 128, 130, 131

checking 113, 114

Chicago 53, 55

Loop 90

University of 90

Chief Supply Chain Officer (CSCO) Forum see supply chains

China (People’s Republic of) 36, 49, 71, 856, 91, 127, 128, 141

Alibaba Inc. see Alibaba Inc.

Best Logistics Technology (China) Co. Ltd 101

China Smart Logistics 88

industrialization of 412

Jingdong (JD.com) 846, 112

last-mile delivery in 112

logistics cities in 121

New Dada 101

One Belt One Road (OBOR) 131, 132

Post-China period 128, 129

relocation of manufacturing to 42

rise in labour costs 128

smart logistics programmes 127

Tianjin 85, 127

Christopher, Martin 32

clicking 79, 11314

cloud

see also Internet of Things

computing 11, 138, 146

extension of 53

hybrid 68

Internet of Things, and 512

technological driver, as 70

technology 15, 19, 56

coiled spring phenomenon 139, 141, 1424

Collaborative Planning, Forecasting and Replenishment (CPFR) 36

collecting 79, 11314

computers

mainframe 31, 140

personal (PC) 140

electronic data interchange (EDI) 31

consumer

behaviour 22, 135, 138, 139, 141, 145

purchasing journey 2, 71

ubiquity 21, 72, 8990, 115

Uber see Uber Technologies Inc.

consumer 3D Printing see 3D Printing

consumer logistics 16, 47

digitization see digitization

DIY 70

emergence of 19

focus of 70

key elements in 17

last-mile delivery see last-mile delivery

market forces influencing 1

service see service

transformational era of 69, 70

consumer logistics 1.0 18, 20, 21, 712, 93, 101, 11415

distinctiveness of 22

Omnichannel Retailing see Omnichannel Retailing

self-service culture 72, 142

airline self-check-in and bag drop 77

origins 736

postbox collection 7880

technology of 7680

consumer logistics 2.0 18, 20, 21, 11617, 125, 1356

see also global hub-and-spoke system; smart cities

3D Printing see 3D Printing

city logistics see logistics

distinctiveness of 22

global hub-and-spoke system, and 13034

/global logistics comparison 1345

Internet of Things see Internet of Things

key elements 119

low-cost production, and 12830

operationalization 11720

service see service

smart cities 1268

transformational era of 121

containers 41, 100, 133

container revolution 28

containerization 139

mega-ships 131, 134

convenience stores 11012

see also bricks-and-mortar retailing

cottage industry

3D Printing, in 119, 120

rebirth of 124

couriers 36, 80, 94, 989

see also last-mile delivery

bicycle 83, 119

freelance 82

on-demand 9

crowdsourcing 79, 70, 71, 95, 99, 1068, 115, 121

see also start-ups

Postmates Inc. 101, 103

sharing economy 10, 90, 93

start-ups 106

Cullen, Michael 74

Deliv 106

delivery

AGV 119

Amazon 82, 83, 1078, 12021

apps 95

drones 96, 106, 119

last-mile see last-mile delivery

lockers 79, 82, 84, 98, 110, 119, 125

on-demand 9, 16, 93, 100, 106, 120

local 101

parcel 72, 79, 94, 106

costs 94

parcel collection 72, 77, 79

Delivery Plus system 147, 148

Dell 30, 45

derived demand 22, 138, 141, 143

/demand driver shift 1446

Deutsche Post 79, 93

Deutsche Post DHL Group see DHL

DHL 94, 99, 120

crowdsourcing, and 95

Logistics Trend Radar 201614, 15

My Ways platform 95

digitization 2, 80, 144

checking 113

clicking 113

collecting 114

consumer logistics, of 20, 46, 71, 114

impasse triggered by 109

redefining business/consumer relationship 6, 9, 19, 1389

disintegration 42, 43

disruptive digital trend

3D Printing as 47, 6061, 623, 64

Internet of Everything as 47

Internet of Things as 47, 50, 11617, 135

Omnichannel Retailing as 15, 19, 46, 47

distribution 135

see also last-mile delivery; supply chain management

central distribution centres (CDC) 856, 89, 98, 99, 125, 126

bypassing 50

optimization 58

outsourcing 37

physical distribution management 1, 18, 19, 23, 24, 258, 13940

computerization 28

Council of Logistics Management (CLM) 29, 30, 39

definition 27

National Council of Physical Distribution Management (NCPDM) 25, 29

resource planning (DRP) 30

retailers 5, 22, 24, 34, 36, 478, 56, 74, 1434

multinational 58, 106, 107, 109, 110, 112

omnichannel 94, 146

online 82, 86

wholesalers 25, 50, 93

Dubai 41, 76, 121

e-commerce 5, 9, 35, 56, 72, 94, 138

Alibaba see Alibaba Inc.

Amazon.comseeAmazon.com

eBay see eBay

Flipkart seeFlipkart.com

Jingdong see China

rising popularity 6, 80, 112

transport costs 5

eBay 25, 50, 58, 72, 110

/Woolworths alliance 11012

economic regions 21, 40, 116

/smart city comparison 1268

EDI (electronic data interchange) 31

enterprise resource planning (ERP) 36, 52

environment 23, 43, 44, 61, 94, 141, 142

external 40

greenwashing 44

manufacturing 30

retailing 19

omnichannel 138, 144

Everitt, Percival 73

Facebook 80, 91

FedEx 36, 94, 99, 1034, 1056

Fenn, Jackie 11, 13, 14, 120

fifth wave see logistics

finger-swiping, button-pushing shoppers (FSBPS) 146

fleet operations 51, 58, 98, 101, 103

Flipkart 84, 86,

delivery locations 87

France 7, 73

Carrefour 745

Frankfurt, Uber ban in 91

Futu Online 110

Gartner, Inc. 11, 58

see also 3D Printing

Hype Cycle 12, 13, 59, 68

gateways 23, 4041, 43, 117, 130, 133, 134, 135, 141

Gecowets, George A. 27, 289

geographical information system 56

Giddens, Anthony 22, 141, 143, 145

Glenn, T. Michael 1078

global logistics 1, 19, 23, 24, 3843

see also agility; lean thinking

agility as defining feature of 40

/consumer logistics 2.0 comparison 21, 1345

difficulty defining 38

gateways see gateways

mega trends 1415

operational focus 40, 42

global warming 23, 43

global-hub-and-spoke system 23, 117, 136

consumer logistics, and 24

low-cost production hubs see low-cost production hubs

/network heirarchy comparison 13034

globalization 30, 38, 60, 130, 140, 141

Golfbox 110

Google 80, 90

Great Atlantic and Pacific Tea Company (A&P) 73, 74, 75

Greenwick, John 73

High Street 21, 72, 98

remaking 10810

Hinchcliffe, Dion 45, 46

Hitachi Transport Systems 39

home-based production 117

Hype Cycle 12, 13, 59, 68

India 49, 87, 133

Bangalore 53, 54, 86

Flipkart see Flipkart

Indian Institute of Technology 86

Kolkata 86

Mumbai 86

outsourcing to 423

Indonesia 129

Go-jek 101, 102

industrial additive manufacturing see additive manufacturing

information technology 15, 38

driver of productivity, as 35

integration 14, 69, 117

service, as 51

informatization 142

ingredients superstore 118, 119

Internet 5, 35, 41, 58, 80

democratization of 8

e-commerce see e-commerce

enabled equipment 523

mobile 15, 119

physical 58

Web 2.0 8

Web 3.0 see Internet of Everything

Internet of Everything 11, 19, 56

disruptive digital trend, as 47

Internet of Things 9, 11, 15, 16, 17, 20, 46, 556, 68, 120, 128

application of 51

Big Data Analytics and see Big Data

cities 53, 54, 55

cloud computing and 512, 53

companies 53

disruptive digital trend, as 47, 50, 11617, 135

radio frequency identification (RFID) and 15

inventory 27, 30

management 50, 51, 58, 66, 69, 98, 108

centralized 124

iPhone 68, 138

Japan 27, 74

Japan Post 79

just-in-time production 30

kaitensushi 756

just-in-time (JIT)

delivery 125

production 30

Kalanik, Travis 90

Kersten, Wolfgang 14

Kroger 74, 75

labour

child 23

costs 30, 128, 133

female, surfeit of 128

impact of global logistics on 43, 126

substituting technology for 35

last-mile delivery 51, 88, 110, 114, 1434

see also delivery

competition 1067

consumer logistics see consumer logistics

consumers, and 71, 93

digitization, and 9, 139

equation 9

models 98

third-party logistics services, and 845

uberization 21

last-mile supply chain see supply

chains

lean thinking 30

agility, and 40

Le Hong, Hung 14, 120

Lehmann, Bastian 101

Liu, Quidong 84

lockers see delivery

logistics

see also Big Data

7Rs of 116, 136, 138, 13940, 41

Big Data in 57

business 1, 18, 19, 23, 24, 26, 2832, 140

city 43, 116, 117

/logistics cities comparison 1216

consumer see consumer logistics

consumerization of 22

fifth wave 16, 18, 20, 21, 142, 143

characteristics 69

crowdsourcing, and 71

drivers 70

global see global logistics

green 23, 43, 44

personal 1389, 1468

personalization of 22

reverse 23, 33, 345, 39

service facilitators see service

service providers see service

low-cost production hubs 128

3D Printing, and 116, 117

Africa, in 128

consumer logistics 2.0, and 128

v. home-based production 12830

Lueth, Knud 53, 54, 55

Mackenzie, Ian 50

Main Street 41, 131, 133

Makarim, Nadiem 101

manufacturing resource planning (MRP) 25, 30

marketing 7, 28, 44, 56, 140

4Ps 5

emerging global arena 30

re- 34

targeted 48, 49, 50

mass consumption 142

Matsushita Electric Corporation 30

McKinsey Global Institute 14, 15

mobile commerce (m-commerce) 49, 138

mobile Internet 15, 119

mobile technology 5, 21, 49, 69, 79, 90, 119

multichannel retailing, transition from 19, 47, 48

multinational corporations 23, 56, 117, 130

Mytopia 110

New Dada 101

Nippon Express 36

No Frills 110

O2O 49, 112

offline shopping 144

see also bricks-and-mortar retailing

offshoring 42, 43, 141

Omnichannel Retailing 15, 16, 17, 20, 21, 4750

see also mobile technology

disruptive digital trend, as 15, 19, 45, 47

environment 138, 144

extending 49

touch points 478, 98, 109, 113, 139

transition to 489

order fulfilment 48, 81, 94

see also last-mile delivery; supply chains

Amazon 824, 107

fulfilment centres 49, 58, 82, 83, 85

Jingdong 85

operational processes 33, 34

options 989

order processing 23, 24, 33

original equipment manufacturer (OEM) 33

outsourcing 7, 26, 36, 42, 141

crowdsourcing see crowdsourcing

to customers 80

parcel delivery see delivery

personal computer see computers

Plaice, Sean 101

point of sales (POS) 31

Porter, Michael 30

Postmates Inc. 101, 103

Procter & Gamble (P&G) 81, 146

producer 23, 37, 47, 135

consumer as 124

shifting surplus from 50, 56, 61, 66

smart 11719

production

innovative 117, 118

just-in-time 30

lean 30

local-local 124

logistics 39

/logistics differentiation 6

low-cost production hubs see low-cost production hubs

non-innovative 118, 119, 120

smart 133

Quirky 81

re-shoring 43, 136

Reeves, Phil 60, 130, 131

retailing

bricks-and-mortar see bricks-and-mortar retailing

Centre for Retail Research 108

multichannel see multichannel retailing

omnichannel see Omnichannel Retailing

Roadie 106

Rowe, William 73

Saunders, Clarence 74

Seagrave, Kerry 73

self-service

common use (CUSS) 77

common user terminal equipment (CUTE) 77

culture 72, 142

origins 736

economy 1, 610, 2021, 70, 712, 1399

postbox collection 7880

technology (SST) 7680

service

facilitators 12021, 126, 1312, 134

fourth-party logistics (4PL) 38, 80, 120

providers 21, 24, 43, 56, 58, 12021

consumer logistics 2.0 see consumer logistics 2.0

third-party (3PL) 23, 368, 42

self see self-service

Shyp 104

Sissons, Andrew 62, 63, 64

smart 11

see also Internet of Things

cities 21, 56, 1268

/economic region comparison 1268

producers 117, 118

products 49, 70, 118, 119, 120, 126

revolution 70

Smith, Frederick W. 106

sortation centre 82, 83

spaces of flows 141

speed of now 19, 21, 50, 116, 120, 136

start-ups 7, 21

centres 53, 55

crowdsourcing 106

logistics 99101, 1034, 105, 106

Omnichannel Retailing and 989

online 102

Street, Sam 101

Structuration Theory 22, 141, 143

Stul, Fábio 49

Suning Appliances/Alibaba partnership 112

suppliers 8, 22, 23, 27, 29, 58, 146

collaborative communities 45

monitoring 81

multi-tiered 31, 32

order fulfilment, and 94

supply chains

see also Big Data; Internet of Things; last-mile delivery; Omnichannel Retailing; order fulfilment

chainless 130

Chief Supply Chain Officer (CSCO) Forum 69

Council of Supply Chain Management Professionals (CSCMP) 39

digitization, and 9, 11, 15, 356, 45, 62, 66, 68, 71, 139

evolution of 11415, 1235, 130, 133, 1356

global 38, 40, 117, 11819

green 23, 44

individual 16, 48, 70

last-mile 9, 934, 110

localization of 119

management 1, 9, 15, 23, 24, 32, 389, 40, 43, 56

3PL logistics service providers 23, 368, 42

order fulfilment 33, 48, 81, 94

order processing 23, 24, 33

reverse 23, 33, 345, 39

multinational 21, 40, 412, 133

social 45, 46

splintering sub-regionalization

stockless 130

virtual 40

Surf Stitch 110

sushi conveyor belt 73, 76

sushi train 20, 76, 139

Ta, Ha 81

Tao, Shi 85

Taobao Marketplace see Alibaba Inc.

television

check, click and collect, and 113

crowdsourcing, and 78

Omnichannel Retailing, and 47, 48, 98, 99

Thompson, Spencer 62, 63, 64

Toyota Motor Company 30

transport

see also delivery; last-mile delivery

costs 2, 35, 40, 66, 88, 133

crowdsourcing, and 72, 121

management 50, 82, 98, 121, 128

outsourcing 367, 56

physical see distribution, physical distribution management

Twitter 80

Uber Technologies Inc. 9093

cities 92

Uber Black 90

Uber Pop 91

UberRUSH 9, 93

Uber Taxi 9

Uber X 90

uberization 21, 99, 148

United States Postal Service 789, 82, 93, 103, 106

UPS (United Parcel Service Inc.) 36, 94, 99, 103, 106, 121

Store 122

value chain 23, 24, 30, 37

management 31

vending machines 20, 52, 72, 73, 76, 139

see also self-service

Wal-Mart Stores Inc. 1067

Walmart 36, 58, 74, 75

B2C–B2C2C change 107

Wang, Xiaofang 97, 112

warehousing 23, 24, 25, 27, 29, 110

Amazon.com82

changes in 50, 1245, 133, 144

crowdsourcing, and 9

Flipkart 86

JD.com856

operations 51

outsourcing 56

picking and packing 33

automated 35, 71

voice 71

track and trace 71, 104

types of 95

Wegolook 81

Weng, Dongdong 97, 112

Wichmann, Jonathan 100101, 103

Wigan, Marcus 61

Witt, Alice 90, 93

Wittbrodt, Ben 61

Wohlers Associates, 2013 survey 62

Woolworths Ltd (Australia) 75

/eBay alliance 11012

Simply Collect 111

Woolworths (UK) 109

World Wide Web 35, 41

see also Internet

Wuhan 85, 1278

YouTube 9, 80

Your Home Depot 110

Zara, mass customization 40