Logistics in the face of the evolution of artificial intelligence and omni-channeling

Cristian Ferreyra, founder of Hublogistico -academy of Logistics and Operations-, and Director of Logistics for TandemUp -Spanish consultancy specialised in Marketplaces-, highlights the importance of transforming logistics, with a focus on omnichannel and artificial intelligence. Interview conducted in Buenos Aires during the Logistics Management 2023 Seminar.

Why do you believe that logistics must transform and adapt to a new environment, which goes beyond omnichannel?
When analysing different success stories, it is clear that digital native brands, which quickly reach high turnover figures in three years, and also those consolidated brands that enter channels in a disruptive way and achieve good levels of service, do so understanding that the business is not one or the other, but omnichannel. And there is even a further step in this evolution, which we call “physical” and which refers to the union between the physical and digital worlds.

Why is this? During the pandemic, it seemed that commerce was going to remain 100% online. However, eCommerce then slowed down, as a result of a number of factors. These include the cost of customer acquisition, channel saturation, and the dominance of two acquisition channels – Meta and AdWords – among others.

In short, e-commerce faces major financial challenges. So much so that many companies end up in ruin: they invest heavily in customer acquisition, but then cannot retain them and go through a breakdown in their cost structure.

When do companies understand that this issue affects all areas? When they all sit around the table, Sales and Operation Planning, Marketing, etc., and understand the need to share best practices and that data has to be a single source of data for all.

It is essential that they trust each other and look together at how to enter different channels. Each has its provisions and benefits, but the product and the experience is one.

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Within this framework, we currently identify a lack of customisation, specialisation and detail for each channel. This is where the proposal to start leveraging on proven initiatives comes into play.

One of the clearest examples is that of Mercado Libre: prior to 2018, the company did not attach much importance to logistics. However, it then realised the added value of a good response service, fulfilment, same-day delivery, and having its own capillary networks.

Can we consider that eCommerce brings to the table the generation and development of companies at such a speed that it impacts on higher demands?
Yes. The market also has new inputs. Twitch, for example, is a digital channel used mostly by the Z generation and where live streaming events are easily organised, which are…