The Cost of Grocery Delivery

The video discusses the challenges in logistics, focusing on the manual processes still prevalent in the industry. It highlights the high costs associated with implementing new technologies and the reluctance of companies to invest in future tech. The video also examines the subsidization of shipping costs by ecommerce platforms and sellers, and the need for change in the last mile delivery. Technological solutions like route planning software and parcel lockers are proposed as potential game changers. The impact of free shipping on logistics costs is analyzed, with the last mile accounting for a significant portion of these costs.

What is one reason logistics companies find it difficult to adopt new technologies?

• They lack skilled personnel.

• They have no interest in technology.

• The cost and time required are significant.

• They already have advanced systems.

How are shipping costs often kept low for consumers in e-commerce?

• Through government subsidies.

• By reducing the quality of service.

• By using cheaper materials for packaging.

• By the platform or seller absorbing the costs.

What is a potential benefit of using parcel lockers for deliveries?

• They increase the overall cost of delivery.

• They allow for more personalized delivery times.

• They increase the number of delivery drivers needed.

• They reduce the number of delivery locations per driver.

According to Bain, what percentage of total logistics costs does the last mile account for?

• 75%

• 100%

• 50%

• 25%

What is one suggested technological solution to improve delivery efficiency?

• Reducing the number of delivery days.

• Increasing delivery fees.

• Using route planning software.

• Hiring more delivery personnel.