The document discusses challenges in last mile delivery and the case for interoperability. It notes the delivery landscape is changing with more parcels, parties, and systems involved. This aggravates old issues for shippers of working with thousands of carriers that use proprietary standards, resulting in high costs and complexity. The document argues for interoperability through a standardized parcel label with a shipper-assigned identifier to enable better cross-border collaboration, full supply chain visibility, and improved customer service at lower delivery costs. A European standard for a harmonized parcel label is proposed to create worldwide interoperability for better consumer service and lower industry costs.

1. Challenges in last mile delivery, a case for interoperability
Jaco Voorspuij, GS1
EFT CIO Forum 2017, Amsterdam

2. © GS1 2017
Quick Intro … who is Shopping Tomorrow
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• ShoppingTomorrow is the Dutch platform for retailers
• Continuously assess the developments in
- consumer behaviour,
- technology and the (international) market
• Determine concrete actions to improve their own competitive position and that
of The Netherlands.
• Research platform was initiated by Thuiswinkel.org
• Supported by several sector associations and interest groups
from ANVR (Travel) through to the Association of Insurers.

3. © GS1 2017
Quick Intro…who is GS1?
• International, not-for-profit and neutral organisation
- developing and maintaining global standards
- enabling all industry stakeholders to identify, capture and share information
smoothly
- with activities in more than 150 countries
- focussing on increased efficiency, productivity and safety through
traceability and visibility over:
• Entire Supply Chain
• Full Product Lifecycle
…and it all started in 1974 with a pack of chewing gum!
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4. © GS1 2017
The delivery landscape is changing
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Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
carrier

5. © GS1 2017
The delivery landscape is changing
5
CONSUMER
IS IN CONTROL
SELF DRIVING CARS
/ DRONES
DISRUPTION
GROWTH
BIG DATA
ROBOTICS

6. © GS1 2017
The delivery landscape is changing
6
CONSUMER
IS IN CONTROL
SELF DRIVING CARS
/ DRONES
DISRUPTION
GROWTH
BIG DATA
ROBOTICS
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
carrier

7. © GS1 2017
The delivery landscape is changing
7
CONSUMER
IS IN CONTROL
SELF DRIVING CARS
/ DRONES
DISRUPTION
GROWTH
BIG DATA
ROBOTICS
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
GROWTH

8. © GS1 2017
The delivery landscape is changing
8
CONSUMER
IS IN CONTROL
SELF DRIVING CARS
/ DRONES
DISRUPTION
GROWTH
BIG DATA
ROBOTICS
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
SELF DRIVING CARS
/ DRONES
BIG DATA
ROBOTICS

9. © GS1 2017
The delivery landscape is changing
9
CONSUMER
IS IN CONTROL
SELF DRIVING CARS
/ DRONES
DISRUPTION
GROWTH
BIG DATA
ROBOTICS
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
SELF DRIVING CARS
/ DRONES
BIG DATA
ROBOTICS DISRUPTION
CONSUMER
IS IN CONTROL

10. © GS1 2017
The delivery landscape is changing
10
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point

11. © GS1 2017 11
The “old” issues for Shippers
Working with Last Mile carriers is extremely challenging
• Thousands of carriers worldwide
- All use proprietary systems / identifications / labels / interfaces
• For shippers, this results in:
- High cost to connect / change carrier
- High complexity in pick, pack & despatch activities for shippers
- Difficult to find right carrier for deliveries
- Lead time issues
- High cost per unit delivered
• Inflexibility in returns process for customers and shippers

12. © GS1 2017
• Thousands of carriers worldwide
- All use proprietary systems / identifications / labels / interfaces
• For shippers, this results in:
- High cost to connect / change carrier
- High complexity in pick, pack & despatch activities for shippers
- Difficult to find right carrier for deliveries
- Lead time issues
- High cost per unit delivered
• Inflexibility in returns process for customers and shippers
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The “old” issues for Shippers
Working with Last Mile carriers is extremely challenging
This was often intentional;
Considered a “competitive advantage”
This is no longer tenable;
Consider it a “competitive DISadvantage”

13. © GS1 2017
Current changes aggravate old issues
13
Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
More parcels
More parties
More systems
Where are my
parcels?

14. © GS1 2017
What Last Mile needs
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Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
More parcels
More parties
More systems
Where are my
parcels?
Interoperability

15. © GS1 2017
Expert group Harmonised parcel labelling
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Looking for interoperability

16. © GS1 2017
Expert group Harmonised parcel labelling
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Consumer Manufacturer Online retailer e-fulfilment
company
Parcel
integrator
carrier Collection /
return point
Govern
ment

17. © GS1 2017
Opportunities and threats of interoperability
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Better cross-border
collaboration
Full supply chain visibility
Easy returns
Improved service level
More efficiency in delivery process
Integration of independent
drivers
Less technical barriers to work with
multiple carriers
Improved reliability
No relabelling
Consumer want to be in
control of his deliveries
One app for tracing all
your parcels
More competition
Data is shared among
multiple parties
Need to implement
harmonised parcel label
Different deliverer at your doorstep
More competition for
national postal operators
More complexity when working
with multiple carriers
'Less IT lock in‘,
More competition

18. © GS1 2017
Opportunities and threats of interoperability
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19. © GS1 2017
Case: Dutch apparel retailer
Traceability Challenge
Netherlands (local)
• Direct information from carrier
• Disruption of 1:1 customer service
Europe (regional)
• Local carrier hands over parcel
• Re-labelling (costs)
• >Disruption of 1:1:1 customer service
(delays in information, difficult to
measure performance)
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20. © GS1 2017
Customer Service Disruption
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Day Event
1 German customer orders
1 5 parcels are shipped (with Dutch carrier)
1
5 parcels are re-labelled after crossing border
by the German carrier
3 2 parcels are delivered, 3 not:
3 Traceability information: 3 in depot
5 Traceability information: 3 in depot
5 Call with Dutch carrier: we will check
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Update: Parcels will be returned
(address was copied incorrectly by German Carrier)
7 One returned parcel is received in other depot in Germany
9 Remaining returned parcel are received
10 Parcels are resent
16 German customer received ordered parcels

21. © GS1 2017
Delivery costs cross border
• Doetinchem (NL)  Paris
Line haul cost per parcel 0,1
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22. © GS1 2017
Opportunities and threats of interoperability
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23. © GS1 2017
Why now?
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24. © GS1 2017
European standardisation
the European Committee for Standardization (CEN TC 331)
standardisation work commissioned to ease international e-retailing:
“European postal standards should be based on, and compatible with, the open
retail standards for end-to-end supply chain management systems already used by
B2C e-commerce retailers for the global trade in goods and services”.
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25. © GS1 2017
The European harmonised Parcel Label
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Government
Consumer
Manufacturer
Online
retailer
Parcel
integrator
e-fulfilment
company
Drop off/Pick up
point
carrier
Worldwide
unique
parcel
identifier
Assigned
by the
SHIPPER

26. © GS1 2017 26
The (near) future
Standard label with a shipper assigned parcel ID (SSCC)
Manufacturers
Wholesalers Retail
Distribution
Centres
Stores E-fulfilment
centres
Parcel
services
Pick up
points
Homes
E-Stores

27. © GS1 2017
Creating worldwide interoperability
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GS1 SSCC
European CEN
standard
European CEN
standard
Parcel labels
Data exchange
Worldwide unique
Parcel identification
Future proof
Better service for
the consumer
Lower delivery
costs

28. © GS1 2017
The Harmonised Parcel Label
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BETTER DELIVERIES
AT LESS COST

29. © GS1 2017
Questions?
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Thank You for your attention

30. © GS1 2017
Contact Information
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Jaco Voorspuij
Senior Manage Transport & Logistics
www.gs1.org
Jaco.voorspuij@gs1.org
GS1
Avenue Louise 326; bte 10
BE-1050; Brussels
Belgium
+32 497 587 986
T
M
E
+32 (0)2 788 7885