2024 has been a challenging year for retailers. The need to reduce costs and make progress on sustainability targets, all while providing an omnichannel shopping experience to meet the high expectations of consumers weighs heavily.

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For many retailers, a physical store presence to provide in-person expertise and additional services remains vital to win shoppers in a competitive marketplace. But as cities across the UK & Ireland become more congested, urban populations continue to grow and pedestrianisation and other traffic reduction initiatives are implemented by local councils, the spotlight on transportation has never been greater.

So, what can retailers do to overcome these challenges?

One impactful solution is the implementation of shared transportation – a model where multiple retailers share transport resources to optimise efficiency and reduce costs. Historically it has been common for brands to have a dedicated fleet but more recently retailers have understood the advantages of sharing a solution, from significant financial savings and enhanced sustainability by reducing the number of vehicles moving to and from the high street each day.

The key benefits for retailers are clear:

1. Reduce environmental impact. Consolidating deliveries significantly lowers emissions. On average we will combine five brands onto one GXO shared transport vehicle, reducing wasted space and vehicles on the road.

2. Achieve cost efficiency. Retailers can invest a fraction of what it would cost for a dedicated solution when they choose a shared approach, including benefiting from a reduction in fuel costs.

3. Ease congestion in cities. With fewer vehicles on the road, shared transportation reduces congestion in urban areas, while also complying with policies to limit vehicle emissions and promote cleaner, more efficient transportation solutions, such as ULEZ.

4. Optimise delivery routes. Shared transportation maximises vehicle usage and optimises delivery schedules, ensuring that goods arrive on time while reducing empty miles by bringing back returns or recycling.

Building collaborative relationships is key in ensuring the shared transport model is a success. At GXO, we work with over 65 high street brands and deliver to every major city in the UK, completing over 700 deliveries each day, on average 8-10 location drops for each vehicle. What’s more, we use data-driven insights and advanced technology to anticipate demand, manage inventory efficiently and help our customers exceed consumer expectations.

The retail sector in the UK & Ireland is constantly evolving and logistics must evolve with it. Shared transportation is an essential strategy for building resilient, sustainable and cost-effective supply chains. At GXO, we are proud to be at the forefront of this transformation, ensuring that retailers have the tools and support they need to thrive in a competitive market.

 

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