Infrastructure to design the software, the systems, the warehouses, the development of the people.
Some of our facilities can have upwards of 2000 or 3000 people at the busiest time of the year.
Also, the more practical matters of selecting the carrier for delivery to get the product to the end user.
At the place he wanted, the right time, when he wanted.
The most important thing, is it software?
Do you have to crunch data and analyze data to predict the next big thing and how differently people shop and transport?
It is software but it is the combination of all the different aspects that provide the consumer with that certainty.
Whether you are shopping online, clicking on the item, you want the certainty to know that the item is going to arrive when you wanted to arrive in good condition.
It is all of the aspects, the infrastructure, the people, the software, that go into making that happen.
That is really the successful organizations have got that right.
Don't people want to actually look at their groceries?
I am obviously old-school.
For fresh vegetables, sort of look at the head of lettuce with their own eyes, is it enough?
How is the industry getting around that?
There is strict quality control in all of the warehouses.
In reality, most of us are just happy to order online and receive the product that we ordered.
On the business side, is it the case that this is really capital intensive, setting up a distribution network?
I can just imagine all the trucks, people driving the trucks.
You really don't know how many people are going to buy in the early days.
I occasionally see the milk trucks and stuff, around but they always seem to be just dropping off at one house on my street.
There is definitely economies of scale.
In some instances, there is big capital intensive investment.
You saw earlier reports of automation, these aspects.
It has to be blended with people.
In terms of the actual final delivery, this is where economies of scale can come in.
If companies can harness multiples than they are delivering a lower cost solution for everyone.
You have tesco, danone, continental tires, is that much -- is that much bit more difficult to deliver fresh food?
In the warehouses, we have to be very precise in terms of temperature control and quality control.
In reality, it is as important to the guy that is ordering the tire as it is to we who might order some shopping online that you get the product on time and in the right condition.
That is really the important aspect that we see.
This didn't just come out of nowhere.
It will use to get flowers delivered.
I have done that.
Pretty lame, right?
Ryan is so retro.
When you look at the way logistics are run, what is going to be the main trend in the next 10 years?
Are we going to radically change?
Are people like ryan going deep online?
I would try it was.
I bet a lot of people try it once and then don't try it again.
It really brings home the importance of that certainty of service that the retailer provides.
If you try it once and it is a good experience, you're going to repeat that.
How many people do repeat?
It is a significant take.
More than half?
Easy to imagine that online shopping.
It is clearly going to double over the next three to five years.
I am addicted.
We talk about online.
We don't often think about the logistics behind it.
Give us a sense of the scale of business that you do.
In our organization, around europe, we are operating over 7000 trucks.
Then, a multitude of partner organizations working with smaller deliveries which would typically affect the online delivery that you or i may order online.
For groceries, it hasn't really picked up in france yet.
Is that going to pick up?
I am sure that what we are seeing today in the u.k., we will see in most of the european markets in the future.
I think shopping trends will evolve.
We see that already now.
May be more pronounced in the nonfood areas but i think we will see it running into food.
Which country do you see where the consumer is going to be the slowest mover?
I think we have to also imagine that in some countries, the transport infrastructure is not quite there yet.
You have to have that really certain.
For that, you need all the different aspects.
Malcolm, thank you so much for that fascinating interview.
Malcolm wilson, managing director of logistics for norbert dentressangle joining us today.
Coming up, the u.s. jobs report is set to reveal the biggest annual gain in employment since 2005. we will have more on that last details on the strong start of the year for swatch.
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