The outlook for 2025 is challenging for any business involved in the retail fulfilment process – from online retailers to logistics providers. The changes to UK National Insurance and the National Living Wage made in the November 2024 budget has had serious financial ramifications for companies already operating on wafer-thin margins. Furthermore, consumer demand has also stalled, with the UK braced for weak consumer spending throughout the next 12 months as public confidence falls.

So how will the industry react? Where can retailers look to improve fortunes throughout 2025? Is it possible to cut costs without compromising the high level of experience customers now demand? Andrew Tavener, Head of Marketing, Descartes explores.

Impossible Squeeze

Britain’s largest retailers are warning of potentially thousands of job cuts this year as the industry braces for higher taxes and employment costs. A bleak Christmas shopping season failed to alleviate concerns about the outlook for 2025, with the British Retail Consortium (BRC) confirming sales growth over the “golden quarter” between October and December came close to flatlining. Consumer confidence is low. The UK’s economic growth projections have been downgraded. Retailers, therefore, have tough decisions to make. Not all will have the confidence and sheer size of brands such as Next which has said it will increase prices by 1% this year to help offset a £67m rise in wage costs driven by budget tax changes.

At the same time, of course, customers’ expectations continue to rise. If consumers are to be enticed into spending, they want to enjoy every aspect of the transaction – both online and in person. There is no tolerance for delivery mistakes. As the Home Delivery Consumer Sentiment Study 2024 confirms, problems such as expensive electrical items left on the doorstep in the rain or delivery confirmation photographs of someone else’s doorstep are a fast track to customer loss.

Andrew Tavener, Descartes

How will companies respond to this squeeze? Where are the opportunities to impose tighter cost control while also providing an exceptional customer experience and, of course, attaining legislative sustainability goals while accommodating customers’ environmental expectations for green delivery?

Optimise and Communicate

For an industry already operating on tight margins, these new financial pressures are potentially devastating. However, there are clear opportunities to improve performance whilst also improving the customer experience. The simplest, quickest and least expensive step is to ensure customers are kept informed at every stage of the fulfilment process, especially the last mile.

Managing delivery expectations effectively not only improves customer satisfaction it also reduces the missed deliveries that are so costly for any logistics business. In addition to minimising the number of expensive redeliveries, improving first time delivery performance avoids the risk of product damage or loss that can occur when customers are not at home. Leveraging notifications to reduce costs and improve the customer experience should be a key objective for any retailer over the next 12 months.

The entire delivery operation can also be significantly improved through intelligent, real-time route optimisation that improves delivery density. Artificial intelligence (AI) and machine learning will also play an increasing role throughout 2025 to further maximise the value of the existing fleet. By comparing planned delivery schedules with the actual performance over a period of time, AI can highlight specific addresses that cause problems – from a certain location that demands additional time to make the delivery to the impact of school drop off on local roads – to achieve far more delivery certainty.

Companies actively including essential driver feedback – such as potholes slowing down traffic – into the mix, can also avoid delays and improve overall delivery performance.

Encourage Behavioural Change

A key trend throughout 2025 will be the move towards driving behavioural change at the checkout to further enhance delivery cost effectiveness. Retailers can leverage up-to-date delivery information at the checkout to provide customers with intelligent date and time choices that support more efficient delivery schedules. Encouraging a customer to opt for the same delivery time as a neighbour by offering a low cost, even free delivery, for example, radically reduces travel distance and allows the retailer to be far more sophisticated about maximising capacity and sharing resources across defined geographic regions. Adopting this approach has enabled John Lewis to increase delivery capacity by 35% without adding vehicles or drivers and reduce fulfilment costs by £1.8 million.

As retailers gain confidence in exploring intelligence to meet different economic goals and customer expectations, the model will become ever more sophisticated. From matching delivery offers to customer delivery personas to including information around clean air zones and traffic restrictions within the routing model, retailers can ensure customer promises can be achieved without incurring profit denting fines. Sustainability goals can also be automatically factored into the process, allowing retailers to continually amend delivery options and prices, using low cost local ‘green’ deliveries to further improve customer perception and environmental performance in decarbonising fleet operations.

Critically, this process allows retailers to encourage customers towards delivery options that suit existing delivery schedules. This not only improves delivery density and gains operational cost benefits without adding stress to drivers, it enables retailers to meet rising customer expectations without resorting to the over-promising that can lead to disappointment.

Retailers have been improving their delivery performance year on year but the new financial pressures facing businesses throughout 2025 are raising the stakes. The letter written by over 80 UK retailers to UK chancellor Rachel Reeves in November 2024 predicted the challenges created by changes to National Insurance, the National Living Wage, and the ongoing packaging levy. With the latest BRC sales figures confirming their worst fears and the economic outlook for the UK looking bleak, efficient, effective and timely operational performance is now critical.

Real-time optimisation, in tandem with the use of intelligence to drive changes in consumer behaviour, will be key to achieving essential operational change. Using AI to continually assess both delivery performance and consumer persona response will allow retailers to further refine the process. How do customers respond to low-cost delivery offers in January following the festive overspend compared to peak season? Are consumers more likely to embrace green delivery slots if the retailer shares CO2 calculations or are price and convenience bigger incentives? The ability to leverage customers’ desires and behaviours will become an increasingly key weapon this year as retailers push to control costs without compromising experience.

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Four in Five Consumers Frustrated by Inconsistent Retail Experience

Frankfurt is one of Europe’s leading economic centers and one of the most important cities for business globally. Home to the European Central Bank, numerous multinational corporations and some of the most prestigious international trade fairs, the city is a hub for professionals and entrepreneurs. Events such as the Frankfurt Book Fair, IAA Mobility and many others attract thousands of participants each year, making air connectivity a crucial factor for business travelers.

• Do you often travel for business? Also read our article On private jets to Zurich

Advantages of Arriving in Frankfurt by Private Jet

Choosing a private jet to reach Frankfurt offers many advantages over scheduled flights:

• Efficiency and speed: No wasted time in crowded terminals, immediate boarding, and fast security procedures maximize travel time.
• Total flexibility: Ability to choose tailored schedules, adapting the flight to work commitments without having to adjust to commercial airline schedules.
• Comfort and productivity: Private jet cabins are designed to provide the ultimate in luxury and comfort, with recliners, dedicated meeting spaces and high-speed Wi-Fi to keep you working in the air.

Airports for Private Jets in Frankfurt

Frankfurt has two main airports for landing private jets:

• Frankfurt Main International Airport (FRA): The city’s main airport has VIP terminals with dedicated facilities for private jet passengers, ensuring an exclusive and private experience.
• Frankfurt Egelsbach Airport (QEF): Located about 17 km from downtown Frankfurt, it is an ideal option for those who want more privacy and faster flight operations, especially for small and medium-sized jets.

Best Jets to Fly to Frankfurt

Depending on your travel needs, here are some of the best jets to fly to Frankfurt:

• HondaJet 420: Perfect for short intra-European trips due to its fuel efficiency and cabin comfort.
• Cessna Citation XLS+: Ideal for executive groups needing a quick and convenient flight to travel between major European cities.
• Gulfstream G650: The perfect choice for intercontinental flights, offering a luxury experience with a spacious cabin and advanced technologies for maximum comfort.

Where to Stay in Frankfurt: Luxury Hotels for Conventions and Business Meetings

Frankfurt offers a wide range of luxury hotels with dedicated facilities for corporate meetings and conventions. Among the best:

• Jumeirah Frankfurt: Located in the heart of the city, it offers high-end conference rooms and impeccable service.
• Steigenberger Frankfurter Hof: Historic hotel with elegant meeting rooms and a great central location.
• Sofitel Frankfurt Opera: Perfect for exclusive events, with modern spaces and breathtaking views of the city.

Rent a Private Jet to Frankfurt with PrivateJetFinder

Thanks to the specialized platforms PrivateJetFinder, booking a private jet to Frankfurt is quick and easy. Simply select your departure airport, desired jet model, and any additional services, such as high-end catering or luxury car transfers directly from the airport to your final destination.

Flying to Frankfurt by private jet is not only a luxury option, but a strategic choice for anyone who wants to maximize their time and travel with maximum comfort and efficiency.

Schneider Electric, a global leader in energy management and automation, is leveraging SEER Robotics’ technology to transform its logistics and production processes through a strategic partnership. With a strong presence in energy efficiency and automation, Schneider Electric continues to push the envelope in smart manufacturing by integrating intelligent robots and advanced logistics management systems into its global operations.

Schneider Electric: A Pioneer in Smart Manufacturing

Schneider Electric’s commitment to innovation has earned several of its global production facilities the prestigious title of “Lighthouse Factories,” which are recognized as the benchmarks of the industry. These factories stand as a testament to Schneider Electric’s unwavering dedication to advancing automation and smart manufacturing.

But the journey to becoming an industry leader doesn’t end with technology—it’s about how they leverage that technology to improve operational efficiency and safety across their operations. That’s where SEER Robotics enters the picture, providing vital support in optimizing logistics and warehouse automation.

Driving the Future of Logistics

Since 2021, Schneider Electric has been gradually introducing SEER Robotics’ smart logistics solutions into its core factories in Shanghai, Wuxi, and beyond. These solutions are designed to optimize production workflows, drive efficiency, and reduce operational costs, ensuring that the company maintains its competitive edge.

In 2024, Schneider Electric took another significant step forward by partnering with SEER Robotics at its U.S. manufacturing site in Tennessee. The collaboration introduced SEER Robotics’ Laser SLAM-powered intelligent forklifts and the M4 Smart Logistics Management System to optimize warehouse operations. These technologies are enabling Schneider Electric to streamline its warehouse processes, reduce manual labor, and enhance overall productivity—empowering them to maintain a smooth flow from semi-finished product lines to storage.

Smart Solutions for a Smarter Future

Here’s a look at the key benefits of this smart logistics solution:

1. Laser SLAM Navigation for Greater Flexibility

SEER Robotics’ forklifts are equipped with Laser SLAM navigation technology, which ensures that they can operate in diverse and dynamic factory environments without the need for extensive site modifications. These autonomous forklifts boast an impressive repeat positioning accuracy of up to ±5mm, allowing them to perform precise tasks, such as moving goods across the factory floor, with ease.

2. Enhanced Safety with Refined Obstacle Avoidance

Safety is paramount when it comes to human-robot interaction. At Schneider Electric’s U.S. site, where smart forklifts frequently interact with human-operated ones, SEER Robotics’ system takes safety to the next level. The obstacle avoidance system was specifically optimized to meet the challenges of the warehouse environment, improving the accuracy of obstacle detection and ensuring that both workers and robots can operate safely side by side.

3. Interconnected Systems for Efficient Operations

The M4 Smart Logistics Management System integrates fleet management, task management, and warehouse management into a seamless, all-in-one solution. By linking the intelligent forklifts with the roller production lines, it ensures real-time coordination and boosts operational efficiency across the entire factory floor. This level of interconnectivity is transforming how Schneider Electric manages its production processes.

4. Adaptive Solutions for Non-Standard Applications

Industrial environments often come with unique challenges that require tailored solutions. SEER Robotics meets this challenge with standardized products that can be quickly adapted to different operational needs. At Schneider Electric’s U.S. facility, the forklift’s routing system was dynamically adjusted to optimize the movement of goods. Additionally, special attachments were added to pallets to allow seamless integration with robots and other smart devices, ensuring maximum efficiency across operations.

A Vision for the Future of Smart Logistics

This collaboration between SEER Robotics and Schneider Electric is more than just a technological integration. It’s a vision for the future of smart logistics. With advanced robotics and intelligent systems working in harmony, Schneider Electric is setting the stage for a new era of manufacturing that is efficient, safe, and adaptable to the evolving needs of the industry.

As more companies look to integrate smart solutions into their operations, Schneider Electric’s approach—backed by SEER Robotics’ innovations—demonstrates how technology is helping businesses not only meet today’s challenges but also prepare for the future.

DHL Global Forwarding, the ocean and air freight division of DHL Group, has published a white paper on the topic “China Plus X: The New Global Supply Chain”. The document highlights the growing importance of multi-shoring strategies that go beyond the classic “China Plus 1” philosophy and focuses on diversifying production and supplier locations in several countries. The aim is to enable companies to safeguard their supply chains against global disruptions and to strengthen their operational flexibility.

In recent years, geopolitical tensions, trade barriers and events such as the COVID-19 pandemic have highlighted how fragile supply chains can be. The white paper discusses various countries in South East Asia, Southern and Eastern Europe as well as Middle East and South America as strategic alternatives and additions to China, as they offer both infrastructural investment and increasingly trade-friendly regulatory environments.

“The future of global supply chains lies in a flexible, sustainable and diversified structure designed for resilience. DHL Global Forwarding supports companies with a unique global network and local expertise to successfully shape this transformation. With our extensive portfolio of logistics and transportation solutions, we provide customers with the tools they need to realize their Plus X strategy and to focus on long-term stability”, states Niki Frank, CEO DHL Global Forwarding Asia Pacific.

Five essential factors for the successful implementation of Plus X

The white paper outlines five essential criteria which play a crucial role in the selection of suitable production and supply chain locations. A robust transportation infrastructure is paramount, as it encompasses the capacity, quality, and transit times essential for efficient logistics. Countries like Vietnam and Mexico are making significant investments in their transportation networks, which serve as the backbone of their supply chains. Alongside this, a comprehensive analysis of the cost structure is vital; this includes evaluating logistics expenses, labor costs, and the overall return on investment (ROI) associated with relocating production to a specific country. Additionally, the quality of a country’s infrastructure—both digital and physical—plays a crucial role in this assessment. This includes broadband capacity, transportation facilities, and anticipated developments such as new airports and rail lines that will support alternative sourcing strategies. The availability of a skilled workforce is another significant consideration, particularly as countries like India invest in education to prepare their labor force for emerging industries, such as semiconductors. Finally, understanding the regulatory environment is essential. This encompasses taxes, customs, tariffs, and participation in trade agreements, which can significantly impact operational efficiencies and costs. Emerging Plus X countries are actively seeking to establish favorable trade agreements and offer with that increasingly trade-friendly environments to attract foreign investment. In this context, a long-term commitment to these locations is crucial, as establishing a diversified production base often requires substantial upfront investments.

A strong partner for complex supply chains

DHL Global Forwarding offers a comprehensive portfolio of services that help companies to make their supply chains not only efficient, but also future-proof. These include multimodal transportation solutions that combine the advantages of different modes of transport. For example, companies can reduce costs and optimize delivery times by combining ocean and air freight.

In addition, DHL Global Forwarding provides specialized consulting services to help companies analyze and plan their Plus X strategies. This includes the evaluation of transport capacities in potential destination countries, the analysis of regulatory requirements and the optimization of warehouse and distribution networks. Thanks to a global network in over 220 countries and territories and teams with local expertise, DHL can develop customized solutions tailored to the individual needs of companies.

Another highlight is DHL Global Forwarding’s ability to use innovative technologies to improve transparency and efficiency. Through digital platforms such as myDHLi, customers gain real-time insights into their supply chains, seamlessly track shipments and manage processes more efficiently. This combination of technology and expertise makes DHL an indispensable partner for companies looking to diversify their supply chains while making them more resilient.

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SG Holdings, a leading Japanese logistics company, today announced its acquisition of Morrison Express, a global freight forwarding and logistics service provider renowned for its expertise in semiconductor and high-tech logistics. This strategic acquisition will enhance the capabilities of the SG Holdings Group, significantly expanding on its Asian market presence and strengthening its position as a global leader in specialized logistics services.

The acquisition brings together Morrison Express’s strong competitiveness in the technology sector, particularly in semiconductors and high-tech products, with the SG Holdings’ extensive logistics network and innovative supply chain solutions. Particularly in relation to the freight forwarding business, Morrison Express’ strength in air freight and high-tech verticals will be complementary with the ocean freight forwarding and commercial verticals (apparel and daily sundries) in which EFL Global, the Group’s core freight forwarding company, has its strengths. This complementary partnership, characterized by minimal overlap, creates a powerful synergy that will deliver enhanced value to customers across the globe.

“The acquisition will significantly enhance global network coverage, allowing the SG Holdings Group to provide better logistics solutions across different regions.” said Mr. Bokuto Yamauchi, the head of Global Strategy Department – SG Holdings and Chairman and CEO of the Expolanka Group. “Morrison Express’ established relationships within the technology sector and strong Asian market presence, combined with their expertise in semiconductor logistics, perfectly complements our existing capabilities and forward-thinking approach to supply chain management.”

The merger delivers immediate value to customers through enhanced operational efficiencies, powered by access to new resources, cutting-edge technology, and expanded infrastructure – all working in concert to provide faster, more reliable service. With an expanded geographic reach, the combined entity offers closer proximity to customers, ensuring more responsive support and service delivery. Customers will benefit from comprehensive end-to-end supply chain solutions spanning air, ocean, rail, and road freight, complemented by tailored solutions that leverage Morrison’s strong supplier and partner relationships in the technology sector.

This strategic merger reinforces the combined organization’s dedication to delivering high standards and innovative solutions across all service offerings. Through shared expertise and resources, the integration positions the company to stay ahead of evolving industry trends and exceed customer expectations in an increasingly dynamic global market.

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E.ON and PSI Software AG have announced a strategic partnership to deploy a standardized, intelligent network control system aimed at enhancing the efficiency, security, and sustainability of Germany’s energy distribution grid. The initiative, set to be completed by 2029, will unify the control systems across E.ON’s grid companies, marking a major step toward modernizing the country’s energy infrastructure.

The project will leverage PSI’s modular “Control System of the Future” (CSF) platform, designed to streamline operations, reduce maintenance costs, and enable advanced automation within the electricity and gas distribution networks. The CSF platform features a secure, open software architecture that allows for seamless integration of emerging technological advancements, ensuring long-term adaptability to evolving energy demands.

The German Power Grid

Germany’s power grid is one of the most advanced and complex in the world, integrating a mix of conventional and renewable energy sources. The country has been a global leader in the transition to clean energy, with ambitious targets for reducing carbon emissions and increasing the share of renewables in electricity production. However, the shift to decentralized energy generation and fluctuating renewable sources, such as wind and solar, has presented new challenges for grid stability and efficiency. To address these issues, Germany has been investing in digitalization and intelligent grid management solutions to ensure a reliable and secure energy supply. In Germany, more than 95 percent of renewable energy such as wind or photovoltaics are connected to the distribution grids. With the heating and mobility transition, millions of electric vehicles and heat pumps will also have to be integrated into the grid in the coming years. To meet these challenges, E.ON is continuously developing its grids and system management.

Integrating Electric Lorries into the Grid

As the transition to electric mobility accelerates, heavy-duty electric lorries will play a crucial role in reducing transport-related emissions. The widespread adoption of electric lorries presents significant challenges for Germany’s power grid, requiring careful management of charging infrastructure and energy distribution. High-powered charging stations for lorries demand substantial electricity capacity, necessitating smart grid solutions to balance supply and demand efficiently. E.ON is actively working on strategies to ensure seamless integration of these vehicles into the grid, enhancing infrastructure resilience and optimizing energy use. Through intelligent load management and grid modernization, the company aims to support the growing fleet of electric lorries while maintaining grid stability.

The Control System Project

“The new, standardized network control system is an essential building block for this and an important step towards standardization. At the same time, a modular system is being created that can be expanded and thus react flexibly to the requirements of the future.” said Harald Heß, Senior Vice President Energy Networks Technology & Innovation, E.ON.

For the successful implementation of the project, PSI and E.ON rely on agile principles and cooperative partnership. PSI will set up its own customer unit, which will work closely with E.ON’s key supplier management. The common goal is to make an important contribution to the reliable, economical and sustainable grid management of the future, with important topics such as sector coupling and holistic optimization of the energy system becoming more important.

“We are very proud that E.ON is relying on its long-standing partner PSI for the implementation of a new and standardized network control system,” says Robert Klaffus, CEO of PSI. “This confirms our strategy of technologically redefining the grid management of the future with the development of our new generation of control systems and at the same time relying on proven modules. In this way, we provide our customers with the best possible support in meeting the requirements of an increasingly dynamic market and energy system.”

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The global trade landscape is bracing for further turbulence as US President Donald Trump signals that the European Union (EU) could be the next target for tariffs. Following the imposition of 25% levies on goods from Mexico and Canada, along with an additional 10% tax on imports from China, European businesses now face the possibility of similar trade barriers.

Last night (10th February 2025), President Trump confirmed higher tariffs on all steel and aluminum imports – a measure that UK producers say will prove a “devastating blow”.

Rob Shaw, GM EMEA at Fluent Commerce, warns that the market is already in an unstable, ever-changing state, and escalating tariffs could send supply chains into further disarray.

“If the US does proceed with imposing tariffs, other countries will retaliate, as we’ve already seen with China. In this scenario, tariffs may be imposed in the opposite direction, raising costs within the supply chain,” Shaw explains.

“Ultimately, it’s consumers who will bear the brunt of these changes. To protect their profit margins, businesses will inevitably pass on higher costs, placing additional financial strain on buyers already struggling with economic pressures. The exception is the luxury goods market, where high-income consumers will be able to absorb the additional costs.”

The uncertainty has placed UK and EU businesses in a state of limbo, with many preparing contingency plans in case tariffs are imposed. Some companies are considering stockpiling goods to cushion supply disruptions, though this comes with logistical and financial risks. Others are looking to invest in real-time visibility tools to better navigate inventory and supply chain fluctuations.

European Industries Facing a Catch-22 Situation

With potential tariffs looming, some of Europe’s key industries could be forced into difficult decisions. Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder, describes the impact as a “catch-22 dilemma” for sectors like pharmaceuticals.

“Either bear the cost of relocation or absorb the tariffs and face increased costs for manufacturers and consumers,” Bowes explains.

For the luxury goods sector, the impact is expected to be less severe due to the high profit margins that can absorb additional costs. However, the European automotive industry faces a far greater threat.

“For European automotive companies, the threat of tariffs is much more significant. The industry is already struggling due to competition from China, the withdrawal of electric vehicle (EV) subsidies in key markets, and the ongoing transition to European sustainability regulation,” says Bowes.

“As the US is a critical market for European car makers, tariff threats are sending the industry to boiling point—and if placed on internal combustion engine vehicles (ICEVs), it would put a tin lid on everything that’s going bad for the industry.”

With demand for European vehicles in the US already under pressure, tariffs could significantly reduce sales volumes and accelerate production shifts to alternative markets.

Can AI and Tech Help Businesses Navigate the Crisis?

As trade tensions rise, businesses are increasingly turning to technology-driven solutions to navigate the uncertainty. Advanced supply chain management tools and AI-driven scenario modeling are emerging as critical assets for companies trying to mitigate risks.

“As tariff threats loom, businesses critically require flexible tech-led capabilities to execute strategies quickly,” says Bowes.

“Artificial intelligence (AI) can evaluate vast amounts of real-time data. Working like a GPS system, it simulates ‘what if’ scenarios tailored to different variables, meaning businesses can strategically decide the best course of action, whether that is using new suppliers, using a co-manufacturer, or absorbing tariff costs.”

Will Other Countries Retaliate?

One of the most pressing concerns is whether the US tariff strategy will provoke widespread retaliation, leading to a global trade war. If that happens, the ability of businesses to leverage international specialization—such as Taiwan’s semiconductor industry or Germany’s automotive expertise—could be significantly disrupted.

“If US tariffs are imposed, it could set off a chain reaction across the globe,” Bowes warns.

“The rise of tariffs would likely stifle competition and innovation, and while some industries could benefit from protectionism, others would undoubtedly face higher costs and reduced market access.”

The Road Ahead: A Waiting Game for Global Markets

With no immediate resolution in sight, businesses across the UK, EU, and beyond remain in a tense waiting game. If President Trump follows through with EU tariffs, companies will need to adapt quickly—whether through price adjustments, supply chain restructuring, or technological investment.

As global trade remains volatile and unpredictable, one thing is clear: the decisions made in Washington will send ripples through supply chains worldwide.

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