A customer is always swayed by the promise of same-day delivery. But this places a huge overhead on retailers. Same day delivery gives the buyer some amount of instant gratification that is felt in a retail purchase from a brick and mortar store. So, same day delivery is a true competitor for brick and mortar stores. Large retailers like eBay and Amazon offer same-day delivery in some areas. But it is not very easy for smaller retailers to offer same-day delivery and stand a chance. Studies say that overnight delivery is only 5 per cent less valuable to them than same-day delivery. Most survey respondents would much rather purchase goods from a retailer that offered free next-day delivery. Most Americans tend to place most of their orders after traditional working hours (5 p.m. or later). So, making same day delivery is almost impossible.
To offer same day delivery, retailers need a very efficient system. They have to understand their positional advantage with regard to demand density. A free delivery depends on low delivery costs, and low delivery costs depend on density. Clubbing several items in transport, according to the research on demand supply minimizes the fuel, capital, and labor costs involved in a delivery. This requires long line-haul moves (typically by tractor-trailer) where retailers use large depots to aggregate supply, and overnight sorting at local delivery stations. So, offering same day delivery depends heavily on this system. This is a major concern when you deal with the sustenance of the same day delivery system.
The other questions that factor in the decision are to do with classifying products sensitive to delivery speed, demand density during the peak holiday season and time-definite delivery windows. Dealing with these criteria involves several months of planning and execution devoted to planning, IT investments, and close ties with transportation partners. Perfect cooperation across traditional and online inventory is required to make a nationwide plan for same day delivery systems.
Coming to handling workforce, sales staff needs to be flexible when the retailer offers same day delivery. They can fulfil online orders during their idle time. This implies that they need hands on experience with the order-taking technology and must learn how to locate, pack, and label items for shipment.
A same day delivery requires robust logistics partnerships. The ideal transportation partner needs to be capable of picking up parcels late in the evening. Most logistics partners don’t offer late-night service. Affiliation with new age logistics partners like Uber is a welcome move when you offer same day delivery. This is especially useful in regions like Manhattan, West Los Angeles and other such high-density places. What’s more, these affiliations work perfectly in sync with smaller retailers.
The post discusses the planning and efforts that go into offering a same day delivery guarantee. If the retailer can satisfy most of the prerequisites, they can go ahead with the offer!
