Retail logistics now focus on same-day delivery

on Friday, October 19, 2012

Retail logistics now focus on same-day deliveryCompanies have long fought to make their products the most appealing to consumers and boost profits. But with more people shopping online, it's becoming harder to tempt customers simply with low prices. Because many merchants offer price-matching or very similar costs for the same goods, retailers are struggling to get noticed, and they're jumping on the same-day delivery trend to keep buyers purchasing their products.

Several retail giants have announced that they will attempt to enter the same-day delivery market to increase customer satisfaction and boost sales. Amazon recently confirmed rumors that it will begin offering same-day shipping in certain markets, but did not indicate when the plan would be implemented. Wal-Mart has also created a plan to allow for same-day delivery, which is scheduled to last through the holiday season, according to Supply Chain Digest. EBay is now getting ready to try out a same-day service in selected areas, if test programs run smoothly.

The challenges of same-day delivery
Same-day delivery could be a tricky program for retailers to debut, as it calls for big changes throughout merchant supply chains and logistics operations. Optimizing retail buying, storage and transit planning will need to be altered drastically for some companies in order to make same-day delivery a success.

Logistics Viewpoints addresses some additional concerns these retailers face as they struggle to beat one another to the top and gain more customers. Same-day delivery is drastically different than standard, or even next-day, delivery options, and it will likely require merchants to revise their logistical operations. Retailers implementing these programs may find the need to expand or work with other companies that provide fleet delivery services, inventory-storage in new locations or couriers to ensure goods get to customers on time.

Aside from potential changes to a merchant's logistics, the same-day delivery option raises other questions. It isn't likely that retailers would be able to offer the shipping option on every single product, so deciding which goods would be a part of the program could make a difference in its success. It also calls into question the cost of this special service - while consumers generally already pay more for faster shipping options, some customers may find that the increased fees for same-day arrival aren't worth the shorter wait for their product. While it will take time for retailers and consumers alike to become accustomed to the same-day option, it could have a serious impact on how merchants store their goods and manage their logistics.

1 comments:

Van Courier said...

Can't personally see this happening without keeping stock at local depots and having dedicated vans on standby, just for orders that are to be delivered in that very local area. Too optimistic.

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