It is not unusual for a parcel to take 3-4 days before arriving at your doorstep. But wouldn’t you rather have it delivered in the shortest possible time, within hours perhaps?
A detailed survey was conducted by McKinsey in various parts of Europe, including the UK, France, Germany and Sweden, in which a representative sample was chosen to determine consumer preferences for logistics services. Approximately 50% of the respondents showed a willingness to pay same-day delivery costs of up to 10% of the total order price, clearly indicating the value proposition of viable last-mile delivery solutions, express delivery in particular.
Heightened customer expectations, evolving business models, and intense productivity requirements have made it imperative to adapt existing networks to a rapidly changing scenario. Amazon and Walmart, two of the world’s largest retailers, were among the first to recognize the importance of correctly identifying customers’ needs by actively experimenting with innovative delivery concepts. Amazon Prime Air is one such example, a delivery system designed to safely get packages to customers in 30 minutes or less using unmanned aerial vehicles called drones. The service is currently in development.
Express delivery can really make or break your business. “Same-day delivery is a game changer because it combines the immediate product availability of retail with the convenience of ordering from home.” (SVP of a logistics company)
The buying behavior of consumers has shown great variation over the years. For many of us, in-store shopping has largely been replaced by online purchases, and here is where it becomes particularly important to ensure a positive costumer experience through improved and efficient services.
An important finding of the McKinsey survey is that consumers are still relatively unfamiliar with instant and scheduled same-day delivery, but willing to pay if it is offered at a competitive price. However, once customers experience a superior service, it is impossible for them to return to accepting less.
B2C e-commerce is largely dependent on a smooth and efficient supply chain network. Online retailers, such as Alibaba, anticipate same-day delivery to become the immediate standard for e-commerce.
There is a growing need for retailers to adopt an effective logistics operating model. According to McKinsey, 3PL providers will be able to operate at the lowest cost while offering integrated logistics solutions ranging from orders through fulfillment to delivery and return, making them an ideal solution for companies looking to retain their consumer base.