Next day delivery continues to rise as on-time deliveries fall

Next day has fast become the most popular delivery option on offer to consumers, with rates of selection continuing to rise, according to figures from the IMRG MetaPack UK Delivery Index.* However, the resulting strain on the supply chain looks to be taking its toll, as the percentage of orders arriving on-time and to shoppers’ expectations was down by -1.2 percentage points in February, compared with the same time last year.

With next day demand showing no signs of slowing, retailers cannot afford standards to slip against the competition. And yet how many have made a true assessment of the levels of convenience they can realistically sustain?

The challenge is how to look beyond the immediacy of fulfilment, and provide customers with unique profitable choices specific to them through more a dynamic booking strategy – based on factors such as location, products purchased, delivery network capacity, value added services and orders already in the booking system.

One of the reasons retailers are feeling increasing pressure from next day delivery is because customers are not only using it for its intended purpose of fulfilling a last minute purchase. It allows shoppers to know the exact day of delivery and so many are placing an order the day prior that they may well have been planning for a week, to guarantee delivery on a day that suits.

The ability to automate the booking process and offer profitable dynamic reservations in real time provides both the consumer and retailer with a model for effective and convenient delivery that can be offered days or weeks in advance. It allows retailers to maximise profitability and speed up the time to money through real-time smart decisions and continuous optimisation of the delivery process. With delivery route planning considered at the point of sale, including business defined parameters, delivery assets and existing routes, the delivery options that make sense for the business are dynamically presented – even at peak times.

What’s more, consumers can be offered a number of costed delivery choices in seconds at the point of sale, regardless of the sales channel. By calculating the logistics cost for each reservation, retailers can maximise route efficiencies, save valuable time, improve customer satisfaction and increase profit accordingly.

Cost is no longer king when it comes to customer convenience. It’s about timing, which retailers can’t afford to fall short of.

Find out more about how you can use dynamic reservations as part of your routing and scheduling solution for home delivery.

* http://edelivery.net/2017/03/next-day-deliveries-become-popular-option-time-deliveries-fall/