Like so much else during the dot-com era, same-day delivery was not ready for prime time when it was first offered. Kozmo.com, the best-known same-day carrier of that era, became a poster child for the excesses of the dot-com boom. Today, same-day delivery has returned"”with a new set of propulsive forces. The online retail market is now much larger. Traditional retailers are under pressure from online shops such as Amazon to offer fast delivery, and carriers are facing competition from upstart same-day companies such as Shutl, Zipments, Instacart, and Postmates.
But most consumers care more about low-cost merchandise and free delivery and returns than same-day delivery. That central finding of the survey suggests that retailers and carriers will need to carefully segment the market by customer, product and "buying moment" in order to make same-day delivery work. In creating mass-market strategies, retailers would be better off focusing their efforts on improving other aspects of their multichannel offerings, and carriers should focus on creating seamless and enhanced delivery and routing services while they beta-test the operating requirements and revenue benefits of same-day delivery.
Read Full Article
Keywords: transportation management, retail supply chain, supply chain management, value chain, same-day delivery logistics, logistics services, logistics management, same-day fulfillment and delivery
Timely, incisive articles delivered directly to your inbox.