Importance of same day delivery
Same-day delivery is becoming increasingly important in today's fast-paced world, as consumers are looking for instant gratification and convenience. McKinsey & Company's report "Same-day delivery: The next evolutionary step in parcel logistics" explores the current state of same-day delivery and the potential benefits and challenges associated with this service.
Same-day delivery is currently most popular in the United States and China, where major e-commerce players like Amazon, Walmart, and Alibaba have invested heavily in this service. In Europe, same-day delivery is still in the early stages of development, with only a few companies offering such service. In the last couple of years same-day delivery was most commonly used for urgent, high-value items like medical supplies and electronics, as well as for groceries and prepared meals. However, during Covid, it significantly expanded into other sectors like fashion and apparel, where consumers are looking for more instant gratification.
Same-day delivery is currently most popular in the United States and China, where major e-commerce players like Amazon, Walmart, and Alibaba have invested heavily in this service. In Europe, same-day delivery is still in the early stages of development, with only a few companies offering such service. In the last couple of years same-day delivery was most commonly used for urgent, high-value items like medical supplies and electronics, as well as for groceries and prepared meals. However, during Covid, it significantly expanded into other sectors like fashion and apparel, where consumers are looking for more instant gratification.
Main same-day delivery models in product fulfillment process
There are three different models for the same day delivery as identified by McKinsey & Company "Same-day delivery: The next evolutionary step in parcel logistics":
- Store-based fulfillment: In this model, the retailer uses its existing store network to fulfill orders and deliver them to customers on the same day. This model is particularly popular among grocery retailers.
- Dark store/mini-fulfillment center: In this model, the retailer operates a small, dedicated fulfillment center that is used exclusively for same-day delivery orders. This model is particularly popular among fashion and apparel retailers.
- Dedicated network: In this model, the retailer operates a dedicated network of delivery vehicles and distribution centers that are used exclusively for same-day delivery. This model is particularly popular among e-commerce giants like Amazon and Alibaba.
- Store-based fulfillment: In this model, the retailer uses its existing store network to fulfill orders and deliver them to customers on the same day. This model is particularly popular among grocery retailers.
- Dark store/mini-fulfillment center: In this model, the retailer operates a small, dedicated fulfillment center that is used exclusively for same-day delivery orders. This model is particularly popular among fashion and apparel retailers.
- Dedicated network: In this model, the retailer operates a dedicated network of delivery vehicles and distribution centers that are used exclusively for same-day delivery. This model is particularly popular among e-commerce giants like Amazon and Alibaba.
Same-day delivery Pros and Cons
Pros:
- Convenience: Same-day delivery offers consumers the convenience of getting their orders delivered to their doorstep on the same day they make the purchase, eliminating the need to go to the store or wait for days for their package to arrive.
- Competitive Advantage: Same-day delivery provides businesses with a competitive advantage by enabling them to differentiate themselves from their competitors who may not offer this service.
- Customer Satisfaction: Providing same-day delivery can increase customer satisfaction and loyalty by meeting their immediate needs and expectations.
- Increased Sales: Same-day delivery can lead to increased sales by encouraging consumers to make purchases they might have otherwise put off due to delivery timeframes.
- Efficiency: Same-day delivery can improve business efficiency by reducing the time and costs associated with order fulfillment and shipping.
Cons:
- High costs, complex logistics, and the need for advanced technology and infrastructure. These challenges can make it difficult for retailers to offer same-day delivery at a profit and can limit the availability of this service to certain geographic areas or customer segments.
- Retailers need to carefully consider the costs and benefits of same-day delivery before implementing this service. Retailers should also consider partnering with logistics providers and technology companies to help overcome some of the challenges associated with same-day delivery.
- Advanced analytics and route optimization: Same-day delivery requires real-time data analytics and advanced algorithms to optimize routes and minimize delivery times.
- Convenience: Same-day delivery offers consumers the convenience of getting their orders delivered to their doorstep on the same day they make the purchase, eliminating the need to go to the store or wait for days for their package to arrive.
- Competitive Advantage: Same-day delivery provides businesses with a competitive advantage by enabling them to differentiate themselves from their competitors who may not offer this service.
- Customer Satisfaction: Providing same-day delivery can increase customer satisfaction and loyalty by meeting their immediate needs and expectations.
- Increased Sales: Same-day delivery can lead to increased sales by encouraging consumers to make purchases they might have otherwise put off due to delivery timeframes.
- Efficiency: Same-day delivery can improve business efficiency by reducing the time and costs associated with order fulfillment and shipping.
Cons:
- High costs, complex logistics, and the need for advanced technology and infrastructure. These challenges can make it difficult for retailers to offer same-day delivery at a profit and can limit the availability of this service to certain geographic areas or customer segments.
- Retailers need to carefully consider the costs and benefits of same-day delivery before implementing this service. Retailers should also consider partnering with logistics providers and technology companies to help overcome some of the challenges associated with same-day delivery.
- Advanced analytics and route optimization: Same-day delivery requires real-time data analytics and advanced algorithms to optimize routes and minimize delivery times.
Statistics
Overall, same-day delivery is important because it offers convenience, competitive advantage, customer satisfaction, increased sales, and improved efficiency. As such, it has become an increasingly popular service among businesses and consumers alike. According to a survey by Dropoff, 60% of consumers said they have chosen a retailer specifically because they offered same-day delivery. In the same survey, 96% of respondents said that same-day delivery would make them more likely to do business with a retailer again. A report by McKinsey & Company found that same-day delivery could potentially capture up to 25% of the total delivery market for online orders. According to a survey by MetaPack, 96% of shoppers consider delivery speed an important factor in their online purchasing decisions.
In Jinn we are currently investing into development of various delivery options and new features with user friendly interface so our customers have better inventory management and fulfillment capabilities as well as their clients would have more flexibility and options for receiving their goods in the most convenient and efficient way. Your business growth is our growth, therefore we are here to help you succeed. The main advantage of Jinn is that we can fulfill and ship out the orders on the same day if orders are placed by 12 p.m – for more information click here or contact us for a quote.
Meetjinn Team