As demand for online shopping continues to increase, shippers are being shoved between a rock and a hard place: more than ever, customers want fast, cost-effective delivery, but as gas prices rise, shippers have to allocate ever-increasing funds for these fast-shipping services. This predicament leaves shippers asking, how can a logistics business provide the fast delivery customers want while increasing operational efficiency?
In 2021, a survey found that 24% of U.S. online shoppers chose same-day delivery for purchases from pure online merchants in the previous year. In February of 2021, the same source reported an increase to 36%, a jump of 12% in only a few short months.
To compete with this rising demand while keeping costs to a minimum, more shippers are turning to tech-enabled courier services to provide the services customers want for a price they can afford. By taking advantage of the high-tech, API-based (Automatic Programming Interface) systems offered by the new generation of courier services, shippers can compete with the fast-delivery giants while further establishing their base of loyal, happy customers.
A courier service is only as good as its dispatch. If dispatch falls behind, on-demand orders can quickly be missed, resulting in angry customers and hefty compensation fees. Customers want certainty in their same-day logistics. Go Share’s recent study revealed that “…about half of them [customers] abandoned their online shopping carts because of long or unspecified delivery times.” If customers aren’t willing to deal with uncertainty in an online shopping cart, what are the chances they’ll put up with slow-downs with a shipment en route? These slow-downs aren’t just frustrating but can easily result in missed shipments and costly compensations. With shippers desperate for cost-alleviating solutions, many want to improve internal communications.
A partnership with a high-tech courier service can give shippers instant access to a cutting-edge online delivery platform. This technology, reliant upon recent breakthroughs in logistics automation, can take the uncertainty out of dispatching. Intelligent allocation strategies help ensure that the correct freight goes out on the right asset, and real-time communication keeps customers, team leaders, and drivers in close contact. Paired together, real-time communication assets and integrated logistics platforms can prevent costly missed deliveries and guarantee shipment on time.
With 50% to 67% of retailers offering same-day shipping services, according to a 2020 McKinsey report, businesses large and small are realizing the necessity of lightning-fast logistics to stay competitive in a crowded same-day marketplace.
However, sluggish manual technology often stands in the way of a business’ efficiency goals. Missed telephone calls and lengthy email chains can cost valuable minutes, or even hours, during a delivery process. These inefficiencies, when added up, can result in angry customers and, eventually, a steep drop in sales. This lost revenue is a cost that most shippers just can’t afford.
But by utilizing the latest logistics technology, businesses can avoid inefficiencies and stay ahead of the competition. Whether a courier delivers home goods or supermarket staples, integrated software offered through an API can keep all logistics parties in close contact throughout the same-day delivery process. With the visibility provided through an integrated API, shippers are finally in the driver’s seat.
Last-mile logistics take place in the real world. This means that last-mile delivery drivers have to contend with real-world roadblocks. Whether it’s potholes or parades, last-mile logistics professionals can face various challenges that, if not addressed, can easily result in missed deliveries and unhappy clientele.
Technology can’t address every hazard the open road throws at delivery personnel, but it can make last-mile logistics faster and safer. Studies show that GPS-based fleet tracking can result in a 42% decrease in safety incidents. Companies that use groundbreaking fleet-tracking technologies see a 54% improvement in customer satisfaction.
With a decrease in safety incidents and increased customer satisfaction, it’s clear that a tech-enabled 3PL (third-party logistics provider) is a win-win for customers and shippers alike. With integrated communications and real-time route monitoring, shippers can watch their drivers in real-time, helping them adapt to the stressors of the last-mile logistics environment. Customers can manage their delivery as it moves toward them and arrange quick, easy receiving, resulting in fewer missed deliveries and more efficient logistics. Real-time route monitoring allows shippers to protect their freight and the last-mile delivery specialists carrying it from whatever the road can bring.
With unprecedented demand, shippers and retailers are adopting new strategies to meet their on-demand delivery needs. In April 2020, e-commerce package volume increased nearly 60% yearly. However, in the same period, shippers only delivered 76% of packages on time, down more than 10% from the previous year.
In short, shippers aren’t meeting customers’ needs due to the lack of technology at distribution and dispatch centers. The slow pace of manual technologies, still in use by shippers throughout the supply chain, means that customers are missing deliveries and looking for other tech-enabled alternatives. Though it spells doom for some less tech-savvy shippers, the industry-wide lack of reliably fast shipping options leaves an opportunity for businesses looking to stand out as fast-shipping experts.
Through the steady implementation of easily integrated fast-shipping solutions, shippers can offer their customers consistently fast shipping, regardless of what’s being delivered. A tech-enabled courier can provide customers with a van for furniture delivery or an efficient courier option for clothing and apparel. On-demand delivery makes it easier for businesses to maintain a high on-time delivery rate, keeping customers happy while boosting the bottom line.
Customers want their deliveries, and they want them faster than ever. With GoShare, an API-enabled, on-demand courier delivery service, shippers and customers can take advantage of the latest logistics technology
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