Nowadays, you can have almost anything delivered to your home – often within a few hours. Shoppers today expect their orders to be delivered to them as soon as possible, forcing retailers to invest in highly efficient operations. According to a Deloitte poll from 2017, more than half of buyers defined “fast shipping” as two days or less. Only 35% thought 3-4 days shipping was rapid, down from 42% in 2016 and 63% in 2015. In two years, the number of consumers who thought 3-4 days was quick decreased by nearly half. On-demand logistics is what makes quick delivery of products to customers possible.
Over the last few years, the term “on-demand logistics” has become common throughout the industry and has only grown in relevance during the Covid-19 Pandemic. In this blog, we will learn more about on-demand logistics and how it can improve the customer’s delivery experience.
What is on-demand logistics?
On-demand logistics is more than just a buzzword in the industry. It refers to a contemporary logistics approach that enables online retailers to geographically expand their consumer reach and deliver orders as soon as they are placed. On-demand logistics is essentially the ability to deliver customer orders as soon as possible, whether it’s through same-day, next-day, or 2-day shipping.
In many situations, on-demand logistics may also help with multichannel retailing by streamlining and automating the fulfillment process for orders received through different sales channels.
On-demand logistics requires a strong distribution network, adaptable fulfillment solutions, and cutting-edge technology and automation capabilities to ensure speed and accuracy.
How on-demand logistics can help your business
Customers want their shipment to be quick, consistent, and dependable. So, it’s no surprise that on-demand logistics is the key to increasing sales and retaining consumers.
Here’s a rundown of how on-demand logistics can benefit your e-commerce business:
Helps to meet consumer demand
On-demand logistics employs technology that enables online retailers to extend their operations and have real-time access to aggregated logistical data.
This enables them to acquire insights to make better judgments about product allocation and when to refill stock (and where) to satisfy demand.
On-demand delivery has a positive impact on the customers and ensures they experience hassle-free delivery.
Reduces fulfillment costs
Working with a third-party logistics (3PL) provider is an excellent method to deploy on-demand logistics while decreasing fulfillment expenses. A third-party logistics (3PL) partner may help your company save money and time, freeing up resources to focus on product development, marketing, and business growth. You can exceed consumer expectations while keeping fulfillment costs low by using a 3PL.
You can sync your sales channels with your 3PL’s technology by delivering the correct quantities of inventory to different fulfillment centers within a 3PL’s network, ensuring that all orders placed are routed to the nearest fulfillment center location. This enables you to improve your shipping strategy, lower shipping costs, and accelerate last-mile delivery.
The most significant benefit of implementing on-demand logistics is real-time tracking. This feature allows customers and businesses to track their orders in real-time. While this reassures customers regarding courier service, it also assists businesses in determining how to streamline the process and seize greater market possibilities.
Provide Competitive Pricing
With on-demand logistics, businesses can provide highly competitive pricing as compared to the traditional delivery methods. Modern on-demand delivery strategies significantly reduce investment in human resources, storage, and in-store operations allowing businesses to offer their products at rates lower than the industry level.
How to implement on-demand logistics
Providing same-day, last-mile delivery is the actual challenge of implementing on-demand logistics. Your inventory is already ingrained in local neighborhoods through your fulfillment centers; all you need is a way to move it out of the warehouses and onto front doorsteps.
Here are three ways you can embrace on-demand logistics and offer same-day delivery to your customers:
Invest in a Fleet:
You can decide to own your trucks and vans and hire drivers to transport items to customers. With this option, you get complete control over the delivery experience and timing. However, it may be costly, requiring a big initial investment as well as continuing expenditures that may be difficult to manage.
Hire a 3PL:
You can also outsource your fulfillment needs to a 3PL. 3PLs have a large network that makes delivering products quicker and convenient. Outsourcing logistics is also a great way for you to save valuable time and money. The flexibility that 3PLs provides allows you to grow your business and provide your customers with fast delivery times. However, some 3PLs might not have the capability to provide on-demand logistics so make your choice carefully. The last thing that you want is to hire a company without doing a good bit of research first.
Partner with an App-Based Network of Delivery Professionals:
New logistics firms based on the growing popularity of on-demand logistics have developed networks of local delivery specialists that can be reached by simply tapping a phone screen. These contractors have been background investigated, are licensed and insured, and are available for deliveries in as little as thirty minutes.
As we see the establishment of numerous 3PL warehouses, on-demand services will continue to be crucial in the near future.
As many D2C firms strive to compete with omnichannel strategies, the future of retail will continue to rely on local fulfillment centers. Fulfyld sees the value in fast delivery times and will do what it takes to make your customers happy. Reach out to us today to learn about how we optimize our processes while still saving you fulfillment costs.