The Coronavirus disease (COVID-19) pushed e-commerce to the front burner, forcing many retailers to shift focus and implement different ways of getting product to consumers. Doing so also amped up focus on last-mile delivery and next-day order fulfillment.
In fact, strategies for last-mile delivery have shifted dramatically in recent years, especially since the start of the pandemic. Many retailers are rethinking just-in-time deliveries, for example, and moving distribution centers closer to urban areas, as outlined in this last-mile report.
Case in point: close to 99% of retailers are expected to offer same-delivery by 2025, according to a recent Bringg study.
“The retail industry is reinventing itself and adjusting its fulfillment operations to the current market eruptions, which are paving the way for cost-effective fast fulfillment,” says Guy Bloch, CEO of Bringg. “From what we’ve seen in our latest barometer report, the retail industry is highly agile, with a third of retailers (33%) highly confident that they can pivot to respond to new, pandemic-driven customer behavior. With a need for more delivery capacity, greater tech innovation and stronger partnerships with providers, now is the time for the 49% of ‘somewhat’ confident retailers to prove that they, too, can be agile enough to improve delivery speed and convenience. To get there, retailers will need to connect and automate their delivery network resources, processes and technologies, and adopt hyperlocal fulfillment as a goal for 2022.”
From PR Newswire:
- While 99% of respondents say they will be doing same-day delivery within the next three years, 36% say they don’t have the technology, citing real-time order visibility as the main problem, and 24% calling out the sheer distance they need to travel from warehouse to fulfillment as a primary obstacle to delivering on time.
- 44% are managing multiple fulfillment channels with disparate technologies, and 61% cite problems with visibility into the last mile.
- The biggest pain points when it comes to scaling delivery is a lack of real-time visibility once the order is out for delivery, according to 61% of respondents. Meanwhile, 55% called out the inefficient manual nature of the way they currently plan and dispatch their orders and only 35% have fully automated last-mile delivery and fulfillment operations.
- When it comes to pain points associated with fast and on time delivery, a lack of data is a central concern for retailers due to real-time order visibility (in this case, 51%) and travel time (49%). 26% of retailers say they are struggling with visibility when working with third parties.
- Retailers are moving away from a reliance on a single traditional carrier, with 55% using multiple fleets for last-mile delivery.
- Sustainability and carbon emissions are an important consideration, with 56% of retailers using fleets with EV vehicles, and one in three using bike fleets.