As consumers have gotten comfortable with the idea of online shopping, same-day delivery is becoming an increasingly important service for customers. The same-day delivery services market is expected to grow from $6.43 billion in 2022 to $13.32 billion in 2026 at a global level.
With the likes of Amazon, Walmart and Target offering same-day delivery service, it has become important for local businesses to explore same-day delivery to stay competitive. This means that fleet managers responsible for delivering products to customers have a crucial role to play in ensuring that deliveries are made on time.
Providing same-day delivery is no easy feat and comes with its own challenges. In this blog, we will look at the challenges in detail and also discuss how to manage same-day deliveries efficiently for a successful business.
What is same-day delivery?
Same-day delivery means the order is delivered to the customer within 24 hours of placing it. The customer will receive the order on the same day if the order is placed in the first half of the day. However, if the order is placed in the evening then it may be delivered the next day. Providing same-day delivery offers a competitive advantage to the business.
Challenges in same-day delivery:
- Inefficient route planning – The promise of same-day delivery puts immense pressure on a business. There is not enough time to properly plan the routes. It’s even more difficult if the volume of orders is high. Route planning will be prone to errors if it is being done manually or by using outdated dispatching software. Hop on a 30-minute demo call to understand how Zeo can simplify route planning for your business!
- Limited delivery staff and vehicles – There’s only so much delivery staff you can hire and add vehicles to your fleet while maintaining a healthy bottomline. You have to ensure that the orders are fulfilled by using the available staff and vehicles efficiently. In such an environment where speed of delivery is key, it’s critical to hire skilled delivery as well as fleet management staff.
- High costs – The cost of making last-mile deliveries adds up as it involves labor costs, fuel costs, software costs, reverse logistics costs and cost of delivery equipment. Last-mile delivery costs form 53% of the overall shipping cost. Read more: How Route Optimization Software Helps You Save Money
- Coordination between various systems – For same-day delivery to be successful, accurate and quick coordination between different systems is essential. As a customer is ready to place an order, the inventory management system will check if the product is in-stock and route planning software will check the availability of drivers to fulfill the order. Accordingly, the correct delivery time will be displayed to the customer.
- Tracking visibility – Customers expect visibility into the movement of their orders. With manual planning, fleet tracking is tedious and you cannot provide real-time updates to the customers. Without delivery tracking, it’s difficult to avoid any delays due to unexpected reasons.
How to manage same-day deliveries?
Invest in route planning and optimization software
Investing in route planning and optimization software will pay you dividends in terms of efficiency and accuracy. With only 24 hours to deliver, a route planner will save you time by creating the most effective route within a few seconds. It will also ensure efficient utilization of the drivers and the vehicles so that the order reaches the customer on time.
Sign up for a free trial of Zeo route planner and witness its power yourself!
Read more: 7 Features To Look For In A Route Planning Software
Batch deliver
Have a cut-off time for making the deliveries on the same day and make it transparent to the customer. This helps in setting the right expectation for both customers and drivers. You can display on the check-out page that only the orders received by 3 pm (for example) would be delivered the same day. Orders placed after 3 pm will be delivered the next day.
Same-day delivery order cut-off time
Have a cut-off time for making the deliveries on the same day and make it transparent to the customer. This helps in setting the right expectation for both customers and drivers. You can display on the check-out page that only the orders received by 3 pm (for example) would be delivered the same day. Orders placed after 3 pm will be delivered the next day.
Strategic location of warehouses or stores
Select the location of the warehouse or dark stores strategically. The location should be such that multiple areas from where a higher percentage of orders are received can be served easily. You can also limit same-day delivery to zip codes within a certain radius of the warehouse that is economically feasible.
Training the drivers
For deliveries that have to be made in such a short span of time, the drivers need to be adept at following the route and handling the deliveries. Having a trained team of drivers ensures that the final step of the delivery can be completed successfully.
Conclusion
Businesses can no longer afford to ignore same-day delivery service if they want to retain their customers. Though providing same-day delivery is difficult for small and medium businesses, it is achievable with the right strategies and technology.
