It has become very difficult for retailers to overcome the last mile challenges. E-commerce is growing day by day and the retail graph has escalated to a faster and vital environment driven by speed and comfort. The entire e-commerce industry is finding out ways to impress their customers. The challenge here lies in providing varied delivery options without messing up with the margins and using an efficient supply chain operation.
Most revolutions are often initiated by a particular event or technology along with the actions from the mass market. People are always aware of such revolutions and demand implementations of new and enhanced standards. The rising e-commerce and evolving on-demand economy are surrounded by the latest technologies, which makes it difficult to impress the buyers. Many retailers consider delivery experience equally important as the product itself, specifically when customers have multiple website choices to buy the same product from.
The graph may be confusing but along with all the new challenges, we certainly have new opportunities too. Companies are implementing different last mile processes to stand ahead of their competitors. The supply chain infrastructure needs changes, if it is more optimized and operationally improved, retailers can gain an edge with the customers, and the last mile is one of the most considered factors when it comes to achieving customer loyalty.
Customer’s expectations depend on:
- How faster you deliver
A few years back next day delivery was a luxurious asset for businesses and their customers. Today, E-commerce giants like Amazon are offering 2 hours delivery in some regions for specific products. While other companies are not far behind, the e-commerce Farfetch provides 90-minute deliveries from boutique to customer’s door. This has created a rage in other companies to improve their last mile facilities. These speeds are not easy to attain as they come with a cost. This might be a nice option for high-end retailers who have higher margins but it is very difficult for the businesses with lesser number of orders, which are creatively batched together and arranged in such a way that their transactions remain profitable.
- Ability to choose from a wider range
If a customer were allowed to choose from a wide range of delivery alternatives, it would lead to higher success rates for any business. When a customer gets comfortable with shopping options, he is satisfied, but if he is provided with convenience and malleability, he is more than satisfied and becomes a loyal customer.
A survey conducted by Imperial College’s consumer shopping department shows that 74% of UK customers believe delivery convenience is very important to decide where to shop from and 47% of customers said that they could pay more if they are given the flexibility to choose from various delivery options. The choice is crucial for consumers if they order something they need on urgent basis. Adding minimum three delivery options is the key to building a loyal customer base; a standard delivery option where everything depends on the cost of the product, an express delivery option where customers’ time is of utmost importance, and an alternate delivery option where a customer cannot collect products at his home place.
- Transparency about the delivery process
Whether the product is out for delivery or it is in a warehouse being packed and is about to be shipped, customer wants to know it all. It is even more important to deliver the customers’ orders as per the given information failing which will lead to customer dissatisfaction.
Gartner’s Research Director Bart De Muynck says that “visibility has exploded over the last 12 months” which means there is not much time left when customers would be able to monitor their products in real-time environments. The suppliers should use this knowledge to focus and improve their delivery methods.
You believe it or not, customers are defining the changes in the next generation supply chain. Accurate information cannot be displayed without accurate communication sources. They both go hand in hand. However, the ability to track a delivery and connect with the person delivering your package at any point shows an incredible level of transparency and visibility. This gives us the power to know what we want to know and whenever we want to know.
