In 2018, Amazon's share of the US ecommerce market hit 49%. That's 5% of all retail spent across the entire country. To put things in perspective, this is more than Amazon's top three competitors combined, with eBay coming in at 6.6%, Apple at 3.9% and Walmart at 3.7%. Amazon’s success in the retail market can be attributed to a lot of things, but what stands out the most is the brand’s ability to deliver on customer expectations and that too in record time. The eCommerce giant quickly realized that in the age of instant gratification, it’s absolutely imperative to be transparent with customers and introduce extremely short delivery windows. Hence, a few years back Amazon started offering free two-day and later free one-day shipping.
According to media reports, in April 2019, Amazon announced its plan to transform its free two-day shipping program to a free one-day shipping program for its more than 100 million Prime customers. Amazon started rolling out this program for a large number of products as early as May 2019. On June 3, the company rolled out the free one-day delivery program for more than 10 million products. It first launched the program in North America across more than 10,000 cities and towns. It also highlighted its efforts to improve free delivery timing for Prime members in Hawaii, Alaska, and Puerto Rico. Soon, same-day deliveries became the new normal for eCommerce customers and Amazon became a household name when it came to super fast deliveries. Growth and popularity was inevitable. According to Statista, by 2018, Amazon’s revenue reached almost $233 billion. In fact, Amazon is the fastest company to reach $100 billion in sales revenue, taking only 20 years.
Amazon’s competitors were soon pushed to offer faster deliveries. But success was not easy. When the rest of the world caught with same-day deliveries, Amazon took the benchmark higher by offering one-hour delivery for its Prime customers. Amazon has rightly earned the reputation of making lives difficult for its competitors. But what makes the brand tick, always?
Amazon’s transportation network, highly efficient supply chain and logistics management and its unmoved focus on what customers want are some of the major reasons behind its rapid growth in the eCommerce sector.
For other eCommerce businesses around the world, it’s time to step-up their game and join the race for competing with the best in the industry. With rapid advancements in supply chain and logistics management technologies, it’s not only possible to ensure rapid growth but also be better than Amazon. Question is how?
An advanced online delivery management platform today makes it possible to drastically shrink delivery turn-around-time, increase delivery productivity, optimize operation costs and ensure better ‘than Amazon customer experiences.’
Reducing Delivery Turn-around-Time
Reducing last-mile mile execution time is critical when it comes to going head-to-head with a competition like Amazon. A modern online delivery platform makes this possible by completely automating route planning and generating highly efficient multi-drop delivery routes. Such a platform also reduces delivery cycles by quickly triggering alerts in case of route diversions, vehicle idling and unnecessary stoppages. By optimizing routes in real-time, an online delivery platform also reduces fuel consumption and optimizes operational costs.
Automation is another critical aspect when it comes to improving delivery TAT. An online delivery platform automates core delivery processes like task allocation and route selection to further optimize the time required to complete a delivery.
Increases Delivery Productivity
Driver productivity directly impacts the time required to execute a delivery. An online delivery management platform ensures high levels of driver productivity by enabling stakeholders to access real-time location of third-party delivery executives and be proactive with delays.
Benchmarking delivery KPIs also play an important role when it comes to boosting delivery productivity. An online delivery management platform provides delivery stakeholders with an easy to use dashboard that clearly exhibits all critical data related to delivery operations on a single pane-of-glass. Such a platform even motivates delivery executives by empowering them to analyze their own performance with regards to the number of successful deliveries executed, delayed deliveries and benchmarks their performance against peers.
Optimizes Delivery Costs
An online delivery platform reduces empty miles, improves fleet capacity, automatically generates fuel-efficient routes, and ensures seamless multi-drop delivery routes. All these factors significantly contribute towards lowering the TCO (total cost of ownership) of executing delivery operations. By constantly optimizing delivery routes in real-time, it eliminates chances of delays, ensuring high levels of delivery productivity.
Providing ‘Better Than Amazon’ Delivery Experience
To thrive in the Amazon era, it’s imperative for brands to instantly gratify customers. Businesses need to provide visibility to customers at every step of the delivery process. An online delivery management platform constantly updates customers as to what’s happening with a delivery, when it was shipped, who is going to deliver, ETAs and more. Organizations that are transparent with their delivery process have a large base of loyal customers and according to Bain & Company a 5% increase in customer retention correlates with at least a 25% increase in profit.
Such a platform also empowers businesses to provide customers with flexible delivery options. Customers can change delivery location and time according to their convenience and these changes are immediately updated in the delivery workflow and drivers are informed simultaneously.
An online delivery platform not only empowers businesses to deliver parcels on the same-day but it also drastically shortens delivery TAT of essential items like food and grocery.
A Quick Use Case
Let's put things into perspective. Here is a quick use case as to how an online delivery management platform can not only shrink delivery turn-around-time but also scale operations.
Acting upon customer expectations, a global food chain wanted to reduce its delivery time by more than 25 percent. But bottlenecks like poor visibility and productivity, expensive resource planning, inaccurate KPIs and inefficient collaboration were making it difficult to achieve this goal. The said businesses implemented an advanced food delivery platform to eliminate these bottlenecks.
The platform helped the business gamify tracking and KPI benchmarking processes to boost employee engagement and productivity. Its real-time dynamic routing capabilities empowered the business to significantly reduce delivery time through constant route optimization, instant diversion alerts, automated route planning and mitigation in delays. It also ensured that the business could easily scale operations by outsourcing delivery jobs to temporary or part-time delivery executives based on cost incurred, proximity, fuel efficiency, driver productivity and more.
In a nut-shell the platform empowered the food chain to:
- Reduced delivery time by 27% by ensuring high levels of operational efficiency
- Improved KPI benchmarking, fleet productivity and employee engagement by leveraging gamification tools
- Enhanced fleet productivity owing to dynamic route planning and real-time tracking capabilities
- Optimized resource planning by automating job allocation and scheduling processes
- Ensured rapid scalability by intelligently outsourcing delivery to third parties
FarEye is empowering retailers across the globe to achieve high levels of delivery efficiency, especially with regards to same day delivery expectations and shorter hyperlocal delivery cycles. To know how we can help you achieve the same, sign up for a quick demo here.