Same-Day Delivery: The Next Evolution in Parcel Shipping

Last year 31% of consumers used same-day delivery services and close to a third cited frustrations at companies who do not offer this delivery option. Same-day delivery, which historically has been a stronger B2B proposition particularly in the healthcare sector, shows potential in changing the way consumers shop. This is because it offers all the convenience of online with the immediacy of bricks and mortar stores. A win-win solution in an era where consumers are no longer prepared to wait days for their parcel. However, same day courier service providers are faced with a host of fulfillment challenges – it’s one thing to recognise demand, but being able to fulfill the need for fast delivery is another thing altogether.

Shorter Shipping Days

Online grocery shopping is one area that is faced most sharply with the challenge of providing same-day services. Sales in the sector reached £12.3bn last year and according to research demand is primarily being driven by younger consumers aged 24-34 (where 61% are doing some online grocery shopping). In the context of online grocery, same-day delivery means being able to provide a window of a couple of hours as opposed to an elected whole day. With multiple shipping options at consumer disposal, from several hours, to next-day, weekend and same-day – shipping days are getting shorter.

Amazon Fresh (launched 2016) is perfectly positioned to capitalise on consumer desire for faster delivery in the online grocery space, however, warehousing is a major challenge. And with Brexit on the horizon the situation has been exasperated with retailers stockpiling, putting pressure on food companies. This invariably has a knock-on effect on price and delivery time-frames as companies are forced to explore warehousing options that may not be geographically convenient.

Barriers to Same-Day Deliveries

Beyond the immediate challenges of Brexit, retailers are already faced with heightened expectations from consumers. Recent figures reveal 64% of consumers purchasing groceries online want same-day services, but only 19% receive this option. Price is cited as a key barrier with shoppers unwilling to pay high delivery charges and put off by minimum spend criteria. Furthermore, 74% of consumers cite a likelihood to repurchase from a business after receiving same-day delivery on an item.

The stakes are high as the shipping window narrows. As the sector works to respond to the modern challenges of parcel shipping, brands need to ensure they have all the right tech solutions to help manage their shipping processes efficiently and cost-effectively. This requires a vastly more agile and transparent approach, having the ability to track shipping, easily access carrier rates and performance, print labels and generate consignments fast are all key table stakes.

Real-time – Mobile Solution

SmartConsign cloud-based solutions offer all the features of a modern parcel delivery management system. We’re now making the software even more accessible by introducing a mobile app. Users will be able to access all the features of the SmartConsign software direct from their smartphone anytime, anywhere. This further helps our users to reduce costs and time, crucial for brands faced with the challenges of last-mile logistics but now also having to consider same-day delivery and collection management.