Although e-commerce has the potential to bring solid revenue, standing up to competition isn’t always easy. With customers expecting increasingly better services, it can be downright challenging. By 2015 Amazon had introduced same-day delivery, setting the new order fulfillment standards and removing the advantage of instant gratification, which brick-and-mortar stores had long held over e-commerce retailers.
In 2015, many insiders had thought this move controversial, arguing that it might only be potentially disruptive if the company could afford shipping costs. Today, retail giants like Macy’s and Best Buy have followed suit, moreover, many SMB retailers are also aiming to introduce same-day delivery, driven by customer demand and empowered by a growing number of shippers willing to support the trend.
One of such shipping companies, Sydney based Go-People delivery and courier startup, reports, 65% of retailers will offer same day delivery services to customers by 2019.
“Globally speaking, same day delivery is no longer just a concept. Instead, it’s the standard practice in many industries nowadays. Fashion retailers, food and beverage companies, medical suppliers, car accessory manufacturers, and a lot more are now offering same-day delivery service to consumers,” – says the Go-People Marketing manager Mark Hartman in a company blog.
According to Go-People, same-day delivery will give your business a distinct competitive edge over 85% of other industry players, increasing customer loyalty and ensuring you are doing all it takes to cater to their needs. Introducing same- =day delivery, however, is a challenge in itself for most SMB companies since it will potentially involve a major upgrade of existing infrastructure, systems, and processes. Below is a list of steps you have to take before introducing same day delivery.
1) Optimize your back-end processes
Same-day delivery means you have to make items instantly available for packing and shipment in a matter of minutes, and this is only possible when all your backend processes run smoothly and seamlessly. You can start off by introducing inventory management automation ensuring real-time stock counts, top-notch accuracy and instant synchronization of all your other business-critical operations like shipping, accounting, and payments. Apart from inventory management, another facet of your retail business that would benefit from automation is customer service: AI systems can successfully communicate with customers, collect data and automatically input it into a CRM system for further processing. RPA algorithms synchronize all customer-related records across multiple databases ensuring they are always up to date and no data is misinterpreted or lost. You may also use RPA systems to tackle a complex and sensitive process of returns.
Before introducing same-day delivery, it’s crucial that you streamline your workflow management: assigning shifts, measuring attendance, managing payroll and leaves, auditing sales and performance assessment. Not only will automating these processes account for increased agility and speed up your operations, but it will also allow you to concentrate on creative solutions and strategic decision-making rather than the time-consuming routine.
Leveraging AI to manage your backend processes will also make you more competitive: by now, 72% of companies will have implemented robotic process automation, according to ISG Automation index report. Rightfully so: adopting RPA accounts for 3-5x productivity increase, so it’s only natural businesses across all industries would recognize its benefits.
2) Refine your shipping strategy
By the time you start introducing same-day delivery, you should have a clear understanding of your shipping strategy and have your shipping rates and methods figured out. Are you going to pass the full cost of shipping to customers or offer a fee or flat-rate shipping? Further on, you should have a list of sizes and weights of each product you sell and ensure instant access to this info when you need to decide on a shipper. Next thing you have to do is select the right packaging for your products. You can order packaging from USPS, DHL, or design your own packaging as part of your company brand if you need to.
3) Look for same day delivery shipping companies
As mentioned above, introducing same-day delivery gets easier every day, since an increasing number of startups want to tap into this lucrative business niche. Set up a database of such shippers operating in your area listing their rates, territorial and other restrictions. Some companies will only deliver across your area of residence, some will extend to neighboring areas and further. Some of these shippers will have restrictions as to the type of products they deliver: there are services that won’t deliver restricted products like alcohol, tobacco and related merchandise, etc., so you will have to look for alternatives.
It’s crucial to have an automated system set up, to select the right shipper for a specific task and automatically choose the lowest rates. RPA software tracks delivery, so that the orders are fulfilled on time, monitors inventory levels and is successfully applied to regulate logistics and supply.
Although the market calls for innovations, many small business owners are reluctant to adopt new technologies. In their opinion, the changes to their business operations may turn out too disruptive to their business ecosystem, and the cost of implementing SaaS solutions offered by giants like Amazon — simply too high.
At VARTEQ we understand that effective software solutions for SMB companies have to be custom-made, and we listen carefully to grasp the specifics of your business before we start developing your business-specific software tools. We offer tried and true solutions for automating processes at your retail back end and have all it takes to guide your business through digital transformation.