Are retailers moving closer to last mile delivery? – RetailWire

January 18, 2022

A new global survey finds that 99% of retailers plan to offer same-day delivery by 2025, up from 35% who are able to do so today. However, only 29% believe they are currently doing a good job of meeting their delivery windows.

the survey of 500 retailers from the United States, Canada, United Kingdom, Germany, France and Italy, commissioned by Bringg, was made in December.

The biggest impediment to on-time delivery turned out to be lack of real-time order visibility/tracking, cited by 36% and up from just 14% in a December 2020 survey.

The second most important obstacle was the travel distance between the warehouse, the point of sale, etc. and the point of delivery, cited as the biggest problem by 24% of respondents. Close behind as a major barrier was the number of drivers and size of fleets available to make deliveries, cited by 23%.

Dispatch and routing issues (10%) and costs (6%) rank among the smallest barriers. The study noted that when exploring respondents who were very satisfied with the delivery/fulfillment options they offer, the cost challenge rises to 42%.

Among the challenges of scaling delivery were inefficient manual processes for scheduling and ship orders, cited by 55 percent. Only 35% have fully automated last-mile delivery and fulfillment operations, with 60% using a combination of manual and automated methods.

Forty-one percent said they struggled to work with multiple delivery fleets (crowd source, third-party, own, etc.). More than 80% of retailers work with more than five suppliers. Issues with working with multiple third-party fleets include lack of brand control (cited by 36%), lack of visibility (26%), cost (23%), and integrating multiple fleets (16%) .

Other challenges with scaling delivery include planning delivery times with customers (46%) and managing multiple fulfillment channels across disparate technologies (44%).

Sustainability and carbon emissions are also seen as important considerations, with 56% of retailers using electric vehicle fleets and one in three using bicycle fleets.

DISCUSSION QUESTIONS: What are the obvious and less obvious barriers that stand in the way of optimizing last mile delivery? Which technologies and other solutions are the most promising?

Braintrust

“The holy grail would be a turnkey delivery provider that consolidates all delivery providers into a cohesive network that simplifies the entire delivery process.”

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About Aldrich Stanley

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