Delivery challenges are still affecting conventional businesses despite the growing importance of eCommerce in stores. These businesses still rely on sales from their physical stores to supplement their profits. This struggle is due to eCommerce power players like Amazon. Prominent power players make the market more competitive and take away sales from smaller retailers.
These top eCommerce stores are now offering same-day delivery options to attract more customers. Although same-day delivery is a dream for consumers, it does pose many challenges among eCommerce suppliers. For one, it requires high management and operational costs that not all small businesses can afford. For this reason, providing same-day shipping services requires different solutions.
To help you remain competitive and proactive, here is a quick rundown of potential challenges you can encounter as a business owner.
What Is Same-Day Delivery?
Same-day delivery refers to delivering an item on the same day as the consumer bought it. Faster order fulfillment depends on local inventory from distribution centers or shops.
Offering same-day and next-day delivery, in-store and curbside pickup, businesses may increase revenue from eCommerce sales. This omnichannel strategy is critical as more customers buy online and less in shops. Many merchants and shipping logistics providers will need to find technology solutions that reduce delivery costs without increasing consumer prices.
Here are some other significant delivery challenges that might derail same-day delivery for customers.
Challenge 1 – Minimal Planning with Orders
One of the most challenging tasks for small businesses offering same-day delivery is forecasting demand. In the lack of data, it is impossible to plan and maintain appropriate inventories. Small businesses with few staff members may likewise struggle to fill all orders in under one hour.
Hiring a team of drivers or fulfillment centers may be pricey, especially for startups. Orders delivered by air may also incur extra charges.
Challenge 2 – Poor Dispatching and Tracking Process
Most businesses use dispatchers for scheduled deliveries, but products need to come in before cutoff times.
Due to the lack of time to verify fleet availability, out-of-date dispatching software or manual dispatching cannot handle same-day delivery requests. Without automation, same-day dispatching is practically impossible and not cost-effective.
Challenge 3 – Selecting Competent Staff and Delivery Drivers
With same-day delivery comes new procedures and personnel issues. First, you need enough employees to fulfill the job. You will also need to modify job descriptions and responsibilities. Tailoring the job descriptions is especially important if you’re doing both in-store and online order fulfillment.
Same-day delivery also requires trustworthy drivers committed to the company and can meet deadlines. You might need to increase your salary as responsibilities increase, which may be challenging for smaller businesses.
Finally, you need efficient package tracking software that can help drivers be on time while simplifying deliveries.
Challenge 4 – Travel Distance and Fulfillment Sites
eCommerce is growing faster than businesses can keep up with their supply chains and local inventories. Few companies have local fulfillment facilities or store presence close enough to customers to provide same-day delivery in suburban and rural areas.
Furthermore, inventory management systems are not designed to handle shipping from stores. Many businesses suffer from incorrect inventory on a store-by-store basis. It isn’t easy to ensure inventory availability in real-time without proper inventory management and a supply chain designed on local fulfillment.
Challenge 5 – Little to No Automation
On-demand delivery can be a logistical headache if your data and resources are not linked. Doing same-day delivery is not possible without automation. Delivering orders on time and within a single day necessitates real-time interfaces across many systems. Important ones include inventory management systems, POS, order management systems, logistics provider’s TMS, and everything in between.
Operating same-day delivery at all, much alone profitably, requires digital operations with automated dispatch software and route optimization software. It also relies on many resources that must be coordinated for them to operate together in real-time.
Overcoming these same-day delivery challenges is difficult but worthwhile if your customers want it. Ask yourself—and your customers—if same-day delivery is necessary to stay competitive. If yes, it’s time to address the service’s logistical, financial, and human resource concerns. If not, go further into what makes shoppers choose your store above the competition.
FlashBox offers a one-stop solution for same-day delivery and last-mile delivery needs. Our delivery-as-a-service platform caters to businesses of all sizes in the Greater Toronto Area. We also provide you with fast and seamless services with reduced operational costs. Get started with FlashBox today!