Making the most of a same day courier service

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Same day delivery benefits both the customer and retailer. It is a safe bet for companies, therefore in high demand for boosting operational productivity. Obviously, a vital part of a same-day courier service is speed. Make sure the courier company you choose can guarantee your delivery deadlines. This will be a sure way for you to in turn be able to keep your clients all the more happy too. These services can be found up and down the UK. They are able to work to service no end of industry types too.

Whether you need to meet an urgent deadline, keep systems running, or meet your customers’ increasing expectations, Same Day Courier shipments need to be managed from the offset. It is key for you to know everything going on from beginning to end and for you to be sure of what processes you also have in place as a means to be able to deliver a complete overall service too.

The changing face for same day delivery as a key service

Same-day courier delivery has the potential to fundamentally change the way we shop. It integrates the convenience of online retail with the immediacy of bricks-and-mortar stores. In recent years an increasing number of companies have started piloting and operating new models of same-day delivery, including incumbent logistics providers such as DHL, DPD, FedEx, and UPS. Demand is expected to increase significantly given the compelling value proposition of same-day delivery for consumers. Consumers clearly attach a value to same-day delivery. In a recent representative survey conducted by McKinsey in Germany, France, Sweden, and the UK, 50 percent of respondents indicated that they would be willing to pay same-day delivery costs of EUR 6 to 7 for a EUR 59 purchase.

How online shopping is also jumping on to this service offering

Online retailers are expected to benefit from reduced delivery time as almost immediate product access improves their position versus stationary retailers, and makes the greater choice, higher convenience and often lower prices of online shopping even more appealing. Bricks-and-mortar retailers in turn have a unique opportunity to combine their existing local infrastructure with an e-commerce channel to offer same-day delivery on a broad scale. A multichannel approach could enable them to win back customers who are becoming increasingly focused on online shopping.

Three operating models have emerged to fulfil the logistics need. The first consists of incumbent parcel logistics providers with an additional delivery wave. Second, retailers can use broker platforms that provide access to existing courier capacity to offer instant or scheduled delivery. And third, large retailers maintain their own fleet to handle same-day deliveries. In the long run, parcel logistics providers will be able to operate at the lowest cost. This is all while offering integrated logistics solutions. This is ranging from orders through fulfilment to delivery and return.

How the .com era helped to bring this market and offering to life in a big way

As early as the dot.com era, start-ups such as Kozmo and Webvan identified same-day delivery as an opportunity. They failed to build a sustainable business model around it. The companies tried to integrate all steps along the value chain in-house, but were unable to bring down their costs sufficiently due to lack of demand (and therefore scale).

Today, the market for same-day delivery is moving toward the next stage of development. Following its pledge to be a truly customer-centric organization, Amazon, the largest online retailer in the world (USD 61 billion in revenues in 2012), is actively promoting same-day delivery, and has already introduced the service in several cities. There are many other initiatives in the pilot phase. Only few of the players generate significant revenues from same-day delivery. But many same-day delivery promoters have successfully launched new pilots and companies over the last few years.

Moreover, other important multichannel and online retailers such as Walmart and Alibaba have same-day delivery on their agenda. The main centers of development are e-commerce-savvy cities in both developed countries (such as San Francisco, New York, London, or Berlin) and less developed markets (e.g., Beijing or São Paulo). Similar to other evolutionary industrial developments (mobile phones, for example, or online banking), it seems reasonable to anticipate that same-day delivery will leapfrog day-definite last mile delivery and become the immediate standard for e-commerce in some emerging countries. Development on the supply side is driven by three groups of players. This spans parcel logistics providers, brokers of courier capacity, and retailers themselves.

Same day couriers can help you to save money in other areas of the business

In addition to cutting vehicle expenses, using a courier has the potential to reduce other business overheads too. For instance, if you have an in-house delivery team, you could end up paying more in payroll taxes. You will also pay overtime pay, employee benefits, paid time off and sick leave, potentially outweighing any profits from sales. With a same day courier, you can reduce the size of your own fleet and drastically cut costs.

You can also be sure to cut liability and risks in the business

In the unfortunate event that a member of your own staff was to have an accident making a delivery, and was found to be at fault, the liability falls back on your business and insurance provider. This can be a headache with financial implications. With a courier, your own liability and risks are greatly reduced. This is as the courier company covers such a service with its own insurance policy.

Demand is very much on the up for these services

Same day and next day delivery, along with in store and curbside pickup, are ways for businesses to get more money from eCommerce sales by using up local inventory. In an era where more people are shopping online and fewer go into stores, this omnichannel approach is especially critical. Consumer demand for same day shipping is skyrocketing. Many retailers and their delivery logistics providers will need to find technology solutions that reduce their cost to deliver, without inflicting additional costs onto the end customers.

Same day v next day delivery as a service offering

Next day delivery is a process where a consumer orders online from a retailer and receives their package on the following day. For same day deliveries, customers receive the package on the same day on which they ordered it from the retailer. Until recently, next day delivery was the premium service. Most logistics operations are set up to provide two day delivery to customers as the fastest option. This still applies for many businesses. Fast shipping relies on inventory located near the customer.  If next day delivery was possible with a distribution centre located outside an urban area, for example, that same distribution centre may be too far for delivery drivers to perform multiple urban same day deliveries.

Overall, what you need to know about this as a service offering

If you haven’t yet implemented same day shipping, or are overwhelmed by same day delivery challenges, these tips should help. Just remember that speed is only one aspect of fulfillment that customers value. It’s about a larger last mile delivery experience that starts online and ends with a successful delivery. By applying the right technology solutions and connecting your supply chain systems into a single coordinated engine, you can provide the omnichannel experiences and fast delivery with the end-to-end visibility, control, and various channels of ecommerce fulfillment customers are looking for.

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