Reimagining Opportunities in Last Mile Delivery
Just back from #retailfulfilmentsummit2022 as a moderator and speaker and I have to say ... Legacy systems are no longer calling the shots. Read on and see how retailers can compete and win while lowering costs and maximising growth!
“(We) utilise our network of over 200 stores and combined with our extensive product range, can get customers what they are looking for without them having to venture out of their homes,” - George Wahby, CEO of PetBarn
Shoppers have instant access to almost anything. They browse effortlessly between in-store and online channels, brands, products, prices, payments, and delivery. Key barriers to shopping are delivery cost and time and this makes up the bulk of abandonment rates. This is reduced with click and collect and improved, faster delivery options.
From a retailers perspective, the competitive value of a store footprint is often overlooked. With the increasing rise of popularity in online marketplaces, a store network is a massive competitive advantage that provides significant cost savings while reducing environmental impacts.
- Between 60-80% of what we buy could be found within 10km of home
- Australian eCommerce purchases travel 200km+ over multiple days
- Store fulfilment reduces transportation-related emissions by up to 50%
- Carbon footprint per package can be reduced by 10%
Buying online and picking up in-store is now table stakes for consumers. Click & collect remains extremely popular and the fastest growing area of fulfilment for many national retailers. Home delivery is the runner up for convenience & certainty for consumers. Shoppers choose convenience as the key driver for online shopping and utilise click & collect for cost and certainty. Fusing click & collect with same-day delivery is a fantastic and innovative approach to exceed customer expectations.
"Hi Mike. Your order is ready for collection at our Chadstone store. Or Book a same-day delivery and we'll home deliver your order by 8pm tonight."
Are legacy systems calling the shots? I don’t know a retailer out there who isn’t re-platforming an ERP, WMS, POS, or eCommerce platform. Retailers that choose to meet and exceed customer expectations are winning - and they’re winning big time ...
How to Get Started
- Offer same-day delivery from your click & collect SMS and eMail notifications
- Bring subscriptions in-store & deliver them across consumables like beauty, pet or specialty food & beverage
- Turn services into surprise & delight moments leveraging delivery for dry cleaning, roasted coffee & teas, special orders & trade, big & bulky items ...
- Give customers the choice of a same-day upgrade at multiple points of the customer journey
- Offer a same-day upgrade in order notifications and post-purchase moments
Recently, I was fortunate to chair a talk with Nick Adams, Chief Customer Officer for PetBarn and GreenCross Vets. Nick shared insights that PetBarn has fulfilled a staggering c. 500k same-day delivery orders with share of services amounting to ⅓ and growing for PetBarn's online order volume.
"Delivery is potentially one of the biggest competitive advantages in e-commerce. When done well, offering a same-day option can both influence a consumer’s decision to buy and improve customer loyalty." - Alana Fennessy, Head of Client Engagement, ChannelAdvisor (AU)
Customer's Choice is the Best Choice
According to CBA and their Retail Insights team, Customers choose scheduled deliveries, faster & same-day delivery options, and weekend or after-hours delivery times. It's simple unit economics, when customers have choice, they choose. You can exceed customer's delivery cost expectations (and improve the P&L) utilising your store network. Store-to-door fulfilment is key to competing against large eCommerce retailers and can drive costs down in a local delivery radius. At a lower cost than Express options and relative to parcel post.
Fact is ...
In a 3, 5 or 10 km radius, bulk or milk run styled same-day deliveries are near always more affordable than Express shipping and comparable to standard. Offering a same-day upgrade in your order notifications is a chance to recover delivery costs when free shipping thresholds are met. I've been able to achieve parcel post costs on same-day delivery with volumes as low as 5 parcels at a single pickup location for a national retailer.
It is no longer your legacy systems, internal processes or lack of resource holding you back. There are multiple solutions to meet any last mile delivery challenge, click & collect or global inventory management need.
About Rendr
Rendr is the technology that enables retailers to deliver same-day. Providing a business grade on-demand delivery experience with the industries highest SLAs and DIFOT (Delivery in full, & on time) ratings through it's intuitive booking & assignment engine.
With a complete suite of solutions that include a Fast Booking App, Delivery Portal, Click & Deliver option, as well as custom API and platform integrations ... there's a solution to enable any local or national retailer to offer same-day delivery. Rendr is also imminently coming to the most popular shipping, POS and order & inventory management platforms that you are already connected to.
About Mike Fowler
Mike is an eCommerce veteran, senior leader & growth strategist for some of Australia's best retailers. Formerly at Afterpay as Director of Merchant Services APAC, General Manager and founder of the growth team at Mosaic Brands (Noni B Group) developing and launching 9 iconic multi-category online marketplaces, including: Noni B, Rockmans, Millers, and Rivers, as well as Head of Digital at Blue Illusion. Member of the Australia Post Customer Advisory Group with more than 15 years experience in helping retailers leverage eCommerce, CX, payments, & logistics opportunities to maximise growth.
