How same-day delivery is changing last mile logistics

Same day delivery is transforming last mile logistics by changing how the businesses handle order fulfillment and customer satisfaction. Over 25% of shoppers would abandon their online cart if same day shipping isn’t available. Businesses are facing the pressure to innovate their logistics strategies to remain competitive. While same day delivery improves the shopping experience providing instant gratification, it presents several challenges for the logistics providers. To address these issues, businesses are turning to advanced technologies and fulfillment models like decentralized warehouses and local delivery partnerships to enhance their last mile operations.

Growing demand for same day delivery is making the businesses re-evaluate their traditional logistics approaches. They are now focusing on using advanced solutions for route optimization, order tracking and real time visibility to meet customer expectations for speed and reliability. The last mile often makes up over half of shipping costs. Optimizing this phase is crucial for profitability and customer satisfaction. As businesses work to balance speed and cost, use of technology in last mile logistics is crucial. 

Demand for same day delivery has increased drastically in the recent years. This is driven by growth of e-commerce and changing consumer expectations. With online shopping becoming more common, the consumers now expect speed along with convenience. 62% of shoppers say delivery speed impacts their choices with many ready to pay extra for faster delivery. As of the first half of 2024, eCommerce represents 15.9% of the total retail sales in the United States. This shows a clear trend towards immediate fulfillment in consumer behavior.

Retail landscape is changing as businesses realize the need for same day delivery to stay competitive. More than 51% of the retailers offer same day delivery and 65% aim to offer it in next couple of years. This shift is most noticeable specially among younger buyers aged 18-34 years where 56% expect same day delivery as a standard option. Speedy delivery enhances the customer satisfaction and gets repeat business. As technology advances, the demand for faster deliveries will shape the future of retail.

Same day last mile delivery brings many challenges that the businesses must overcome to meet customer expectations and stay efficient. Tackling these challenges is key to customer satisfaction and operational success. Let’s discuss main challenges in same day delivery: 

Logistical planning: Efficiently planning the routes to ensure timely deliveries within a single day is complex. Traffic conditions, delivery windows and multiple stops can make it challenging to optimize the routes effectively. Without proper route optimization, deliveries may be delayed which can affect the customer experience.

High operational costs: Same day delivery requires a significant investment in resources such as delivery vehicles, additional drivers and advanced technology for tracking and routing. These increased operational costs can be a major challenge for businesses and affect the profitability.

Demand forecasting & capacity management: Predicting demand for same day delivery can be difficult. It can lead to either overcapacity or undercapacity issues. Overcapacity can result in unnecessary expenses and undercapacity can lead to missed deliveries and unhappy customers.

Inventory management: For same day deliveries, warehouses need to have products readily available and organized. Efficient inventory management is crucial to ensure that items are picked, packed and dispatched quickly. Poor inventory management can lead to delays and incorrect orders.

Customer expectations and communication: Customers have high expectations for same day delivery including specific delivery windows and real time tracking. Meeting these expectations requires effective communication and an efficient system for tracking and updating the delivery status. Failure to meet the customer expectations can lead to frustration and negative reviews.

Regulations and compliance: Same day delivery services must comply with various regulations, such as transportation laws, labor laws and environmental regulations. Managing these can be challenging and time-consuming specially when working across different regions or countries.

Tech integrations: Implementing technology for tracking, routing and managing deliveries is highly crucial for same day deliveries. It is important to ensure that these systems are reliable and seamlessly integrated with the existing systems. 

Environmental impact: Same day delivery increases the vehicle usage leading to higher carbon emissions and environmental impact. Businesses face the challenge of balancing fast deliveries with eco-friendly practices and meeting the sustainability goals.

Driver management: Recruiting, training and retaining drivers who can handle the demands of same day delivery is a major challenge. High driver turnover rates and need for skilled personnel can impact the efficiency and reliability of delivery service.

Same day last mile delivery is a game changer in the logistics landscape! It gives businesses a strong edge to enhance the customer experience and increase sales. Here are some key benefits of same day delivery:

Faster delivery times: Same day delivery allows the customers to get their orders faster than standard shipping. This is specially important for time-sensitive items or when the customers need a product urgently. 

Improved customer satisfaction: Rapid order fulfillment and fast delivery increase customer satisfaction and loyalty. 76% of consumers see last mile delivery as a test of how much a brand values them. Offering speedy delivery options gives the businesses a competitive edge and helps get repeat orders.

Increased sales: Customers are more likely to place an order when they can receive the product as per their convenience. Same day delivery increases the chances of customers making a purchase specially in the case of impulse buys.

Reduced shipping costs: Same day delivery may seem costly but it can lower the overall shipping expenses. Optimized routes, efficient delivery methods and reduced returns lead to lower costs per delivery.

Reduced returns: Faster delivery options such as same day can sometimes lead to fewer product returns. Customers are less likely to return an item if they get it immediately rather than waiting for days.

Competitive advantage: Offering same day delivery sets your business apart and keeps you ahead of your competitors. E-commerce companies like Amazon have raised the expectations for fast delivery making same day delivery a standard demand.

FarEye is a last mile technology partner for companies obsessed with delivery experience for their customers. It offers a range of solutions designed to make logistics operations smoother, improve customer satisfaction and enhance operations. Let’s see how FarEye is enabling same day deliveries: 

Last mile delivery platform: This end-to-end delivery management platform integrates various logistics processes. It allows the businesses to manage multiple delivery models including same day, next day and on-demand deliveries from different inventory locations.

Route optimization: With FarEye, the drivers follow optimized routes via a driver app to meet the delivery windows. Managers can track orders and their delivery status in real time. FarEye has helped Gordon Food Service, the largest family operated food distribution company in North America to offer choices like 3 hour delivery window and ability to be consistent and on-time. 

Real time visibility: FarEye offers real time tracking and visibility features that allows the businesses to closely monitor their logistics operations. These features help the businesses gain control over their delivery processes, customize their logistics operations and reduce customer anxiety by offering order-to-door delivery visibility. 

Predictive intelligence: These tools enable businesses to achieve end-to-end visibility in their supply chain operations. Tata Steel used FarEye’s predictive intelligence tools to gain complete operational visibility. This helped them make data backed decisions and reduce theft and pilferage by 57%. 

Delivery transformation: FarEye helped Zalora transform its last mile delivery capabilities, allowing them to enhance operational efficiency and offer same day delivery options to their customers. The brand achieved 98% successful first attempt delivery rate and 91% success rate for return pickups. 

Technology is transforming same day last mile delivery by improving the efficiency and meeting rising consumer expectations. Retailers are increasingly adopting cloud-based platforms for seamless coordination between the sales channels, inventory databases and delivery fleets. Real time inventory systems are helping the businesses fulfill orders faster and automated warehouses with robotic systems are helping streamline picking, packing and loading. On-demand delivery platforms connect the retailers with a network of drivers enabling them to offer same day services without significantly raising operational costs. 

Advanced technologies like drones and autonomous vehicles are revolutionizing same day delivery. E-commerce giants like Amazon and Walmart are investing heavily in automation. Amazon is testing drone deliveries and Walmart aims to automate 65% of its stores by 2026. Drones deliver small packages to customer's doorsteps quickly. While autonomous vehicles can handle the deliveries without human involvement. These innovations are transforming the retail logistics making deliveries quicker, more efficient and more accessible.

Same day last mile delivery is quickly becoming an expectation. Global same day delivery market is expected to reach $12.52B by 2029 with increasing demand for fast delivery services. To meet this demand, the logistics companies are using strategies like setting up micro fulfillment centers and dark stores to speed up the deliveries. Autonomous vehicles, drones and robots are also reshaping last mile landscape by increasing the efficiency and lowering costs.

Advanced technologies like real time tracking software and AI-driven route optimization are crucial to predict accurate delivery times and reduce delays. Businesses are increasingly focusing on sustainability by using electric vehicles and crowdsourced delivery models to lower their environmental impact. These are helping the businesses offer same day delivery and stay ahead of competition.