We surveyed 500 retailers to assess their last mile operations. The resulting analysis explores how retailers can connect their current fulfillment services and delivery network for greater customer satisfaction and ROI.
eCommerce spending has continued to soar, and throughout the year, supply chain disruption has led to dramatic upheaval and changes in retail operations.
Retail strategies such as omnichannel fulfillment are growing. Retailers are taking their customers from offline to online buying and fulfillment; and new ecosystem players – including crowdsourced fleets, warehouse solutions, mobility solutions, and more – are paving the way for cost-effective, fast fulfillment
However, a disconnect across the fulfillment network created a gap in where and when consumers wanted their orders fulfilled, and retailers’ ability to deliver it. The spike in delivery volumes means that the level of demand formerly seen during peak season will become the year-long norm in 2022, necessitating more delivery resources. Fast delivery is becoming a key offering to stay ahead of competition, but not all retailers have the technologies and processes to handle the complexities of same-day delivery or to effectively manage multiple carriers and fleets.
The retail industry is reinventing itself and adjusting its fulfillment operations to the current market eruptions which are paving the way for cost-effective fast fulfillment.
To get there, retailers will need to connect and automate their delivery network resources, processes and technologies, and adopt hyperlocal fulfillment as a goal for 2022.
Retailers are facing a lack of data and lagging productivity around their delivery processes. Inefficient manual processes and a lack of real-time visibility once the order is out for delivery are the two greatest pain points around scaling delivery in the last mile. Lack of visibility has increased as a key pain point to delivering on time, and is exacerbated when working with multiple third party delivery providers.
Retailers are matching customer demand for speed by planning fast delivery time frames. However, too many current fulfillment models do not support on demand and same day-delivery. Hyperlocal delivery will become a primary focus as retailers restructure inventory distribution, use of delivery partners, and last mile technology to enable fast shipping and hyperlocal delivery in 2022.
Retailers are using multiple fleets to manage rising delivery volumes and demand for fast delivery. But as the number of fleets grow, so will challenges like visibility and brand control over these deliveries. The need to use a delivery management system to handle the complexities of a multi-carrier mix is becoming more urgent.