Delivery Logistics Industry
Thought and Leadership
Traditional Supply Chain Metrics are relatively well known, but in the age of empowered consumers, customer centric supply chains have become more important. Within the context of customer centric supply chains, it's important to look at these supply chain metrics as they relate to the customer centric model.
Global, local, and hyperlocal - Amazon has slowly but surely been establishing itself in the delivery space. One of its most ambitious projects is same-day delivery called "Prime Now" which provides local delivery as quickly as one-hour. Until now, the service was only available on the Prime Now mobile applications, which was not popular among the Prime paying users. According to Bloomberg, this spring it will be available on their web site, so it can be accessed via desktop.
In 1991 catalog industry veteran Don Libey went on stage at the annual Catalog Conference and claimed that the country is heading towards same-day delivery models. Many seasoned catalog executives in the audience laughed. Today, retail giants like Amazon.com, Google, eBay and Wal-Mart are making same-day delivery a reality.
A survey conducted by comScore Inc. in 2013 showed 92% of consumers were willing to wait four or more days for free delivery. However, the demand for same-day delivery might be weaker than expected. According to a new Booz & Company survey of more than 1,000 online shoppers in the United States, most customers don’t necessarily need same-day delivery and, in fact, in many cases they don’t want it. Some stated they don’t want the item to arrive while they are making dinner or putting their kids to bed, let alone have it sit on their doorstep overnight.
Tech investor and thought leader Semil Shah wrote a fantastic piece earlier this year titled “The On-Demand Stack.” In the post, Semil described the paradigm shift in consumer behavior and expectations, in which they now can get what they want when they want it, and know exactly where it is along the way.