As same day delivery continues to grow and expand into new markets, the challenges of providing that kind of service become more apparent. What does the future hold for same day delivery, and what are the biggest challenges to its become more main stream?
In a lot of ways, getting same day network and same day delivery to a point where it’s very tight standard operating processes (SOPs) is not all that difficult. However, where it does get challenging for any business trying to incorporate a same day delivery model is when you start bringing in new cities and new partners.
Because the industry itself is, by nature, very fragmented, that can create some challenges. If you expand to 50 cities you can end up with a variety of different partners, and while creating relationships with them might be simple, managing all those deliveries across all those markets without having a single interface to go through can be prohibitively challenging to growth.
That’s really where technology comes to play.
The problem tends to be that there are so many service providers you will be working with and they all use very different systems; what you need technology that could integrate those disparate systems into a central platform.
Companies such as Casper, the startup that delivers mattresses to your door in as little as 3 hours, had a goal to create an overarching national network. On a recent podcast, Liesl Chang of Casper said “I’ve always called it kind of a national- local network…we had a national scope, but you can get providers into the local level; a level that would deliver within a 25 to 50 mile radius… that’s an ideal experience for the customer.”
However, executing against that kind of strategy can become a big challenge – it’s very difficult on the carrier side to get them integrated into a centralized system. On the technology side, how do you onboard those local carriers that have their own legacy systems? Especially when some of them have used the same systems for 20-plus years. Migrating them over, not just switching their software, but also changing up their workflow – there’s an additional cost to that.
The above challenges have caused some of the more “traditional” retailers to not take the plunge. There are exceptions though – Amazon and Google, for example, have begun to offer same day and 1-hour delivery in certain markets.