Is your organization ready to offer same-day shipping cost effectively? If not, you could be left behind. Currently, about 51% of retailers provide same-day delivery, which could rise to 65% or more by 2020, according to the National Retail Federation.
Right now, it's most critical in the automotive and flower delivery sectors, but it's spreading to all part of the retail sector for effective retail inventory management. Is it worth the investment? Surveys found that 83% of shoppers are willing to pay a premium for same-day or faster service.
When you market your same-day capabilities, it's critical to be clear about what you mean. While it may seem like same-day shipping and same-day delivery are the same thing, they are not.
Same-day shipping guarantees the customer's online order ships out the day it was received. However, the actual delivery time is likely to be longer. That's why so many companies promise same-day shipping, but can not actually offer same-day delivery. Same-day delivery, of course, guarantees that the order is delivered within the same day it's purchased.
Ramping up to ship customers’ orders within a few hours or within a certain time window on the same day can be quite costly and a logistical challenge if you don't plan appropriately. However, meeting the challenges of same-day service can instill discipline in your operations and expose bottlenecks. If you have to move products out the door within a matter of hours, there's no time for wasted effort.
You may need to add resources and staff to handle the faster shipping requirements. You'll also need a logistics management solution that can help you ship up to 2.5 faster than other options.
With Logiwa, warehouse management system, you can step up to the challenges of same-day shipping backed by 100% inventory accuracy. You can use real-time data to manage inventory across all channels, using a birds-eye view of inventory levels from the intuitive dashboard.
With better inventory accuracy, you'll be able to optimize order processing methods like grouping orders or picks to reduce warehouse travel time or facilitate trailer loading. You'll have the order and inventory information you need to make decisions to boost productivity. Managing variable volumes and workloads will keep order processing time short by choosing pick methods to cut down on cycle times. In same-day shipping it may be difficult to accumulate large numbers of orders before starting to process them, so accurate inventory can help you make the best decisions in real-time.
Customers will value having accurate inventory information about the products they want to buy. Customers get disappointed fast if they click on the buy button only to find out the product is out of stock or not available with the shipping time they want. If you can consistently meet shippers' expectations, it's more likely they will embrace your products and become brand loyal.
To compete for customers in the future, same-day shipping will be table stakes for most e-commerce companies. If you're not able to operate at that level now, your logistics software may be holding you back. Complex legacy systems that don't integrate with online sales platforms or other tools like accounting and ERP systems may keep you from meeting your goals. By comparison, Logiwa has integrations for more than 70 applications, with more on the way.
Get ready to offer same-day shipping for your business. To see how Logiwa boosts fulfillment efficiency, contact us for a demo today. today.