How to Improve Delivery Without Affecting Profitability

29 May, 2019

The growth of e-commerce has rapidly revolutionized the parcel delivery sector of logistics. Omnichannel fulfillment has also come a long way to meet customer preferences and deliver the best delivery experience. As it turns out, making sense out of the last mile is very important. For both the parcel carriers and the retailers, this is beyond anything they can ignore. 

The last mile is often responsible for the bulk of the supply chain costs, more than half of the total costs in some cases. At SendMyShipment.com, we understand how important it is to ensure a perfect delivery experience. But then, we also understand how important it is as well, to ensure this does not eat too deep into the bottom line. 

 

Improved delivery means more loyal customers

By providing an excellent delivery experience, businesses will be able to retain more loyal customers. In a survey, 19% of the respondents have reported that they’d spend more on purchases on businesses in ten different categories provided they would get satisfactory delivery services. 

That sounds very good until you realize that customers are not so much disposed to paying high delivery costs. As the retailer, you’ll mostly have to absorb some of these costs which ultimately reduces your margin. 

 

Improving the delivery experience for profitability

How then should parcel delivery companies and retailers approach the last mile delivery process to improve it significantly without this threatening their profit margins? At SendMyShipment.com, we believe that both parties have to innovate in ensuring they get the best of both worlds. Below are some of our recommendations for parcel carriers and retailers looking to improve their last mile delivery experience. 

 

Collaboration between carriers and retailers

Customer expectations continue to grow and this should necessitate collaboration on the part of retailers and carriers to find a sweet spot where efficiency and cost are properly balanced. Operations on both sides have to be made scalable to accommodate evolving customer expectations and preferences.

Carriers have to work closely with other fulfillment businesses to improve their capabilities without huge capital investments. Incorporation of technology platforms for customers on the part of the carriers may also go a long way to enhancing the overall delivery experience without having to invest so much. 

 

Improving operational efficiency through automation

Reducing manual resources and investing in automation will help you increase operational efficiency while also keeping costs under control. This can be incorporated into different areas of the journey from warehouses to sorting centers and even in the use of autonomous vehicles in select locations, for long-term plans. This usually provides more flexibility to enhance operations and improve the customer experience.

 

Leveraging emerging technology will also help retailers get an edge over the competition. This can be in the form of automating some part of the physical store, improving backroom capabilities to improve in-store stock movements, reduce stem distances, and ultimately increasing drop density. Again, retailers and parcel carriers should also focus on ways to reduce inherent complexities in the last mile to push even further towards the click-and-collect trend. 

All of these will prove very important in the drive to satisfy customers with continuously evolving expectations in a way that significantly improves the delivery experience without eating so much into the bottom line.

 

SendMyShipment.com

Retailers, individuals, and other organizations have to partner with reliable carriers to ensure a better experience for the consumer or receiver on the other end. Here at SendMyShipment.com, we strive to make your choice unlimited as far as choosing reliable carriers are concerned.

With the basic details of your shipment, you can easily log on to our website at www.sendmyshipment.com for free quotes at competitive rates from multiple reliable and credible carriers. It’s that easy and simple to get started. You can also contact us at info@sendmyshipment.com for additional information.