Same-day delivery: Logic, Logistics & Supply Chain

In this rapidly changing world, where everything is in-the-moment or instant, patience is wearing thin. People do not wish to wait for anything. This triggered the idea of same-day delivery or delivery within a few hours of placing the order.

Same-day delivery or delivery within minutes revolutionized supply chain management. Just like Amazon did with its Prime subscription, creating a sound ecosystem of local suppliers, warehouses, and a fleet of delivery executives. 

Companies like Dunzo and Amazon Pantry brought this concept of quick and effective delivery within a short duration of time. Following this lead other players such as Zepto, Big Basket Now, and Grofers (now Blinkit) are all entering the arena. In such a booming segment, food delivery partners like Swiggy got a new feather in their cap called the Swiggy Instamart. 

All these companies have a tech-driven approach to reducing costs and increasing efficiency. They make use of ERP software, and logistical excellence & spend heavily on R&D.

It all starts with market research & understanding the customer base. These companies conduct research whereby they understand the target audience, spending capacity, and purchase pattern. Depending on the analysis the companies decide their inventory, the plan offers & discounts, and prepare a customer acquisition and retention plan.

Later, the companies gauge the average purchasing power and the kind of products that are often bought in the area.

Next, the companies tie- up with the local Kirana or grocery stores that act like their warehouse. The companies incentivize them and save themselves from the headache of inventory management.

In areas where demand is heavy & purchasing power is high the companies open self-owned warehouses.

This saves delivery time, which is the main USP for companies that claim delivery within 10 minutes.

These companies also study the geography of the area where they wish to enter. They do this to explore the routes and measure the shortest distances and alternative ways to reach the same destination.

Many companies often offer discounts and exciting offers to acquire customers. This is because, they are funded by foreign and national investors, thus allowing them the capacity of heavy cash. Since this market is rapidly booming and attracting new players daily, acquiring and retaining customers is becoming increasingly difficult. Especially for the players who do not have the cash burn capacity or are funded by external investors.

Hence, the companies focus on delivery time, packaging, technology, and fleet management. Following the Green India initiative, many players have shifted to green packaging.

For example, Big Basket does not pack the vegetables in plastic bags, instead, it asks customers to use cloth bags to reduce waste.

Companies are using artificial intelligence, machine learning, and predictive analytics to record and use purchase history to enhance each shopping experience. Mobile applications have chatbots and interactive chat options which are an important touchpoint for uplifting the customer experience.

The mobile applications provide real-time customer order tracking, which helps in retention.

All these companies are setting new benchmarks in the field of logistics & supply chain by creating a smaller chain, building a stronger ecosystem, saving time and focusing on customer demand, and effectively integrating technology in their operations.

Excellence is the aim of many players engaged in the FMCG sector or manufacturing sector. Technologically driven logistics & supply chain management is what the new world represents. Hence staying relevant is necessary if one wants to succeed in the field. 

Understanding the changing dynamics and gaining knowledge in supply chain management, supply chain management processes, demand planning, logistics, and business administration is crucial. To be updated, one should pursue a Post Graduate Diploma (PGDM) in Logistics & Supply Chain Management or Master in Business Administration (MBA) in Logistics & Supply Chain Management. MIT School of Distance Education (MITSDE) is a distance learning institute that offers a PGDM in Logistics & Supply Chain Management. MITSDE provides you with deeper, practical insights on the latest industry trends, and trains you with industry-demanded skills.