Ship at scale … (Economies of scale)
With a higher volume of orders, companies can create an ecosystem of speedy delivery services that increases the number of orders that can be ordered and delivered per day. The higher volume and increased services reduce the cost-per-package, making same-day delivery even more attainable.
Accenture conducted a pilot study to analyze the impact same-day delivery can make when done right.6 With the right products, customer segments and locations, same-day delivery costs could be at parity with parcel ground shipping, while at the same time providing a superior customer experience. For our pilot methodology, we determined what products would be most suitable, who our target customers would be, and where in the United States we would deliver from. Then, we executed on same-day delivery with the help of partners. By targeting the most densely populated cities, we could help our client achieve a 50 percent same-day delivery penetration rate on overall direct-to-customer shipments. While no supply chain savings were realized with this service, our client expects that the improved customer experience and delivery optionality will enable top-line growth and improve profitability by encouraging repeat buyers and average revenue per customer growth. In time, Accenture believes that this solution will enable higher service levels and even lower delivery costs to the end customer. The pilot outcomes and assessment truly represent how the proliferation of same-day delivery can be a win for both businesses and their customers.
As consumer expectations evolve, companies that begin developing a same-day capability now will be in the best position to meet and exceed consumers’ increasing expectations at cost-competitive rates. By adopting the right technology, forming the right partnerships, and selecting the right products for same-day delivery, companies will be able to enhance their positions within the market.
1BRP, "Digital Commerce Survey 2017”
2Accenture Strategy client experience
3“Raising the Bar: How Gen Z Expectations Are Reshaping Brand Experiences”
4Accenture Strategy, Communications, Media & Technology Operations Research, Consumer Insights, 2017
5Accenture Strategy, “Beyond the ZBB Buzz,” 2018
6Accenture Strategy client experience