Postal: The Changing Last Mile

In our world of never-ending choice, retailers are weaponising the last mile in a bid for customer loyalty, relevance and increased sales. By offering cheap or free same-day delivery, savvy retailers are able to capture a consumer base that holds continually evolving expectations driven by the pace and demands of modern life.

increase in order volume when free same-day delivery offered.

74%

of US consumers say that after receiving same day delivery, it made them more likely to purchase from the retailer.

Fueled by mobile advertising and supercharged by artificial intelligence, ecommerce fulfilment is now characterised by faster cycles, smaller shipments, atomisation of inventory and a move from a supply chain to a supply network.

To speed up delivery timeframes, retailers are quickly moving toward an omnichannel approach that allows them to use their offline capabilities as a strategic advantage online.

1 out of 3

warehouses offer ecommerce fulfilment services (up 20% over 2 years).

78%

of organisations rate integrating ecommerce and in-store capabilities as business critical.

As the supply chain grows in strategic importance, our research shows those networks are fundamentally changing, creating a new delivery reality.

Local last mile: Retailers are focused on inventory proximity for cost and speed.
Speed and agility: Retailers are making all elements of the supply chain faster and more agile.
Ecosystem for sale: New models with new partners will continue to evolve to achieve synthetic scale.

Postal organisations must leverage new ecosystem relationships and ride the waves of tech disruption, rather than respond later. By positioning themselves as a retailer’s partner of choice, they can take advantage of the fast-growing same day delivery market.

The changing last mile

MORE ON THIS TOPIC