-Sonali Sumaria –
I found a few interesting articles showing how businesses are changing their strategies and investments because of the rapid growth of e-commerce. Also how on-demand delivery can add value to the business. The first article shows how companies such as FedEx Corp. and United Parcel Service are opening more and larger sorting facilities that are readily accessible to their customers, which will be able to shorten their delivery time.
UPS has recently announced plans to open its 3rd largest facility, which will be 1.2 million square foot and be capable to handle more than 100,000 packages an hour. FedEx have also added 4 major distribution hubs and 19 fully-automated facilities.
These companies have realized that there is a massive need to change and make their logistics throughout the company more efficient. They have found that it is now a necessity to deliver the products as soon as possible.
The second article additionally explains that same-day and on-demand delivery adds value to the e-commerce experience by lending convergence toward online and offline experiences. Same-day delivery is ranked as one of the top 3 important factors for online shopper satisfaction. Accenture also found that 64% of internet shoppers find speed to be critical when shopping online. These studies show that faster delivery gives greater value to the e-commerce experience, which also means that there will be higher sales volumes.
For on-demand delivery to be possible, it the responsibility of companies such as FedEx and UPS to ensure that they are able to deliver products as fast as possible. As they researched further, they found that it now absolutely needed for all the delivery service companies to comply with immediate demand. To adhere to this demand, they have found that it is essential to increase their distribution centers’ locations and sizes. This continuous expansion will give them a competitive advantage against other delivery services. Businesses may also choose to work with these companies rather than delivering their own products.