The hype around “same-day delivery” or “express delivery” or “smartbox delivery” is fading away fast. The question is why? What forces the world’s top-tier e-commerce companies to rethink and revamp their package delivery system after investing whooping amounts in “same-day” delivery services? Well, the answer lies in the core foundation of the e-commerce business’ supply-chain management.
Why the Same-day or Express Delivery has been Ineffective?
E-commerce companies don’t have a strong supply-chain network. In addition, same-day or express delivery costs companies four to five times more than the regular or express delivery as the items need to be shipped by air on most occasions. Online retail giants initiated express delivery services with a promise to deliver products to end customers on the same day. The results,however, have not been encouraging as a few months down the line the number of disgruntled customers has shot up.
The Most Critical Challenges of Express Delivery
•The First Mile and Last Mile Struggle
Picking up a parcel, or the first mile, and delivering it, or the last mile are critical aspects of an e-commerce business. The route between buyers/sellers location and storage units poses unique challenges as the types of transportation vary based on distance and accessibility. E-commerce businesses are still trying to make the journey as affordable, fast, and efficient as possible.
•Storage of Products
The process of storing products when it reaches the local warehouse or a fulfilment centre is crucial. Stocking products the right way can save precious shipping time, bring down electricity usage and ensure optimum use of storage space. In the case of relatively smaller e-commerce start-ups, storing products in warehouses can be expensive. This is why parcel pick-up services like Smartbox delivery have an important role to play because of faster and convenient delivery system.
•Shipping within and Outside a City
Between the nodal points, packages are often shipped in bulk, which means, there is no different way of transporting when customers ordered products entirely different from one another, be it television or pair of socks. Shipping through trains, planes, and freights can be expensive. Especially, in the case of shipping to different cities, it is often hard to keep track of packages and their on-time deliveries.
The Bottom Line
The challenges discussed above show that there is enough scope for e-commerce companies to streamline their supply chain. Interestingly, parcel pick-up terminals or self-service lockers by Smartbox provide an effective solution to last mile delivery woes by providing advanced technology services through automated delivery terminals and proves that seamless automation is the only way forward to resolve logistical challenges.