Quick answer: Designed to appeal to a rapidly evolving market, where customer expectations are changing all the time, on-demand delivery gives customers more control about how and where they have their items delivered.
The market for on-demand delivery has been growing rapidly in recent years, as digital commerce continues to grow. Driven by technology like online and app-led platforms, and smartphones, the on-demand delivery environment supports customers in gaining the kind of quick and convenient fulfilment experience they’re looking for in this new age.
Today, we’re going to be looking at the meaning and purpose of on-demand delivery, and why it’s so important for today’s businesses to be aware of this option.
What is On Demand Delivery?
The term “on demand” delivery, refers to the set of automation, sales, and logistics processes retailers, ecommerce companies, manufacturers, and other business owners use to deliver products according to a customer’s preferences. The consumer in on-demand delivery gets to choose when and where products are delivered, often with multiple options to choose from.
Delivery can be provided the same day, the next day, or multiple days after purchase, with different prices associated with each option. With many on-demand delivery solutions, the customer chooses not only when they want their products delivered, but where they want to receive the purchase too.
The market for on-demand delivery has been accelerating in recent years, particularly with the arrival of the pandemic, prompting more people to search for flexible and “contactless” delivery options.
For companies, on demand delivery ensures you can continue to deliver the kind of quick and convenient fulfillment experiences your customers are looking for in a competitive market. In today’s world, where customer experience is the key to retaining and converting consumers, on-demand delivery provides the flexibility modern shoppers are looking for.
How Does On Demand Delivery Work?
On demand delivery as a concept has been growing since the arrival of smartphones and cloud technology. Delivery on demand has now become the status quo for the majority of customers, who expect to be able to choose exactly what kind of delivery experience they get.
To understand how on demand delivery works, let’s consider a potential scenario. Imagine your customer uses a mobile application to purchase a vase from your store. However, they don’t want to purchase the vase for themselves, they want to deliver it as a gift to someone else. Since the gift is intended for a birthday, it needs to be delivered on a specific day.
Your customer places their order, and requests for the product to be delivered on the day of the birthday, at a specific time, and to the address of the person he wants to receive the gift (to cut out the middle man). To enable this fulfillment process, various things happen on the back-end of the company’s technology ecosystem.
The application tells the warehouse storing products for the company where the item is stored, so the packers and pickers can access the item for shipping. A delivery executive is then assigned to the order, and picks it up for a hub, commencing with a last-mile delivery service.
The processes behind on demand delivery services are all about flexibility and speed. The customer places an order for delivery and decides their desired time and place for that delivery – according to the restrictions of the company. It’s up to the company to determine what kind of delivery options they can offer their customer, such as the option to deliver on a weekend.
On Demand Delivery and Logistics
On demand delivery relies heavily on the use of the correct logistics processes. How well a company can manage its logistics operations will determine the overall success of the on demand delivery process. To deliver an order according to specific requirements, companies need to be able to rapidly identify the order kept in a warehouse with thousands of racks in a matter of minutes.
At the same time, companies need to ensure they can quickly ship the item to the right partner or last-mile delivery service. Achieving this speed and efficiency often requires companies to use a series of modern technologies, including machine learning software and AI systems, the internet of things, analytics, and cloud computing software.
The right selection of disruptive technologies in an on-demand delivery ecosystem ensure companies can not only deliver the kind of meaningful experiences their customers are looking for but keep their warehouses and companies running smoothly at the same time.
The right logistics technology ensures teams can plan more productive delivery routes, generate accurate estimated times of arrival for customers, and optimize transportation costs. All around, the solutions make deliveries more customer-centric, and automate core on-demand delivery processes like scheduling, route planning, task allocation, and customer notifications.
What are the Benefits of On Demand Delivery for Companies?
On demand delivery has benefits for both companies and their customers. While customers benefit from getting more control over how they receive their items, companies receive a way to stand out from the competition. Today’s brands are facing a lot of demand from consumers for the best possible experiences they can offer.
With on demand delivery solutions built into their customer service strategy, companies can unlock benefits like:
- Bigger customer base: Unlike standard brick and mortar solutions, on-demand delivery allows customers to reach a larger customer base, like Amazon, which spans from local customers to international customers served through clever dispatching and courier company integrations.
- Competitive pricing: Modern on-demand delivery solutions can significantly lower investment in storage, human resources, and store operations when you partner with the right service providers. This could be a great way to build more competitive pricing strategies.
- Examine customer behavior: On demand delivery can be an excellent way to build customer loyalty by finding out what your customer’s need from your delivery models. You can get a better understanding of buying patterns and trends, from a demand for same day delivery, to needs for cheaper delivery strategies.
- Customer satisfaction: Because customers have an opportunity to access the exact delivery times and strategies they need; you end up with a higher level of customer satisfaction. This improves the chances of cross-selling and up-selling products.
- Reduced infrastructure costs: The nature of the on demand economy means you can reduce the overall costs of managing your business. You can potentially reduce your need to invest in a physical store and pay for the overheads associated with it. Your operational costs will be reduced to simple subscription fees for service delivery companies.
- Reduced manual dependencies: An important characteristic of on-demand delivery is speed. Ensuring a quick delivery turnaround time for local delivery and international service, startups can use on demand delivery to automate a host of services. You can automate everything from choosing shippers via the gig economy, to scheduling deliveries, task allocation, roster management, route planning, and dispatching.
- · Introduce new delivery models: With upgrades to the supply chain, companies can deliver new modes of delivery such as two-day delivery, one-hour delivery, next day delivery and more. It’s even possible to access self-service delivery models which allow customers to change delivery location and time on the fly.
What are the Benefits of On-Demand Delivery for Customers?
Customer have been showing a lot of love for on-demand delivery options lately. From convenient general delivery options like Postmates, to DHL express, Doordash, Uber Eats, and many others, we’re seeing countless examples of customers enjoying an on demand service themselves.
With on-demand delivery, customers get real time notifications when their orders are on-route, as well as access to various forms of delivery management, so they can feel like they’re more in control of their purchases.
Customers get:
- Convenient interactions: On-demand delivery companies can allow customers to track and manage every part of their delivery through an on-demand delivery app.
- More information about deliveries: Rather than waiting in for a delivery for several days, customers can track their delivery, and make sure it’s arriving according to their schedule. This is particularly important for perishable food delivery requests.
- Complete control: Customers can choose and change delivery dates and the place of the delivery, to ensure the interaction meets with their specific needs.
- Multiple delivery options: Customers can often choose from a wide range of delivery options, based on how quickly they need their product.
- Better brand relationships: The customer gets to experience a delivery experience where the company puts their needs first.
On-demand delivery companies can also help their customers to keep track of their delivery every step of the way with the right app features. Real-time notifications and alerts can enable logistics stakeholders to keep track of where a shipment is at any given time too. This makes it easier for the people on your backend to remain as organized as possible.
Should You Try On Demand Delivery?
With access to the right tools and service providers, on demand delivery can make your business a lot more appealing to your target audience. On-demand delivery is an excellent opportunity to provide your consumers with more of the options they’re looking for when they’re searching for a convenient way to shop online and access the products they love.
On-demand delivery solutions are becoming increasingly accessible for business owners, with a host of real-time solutions for tracking important information and keeping teams aligned.
