Same-day delivery has many challenges, but it also has its advantages. Though it has been successful for other business such as Amazon, it might not work as well for your wholesale business. It is worth a try, but you have to be sure that you have what it takes to start and maintain a same-day delivery set up in your wholesale business.
Same-day delivery is basically delivering orders to customers the same day the placed the other sometimes even within a few hours of the order. Kind of like pizza delivery, but on a larger wider scale. Looking at the disadvantages and advantages of same-day delivery alone cannot help you decide whether you should go for it or leave well enough alone. You also need to consider what it would take to successfully carry out a same-day delivery set up with your wholesale business.
Advantages Of Same-day Delivery
- Increased Productivity
People are bound to work harder and better if they know that all the orders placed that day are to be delivered that same day. It makes them move faster and work harder so as to fulfill all those orders and close as early as possible.
- Reduced Management
Since all the orders placed in a day are being delivered that same day, there is no need to manage the backlog of orders yet to be shipped. Same-day delivery negates the need to plan wind decide what time which and which orders should be shipped to their buyers.
Disadvantages Of Same-day Delivery
- High Level of Capacity
You need a lot of capacity to run a same-day delivery service. You will need a lot of skilled people and a lot of equipment. Also, vast amounts of floor space, and so on and so forth. All of this costs a lot of money.
- Limited Efficiency
It is difficult to gain efficiencies with same-day orders, especially when it comes to grouped picks. When customers place orders for a certain type of product, those products can be grouped and picked by a particular order picker. Efficiencies can be gained when working with grouped picks. Getting enough orders to create a group is difficult since all orders are to be delivered that day.
These advantages and disadvantages on their own may not seem like much. They may cause you to think that offering same-day delivery services is right up your alley. So, you need to know what it takes to start a same-day delivery service in your wholesale company.
Same-day Delivery: What It Takes
There is a lot involved in running a same-day delivery service.
- You need to be efficient and have a flexible capacity. You already know your capacity, but human and mechanical, has to be very high. This human capacity also has to be flexible. Most of your staff should be able to work on other capacities. This is apart from their own when it is called for. All of them need to be very efficient to able to deal with the daily order delivery demands. Everyone has to be efficient in their field of work so as to keep the process running smoothly and quickly.
- The orders for picking need to be easily accessible for the order pickers. To be able to get to them quickly. Order pickers are supposed to grab the orders and package them and send them off for delivery. They are not supposed to look for the orders or have to tear into boxes to get what they need to pick. Others have to be assigned to keep the picking area properly stocked with orders so that the order pickers can get to them easily. The picking area should be regular cleaned, restocked, and prepared, on schedule.
- Peak picking times are usually at the end of a work day. This is also the peak order time. As such, activities in the picking area should be limited during these peak picking times to area the order pickers to effectively and efficiently do their work.
- The necessary equipment should be provided for the staff to do their jobs properly. Tools such as truck lifts, pallet jacks, flat-bed carts, ladders, tape guns, strapping cutters, calculators, markers, and so on ought to be provided and available in reasonable quantities for work to go on efficiently.
- You need to have enough floor space. Since deliveries are not scheduled for later but sent out on an hourly basis, you need to have a large area for these orders to be sorted, picked, packaged, and sent off for delivery.
- Your staff has to be highly skilled and highly motivated. This job isn’t for the faint of heart. And this job isn’t just for anybody. Order picking is an art that has been perfected over years of experience and isn’t something to be taken lightly. You should be prepared to motivate your staff as is necessary. Same-day delivery services can be very difficult jobs to pull off effectively. Your staff also has to be well-trained and be able to work together as a team.
As a wholesaler, is same-day delivery good for your business? That is entirely up to. You should take note of what is required to run such a service, and
Take note of what is required to run such a service. Also look at other factors, such as where your business is located. You can run a same-day delivery service if the majority of your customers are in the same location as your business. You should also look at your customers’ preferences. Some customers prefer a delivery service with a time limit of five days. They don’t mind waiting for their order to come. Most customers would prefer a two-week delivery that comes with free shipping. Compared to getting their orders in three hours with a bill that costs as much as the product they have bought.
When you take note of all these factors, you decide if same-day delivery is good for your business or not. It all depends on how much you have to invest in this service.