Speedy shipping and cost efficiency – can you have both?

Author: Angelina Davydova, Order Management Consultant, Emakina NL

It seems an obvious fact that if you want a product fast you have to pay more.

But can it be possible to have same-day delivery at half the price of next-day delivery?

The main issue here is that most retailers have centralised fulfilment centres, meaning that an order has to travel many miles before it reaches the customer. Delivery companies like UPS or DHL servicing large geographical areas are not structured for same-day delivery service, plus fast delivery is always more expensive due to long distances from fulfilment location.

So how can we solve this problem?

You have several options. One way is to support ‘buy online pickup in store’ (BOPIS) – if the product a customer wants is available in a store near them, why not make it possible for them to pick it up that same day? This is fast for your customer, and you as a retailer do not have to pay for shipping at all. 

As an added bonus you get a customer to come to your store, with all the cross- and upsell opportunities that affords. Make sure your store employees can see what is in the package the customer has come to pick up, and they can recommend a complementary product. 

Another option (and there is no reason not to offer both options to your customers!) is to do home delivery from stores using local delivery services. Such delivery providers often are cheaper, and the distance that has to be covered is much less. 

To make this switch to decentralised fulfilment from stores work, you need a real-time, accurate view of your inventory, as well as the right tools and processes in place. A modern order management system will provide you with both. 

Want to know more about how an order management system can help you to deliver at speed? Contact Emma Dijkstra, Expert Lead Order Management at Emakina.NL. 

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