E-commerce companies are reworking the twists and turns in their distribution networks to get closer to their customers and speed delivery times by shortening the last mile. By Helen Mann By
L ockdowns and social distancing may have concluded in most of the United States, but consumer appetites for e-commerce purchases and fast delivery has not. The extent to which consumers rely on last-mile delivery is highlighted but consumer appetites for e-commerce purchases fast delivery has not. The extent to which consumers may have concluded in
control, companies can foster customer loyalty and bring in new patrons as well. One major contributor to changing expectations is Amazon. Consumers shopping with the e-commerce giant have the ability to purchase an item and have it arrive within days—or hours—of placing an order. This has precipitated an assumption among consumers that all retailers will offer short delivery times and a high degree of visibility. “Retailers have stocked forward distribution centers with commonly ordered inventory outside of most major urban areas,” explains Adam Kline, senior director of product management at Manhattan Associates, a supply chain software provider based in Atlanta. “The idea was to get closer to the customer, and ultimately drive next-day shipping,” he adds. “Consumers can order canned wet dog food from Amazon at 10 p.m., and it’s on their doorstep at 7 a.m. the next day. It’s very disruptive to other retailers.” THE AMAZON EECT E-commerce growth since 2020 accelerated the “Amazon effect.” The pandemic contributed nearly $219 billion to digital sales in 2020 and 2021, according to e-commerce researcher Digital Commerce 360. Keeping up with the volume of online transactions driven by the pandemic can be a challenge for companies without a robust nal-mile network built out.
in Anyline’s May 2022 survey, Last-Mile Delivery: Customer Perception Report 2022 . It was no surprise that many consumers bought items online over the past three years that they previously would have purchased in person: 43% of respondents Report 2022 was no surprise that consumers bought online over the three years that have purchased person:
procured groceries online, 30% bought home essentials, and 29% online, bought essentials,
ordered restaurant meals over the internet. But as e-commerce becomes more commonplace, so does poor nal- mile delivery experiences. Nearly half of respondents told Anyline that delivery timeframes slowed down since the onset of the pandemic, and 68% of consumers have experienced delivery delays. These dreary numbers could be viewed as an opportunity—96% of consumers indicated a desire to track shipments while en route, and 88% want the ability to redirect a shipment. By deploying a last-mile strategy that puts consumers in But as e-commerce more commonplace, so does poor mile delivery experiences. Nearly that delivery timeframes slowed down since of the pandemic, and 68% of These dreary numbers dreary numbers could of consumers while en route, and 88% want to redirect a shipment. By deploying By deploying last-mile strategy that strategy that puts that puts
January 2023 • Inbound Logistics 165
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