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Same Day Delivery – The New Normal?

Upload time:2020-03-02 Source:

In the world of e-commerce and supply chain, there is a rising trend which retailers can no longer ignore – and that is Same Day Delivery. According a McKinsey report, nearly 25% of customers across China, Germany, and the US are willing to pay a premium for same day delivery. In fact, the demand for quick delivery services has led to 15% of global retailers offering same day delivery to meet those expectations, according Supply Chain Game Changer. With the advent of smart logistics technology which can enable more effective warehouse processes, many more are expected to follow suit.

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Nike Implement Same Delivery in Japan

For example, in February 2020, Geek+ successfully partnered with Nike to provide advanced robotics solutions to Nike’s new distribution center, deploying more than 200 picking robots to its warehouse in Japan. The smart robots carry Nike products and packages directly to the warehouse worker, reducing costs, and increasing picking efficiency. With Geek+ robots, same day delivery became a reality for Nike customers in Japan.

  Nike warehouse2   Nike warehouse

What exactly is Same Day Delivery?

It is pretty self-explanatory – it is a service which enables consumers who purchase goods online to receive their packages within the day of purchase from the retailer. The speed and convenience of same day delivery is an increasingly attractive option that aligns with the consumer need for “instant gratification”. However, the provision of such a service proves relatively more expensive and challenging for the e-commerce retailer.      Portrait of woman shopping on internet with tablet(purchase goods online to receive their packages within the day of purchase from the retailer)   

Woman sigining electronic receipt of delivered package-1

E-commerce retailers need to firstly understand and then weigh the advantages and disadvantages of offering same day delivery services, as well as conduct a self-appraisal of their own logistics management systems to determine if they are equipped to handle this rising consumer need.

Businessman hand using mobile phone with digital layer effect as business strategy concept

Same day delivery is an advantage to e-commerce retailers because the service:

1) Provides greater customer satisfaction

2) Reduces friction in purchase decision

3) Builds trust with customers

4) Creates a competitive advantage

However, before e-commerce retailers jump into launching a same day delivery service, they should understand that offering such a service could be a disadvantage if:

 

1) Their warehouses are not equipped enough to handle the speed and efficiency which same day delivery demands

After an order is received in a warehouse, a lengthy picking, moving, sorting and packing process is needed before the parcel is ready to be shipped out. Without the right equipment and processes, it will be difficult to reduce the time a parcel spends in the warehouse before being shipped out on the same day.

Warehouse manager working on computer in a large warehouse

However, technology, including robotics, can speed up that process. For example, the automation of warehouse via the use of robots can rapidly increase efficiency of warehouse operations, allowing same-day delivery to become a reality for customers.

2) Their management systems are not robust enough to allow for real-time overview of your inventories across warehouses and outlets

It is necessary to determine whether goods are available for same-day delivery during the checkout process. Many e-commerce retailers struggle with this hurdle, spelling the need for greater investment in their IT infrastructures.

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Geek+ is ready to help e-commerce retailers capture the benefits of same-day delivery while solving the main obstacles which hinder such an implementation.

In addition to picking robots, Geek+ offers a comprehensive range of other smart logistics solutions like moving, sorting, forklift, storage retrieval and smart factory solutions to help warehouses across the world solve critical challenges and seize valuable opportunities in today’s supply chain.

To understand more of Geek+’s solutions and view live demonstration of its robots, you can visit the Geek+ booths at the upcoming logistics trade shows:

MODEX 2020 in Atlanta, GA, United States (9-12 March 2020) 
Schedule a meeting: http://bit.ly/2uhNu8m

LogiMAT 2020 in Stuttgart, Germany (10-12 March 2020)
Schedule a meeting: http://bit.ly/329BRNb 


About Geek+

Geek+ is global technology company leading the intelligent logistics revolution. We apply advanced robotics and AI technologies to realize flexible, reliable and highly-efficient solutions for warehouses, factories and supply chain management.

Our R&D team brings together the brightest robotics, computer science and AI engineers with industrial engineers that have deep understanding of logistics, enabling us to offer comprehensive solutions to our customers. We develop tailored solutions to a wide range of industries, including ecommerce, apparel, retail, logistics, 3PL, pharmaceutical, and manufacturing.

Geek+ has successfully completed over 200 projects across four continents, deploying more than 10,000 robots. Founded in 2015, Geek+ has over 800 employees and is headquartered in Beijing, with offices in Hong Kong, Japan, Germany and the USA.