The pandemic slung open the door of widespread delivery. Instead of trekking through the grocery store to grab weekly essentials, customers are logging online and placing delivery orders.
More and more companies are promising 10 to 15-minute deliveries as a way to stay competitive as the market expands.
So, how can you keep up with massive companies like Walmart and Amazon? It’s all about your technology and perspective.
Does speed really matter?
Research shows that customers will take their business elsewhere when faced with “too long” delivery times. Over 90% of consumers expect 2-3 day delivery as the baseline, and 30% expect same-day delivery.
Speed expectations are even more intense in the grocery space. Key players Zapp, Grovy, Jiffy, and Dijanow all offer grocery and food delivery in under 15 minutes (Grovy even boasts a 10-minute promise).
These companies aren’t simply accomplishing ultra-fast delivery times-- they’re doing it sustainably. Jiffy offers 15-minute delivery by using eco-friendly e-bikes to deliver groceries within a 2-mile radius. Dija approached sustainability by investing in a fleet of electric vehicles and donating excess food to partnering charities. In addition to using their all-electric vehicle fleet, Zapp uses recyclable paper bags for delivery. They also partner with Olio to reduce food waste and Planetly to reduce their carbon footprint.
The challenges of 10-15 minute deliveries
10-15 minute delivery sounds like a dream until you pull back the curtain. Organizations not equipped to handle this rapid delivery model will likely make their workers miserable (think Amazon delivery drivers without bathroom breaks).
If ultra-fast delivery is a goal of yours, you’ll need to adopt an online ordering e-commerce system, pick/pack operation, and last mile delivery operation that works. Here are the main challenges to be aware of:
- Gathering and managing customer data to inform company decisions
- Pick and pack logistics
- Maintaining high inventory standards
- Keeping groceries at the right temperature
- Thin margins
Another note: speedy delivery often requires limited inventory. Using a store for fulfillment or pickup can help speed up the delivery process, but there are a few drawbacks to consider:
- Stores can have lower inventory accuracy rates
- High in-store picking costs
- Stores aren’t always equipped to handle the fulfillment process, which can result in inaccurate picks during peak shopping times
Truly mastering the 10-15 minute delivery game requires radical inventory placement optimization across your network.
Ultra-fast delivery solutions
You may not have the resources of Amazon, Walmart, and Target, you can tackle ultra-fast delivery with the right technology. The key is to find a solution that solves the challenges associated with developing, launching, and scaling your 10-15 minute delivery operation.
The right ultra-fast delivery software
To achieve the coveted 10-15 minute deliveries, you need a system that can factor in dynamic constraints and adapt to your specific needs.
Customers of Onfleet’s advanced routing capabilities achieve improvements up to 50% utilizing:
- integrated route optimization
- auto-dispatch
- real-time data and tracking
- AI-powered predictive ETAs
- customer communication tools
- automated status updates
- comprehensive data analytics
- proof of delivery
… and so much more.
With 10-15 minute delivery, every second counts. Our delivery management system helps businesses increase operational efficiency and delight customers by owning the last mile delivery experience.
Using dark stores for 10-15 minute delivery
Dark stores are another helpful solution for the inventory challenges of ultra-fast delivery. Basically, you close the doors to a store and turn it into a fulfillment center to speed up delivery times. While big names like Walmart and Bed Bath & Beyond have been testing this concept since pre-pandemic times, it became a super popular way to streamline delivery during Covid-times.
Dark stores combine the benefits of a store and a warehouse for pick and pack purposes, allowing you to deliver products faster than ever.