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On-Demand Delivery: What are Its Benefits and How it Keeps Tony & Pepper Happy

The on-demand delivery market is booming. Online websites and application-based digital platforms are major drivers of behind the rapid growth in the on-demand delivery market. According to Statista, revenue from platform-to-consumer delivery is expected to witness an annual growth rate (CAGR 2021-2024) of 6.76%. The projected market volume is expected to be US$96,864 million by 2024. Having said that, technology platforms are not the only thrust behind this booming industry. 

Evolving customer expectations, the need for instant gratification, convenience, cost efficiency, emerging gig-economy markets and improvement in logistics infrastructure are other key drivers behind the on-demand delivery boom.

On-Demand Delivery Flashback

The term on-demand caught the attention of businesses when cloud computing started gaining traction. The concept of making certain computing capabilities, like storage, throughput, compute, security etc., available to customers on an as-needed and when-needed basis, started to be called on-demand service. Soon when iPhone launched the first actual smartphone and opened the windows to an app-based marketplace, on-demand services quickly found their way to the consumer economy. The world changed after that. Now we have a plethora of on-demand services. Delivery on-demand, retail on-demand, grocery on-demand, restaurant on-demand, entertainment and media-on-demand, medicine on-demand, physicians on-demand, furniture on-demand the list goes on.

On-Demand Delivery Meaning and Definition

On-demand delivery is a set of multiple sales and logistics processes that empower retailers, manufacturers, eCommerce providers, restaurants, grocery chains among others to satisfy a customer’s need to procure something and get the same item delivered at her doorstep or to a location of her preference that too in the most efficient way possible. In other words, on-demand delivery can be defined as the means by which businesses leverage online platforms like websites, social media channels and mobile applications to sell their products to customers and deliver the ordered items to an end-customer.

How does on-demand delivery work?

Let’s imagine a situation. Tony uses a mobile application to buy the latest version of the iPhone X. It’s not for Tony though, he already owns one. He bought it as a surprise birthday gift for her fiance Pepper. As Tony is a philanthropist he is busy saving the world and hence did not have the time to go to a physical store and buy that phone. One could also say that he forgot about Pepper’s birthday, but that will be too harsh a thing to say. Now, there is only a day left before she cuts the cake. Tony needs that phone now! There is no room for delay. Instant gratification is key in such cases.

When Tony placed the order, the application immediately triggered an alert notifying the warehouse where it was stored. The warehouse folks quickly identified the item and forwarded it for shipping. A delivery executive is immediately assigned. This executive picks up the order from a hub and commences with the last-mile delivery journey. At the end of the journey, he hands the order over to Pepper in less than 24-hours. Tony is happy. Pepper loved the surprise and the eCommerce provider could not have wished for a better ending. This is an example of a typical on-demand delivery. This hypothesis is a simplified version. In reality, on-demand deliveries are growing complex due to constantly changing market dynamics, logistics inefficiencies and rising operations costs.

The Importance of On-Demand Delivery Logistics

Logistics is critical when it comes to ensuring highly efficient on-demand delivery services. To be pragmatic, how efficiently a business manages its logistics operations directly impacts the success of on-demand processes. From identifying an order that’s kept in a large warehouse with thousands of racks, to shipping it and ensuring flawless last-mile delivery execution, it’s logistics management all the way. But, it’s not the traditional logistics practices we know. To drive on-demand delivery processes one needs to power logistics management with modern technologies like machine learning, the Internet of Things, analytics, cloud computing, predictive intelligence and more.

These disruptive technologies empower businesses to plan highly productive delivery route, generate accurate ETAs, easily benchmark delivery KPIs, boost driver performance, optimize transportation costs and make deliveries customer-centric. These also automate core on-demand delivery processes like route planning, scheduling, task allocation, billing, roster management, customer notifications among others. Advanced logistics tools also help businesses scale delivery operations by leveraging intelligent crowdsourcing capabilities.

7 Immediate On-Demand Delivery Benefits for Enterprises

The benefits of providing on-demand delivery services are many. Starting with an increasing customer base, eliminating infrastructure costs to driving self-service delivery models, on-demand delivery ensures rapid growth. Let’s quickly glance through some of the major on-demand delivery benefits. 

1. Larger Customer Base

Unlike traditional brick and mortar retail outlets, on-demand delivery helps brands reach out to a large customer base that spans from local to international consumers.

2. Provide Competitive Pricing

Businesses can provide highly-competitive pricing as modern on-demand delivery strategies significantly reduce investment in human resources, storage and store operations.

3. Understand Customer Behaviour & Demand Patterns

Such deliveries leverage advanced technologies like deep learning and business intelligence that helps businesses understand buying patterns and trends. This improves the chances of up-selling and cross-selling products.

4. Boost Customer Loyalty

In an increasingly virtual buying environment logistics remains a critical physical touchpoint that impacts a brand-customer relationship. Savvy brands leverage advanced logistics tools to provide customers with personalized and delightful delivery options. This directly boosts customer loyalty.

5. Eliminate Infrastructure Costs

On-demand delivery means selling via online platforms. The need to invest in a physical store, and pay for its everyday operational expenses, including staff compensation, is greatly reduced by on-demand delivery models.

6. Reduce Manual Dependencies

An important characteristic of on-demand delivery is speed and to ensure quick delivery turnaround-time it’s important to automate manual delivery processes. These processes include delivery scheduling, task allocation, route planning, roster management and dispatching.

7. Provide Self-Service Delivery Models 

Self-service delivery models are a great way to boost customer engagement and experience. Such models empower businesses to allow customers to change delivery location and time on the fly. It makes the entire delivery process customer-centric.

Why Savvy Brands are Focusing on On-Demand Delivery Tracking

On-demand delivery tracking is a key component of modern logistics strategies. Leveraging advanced transportation tracking tools, businesses can gain real-time visibility of fleet movement. From a business perspective, on-demand delivery tracking enables logistics stakeholders to know anytime and anywhere where a shipment is, what is the exact ETA, whether the delivery will be delayed or on-time, where is the shipment’s destination, are there unnecessary delays and route diversions and so on.

On the other hand, on-demand delivery tracking helps customers gain live insights into delivery progress. Through automated alerts and notifications customers are constantly informed where their orders are, what’s the ETA, and should they anticipate delays.

FarEye’s intelligent delivery management platform is empowering hundreds of enterprise across the globe drive seamless and agile on-demand delivery process. From ensuring same-day and one hour-delivery, improving customer experience to making deliveries profitable, FarEye’s platform drastically improves every aspect of delivery operations. To know how we can help you get in touch with our solution experts by clicking here

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