Analyst Insight: Next-day delivery is the new normal. And fulfillment windows are compressing even further as companies like Amazon continue to raise customer expectations. But companies wrestle with what level of service makes sense, and how to justify investments. It's not about making every process in the DC faster. It's a delicate balance of revenue gains and improved customer service against investment and operating costs. - Helgi Thor Leja, Industrial & Electrical Industry Leader, Fortna Inc.
It seems that all major U.S. retailers - whether they are traditional, brick-and-mortar operations or Web-based - are stepping up their same-day delivery services and fulfillment systems before this holiday season. The move not only helps them extend the holiday shopping season by a few days, but also caters to busy holiday shoppers who don't have time to grab groceries for holiday parties or family meals.
time:matters, a specialist in expedited logistics, has expanded its ic:kurier network for same-day shipments destined for points outside Germany, with the opening of a new international station in Amsterdam, the Netherlands.
Amazon will open eight new U.S. distribution centers between now and the holiday selling season, bringing the total to 54. The result of the ferocious building spree is that Amazon will then have a DC within five miles of most major U.S. cities. That means Amazon will very likely have a DC closer to your customers than many of your stores.
Consumers are much more interested in free delivery and lower prices than in the same-day delivery of goods ordered online, according to a survey conducted by The Boston Consulting Group. Only 9 percent of the 1,500 U.S. consumers surveyed cited same-day delivery as a top factor that would improve their online shopping experience, while 74 percent cited free delivery and 50 percent cited lower prices.