A recent study conducted by OneRail, a last-mile solutions provider, underscores the importance retailers place on diversifying their delivery networks. The research also reveals strategies retailers employ to better understand these networks and meet customer expectations.
According to OneRail’s CEO, Bill Catania, the study emphasizes the critical role of technology for 63% of surveyed retailers in planning and forecasting their last-mile delivery needs effectively. Customers now demand faster shipping and better tracking, with 82% expecting proactive order updates and 80% wanting same-day delivery. These preferences highlight the necessity for enhanced tracking capabilities to meet evolving consumer expectations.
In an interview with FreightWaves, Bill Catania elaborated on the significance of diversifying carrier networks for retail shipping. Catania stated that relying on a single carrier is no longer viable due to various challenges such as COVID-19 disruptions, labor strikes, extreme weather, and spikes in demand. Diversifying carriers helps ensure connected capacity, enabling retailers to maintain service levels despite supply chain disruptions.
The study found that 65% of retail fulfillment leaders plan to offer same-day or next-day delivery within the next one to two years. This competitive edge is essential for retaining customers, and achieving it necessitates a diversified carrier network.
The study also highlights the risks associated with limited-source shipping. Catania noted that 69% of retail fulfillment leaders believe that using a single shipping partner poses an unacceptable risk. Managing multiple carriers can be overwhelming, especially when done manually through spreadsheets. However, automating these processes through a platform approach can save time and costs, allowing retailers to focus on their core business.
Technological advancements like AI and IoT are pivotal in enhancing shipping strategies. Catania explained that AI has been a game-changer for OneRail. Initially, their support team managed around 80 deliveries per head per day without AI. Now, with AI integration, they handle 2,300 deliveries per head per day with 42 full-time employees. Historical data and net promoter scores enable AI to match drivers to deliveries efficiently.
The study indicates that 63% of retail fulfillment leaders plan to implement AI and machine learning technologies for better demand forecasting and inventory management within the next three years. Additionally, 64% aim to use IoT and real-time tracking technologies to improve transparency and decision-making in their supply chains.
Overall, the study from OneRail reveals that leveraging technology and diversifying carrier networks are essential strategies for retailers to succeed in the evolving landscape of last-mile delivery.
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Source: FREIGHTWAVES
