In our previous blog titled Delivery Promise: A Powerful Tool for Online Retailers – Introduction & Proposition, we explored how a strong delivery promise can be a powerful asset for customer-centric online retailers. We discussed the positive impact of consistently meeting delivery promise on customer satisfaction, loyalty and sales. However, maintaining a reliable delivery promise is not without its challenges. In this blog, we will discuss the key challenges retailers face and explore effective strategies to not only meet but exceed their delivery promise
What are the Key Challenges in Maintaining Delivery Promises?
Meeting delivery promises is a critical aspect of customer satisfaction in today’s fast-paced world. However, several factors can throw a wrench into the best-laid plans. Here’s a breakdown of the key challenges:
- Supply Chain Disruptions: Unforeseen events like bad weather, transportation delays (e.g., port closures due to hurricanes), or material shortages can significantly impact delivery times.
- Inventory Management: Inaccurate demand forecasting can lead to stock shortages, causing delays. Additionally, inefficient picking and packing processes can bottleneck order fulfilment, especially during peak seasons.
- Dependence on Single 3rd Party Logistic Service Provider: While relying on a single logistics provider can seem convenient, this could severely impact meeting delivery expectations.
- Last-Mile Delivery: The final leg of delivery can be plagued by delays due to traffic congestion, limited access in remote areas, or poorly planned routes. Inefficient route planning wastes time and resources, causing delays for multiple customers.
- Inventory Visibility: Lack of a centralized inventory management system can lead to inaccurate information about product availability in different locations. This can result in unrealistic delivery expectations or delays when a product needs to be transferred from another warehouse.
Strategies for exceeding delivery promises:
- Invest in supply chain visibility and planning tools:
- Real-time data on inventory levels, transportation movements, and potential disruptions allows you to proactively manage exceptions and avoid delays.
- Focus on Inventory Management & Warehouse Management:
- Implementing a centralized inventory management tool/system that provides a real-time, integrated view of inventory levels across all warehouses and stores. This allows for accurate delivery quotes based on product availability and locations.
- Adopt Advanced Technologies:
- Employ advanced technologies like AI and ML to predict customer choices to optimize the supply chain.
- Diversify your suppliers & logistics provider ecosystem:
- Partner with multiple suppliers and carriers to minimize reliance on a single source.
- Develop alternative plans for sourcing materials or rerouting shipments in case of disruptions.
- Implement flexible and agile fulfilment processes:
- Be prepared to adapt to changing order volumes, product availability, and unforeseen circumstances.
- Explore options like multi-channel fulfilment (including in-store pickup) to provide customers with convenient delivery choices.
- Optimizing last mile fulfilment:
- Utilize route optimization software that considers real-time traffic conditions and delivery locations to plan the most efficient routes.
How can we help:
We at Infosys DX specialize in enabling real-time commerce by helping you and your organization achieve a unified view of your upstream and downstream commerce systems. Illustrated below are a few examples where we have partnered with our customers to address the key challenges being faced in their commerce ecosystem:
- Unified Commerce Data: Gain a single source of truth for your inventory, orders, and fulfillment data, from suppliers to customers.
- Actionable insights: Turn data into insights that drive smarter decisions about inventory management, promotions, and fulfilment strategies.
Reach out to us today to learn how we can help you unlock the full potential of your commerce ecosystem.
