A recent survey by Oracle cites that 66% of respondents will prefer home delivery over other fulfillment methods. The pandemic is forcing those consumers who would normally have purchased a gift in-store to add to the already high seasonal shipping volume.
This leaves delivery and logistics providers scampering to hire. – Fedex, U.S. Postal Service, Chewy, UPS, have hired thousands of seasonal employees. And Amazon Flex, Uber and Lyft are all offering programs to incentivize crowdsourced delivery drivers to focus in on their apps. With delivery capacity being challenged with growing delivery volumes, this fight to win drivers makes sense, right?
The burden of this question is twofold; yes you need more drivers, but drivers don’t necessarily solve the real problem.
Scaling your delivery fleets and drivers must go hand in hand with scaling your infrastructure.
When retailers look to logistics providers to scale their fulfillment models, they must contend with more technology, more personas and more processes (which may be different with each delivery partner). When logistics providers extend their fleets, both internally and externally, they need to contend with the same.
Scaling your fulfillment and delivery operations for peak operations requires some key elements – data, automation, orchestration and real-time visibility and control. With these elements working together retailers and logistics providers can scale up and optimize their operations so that they can take on more drivers, shorter delivery cycles, new fulfillment services and improved customer experiences.
Solving the capacity issue is critical but providers and brands must ensure that it does not come at the expense of customer experience.