Can goods from the e-shop be delivered quickly and at an affordable price?
Speed of delivery is key for 75% of online shoppers. However, customers don’t want to pay much more than standard shipping for delivery within 90 minutes or on the same day. In this situation, can you offer a fast and cost-effective delivery? At DODO, we believe so and we know how to do it. Data in particular can help.
By far the fastest to have their shopping delivered are residents of large cities. However, if every e-shop had its own couriers, the traffic situation would be even worse than at present. There would probably be more delays, and the principle of fast delivery would become meaningless. Same-day delivery in combination with zone logistics has been suggested as a solution that will satisfy customers in terms of time and price, and which will also improve transport in cities.
Zone logistics saves costs and the environment
Zone logistics uses the principle of one truck picking up orders from different pick-up points and e-shops in a certain area. The same courier then delivers them, similar to what we know from traditional parcel services. However, they load the parcels at a central warehouse or transhipment point and then just deliver the parcels. With zone logistics, vehicle utilization is maximized, delivery times are reduced, and customers pay less for transport.
The introduction of zone logistics requires greater preparedness on the part of e-shops. Goods need to be delivered to drop-off points or boxes, and order data needs to be shared with couriers in real time. They also need to be ready to quickly process information about goods, destination and adjust routes. Yet zone logistics brings benefits. Let’s look at how simple market principles would work if a single logistics company handled last-mile delivery in a given zone (city).
1. Consolidation of orders
With the possibility to use same day delivery at a more affordable price, customers can be expected to utilize it more.
2. Economies of scale
The more e-shops engage in zone logistics, the more affordable shipping will be due to economies of scale.
3. Price reduction for customers
As a result of the increase in orders and the streamlining of transport, the price, in particular for end customers, will decrease.
Another indisputable advantage of zone logistics is its impact on the environment. Thanks to more efficient delivery, fewer cars would hit the streets, and traffic emissions would be reduced. We described how zone logistics works in detail in the article Zone logistics: even faster and more efficient delivery.
Using real data and artificial intelligence
At DODO, we can provide zone logistics even with 90-minute or same-day delivery. This is facilitated by our in-house GAIA platform, which brings unprecedented efficiencies to urban logistics planning.
GAIA is capable of optimizing courier routes and the number of vehicles, and flexibly adjusts how much capacity is needed at what time. Most recently, we are also working on an AI tool that predicts orders to the hour, up to two weeks in advance. This allows us to plan vehicle utilization even better.
Every e-shop can contribute to cheaper and faster shipping for customers. But not by handling urban logistics in-house. The way to go is to use last-mile logistics experts to provide delivery from multiple online stores at once. This will make shipping more efficient, and more customers will get the service they want at an affordable price. As a bonus, urban logistics will also be greener.
At DODO, we are ready for the new last mile logistics solution. Are you in?
