Amazon is blazing a trail at a fast rate when it comes to delivery speed.
Doug Herrington, CEO of Worldwide Amazon Stores puts it plain and simple: “The faster we can get products to customers, the more likely they are to buy them,” he writes in a blog post.
Parcel carriers are waking up to this realization – customers want products as fast as possible. Amazon reached a goal which many organizations in their field would love to achieve: It delivered to Prime members in the fastest speed ever, globally.
How exactly did Amazon achieve this milestone? “We achieved our fastest-ever global shipping speeds last year by focusing on a few key initiatives—shortening the distance our deliveries had to travel to reach customers, improving our inventory placement, and building out our same-Day delivery service,” says Herrington.
Stay in the game with fast delivery
Here’s a scenario: You’re a customer who has chosen a shop online, but the current company you’re using only does next-day delivery. You’re desperate for the package to arrive the same day, so you switch to an online store that offers same-day delivery – customers want items immediately, they don’t like to wait.
Companies like Camping World and Instacart have realised this. The two companies have partnered for same-day delivery. Customers can browse Camping World’s products on Instacart and have them delivered to their door.
A new report by Economist Impact and DP World titled ‘Trade in Transition 2024’ states executive decisions have made delivery times the top priority in supply chain management. “Almost a quarter (24%) of executives highlighted achieving a faster time to market as the key outcome in their company’s supply-chain approach in the past year. Surprisingly, only 8% reported experiencing a slower time to market, indicating a clear priority in this domain.”
Also read: Fast delivery: The new standard in retail fulfillment
Technology steps in to help
Gone are the days where customers were patient enough to wait for items to arrive at their doorstep. In steps drone technology. A drone can skip the traffic and weather hazards, and fly directly to a customer’s door – and access remote locations with ease.
Retail company Walmart has expanded its drone delivery in Texas. Drone delivery will now be available to 75% of the Dallas Fort-Worth community. Companies are helping customers live better and easier by having items delivered in fast time.
But there’s another side to fast delivery that benefits a company. Trade in Transition 2024’ states: “Shorter delivery times not only please customers but also streamline supply-chain operations by reducing the need for high inventory levels that tie up working capital.”
Now Read: Amazon’s delivery plans for 2024
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
