As far as we can tell, no one’s written a Christmas carol about raw material shortages slowing down production at the North Pole. The sleigh gets fully loaded with toys and goodies no matter how frightful shipping lead times become. And Santa isn’t dropping the lesser-known reindeer to save on fuel costs.
But that’s a tune retailers are humming this time of year.
Peak season brings as many challenges as it does opportunities. Performing when the pressure is on starts with being prepared to effectively manage the extra risk that comes with the year-end surge in demand.
Many of those risks can be found in (or have an effect on) your last mile – from upstream delays to truck driver shortages to inventory that’s not where you need it when you need it.
"The last mile is the retailer's last touch, the last piece of the e-commerce experience and it can have an outsized effect on customer satisfaction if it goes wrong,” says Dennis Moon, COO and head of operations at Roadie, a crowdsourced delivery platform that gives retailers on-demand access to urgent, same-day and local next-day delivery.
What can retailers do to reduce their risk in the last mile? Read on to learn how working with a crowdsourced solution for last-mile delivery can help you overcome three big risk areas to protect your brand during peak (and all year long).
Risk 1: Can you deliver on demand?
A bad experience with your brand can turn shoppers away for good. Don’t believe us? Consider the data: Three in five U.S. shoppers will leave a retailer after several bad experiences, and one in five will drop a retailer after just one, PwC found.
Even shoppers' most beloved brands have to get it right every time to avoid losing customers for good. That’s especially true for delivery. Nearly half of shoppers turn to other retailers when delivery times are long, McKinsey found. And a majority (76%) of consumers in another survey said an “unacceptable” delivery experience would have them rethinking a repeat purchase with that retailer.
Holiday shoppers are up against the clock, after all. (And there are songs about that.) You can avoid sending customers to the competition by being ready and able to deliver orders when and where they need them.
To do that, make sure your last mile fulfillment toolkit includes options for on-demand, same-day and local next-day delivery. That way, you’re not limited by traditional carriers’ schedules or having to pull team members off the jobs they’re trained for to get an urgent order to a customer.
"With the continued growth of e-commerce, not having sufficient last-mile delivery capacity can create a critical failure point for retailers during peak season,” Roadie’s Moon explains. “That's why it's important to create the right mix of delivery solutions and not put all your eggs in one basket.”
Risk 2: Are your operations slowing you down?
You can't eliminate all the risks hidden within the many links of your supply chain. But you can ensure you've covered your bases when it comes to your operations.
To run as efficiently as possible during a hectic peak season, ask yourself:
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Do you have sufficient inventory visibility?
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Are your processes streamlined and designed to minimize time loss?
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Are you aligned with partners whose expertise can help you reduce errors?
Crowdsourced delivery with Roadie can help on all three counts. Tap into a local network of drivers already on the road in your community to move inventory around your network. Batch deliveries to get orders to customers quickly while cutting down on the time you’re waiting for pickups. And let Roadie help optimize routes, saving you time and money.
If you're already working with a crowdsourced delivery partner, you can take the following steps to optimize order handoffs for fast, flexible and convenient delivery:
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Clearly communicate delivery instructions and provide an on-site point of contact for drivers.
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Stage deliveries in an easy-to-access location within your facility.
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Post clear signage to direct drivers to and through your facility.
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Leverage batched order pickups for increased efficiency and decreased costs.
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Educate employees about what to expect from crowdsourced delivery. Make sure they know drivers will not be in uniform and may need assistance.
Risk 3: Who’s watching out for your bottom line?
Financial risk takes many forms during peak season. The good news is there are many ways to lessen that risk and protect your bottom line without sacrificing the experience customers expect from your brand.
Here are a few financial risks that may crop up this time of year:
Bulking up your fleet for peak season may be tempting. But seasonal demand is, by definition, temporary. Laying out large capital investments in vehicles, parts and related equipment to cover short-term surges isn’t always a wise financial decision. As demand recedes, those new assets run idle, increasing fixed costs unnecessarily.
By tapping into the national network of drivers using Roadie, retailers can avoid major capital investments and expenses for delivery infrastructure or increased driver headcount.
Order volume quickly exceeding fulfillment capacity isn’t uncommon during peak season. You don’t have to leave business on the table, or be late with deliveries, when traditional carriers can’t accommodate spikes in demand. With crowdsourced delivery through Roadie, you’ll always have an option for sending orders when you need to.
High fuel and labor costs can also spell trouble for your margins. Adding extra efficiency to your delivery process through batched crowdsourced fulfillment can help further insulate your business against higher operating expenses while ensuring you’re ready to deliver on demand.
Batching deliveries reduces travel time on the retail or warehouse floor, speeds up the picking process and is easier on your employees, Moon says. Plus, it saves drivers time, too.
Stay a step ahead of key risk areas this peak season
Reputational, operational and financial risks may run high during peak season, but opportunity abounds. Get ahead of those challenges with a last-mile delivery solution that can help you deliver any item, any time, anywhere.
“Adding a partner like Roadie, with a national network of more than 200,000 independent drivers that can reach up to 90% of U.S. households, enables retailers to handle unexpected spikes in orders while expanding their reach to more customers,” Roadie’s Moon says.
Learn how Roadie can help you make this peak season your best one yet. Download our guide to peak season delivery success