Supply Chain World Volume 11, Issue 1 | Page 20

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accounting for more than half ( 53 percent ) of total shipping costs . However , the increased capacity in the supply chain can help even small businesses address this .
Despite many racing to offer fast delivery , the true opportunity for retailers lies in understanding and responding to the needs of their customer base . While fast delivery will make or break it for some , many customers have alternative drivers for their decisionmaking .
Innovative approaches can be seen across retail and ecommerce . Deliveroo is now offering shelf space in its dark stores to supermarket chains , protecting experiences for both in-store and online shoppers by ensuring in-store stock is never affected by online purchases . Furthermore , the company has moved to open physical stores , building momentum for the Grocery 2.0 micro-sector . Meanwhile , MyProtein offers eco-deliveries at checkout , promising to complete the last mile on foot , by bike , or via electric vehicle to appeal to those customers with sustainability in mind .
Add to the mix large and electrical items , which require the last mile to stretch into a customer ’ s home with drivers also responsible for installation , and it ’ s clear that speed isn ’ t the only priority for consumers . Offering a white glove delivery experience with a diverse range of flexible delivery options and allowing customers to choose depending on their current situation is crucial . damage , at a time when customer retention is a top priority .
By making use of the excess supply in the chain , retailers can protect themselves and their customers , using regional diversification to mitigate delivery risks . Diversifying the pool of delivery partners empowers retailers to select carriers based on their strengths and ability to deliver the specific service required per order . It also enables them to scale during peak seasons , and quickly shift between providers as needed . Take , for example , if a same-day delivery is impacted by a shortage of drivers at a usual carrier . Instead of allowing this to have a negative impact on customer experience , the retailer can quickly secure space in an alternative carrier ’ s fleet , protecting both their reputation and their customer ’ s needs .
Diversification delivers
All this creates a complex challenge for retailers who must not only give customers multiple options but also execute these options to a high standard . With competition fierce , any missed opportunity to deliver on a promise to the consumer ( whether they have paid extra for same-day delivery or accepted a delayed arrival date to receive their order in a more sustainable way ) can result in a loss and reputational
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