The audience of consumers becomes younger and begins to buy in an absolutely different way. The search of desired good and it's purchase moves to online. In the nearest future, the service will not consist only of offline service in the store, but it will be based on the convenience of the online purchase process and how fast and comfortable retailer delivers the order.
The speed and flexibility of delivery service increase every year: we do not want to get our order during the week, we want it tomorrow. Already in 2019-2020 in several countries, 15-minutes delivery slots will be the kind of standard, as well as delivery in two hours "from order to the door" and so on. These options are already tested by world giants like Amazon. And the further, the higher are expectations: customers want to track courier location online and change location and delivery time under transition. All these are a so-called last-mile uberisation trend.
However, transportation logistics is a historically old-fashioned field with a low level of technologies penetration. Planning of orders in Excel-tables, manual routing via maps, search and coordination of drivers and couriers via phone - this is the reality of logistics in 2018. Planning, routing, performance control, communication with a customer are managed in different not connected with each other systems. Business doesn't automize cooperation with carrier and drivers, and as a result information about delays and failures comes not during the delivery process but directly from the customer. Obviously, existing and until recently effective order of processes organization stops providing demands on transparent, flexible and at the same time accurate delivery with narrow time slots.
Fast, accurate, flexible and controlled logistics is created by complex IT-solutions, that let retailers organize seamless logistic process with lifecycle management of orders in real-time mode. Such system merges all process' participants in one working area, including those who are located beyond organization (transport companies and other contractors) and also automate all processes including, for example, failures' prevention. The system gets information that delay of loading occurred at a warehouse and then begins to count that due to traffic situation delivery to the 4th address in a route is behind planning time interval. The system redirects the order to another driver and he immediately gets it on mobile app along with the corrected route. All these happen in minutes without the participation of operational employee.
Still several years ago such technologies were internal know-hows of technological giants. Today such technologies are available to almost every business regardless of size and field. Total transformation of logistics processes did not happen before, because retailers do not feel the consequences of changes in buying behavior. A stable demand of industry on technologies of logistic management is forming in our country right now: customers begin to buy when they are provided with fast and accurate service and leave those sellers who make these process complicated. These tendencies are tangible for retailers because they influence on average customers bill and total gains that a company receives from collaboration with a customer. We suppose that exactly next year collaborative IT-systems of logistics management become the most required.Back to all posts