The primary objective of logistics has consistently been to ensure that the right products reach the right location at the appropriate time, all while minimizing costs. However, today's landscape presents unprecedented complexities. This is largely due to the evolving standards set by the booming online shopping industry, which now includes expectations for same-day deliveries or shipping within 24 hours to residences—flawlessly and affordably.
In this context, balancing cost management with exceptional customer service has become a significant logistical challenge. In this article, we will delve into the implications of consolidation on urgent shipments and examine existing solutions within the industry warehouses.
New Consumer Habits Demand Quick and Free Shipping
Understanding the logistics of same-day shipping necessitates recognizing consumers as pivotal agents of change. According to the National Retail Federation’s 2019 Consumer View survey, major customer expectations include:
- 65% of consumers consider costs and delivery times before adding items to their shopping cart, indicating that delivery terms heavily influence purchasing decisions.
- 75% of respondents expect free shipping when shopping at e-commerce stores, which is a 7-point increase from the previous year.
- 70% of those surveyed have tried and were satisfied with BOPIS (buy online, pick up in-store) delivery methods when no charge was involved.
Challenges of One-Day Shipping
Offering 24-hour deliveries presents hurdles that not all companies are equipped to navigate, including:
- The need for highly efficient inventory management throughout the logistics network.
- Complicated order preparation tasks due to the handling of small unit loads within a narrow shipping timeframe.
- Space constraints, as goods must be easily accessible to facilitate quick picking.
- The necessity for implementing logistics traceability tools for managing deliveries and customer returns.
- Increased logistics costs at every stage of the supply chain, from supplier selection to the last mile.
Preparing Your Warehouse for 24-Hour Deliveries
For e-commerce order fulfillment centers, there’s no one-size-fits-all solution. However, several successful strategies have emerged, enabling businesses to operate efficiently within the demands of same-day delivery. Here are some key approaches:
Optimized Picking with a WMS
To meet the one-day delivery goal, minimizing product handling is essential. Warehouse management systems (WMS) are crucial for fulfilling a growing number of picking orders accurately and swiftly by effectively managing inventory data. For instance, La Ruche, a French logistics operator serving the e-commerce sector, transitioned from manually managing 150 daily orders to dispatching 500 daily after implementing Easy WMS, achieving a remarkable 233% improvement.
The WMS can also integrate with devices that enhance the order preparation process, such as smart carts in pick-to-cart methods, voice-picking headphones, and pick-to-light LED displays—all aimed at reducing cycle times within the facility.
WMS Coordination with Supply Chain Links
Like in a relay race, as orders progress through the supply chain, the time available for timely delivery diminishes. To eliminate interim steps and keep customers informed about their order status, it’s vital to connect the warehouse with transportation agencies.
With same-day shipments, order preparation times shorten to mere hours, necessitating that products remain within easy reach of operators. As a result, high-bay and high-density storage solutions may not be ideal for e-commerce warehouses; instead, pick modules with raised walkways are more effective.