Effective Strategies to Utilize On-Demand Delivery Services in Logistics

On-demand delivery in logistics services are now a staple for millions of consumers around the world. Fueled by technological advancements and changing shopping patterns, these instant delivery services have seen a huge surge in recent years. By 2022, data shows more than three billion people are utilizing online food delivery services.

In more detail, around  1.2 billion consumers use grocery delivery platforms to fulfill their daily needs. Meanwhile, another 1.8 billion opt for ready-to-eat food delivery services that allow them to order quickly and easily through online apps. These figures illustrate the huge global demand for fast and efficient delivery solutions, making on-demand delivery an increasingly inevitable trend in the world of logistics and e-commerce.

The Rapid Growth of On-Demand Delivery and Its Impact on the Industry Logistics

on-demand delivery logistics services with same-day delivery or even within 2-3 hours are now the new standard in various sectors. This is not only true in the food industry, but also extends to the Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG) sectors. By 2022, the global market value for food delivery will reach more than $150 billion, and this figure is expected to grow even faster with the widespread adoption of fast delivery services. Additionally, over 65% of consumers in the FMCG market now expect same-day or express delivery options as part of their shopping experience.

Click & Collect as the Key to Omni-Channel Conversions

One of the key trends accelerating this growth is the click and collect model. With this method, customers can order and pay for products online, then pick them up at a physical store. Studies show that 17% of shoppers will abandon their shopping cart if this service is not available, while another 28% will switch to another brand or retailer that provides this option.

An example of this model in action is evident in the United States, where almost all major retailers have integrated click and collect as part of their omni-channel strategy. Walmart, for example, has made their physical stores a fulfillment hub for online orders, and even partnered with Postmates for final-mile delivery. The impact of this integration not only speeds up the delivery process, but also increases customer loyalty due to a more seamless and connected experience.

Strategies for Using On-Demand Delivery for Brands

To capitalize on this opportunity, brands should invest in dynamic offline facilitators. By connecting online and offline campaigns through features such as “Where to Buy,” brands can inform consumers in real-time about product availability at nearby stores. For example, Kellogg’s uses this feature on their website to guide customers to retailers that stock their products, thereby improving conversion and purchase experience.

Last-Mile Distribution and Delivery

Distribution options are currently divided into two main categories: pure-play (like Amazon Prime) and final-mile delivery (like Instacart and Shipt). Amazon’s acquisition of Whole Foods allowed them to combine last-mile delivery with the physical store model to improve efficiency. Other big brands, such as Walmart, are following this trend by partnering with last-mile delivery services to expand their online reach. Studies show that 70% of consumers would prefer buying products from retailers that provide faster and flexible delivery options.

With the widespread adoption of on-demand delivery and click & collect models, companies that optimize these delivery strategies will have a significant competitive advantage in this growing market.

To conclude, on-demand delivery is becoming the backbone for businesses that want to meet consumer needs quickly and efficiently. To ensure timely and seamless delivery, TransTRACK provides a range of advanced features specifically designed to optimize your logistics operations.

With TransTRACK’s Fleet Management System (FMS), you can track and manage your fleet in real-time, ensuring vehicles are always on the fastest and most efficient path. It also includes automatically scheduled fleet maintenance, reducing the risk of downtime and operational disruptions.

In addition, our Driver Monitoring System (DMS) monitors driver behavior in real time, helping to reduce the risk of accidents and improve road safety. More monitored drivers mean more reliable and safe delivery services.

For more integrated deliveries, Logistic Service Integrator from TransTRACK coordinates all your logistics processes, from pickup to final delivery. With the support of real-time tracking technology, you can monitor every stage of delivery, providing full transparency to customers.

Optimize your on-demand delivery service now with TransTRACK and take advantage of these innovative features to ensure customer satisfaction and operational efficiency. Contact us to find out more!