delivery singapore

How can same-day deliveries boost your revenue during the festive season?

The festive season is upon us and if you’re not already thinking about all that it entails for your business from a delivery standpoint, then you should definitely reconsider your strategies.

With online shopping and food ordering on the rise, this is probably the best time for online retailers, F&B companies and restaurants to cash in during the holiday season.

Take your cue from consumers’ expectations

delivery singapore


According to research, consumers are at the top of their game during the holidays, with 95% of holiday shoppers basing their online purchases on delivery options alone.

And according to Walker Sands’ 2017 report, “54% put fast shipping as their top incentive to purchase more online.”

This is really the ideal scenario to reconsider your options for your business and find the right solution. As you deal with surge in order, you will need to act fast and efficiently and identify consumer patterns that help you optimize deliveries, improve processes and increase revenues just in time for the holidays.

As times are evolving, delivery processes are not set in stone anymore, and it’s safe to say that expectations are evolving and companies need to keep pace with bigger players.

In fact, Forrester, a renowned market researcher iterates that “the cost, speed and convenience of delivery has a direct impact on repeat purchase, basket size, conversion rates and customer lifetime value”.

This sort of forecast is not surprising considering that customer demand for high quality, convenient and fast delivery has become the norm!

Ensure delivery speed (and alternatives)

delivery singapore

In addition to quickly having access to products online, consumers are also expecting guaranteed speed, as well as more delivery options other than the traditional model.

One such avenue is on-demand delivery through a partner company that works with software and caters to customers that need to get an item delivered on the same day.

This sort of “convenience economy” offers F&B, grocery and retail companies the opportunity to grow their business and revenue by capitalizing on the increasing demand from consumers.

To gain results and increase your revenue during the holidays, start by analyzing customer metrics. You can ask yourself questions like “what are your customers saying about your current delivery process?” By answering to this question, you will gain key insights into making the delivery experience better.

If you’re looking beyond traditional delivery models, and thinking of scaling your business’ revenue, the festive period shouldn’t overwhelm you with its surge in demand. On the contrary, you can consider delivery companies which work with advanced tech that make the overall process more efficient.

By partnering with a company that allows you to use the sharing-economy gig, you can actually utilize your resources in a sustainable manner through a platform which offers smart algorithms for better performance as well as physical fleets to make your life better during the busy season.

For instance, you can let our allocation engine assign orders to drivers, while you focus on other areas of the delivery process.

Make on-demand delivery profitable

delivery singaporeThe cost considerations for delivery operations are paramount, from hiring additional staff to taking care of the logistics, delivering the orders, and training employees on the new processes.

With this in mind, the amount of work that needs to be done is considerable in order to have a successful fulfillment rate and earn money on top of it. Therefore, projecting your company’s revenue growth shouldn’t be an issue to ignore.

It’s true that more logistical planning comes in play here, but relying on an experienced partner can help you overcome the hurdles of high delivery volume during the busy seasons.

By ensuring that your orders are fulfilled through tools like route optimization, predicting the right timings and properly managing orders, a delivery partner can help you fulfill your orders timely and earn the extra cash that you would’ve otherwise lose for not having the resources to assign orders properly.

In conclusion, it would be more pragmatic to spend additional money on a seasoned logistics company to coordinate deliveries, because it could very easily help you improve your revenue!

Conclusion
To succeed, any business needs repeat customers. As such, using a delivery company will help keep track of your performance, delivery issues and provide competitive rates and a topnotch service.

While most businesses will never be able to have full transparency over their operations, it is key that they put in place processes to manage and recover the customer experience when it goes wrong.

In case you’re not considering partnering with a same-day delivery company, you might want to change your mind, because this phenomenon is quickly becoming a must!

delivery singapore

food delivery operations

Recipes for growing your food delivery operations

Factors like big players, tech and consumer behaviour are changing the rules of the game in terms of how food companies and restaurants are handling both their operations and customer experience.

To stay relevant and scale, more restaurants decide to tap on tech-centric operations and a fully agile platform to meet these demands and become more competitive in this ever-changing market!

food delivery operations

food delivery trends

Food Delivery – Trends that shape the market

The food delivery market has scaled enormously and online ordering online has become the norm.  Consumers demand online food services and need visibility and flexibility to have a satisfying experience, which is why more restaurants need to improve their offerings.

Besides consumer demands, tech has also pushed the market to address challenges like lack of optimization and automation. But there are options to scale this business further.

Let’s take a look at the most popular trends that shape the F&B sector!

food delivery trends

restaurant delivery singapore

Top Scenarios In Which Your F&B Business Needs to Rethink Its Delivery Operations

A few years ago, it was not unusual for a restaurant to exclusively focus on dine-in experiences. But today, many restaurants choose to take their business online, as food delivery is a service expected by more and more consumers.

But things are changing, and in today’s fast-developing world, more F&B businesses and restaurants are trying to implement new strategies to improve efficiency of their operations.

However, the reality is that many of these restaurants and F&B businesses are facing issues like lack of optimized operations, and this is mainly due to relying on outdated methods when performing deliveries and dealing with day-to-day workflows.

Let’s take a look at the main problems faced by these businesses today:

  • Lack of transparency
  • Unreliability from riders as there is no control over the fleet
  • Lack of optimization for delivery time
  • Inefficient planning and manual assignment of jobs for drivers and riders
  • No centralized platform to store all order information

While these are the recurring issues faced by many F&B companies and restaurants these days, it’s safe to say that there are numerous big players out there who are changing the delivery the game, making it more difficult for smaller companies to thrive.

From these large companies, we can learn that implementing new technologies is the way to go about scaling and optimizing the way your business operates these days.

The competition seems fierce, but there is a wealth of options you can use to improve your daily processes.

So to get started, think about the scenarios that are preventing you from having lean operations and a more flourishing businesses, and use these considerations to close the gap between your offerings and your customers’ needs and requirements.

At CarPal, our operations team has been serving some leading online food delivery businesses around Singapore and here’s the common operational flow error we have encountered so far.

Tracking drivers is not properly standardized

The issue with online ordering right now is that there is a lot of friction between users and restaurants or F&B companies. Questions like “Where is my food right now?” are common from the consumer side.

But there are also many questions coming from the restaurant’s operations team as well like “How do I know where my drivers are?” or “How can I have better control over deliveries to plan future deliveries in a more organized manner?”

This can be easily solved by using the right tools that offer you the level of flexibility you need. If your job requires monitoring and managing orders, then the next step is to make these processes more efficient.

A solution would be partnering with a delivery company which focuses on the control tower concept, meaning it has the ability to monitor and track drivers performing your delivery in real time. This step equals to better operational flow and a standardized driver procedure when you have to assign orders to certain drivers.

Manual allocating incoming orders takes too much of your time

restaurant delivery singapore

This is indeed a very big problem with online food delivery as many restaurants still follow the manual way of handling orders.

In the process, there are more teams involved who need to go through the delivery process. Let’s say the staff who receives the customer orders needs to communicate the information to the operational team who then has to prepare the logistics.

food delivery singapore

In this case, doing things manually is a hassle as important food instructions may be missed or the actual order assigning requires more time to be done.

The ideal solution would be to use a system that allows you to control everything from one single place. What if that someone could keep track of the whereabouts of your delivery team and be able to allocate the required orders in one go as well?

Inefficient or non-existing order placing system

restaurant delivery singapore

More restaurants opt to provide delivery options through third party partners, but many fail to have the control they need to create a unique brand image and be at the helm of their own operations.

It’s important to acknowledge that restaurants which implement their own online delivery platform will go a step forward and gain control of their service.

One of the main benefits you will see first-hand  is the ability to plan ahead, prioritize each online order based on the collection time, while serving your dine-in customers. In a few words, your restaurant will quickly be able to become efficient!

Lack of an automated order delivery solution

It is known that manual order allocation and lack of streamlined communication among various department results into a disorderly meal delivery system.

Gaining visibility in the order fulfillment process is crucial to have a successful order delivery model. However, if the fulfillment process is not streamlined, businesses either end up sending wrong orders to the customer or miss out the delivery.

Many online food businesses and restaurants choose to work with delivery partners that are tech-focused and work with solutions that allow them to automate their workflow with least scope of human/manual intervention.

food delivery singapore

Takeaway

What’s most important for your restaurant is how an integrated system can work hand-in-hand with your operations.

A platform like CarPal’s delivery system means you’ll gain control over your operations, optimize your workflows, have a topnotch customer experience and grow with your business further.

food delivery singapore

Are F&B businesses winning the delivery game with UberEATS and Deliveroo?

Overview: To adapt to this growing demand for speed, versatility and quality triggered by consumers, more restaurants choose to level up their delivery game by being in control of the operations and having the ability to manage their deliveries hands-on.

It’s a fact that in Asia alone, the F&B industry is going through unprecedented change regarding same-day delivery as the level of service is becoming one of the fastest-moving trends .

With delivery volume increasing, established restaurant chains or smaller restaurants, as well as food delivery services, are all trying to find a common ground to grow their business.

A report in Statista highlights how restaurant deliveries will increase considerably in the next few years.

food delivery singapore

Why is the online food delivery boom prevalent in Asia?

We all know that we live in a fast-paced digital world, where a 2-hour food delivery is the norm for good reasons. Consumers are becoming more and more savvy and businesses are trying to offer customer satisfaction by offering timely and personalized delivery services.

According to a market report in EcommerceIQ, “food delivery services like FoodPanda and Deliveroo are also thriving in Singapore, the latter boasting 25% week on week growth, while Foodpanda claims Singapore to be one of its key markets in Southeast Asia.”

One of these on-demand food services heavily rely on tools that help them track driver performance and efficiency as well as determine the number of riders needed on the road at different times to eliminate delays.

This only highlights that timely delivery is at the core of these businesses and that the entire online food delivery industry has become prevalent in the last few years as big food ordering platforms have come to dominate the online food delivery market through rapid growth and cutting-edge innovations.

food delivery singapore

McKinsey & Company showcases the growth of the food delivery market.

Their level of delivery excellence has changed the rules of the game in terms of both operational efficiency and customer experience. And to stay relevant and scale, more food companies must evolve by becoming fully agile across their entire delivery ecosystem.

1. Use a hybrid delivery fleet to do your deliveries

If we think about the food delivery sector itself, we can easily pinpoint a few extra challenges it faces today. Among the most important ones are inefficient operations and speed of delivery. As the market is booming, the volume of orders is also on the rise, which implicitly creates a surge in last-minute deliveries and on-demand requests.

This means deciding whether to tap on third-party partners to maximize deliveries.

As F&B companies are under pressure to evolve, there is a need to assess what the best option is: use their own in-house resources or tap onto third-party partners. Over time, many of these companies or restaurants would choose to build and scale an in-house fleet in order to retain full control over their brand and by vertically integrating and aligning their business processes.

While this is a great starting point, a healthy option is to focus on building your own fleet before considering a hybrid version.

In a previous article, we discussed in detail how the idea of tapping on third party resources can help small companies during peak hours or when the facing increased on-demand requests.

According to data collected from our own delivery operations, companies find it difficult to deal with the surge in orders so the challenge that arises is whether or not to hire full-time drivers.

With CarPal, restaurants and food delivery companies can focus on a healthy delivery ecosystem by expanding their networks and tapping into our very own pool of 10,000 freelancer drivers to drive c operations cost down. At the same time, drivers can fully utilize their time to take delivery jobs in a more consistent manner.

food delivery singapore

Tapping into outsourced drivers will allow you to bring the delivery cost down, gain control over your own delivery fleet, and have the ability to tap into third-party drivers without having to purchase any vehicles or hire additional staff. Jonathan Tan, Operations Manager 

To implement this concept, restaurants will need to try new models based on what works better for their own scenario. That means using their internal fleets, external fleets, partner companies, and even crowd-sourced resources that can be aligned to reach customers in the best and most efficient way.

2. Partnering with a delivery company

food delivery singapore

There was always a myth going on about the difficulty of building sustainable partnerships between restaurants and delivery companies, and it’s only normal to weigh down options before venturing into such a partnership. Before considering this, owners have to asses the advantages thoroughly.

Some of the key points to consider are:

  • The ability to offer complimentary apps and web dashboards to help you manage your deliveries in an efficient way
  • Open communication lines with operations staff of the delivery company 
  • Being able to make changes last-minute delivery changes and communicating them to the designated staff of the delivery company 
  • Tapping onto a pool of drivers to help you assign deliveries accordingly

3. Focus on a transparent and flexible customer-centric experience

food delivery

The world of online delivery is incredibly complex and for restaurants to succeed in this landscape, it’s important to acknowledge that the latest technological innovations play a key role to improve the overall food delivery experience.

But as much as technology evolves and innovation pushes the boundaries of the industry, it’s important to remember that every change is designed to improve the customer experience. 

By using the right delivery company which manages orders through efficient digital workflows, restaurants will create an opportunity for their staff to seamlessly manage their operations and for their customers to have a better experience when they order or receive a delivery.

Efficient deliveries are possible when communication is at the core of operations. Besides having the ability to track a delivery and to connect with the driver that is delivering the order, communication through tech is also about bringing a new layer of transparency and visibility which empowers any business owner.

4. Integrate an online ordering system

While delivering your food on time is crucial to your business growth and client retention, the F&B industry experiences many challenges they can properly address with the help of third party platforms.

One solution is looking into an online ordering solution to accept incoming orders and manage them all in one single place. This will help you focus on other areas of your business whilst centralizing and organizing your orders in an efficient way.

An online ordering solution will help you get convenient access to your online orders, be alerted of changes, as well as enable you to incorporate comfortable lead time for food preparation hence gain control over your kitchen’s operations.

Conclusion

Restaurants and food companies need to understand the important role of deliveries and how adopting innovative strategies will help them develop a tight relationship with their customers, as well as create a strong brand image. 

food delivery singapore

last mile delivery singapore

Turning Challenges into Opportunity in Last-Mile Delivery

In order to optimize last-mile delivery operations, companies will have to turn their challenges into opportunities and gain full control to track exactly which items are on which trucks and where they are on their routes for a better delivery experience.

As the last-mile delivery trend is becoming the norm, a lean delivery management software is required to eliminate manual processes, reduce costs, and increase responsiveness.

With recurring issues like no control and visibility over deliveries and drivers, and miscommunications with suppliers, logistics managers need to react quickly and rewire the way they work to keep the delivery process smooth and efficient.

Companies often become vulnerable to disruptions when they don’t have a full view of their operations. This can be a matter of poor visibility among orders, or not having adequate transportation flexibility to route deliveries when the demand is high.

It’s a fact that in this ever-competitive market, even a short-term last-mile delivery disruption can have long-term consequences if not handled quickly and effectively.

Companies are working on optimizing internal logistics processes from order placement to time and driver management to compiling reports, and being a lean infrastructure featuring automated and fully integrated workflows.

But the question is what happens after the item leaves the location? This is a common challenge many logistics players face.

There is a lot of manual work involved in optimizing last-mile delivery that shouldn’t be daunting; instead this opens up potential for organizations, which can result in reduced costs and better order management.

Unpredictable demand? Build a resilient last-mile delivery ecosystem

Unpredictable demand, new consumption patterns and customers’ need for transparency have deeply impacted the delivery world, which means that it’s never been more important to maintain an agile, flexible last-mile delivery ecosystem to gain yourself a competitive advantage.

A key element of a resilient last-mile delivery ecosystem is having access to end-to-end visibility, the ability to track items at every point at each stage of the delivery and the tools to spot potential issues during the process.

Visibility through live tracking helps businesses respond to major external events and bridge the gap between the control tower and your fleet of drivers.

Lack of overview? Gain last-mile delivery transparency and control through tech

last mile delivery sinapore

It’s a known fact that a successful workflow needs to have an end-to-end overview , and lack of control is perhaps one of the most common challenges logistics companies have right now. Having access to data visibility across your extended supply chain network at every tier enables early warnings about disruptions across the extended trading network.

An early warning allows you to mitigate supply disruptions before operations and performance are negatively impacted. Enabling real-time visibility and alerts across multiple tiers requires the right technology and expertise.

Focus on communication on-the-go

External collaboration and communication help manage the response when the unthinkable happens. Without collaborating with your staff, contingency plans are isolated from key suppliers and distributors, prolonging recovery efforts and disappointing customers.

Be prepared with an intuitive response plan

Last-mile delivery disruptions cannot always be predicted, so evaluating potential outcomes before they actually occur can make or break a response plan. Risk management processes provide the information and communication platform needed to assess and manage situations as they occur.

A holistic view of data and information empowers organizations to expedite or make existing deliveries more efficient. This results in fewer delays and an overall improved service level!

driver management

Managing Your Drivers to Optimize and Fulfill Deliveries

A delivery management system provides drivers with an intuitive app, which allows them to get notifications of new assignments, suggestions for the best routes, as well as have access to collect signatures and photos as Proof of Delivery to have a smooth delivery experience.

In traditional last-mile delivery, one of the biggest challenges remains to accurately manage your resources; these include delivery staff, vehicles, and drivers.

For many companies, being in full control of their operations is essential, which is why the idea of owning a fleet or even working exclusively with a delivery partner seems to be the preferred solution.

However, there are limitations to this business model, which include relying on your own fleet which reduces the chance of workforce growth as soon as the business demands it.

Many of the hurdles about choosing the right strategy for your delivery operations can be solved with tech that helps partner companies, partner fleets and partner drivers to operate successfully in an open and flexible environment.

How does a delivery management software help you manage resources?
Properly managing drivers could be one of the major step forward towards making the entire delivery management ecosystem more responsive and sustainable. This will result in improved turnaround times, faster delivery authentication, reduction in detention times, and improved vehicle/driver utilization.

A delivery management software offers features like route optimization to channelize route planning protocols, optimizing their movement, bettering their estimated time of arrivals, both to reach the retail outlets from distributors, and reaching the consumer on-time.

For instance, route optimization and live tracking features have proved to be beneficial for big companies like Amazon and Alibaba, which helped them better track and optimize their omni-channel strategies to ultimately minimize any friction between their services and customers.

This idea shows that technology can used to optimize routes in real-time and ultimately improve the delivery process by literally having an overview of the entire last-mile delivery segment.

By assigning tasks to drivers and ensuring they are taking the right routes, companies can fix the gap between expectations and execution both on the customer perception end, as well as their very own strategic planning end.

Identify how under-resourced or over-utilized your fleets are

driver management
With the help of a delivery management software, you can identify how under-resourced or over-utilized your fleets are, and even forecast future deliveries.

By managing orders and matching the best available driver, you can bring delivery costs down and gain more control over your own delivery fleet as well as have the ability to tap into third-party drivers, without actually having to purchase any vehicles or hire additional staff.

What’s more, in order to have a good overview of your deliveries, you will no longer have to prepare everything manually, but make use of automated features like live tracking, route optimization, and reporting to help your team collaborate efficiently and have a built-in process for allocating and managing resources to your deliveries.

Efficient order management

Planning orders and properly assigning them to your fleet of drivers ensures that all your deliveries follow the most optimized route which would result in ROI saving in the form of cost and time.

During peak seasons or when experiencing an influx on-demand requests, companies find it difficult to manage the surge in orders, so the challenge that arises is whether or not to hire additional drivers for their very own fleet.

Improving the last-mile delivery is one of the top priorities for logistics companies, and more companies aim to build good infrastructures in order to optimize the speed, cost and flexibility of their operation.

If we’re talking about hiring contractors, companies will have to find alternative ways and explore delivery solutions which help them better manage multiple fleets to deliver the optimal delivery experience for their customers.

Automation is key
A delivery management software uses predictive analysis to schedule deliveries, and automated order management is the centerpiece to any on-demand delivery solution as it allows companies to have access to an interface where they can schedule driver pick-ups and deliveries.

Automation saves you time, and through a software, you can easily keep an overview on all orders and tracks potential delays for on-demand and scheduled deliveries. This is important as it offers a complete end-to-end visibility of the delivery business.

To reduce the cost of movement, companies will make use of tech that provides features to better manage orders and resources and have access to real-time data. This will result in shorter delivery times, improved turnaround times, faster delivery routes and reduction in rates.

delivery management

5 Ways Tech Makes an Impact on Logistics and On-Demand Delivery

The article has been originally published on TradeGecko 

Demand for automation, personalized workflows and streamlining complicated operation processes have strongly contributed to a shift in how businesses have to operate today — and the on-demand delivery sector is booming considerably, creating a tight relationship between consumers and businesses.

As such, more companies need to level up their services and integrate innovative technology such as a delivery management software in their business models, helping to make deliveries more efficient and personable.

In the last-mile sector, there are challenges that companies need to overcome like lack of visibility, allocation of drivers and speed as well as inefficiency, which means businesses will not only have to incorporate new technologies into their supply chains, but also adopt new strategies so they don’t risk becoming irrelevant in this competitive market. 

But re-imagining logistics requires adaptability and constantly ensuring you are aware of what the trends are in both the last-mile and tech environments.

When real-time tech is coupled with traditional logistics business models, the result can be an intuitive, agile delivery operational workflow that will improve the performance of your business while allowing you to save cost at the same time. Here’s how.

1. Tracking on-the-go

delivery management

To help companies keep up with increasing demands, tech is transforming the supply chain considerably, offering more insight into what is happening at any time in the delivery process. Real-time visibility allows companies to identify potential issues and correct them before they become major problems.

Live tracking solutions which are fully integrated with digital devices are a game-changer as they allow companies to leverage technology to extend the visibility into the order until the last step of the process.

With this kind of next-gen infrastructure in place, businesses can streamline the delivery process, as well as establish and maintain a competitive advantage in the market.

2. Access to data analytics

The integration of real-time information into interactive analytics allows companies to benefit from additional businesses capabilities as well as increase delivery efficiency and hence attract and retain more customers.

Data is no longer a phenomenon in this day and age, hence analytics is one of the most critical requirements for any business. This is why many experts will emphasize the importance of leveraging analytics to gain insight and uncover patterns related to processes, customers and trends.

With the help of data, you can also learn how much time and money it takes to serve specific customers in certain parts of cities, resulting in better optimizing routes that is also cost-saving. You can also forecast the likelihood of service issues due to disruptions or unexpected demand spikes.

This approach can take a brand to another level, turning the delivery experience into a starting point towards understanding and delighting customers.

3. Smart route planning

Most of the time, inefficient routes can cause disruptions and ultimately you’ll end up poorly managing your time. With accurate algorithms which ensure that drivers complete most deliveries in the least amount of time, companies will be able to create a truly advanced end-to-end delivery platform, reducing fulfillment costs whilst delivering a top-notch experience.

The route optimization feature generates the most optimal route for the vehicle on-the-go, and with a single click, the rate will also be reduced accordingly. The route optimization feature communicates in real time with mapping interfaces to generate an accurate estimated time and rate.

4. Efficient order management

Order management is centerpiece to any on-demand delivery solution as it allows companies to have access to an interface where they can schedule driver pick-ups and deliveries. This feature saves you time, helps keep an overview on all orders and tracks potential delays for on-demand and scheduled deliveries. This is important as it offers a complete end-to-end visibility of the delivery business.

5. Customer satisfaction

delivery management


With the help of modern technology, both businesses and consumers have unprecedented real-time visibility into the status of their order. With live notifications which keep consumers informed, businesses are not only adapting to consumers’ needs by delivering in a timely fashion, but also by delighting them throughout the process.

In order to thrive in this competitive industry, companies need to learn to adapt and build an infrastructure which will ultimately help them streamline operations. By having access to tech, companies will find it easier to prevent and fix inefficient processes on-the-go!

delivery management

cash on delivery

Cash on Delivery – Overcoming Payment Infrastructure Challenges in Southeast Asia

With the evolution of tech, delivery operations have changed and evolved, and customers’ expectations have also shifted the way deliveries are done.

In the face of  increasing competition from e-commerce players, more companies are considering of jumping into the digital world to reach out to a wider audience faster and more efficiently.

Same-day delivery has certainly become the norm, and this new trend has sparked changed into how deliveries are done.

For instance, more companies focus on transparency, efficiency and control when it comes to their operations in order to have smooth operations workflows and ultimately, bridge the gap between customer expectations and their own services. But these companies, also need to identify their customers  – or even the markets’ – challenges.

In Southeast Asia, one of such challenges is the lack of “Cash on Delivery” option upon placing a delivery. In countries like Malaysia, Indonesia, Thailand and Philippines, many companies still manage transactions manually due to issues like lack trust in sharing information through online channels.

But with the rise of fintech, e-commerce and last-mile delivery, while it is important to educate consumers on the convenience and ease of online payment methods, companies performing deliveries still need to come up with alternatives to stay on top of the game hence a Cash on Delivery option is integral to any successful business strategy in this part of the world.

What is Cash on Delivery?

Cash on Delivery or COD is a type of transaction in which the recipient makes payment for an item at the time of delivery. The recipient can make payment by cash or cheque depending on what the shipping contract stipulates.

This type of transaction usually takes place through a company and allows both the seller and the buyer of the product to minimize the risk of fraud.

Highlighted in e27 is the fact that “one of the difficulties when it comes to payment options is the low level of trust Indonesian consumers have when it comes to online purchases, where 34% of Indonesia’s online consumers are “afraid of fraud”, according to a survey by the Indonesia Internet Service Provider Association.”

Cash is still king in many markets

According to data from Southeast Asia-based e-commerce logistics provider aCommerce as cited by ecommerceIQ, cash on delivery was still the payment method used for nearly two-thirds (65.3%) of digital purchases in Indonesia.

Over in Thailand, the country is still a cash-driven society and Cash on Delivery is the preferred payment method for 70% of e-commerce shoppers, making payments a bottleneck for faster e-commerce growth as many sellers cannot offer COD.

Advantages of COD transactions

For consumers without credit cards, COD purchases offer a convenient way to order items online. The transactions pose low risk for the buyer since the customer doesn’t pay until they receive the product in satisfactory condition.

On the merchant’s side, offering a COD payment option may enhance buyer confidence in a new company that does not yet have strong name recognition. This strategy can also lead to more customers and increased sales.

Also, since COD transactions do not involve a credit card, merchants save money on credit card transaction fees. In addition to enjoying the benefits of COD transactions, merchants who offer this payment option must be prepared to assume certain risks.

To mitigate the return risk, big e-commerce players make sure to take high-quality photos of its products while providing as much information as possible, like exact measurements.

How does tech help? 

With a delivery management platform in place, you can use features that help companies move a step forward and get an edge up this competitive market. With CarPal’s delivery management software, companies can easily customize their deliveries and when it’s needed, clearly indicate when a certain transaction is required to have Cash on Delivery option. By having access to this option, companies will be able to easily manage their deliveries.

When paying attention to the needs of the market, companies can reposition it as a sophisticated logistics service provider with international standards and high reliability.

Together with this feature, a delivery management software has a holistic role for your organization and this means that companies can track the progress of a package in real-time, use route optimization to offer their fleets of drivers the most efficient route to perform deliveries as well as monitoring driver accountability through Proof of Delivery.

cash on delivery

amazon last mile delivery

Simple Strategies Amazon and Alibaba Use That Can Boost Your Logistics Company’s Growth

With the implementation of innovative tech as well as penetration of new product markets, big e-commerce players like Amazon and Alibaba have gained the reputation of being pillars in the on-demand delivery sector.

By creating an environment centred on visibility and flexibility, these companies have managed to gain competitive edge and assert themselves at the centre of the delivery ecosystem for many other companies around the world.

While Alibaba and Amazon are at the centre of the new digital retail, they’re both using very different strategies.

For instance, according to a Freightos article, “Alibaba connects global businesses and consumers as the world’s largest virtual middleman, while Amazon is a global player that controls everything from manufacturing to sales and physical logistics.”

But what does this mean for other companies? While this may mean that traditional retailers will have a harder time succeeding, it also gives plenty of reasons to think about evolution and alternative methods to improve your business.

In a recent article on the launch of Amazon in Singapore, we talked about how big players work as a great benefit for local businesses as more consumers get used to receiving goods on the same day, fact which pushes smaller companies to adopt alternative tactics.

To scale delivery operations, it’s important to find the right delivery management solution to ensure more efficient deliveries, and in order to accomplish this, using tech to streamline operations and dispatch orders automatically is a must.

But let’s take a look at some strategies big players are using that you can apply in a different measure.

What Amazon does:

Empowers customers to have visibility and control over orders

last mile delivery

Image credit: Amazon

Right from the beginning, Amazon identified what the industry lacked and understood consumer needs perfectly. This is why the company started off with a service called “local express delivery” in the US, which later on expanded considerably. The service proved to be the foundation of their overall strategy to maximize efficiency at each step of the supply chain.

What’s more, the company identified different potential product verticals that would scale the business, which is why they chose to try out new product markets where there’s still ample space for growth.

And by launching same-day delivery service, Amazon’s volume of deliveries sky-rocketed hence they needed full visibility over their orders. That translated into knowing exactly which items are out on trucks, which trucks they are in, and where they are in the delivery process.

Giving customers visibility over their delivery: when it’s on its way, real-time tracking of the driver, precise ETAs, and notifications of when it has arrived are all things that consumers now expect.

What your company can do:

Implement a platform that offers control and live tracking 

This type of disruption caused by Amazon is positive as it can only push smaller businesses to adapt to change through a new level of speed and flexibility.

As a small company that wants to succeed and gain competitive edge in a landscape where companies like Amazon thrive, it’s important to use a system that allows you to have full control of your operations.

The most important aspect of your deliveries is having visibility over your deliveries and drivers in real-time. By using a delivery management system, your company will not only have access to such features but also provide your drivers with an easy-to-use app which gives you the ability to communicate directly with the driver, and monitor them once till delivery is completed.

What Alibaba does: 

Invests in a digital strategy

The Chinese e-commerce giant increased its stake in logistics firm Cainiao, aiming to begin delivering orders on the mainland within 24 hour.

According to an article in TodayOnline, “China’s market is more labour intensive and has obstacles like inaccurate post codes, for example, and in the rapidly growing cities new addresses are appearing all the time.

By standardising addresses and using digital labelling codes, Cainiao has cut time, costs and errors in delivery. Eliminating paper printing in favour of coded e-shipping labels saved almost a fifth of the courier’s estimated 0.54 yuan operating income per package.”

What your company can do: 

Use Proof of Delivery (POD) to reduce disputes

This is an essential component of the delivery as it serves as an important acknowledgment to mark that the delivery has been completed. By using the POD feature available, not only do companies have the assurance that packages were delivered successfully, they can also track the progress of the delivery.

This helps companies identify potential issues before they become major liabilities. A POD is a fast-growing trend that more companies are implementing into their delivery workflows to make the processes hassle-free.

What Amazon does:

Created Amazon Flex

amazon last mile delivery

Image credit: Amazon

Amazon’s sales revenue has been increasing every year but that didn’t stop the company to adopt new strategies. With Amazon Flex, which initially was started in Seattle, Amazon took the on-demand era to last-mile fulfillment.

The service is an outgrowth “sharing economy,” in which independent drivers, like Uber, can go to a local Amazon warehouse, grab a package and deliver it to its final destination.

This service is interesting as it could help Amazon cope with holiday high-demand and other situations where conventional services aren’t up to the job. This means, Amazon is creating an alternative ecosystem which can create a high fullfilment rate.

What your company can do:

Build a healthy last-mile ecosystem 

Companies can then build a healthy last-mile ecosystem by expanding their networks and tapping into a hybrid fleet to drive cost down. Last-mile can become a sustainable ecosystem where your very own fleet and partnerships with local delivery companies are successfully growing your delivery logistics.

If properly managed, this scenario can offer companies the flexibility to scale the business needs and use multiple resources that fit increased demand across multiple locations.

How to adopt new strategies

To scale delivery operations, it’s important to find the right delivery management solution to ensure more efficient deliveries. In order to accomplish this, using tech to streamline operations and dispatch orders automatically is a must.

To streamline operations and ensure that deliveries are timely, it’s crucial to leverage your services with tech to facilitate delivery speed as well as better manage the distribution of orders. It’s important to look for a solution that is flexible enough to be layered on top of existing technology to level-up the management of drivers and the order optimization.