In the world of logistics, companies like Amazon don’t stop pushing the standards in terms of quality and innovation in the market, which forces other companies to improve.
While this statement conveys that big players are disrupting the market, there are other subtleties behind it; for smaller companies, this is just an opportunity to learn from Amazon’s methodologies and adapt to the new tech on their own terms to ultimately scale.
If we take into consideration the many companies in Southeast Asia, we’ll know that they have the potential to penetrate the market using their own strategies and growing sustainably – not to compete with big players, but to showcase their own uniqueness.
And this can be done by implementing strategies that offer a bird’s eye view of their orders – and tackling issues like automatically assigning and managing in-house and outsourced fleets accordingly when experiencing unpredictable volume in orders.
Today, we’ve concluded that delivery in a day is considered too slow – and in Amazon’s philosophy, a sustainable network needs to be able to empower companies with the option to get their orders delivered in just a few hours.
At least, that seems to be what Amazon tends to push towards – and this is visible through the extensive network of Amazon Prime Now hubs to fulfil one- and two-hour deliveries.
The goal of this paid subscription (which is also available in Singapore) leans towards getting goods to the market faster, and ultimately creating a lean, cost-efficient logistics network.
While many retailers and online platforms might find this threatening, there are strategies that these companies can tap on to prove the exact opposite thing.
Be flexible, tap on crowdsourcing
Companies can bypass big players by partnering with third-party delivery companies that provide same-day delivery
Third-party delivery companies have the infrastructure these retailers need to be able to compete with Amazon and offer faster delivery services at lower prices.
If we look at Amazon’s ability to offer these services at such a large scale, we observe how the company uses its position as a same-day delivery pioneer to leverage its own business. We’ve seen how other retailers continue to develop a dependency on Amazon’s platform, only to realize one day that Amazon is their biggest competitor.
To up their game, smaller companies need to consider this fast and convenient delivery strategy to grow and succeed, and the answer might be rolling out their own same-day delivery option.
Companies that want to innovate in the same-day delivery sector can start utilizing logistics technology that supports delivery management, fulfilment, and optimization to differentiate themselves from their competitors.
In an industry as important as logistics, which has become the backbone of any company’s operations, this type of technology will definitely be a gateway to success.
Optimizing logistics has a significant and tangible impact on the revenue as well as transparency and accountability, allowing companies to better analyze all the relevant data to adjust their operations and boost productivity.
Think visibility and transparency
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 cost-effective system that allows you to have full control of your operations and gain efficiency for your daily tasks.
The most important aspect of your deliveries is having visibility over your deliveries and drivers in real-time.
By enabling your company to manage and match deliveries in an optimal way, you 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 drivers and monitor them till delivery is completed.
As on-demand is now the norm, consumers change the way deliveries are done and they are becoming more demanding in terms of visibility and speed, causing a major shift in the on-demand landscape.
But this new market creation proves that it will only push smaller businesses to adapt to change through a new level of transparency and flexibility.
To learn how to operate better, companies need to find out how to fully-utilize resources and scale businesses (without breaking the bank), hence look for alternatives and compete with industry giants.
Don’t forget, the main goal for all these companies is to provide a seamless, efficient and professional experience from the point of purchase all the way to the delivery itself.
Use smart algorithms = efficiency and scalability
Machine Learning will enable efficient on-demand route optimization for deliveries
Identifying if drivers are under or over-utilized and using an automated system that helps to allocate orders to the right driver means that you will be able to build a healthy ecosystem that focuses on a high fulfilment rate.
Route optimization is proven to be a pressing issue for logistics companies and organizations that rely on them to deliver goods. A growing list of companies has already begun adopting more sophisticated technologies to help optimize routes for speed and efficiency.
As on-demand delivery schemes begin to take hold in last-mile sector, it will force companies to generate more optimized routes within the shortest time possible to enable faster pickups and deliveries.
That will require instantly aggregating and analyzing a wide range of both historical and real-time data on weather, traffic, and construction delays, as well as historical data regarding demand for pickups and dropoffs.
A smart algorithm which focuses on self-learning would help you crunch all the data and factor in things like capacity, weight, volume, and priority status. This would result in an automated and sustainable resource allocation ran at the most optimal rate of resource utilization for the company.
An area of opportunity
Even though Amazon and other big companies have established themselves as innovative leaders in this market, other companies still stand a chance to compete or even win by implementing their own strategies in the battle for on-demand delivery.
Consumers have changed the way we perceive deliveries and the infrastructure for the future of delivery is being democratized, offering more possibilities to evolve faster in a highly competitive market.
Disruptors like Amazon help to push these changes, driving businesses – both B2C retailers and B2B logistics players – to enter the same-day delivery landscape and find alternative delivery options in order to survive.
There are platforms that work closely to enable these smaller companies to enter the same-day delivery space or figuring out ways to help them build a more sustainable delivery ecosystem. It is up to these companies to decide the right moment to switch and adapt to new tech, or they might face the possibility to become obsolete before they even realise it!