The history of logistics stretches back millennia. Think of the ancient Egyptians who mastered transport and storage to keep their large civilisations fed. At its core, logistics has always been about getting goods from A to B but changing consumer behaviour has driven dramatic shifts in the industry.
With the growth of e-commerce came arguably the largest upheaval of the industry, as consumers could order anything at any time. The initial excitement quickly turned to an expectation; convenience became the norm.
Logistics companies needed to adapt. Strategies had to become flexible, reactive, and scalable. Consumers now expect instant gratification and reliable services, adding pressure for companies to ensure consumers receive their goods quickly. The result? More complex logistics operations required – efficient, reliable, and built for speed.
The need for speed: Rise of same-day and faster deliveries
Same-day delivery is rapidly taking over the e-commerce space, with 78% of consumers now expecting to see same-day or next-day options when ordering online. This shift in consumer behaviour is forcing e-commerce businesses to embrace lightning-fast delivery as the new standard.
The benefits are undeniable. Same-day delivery boosts customer satisfaction, gives businesses a competitive edge and can even improve inventory management. However, offering super speedy deliveries to your customers comes with logistical hurdles. Orders need to be processed and shipped at breakneck speed, leaving little room for error. Companies need to have a well-oiled logistical machine behind the scenes to meet these raising expectations.
Transparency and tracking: Knowing where your package is
Long gone are the days of customers wondering where their orders are. Today, they crave real-time insights into their order tracking, meeting their desires for a fully informed, seamless shopping experience. Studies show that offering this level of transparency builds trust: nearly a quarter of online shoppers said they would want to return to a brand that offers real time order tracking. It’s unsurprising – knowing exactly where your parcel is fosters a sense of control and reduces the anxiety of waiting.
Businesses are upping their game to meet these expectations. Today, companies offer frequent, bespoke emails, SMS and push notifications. Some, like DeliveryApp display real-time tracking via a map in the app, allowing businesses and customers to watch their parcel on its journey to its destination.
Flexibility and convenience: Delivery options beyond the doorstep
Today’s customers crave convenience, which now means having more options for where and how they receive their packages. This has led to the rise of out-of-home deliveries – anything that goes beyond standard home delivery.
Click-and-collect is leading the charge, taking the e-commerce world by storm; some research suggests that by next year, it will account for 11% of all UK online retail sales. While its popularity surged during the pandemic, unlike online sales in general, click-and-collect has continued to grow in popularity.
Out-of-home deliveries often carry faster delivery times and unmatched convenience, minimising the risk of missed deliveries. Plus, they can be more cost effective for both businesses and consumers.
Sustainability concerns: Considering the impact of logistics solutions
Customers are becoming environmentally savvy, so much so some research suggests today’s shoppers are willing to pay 12% more to brands who showcase sustainable efforts. This wave of behaviour is impacting logistics strategies in a big way. Businesses are under pressure to think more consciously about how they can minimise the impact their deliveries have on the environment.
The good news is that options for businesses to optimize their logistics are endless. From alternative last mile deliveries, like drones, bicycles, or electric vehicles, to partnering with carbon neutral couriers, there are many options for businesses to reduce the overall impact of their deliveries. Technology plays a key role too. Route optimization software helps to minimize overall milage and fuel consumption. Alternatively, some companies are updating their packaging, to not only be more resource efficient, but to optimize space within vehicles, reducing the number of loads on the road.
The rate of change in consumer behaviour is forcing logistics companies to rethink their strategies and find innovative ways to optimize their offerings. While some bring efficiency and convenience, some changes lead to new hurdles for companies to overcome.
High consumer expectations translate to tighter deadlines and less tolerance for delays or mishaps, increasing pressure on customer service teams. Meanwhile, a challenging economic climate with rising costs, sustainability concerns and ongoing supply chain disruptions, make it challenging for businesses to keep costs down for customers whilst maintaining realistic margins.
Perhaps the biggest challenge? The sheer pace of change. Consumer demands across industries are constantly evolving and the ability to adapt is key. Logistics companies that can remain agile and responsive will be best positioned to thrive in this dynamic environment.
The future of logistics is infinitely linked with consumer behaviour, and as consumers become more and more tech savvy, so do logistics companies. Automation, AI and data analytics will continue to influence and reshape the industry, streamlining processes and optimizing every step of the delivery journey. Once futuristic concepts are becoming closer to reality!
Companies that embrace change and innovation with be at the forefront of this transformation, ensuring they meet the ever-changing needs of the consumer.
Leverage a network of reliable couriers to get your items moving instantly, whether it’s a simple A to B delivery or a complex multi-drop route. With DeliveryApp, you enjoy real-time tracking and instant proof of delivery, all in one user-friendly platform. This ensures your same-day deliveries are efficient, hassle-free, and completely transparent.
Want to get started? Speak to our sales team today.
