Had a great experience co-presenting with Michael Kors, Google and Instacart at the 2016 GMA Supply Chain Conference last week on Same Day delivery. We discussed the underlying supply and demand side drivers of Same Day, from both a retailer / branded as well as a solution provider point of view.
Key takeaways from the session:
1) Same Day (order to door) accounts for only 1.5% of all .com orders in the U.S. in 2015, but with a rapid 150% CAGR growth and seen by many retailers as a strategic bet
2) The majority of Millennial consumers expect and are willing to pay for Same Day
3) Marketplace based platforms such as Google Express, Deliv, and Instacart will play a major role in enabling store based Same Day across key metro areas, especially for lower basket value Consumables and Grocery
4) Same/Next Day will likely play a significant role for Branded luxury in the coming 3-5 years in key markets like NY and CA
5) Effective inventory deployment and visibility across stores and forward deployed DCs remain a key challenge
Panelist (L to R): A.T. Kearney, Michael Kors, Google, Instacart; Moderator: Michael Hu