I had a great experience co-presenting with Michael Kors, Google and Instacart on the topic of same day delivery at the 2016 GMA Supply Chain Conference last week.
We discussed the underlying supply and demand side drivers of same day delivery and emerging models (see figure below).
Here are a few 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, especially in anchor urban locations
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 select categories such as luxury and fashion in the coming 3-5 years, especially in key markets like NY and CA
5) Effective inventory deployment and visibility across stores and forward deployed DCs remain a key challenge
See the Same Day Delivery at GMA presentation deck here
Related: six global trends shaping future omnichannel supply chain
1 thought on “Same Day Delivery at TPA/GMA 2016”
I have to say that it’s a bit surprising that same day delivery orders account for only 1.5% of online purchases.
It just shows the huge potential that this service carries.
People are used to get their ordered products within 2-5 days, but when more and more websites will start offering same day delivery, it will quickly become the new standard and online retailers that will not meet it – will stay way behind.
Naturally, big players like Amazon, Google and Ebay have a huge advantage here.