Same Day Delivery at TPA/GMA 2016

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

GMA_SameDay_pic

Panelist (L to R): A.T. Kearney, Michael Kors, Google, Instacart; Moderator: Michael Hu

Related: six global trends shaping future omnichannel supply chain

View All

One Comment

  1. 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.

    Like

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s