How can you reduce delivery times?
Among the many challenges retailers face in boosting their business, delivery times are one that cannot be ignored. Today, failure to keep delivery times as short as possible increases the risk of losing buyers, who are always on the lookout for an offer that mentions both low delivery costs and rapid dispatch of their parcels.
After explaining in detail the benefits of outsourcing your e-commerce logistics and learning how to choose the right logistics provider, find out how to satisfy your customers by easily reducing your delivery times!
Why is it so important to reduce delivery times?
For better customer service
Delivery times play a critical role in your customers' decision-making. according to a McKinsey study, 35% of online shoppers cancel their purchase if the delivery time quoted is too long.
Similarly, 44% of online shoppers say they don't want to wait more than two days to receive their order (Statista, 2022).
To avoid losing potential customers, your delivery times had better be as short as possible!
Gain in competitiveness
In the 21st century, attractiveness depends on responsiveness. So, among the factors that can win you customers, delivery times are more than ever a major growth lever for a company.
As short as possible delivery times will halve the risk of buyers abandoning their shopping baskets. On the other hand, delivery times in excess of 3 days can be one of the main obstacles to business growth.
In addition to the price of your products on sale, being competitive also involves delivery speed.
To save on your logistics costs
It may seem counter-intuitive, but faster delivery can lower your logistics costs.
The faster your products are delivered, the less time they spend in your warehouses, and the lower your storage costs. You'll also be able to manage your inventory more flexibly, in line with your requirements.
But reducing your lead times is no mean feat. Here are a few tips to help you do just that.
How to reduce your delivery times?
1. Optimize your inventory management
Out-of-stock situations are one of the main causes of delivery delays.
Good inventory management enables you to anticipate potential stock-outs and ensure the continuity of your e-commerce logistics. (Conversely, it also helps you avoid overstocking and increasing your storage costs)
To do this, you first need to define the right storage method. For example, you can use the minimum stock method.
This method consists of replenishing your stocks as soon as the quantity of a product falls below a minimum threshold. This minimum stock must be able to continue to satisfy demand (even in the case of unforeseen events such as a peak in demand) until the stocks are replenished.
However, this method requires you to be able to monitor your stock levels in real time!
2. Anticipate peak periods
Whatever your sector, your demand is bound to depend on peak periods throughout the year.
Whether it's sales, Black Friday or key moments in the year such as the start of the new school year or the beginning of summer, you have order peaks that you need to meet on time.
A poorly-prepared rush period can quickly turn sour if you can't deliver on time!
By anticipating these sales trends, you can adjust your stock levels in line with the various foreseeable sales peaks, and put the necessary resources in place to guarantee adequate customer service.
3. Store your products as close as possible to your customers
The shorter the distance between your stock and your customers, the faster your deliveries will be.
Analyze your orders by city and delivery region to identify the geographical areas where you have the most customers.
You'll then be able to choose the most suitable partner based on its warehouses. By choosing a partner with several warehouses in different geographical locations, you'll benefit from better coverage and therefore faster delivery times.
4. Cut out the middleman
The more different players you have in your supply chain, the greater the risk of delays and longer lead times. By choosing complete intermediaries who take care of your entire logistics chain, you avoid multiplying delays between each stage of the process.
5. Automate order management
By relying on automation technology such as ERP, orders from all your sales channels will be recorded and communicated to your carrier automatically. You'll no longer lose time due to delays in internal communication between the various stakeholders.
6. Outsource delivery to a 4PL provider
A 4PL provider acts as a single intermediary for your logistics. It's the ideal partner for outsourcing all levels of your shipping, storage, delivery and customer returns processes.
For example, if you're a user of Rakuten Fulfillment Network, our e-commerce logistics service, you can outsource your entire supply chain and ensure rapid service to your customers
This enables our customers to offer efficient delivery to their buyers and build loyalty through a smooth experience. If you'd like to find out more, please don't hesitate to request a quote!