Av Trimble smartdelivery | Article | June 18, 2018

Are On-Demand Services Set to Revolutionize Last-Mile Delivery?

Living in a sharing economy, on-demand services have driven the 21st-century lifestyle. We want services that can provide us with what we want, as soon as possible and exactly the way we want it. Ten or fifteen years ago, many of the services that we have today would have seemed absurd.

Having food delivered to your doorstep, booking cabs from your phone, sleeping in a stranger’s house while travelling, having someone to walk your dog – all these are now common services in the on-demand industry.

One industry that is deeply affected by the rise of on-demand services is the logistics industry. Many logistics solutions offered by the industry, particularly last mile delivery, is expected to go through revolutionary changes because of on-demand services. After all, the delivery management determines how fast the product or service reaches a customer.

As the world evolves and becomes more advanced, it becomes easier to order almost anything you want directly from your mobile device. As a result, consumers expect more from retail vendors, and they are therefore forced to adapt to the changing environment for survival and to stay relevant. The marriage between on-demand services and logistics is one of the best examples of this significant shift, which is flooded with expectations of deliveries as fast as the time taken for consumers to purchase. This helps to ensure success and last-mile delivery satisfaction.

For instance, if you order food from an app (on-demand service), often you expect it to receive it within a maximum of one hour. Due to this expectation from customers, there is a lot of competition among service providers, some even promising that if the food doesn’t get delivered within a specific time limit, the bill is on them. This increase in not just the speed but the quality of delivery, is a result of the rising customer expectations brought on by on-demand services.

What does it take to be on-demand?

With so many apps providing numerous kinds of services coming up, it is essential now more than ever to fully understand what it takes to be on-demand. Below, we explain the basic characteristics of on-demand services and how they affect last-mile delivery.

1. On-demand services should deliver now

The most important quality of an on-demand service is that it should be able to deliver when the customer wants it, which is usually “now”, without any hassle. Customers want fast, and often free last-mile delivery, and this can be ensured using mobile logistic solutions like routing optimization, ability to track and trace and pick-up and delivery software.

2. On-demand services mean having a competitive advantage

Last but not the least, on-demand services should have a certain competitive advantage that distinguishes them from their competition. For example, being able to deliver 24/7 is a service that not every business has.