Volkswagen Talks Pros and Cons of Same-Day Parts Delivery

It's not just retailers that have dived into Same-Day Delivery. Big name automakers have also begun to implement same-day delivery of parts to strengthen service efficiencies. So far for Toyota, for example, getting parts to dealerships the same day is working. The bottom line is that the service has moved beyond just being a trend for any company, even car manufacturers. However, one of them is not ready yet to say whether same-day delivery is the positive turn that the industry needs to improve dealership part inventory and operations.

Auto News recently discussed in an article about Volkswagen not in favor of pursuing same-day delivery for its' business model yet. VW has a greater focus on developing a supply chain process that helps dealers actually change what they are stocking. The part inventory itself will result in dealerships having the parts for operation efficiency. Service repair is one of the areas of a dealerships that customers complain about the most. It is imperative that the lead time to receive parts it minimized to improve repair times. This in turn, creates less miscellaneous costs to take care of the customer to make up for a lack of on-time repairs.

Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, commented in the article about same-day delivery, questioning its' ability to be a viable solution. He stated in the article, "If you've got dealers stocking the right parts in the first place, why do you need same-day service?" The key for Volkswagen that would make same-day part delivery work is its' distribution system, which currently would have to expand to be successful at this type of program. The pros is that it works; however, the con specifically for Volkswagen is the automaker has seven distribution centers and would have to add more to establish a close-proximity system. This ultimately means a huge level of costs that VW isn't ready to provide.

Volkswagen currently does offer next-day delivery, which is productive and the company appears to be satisfied with it. Goel said, "We are good for now. With a 1 p.m. cutoff [for parts orders], we can make 7 a.m. to 8 a.m. delivery the next day. Seven buildings around the country allow us to meet that commitment." On the other hand, other big name car manufacturers are seeing same-day delivery aid in part inventory and service success. Toyota, which implemented same-day parts availability to their dealerships this past August, has seen a difference in real time repairs and customer service. BMW and Fait Chrysler US have also launched same-day part deliveries.

There are pros and cons to same-day parts delivery, yet it is all contingent upon the automaker's current distribution model, and how much would it take to shift from traditional warehousing to fast deliveries. A Same-Day Courier like A-1 Express is a viable option for care manufacturers to partner with to have parts delivered. The Los Angeles Courier has a national footprint, enabling it to pick up and delivery parts to dealership locations across the US. It does take delivery expertise and a large driver fleet to get parts from one dealership to another. A-1 Express could be just what other automakers need to compete and increase their service repair efficiencies.

Reference: 11.21.16, www.autonews.com, Jim Henry, VW's Goel: Same-day delivery? Not yet

SOUQ.com Brings Same-Day Delivery to Middle East

Most of the trending for Same-Day Delivery has the US in the forefront, as well as Canada, London, India, and China. Yet now, the Middle East is being reported on as being another area where same-day delivery is being launched in to help online retail thrive.

Arabian Supply Chain recently discussed how SOUQ.com, the Middle East's largest online retail and marketplace platform, has announced the launch of its' new same-day delivery program in the region. This will be the very first e-commerce company to offer this level of delivery in that area, which could prove to pioneer the service there. The retailer will begin in Dubai with plans to expand. The service for "Fulfilled by SOUQ" (FBS) will be for all online orders placed by 3pm.

“Our primary objective is to deliver the highest quality products and a service as efficient and quick as possible to our customers,” said Ronaldo Mouchawar, SOUQ.com CEO & Co-Founder in the article. He went on to say, “With the Fulfilled by SOUQ (FBS) program, we manage the fulfilment and logistics for third-party sellers, saving them time and money, and our home-grown logistics arm Q-Express as well as our partnership with WING.ae provide us with the most efficient delivery service in the region with real-time order tracking. We believe that our same day delivery and SOUQ delivery promise initiatives are a huge step forward in corresponding supply with customers’ demand and further making online shopping experience seamless and enjoyable.”

One of the main drivers for online retailers implementing same-day delivery is online giant Amazon. The largest e-retailer in the US has possibly by itself revolutionized e-commerce via same-day delivery. Amazon currently has free same-day delivery in 27 city markets, including the New York, Boston, Dallas-Fort Worth, Indianapolis, Tampa Bay, Baltimore, Washington DC, Chicago, San Francisco Bay Area, San Diego, Seattle-Tacoma, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, and others. The e-retailer has Amazon Prime Now in London, as well as its' recent launch of free same-day delivery in Toronto and Vancouver this past October.

Wisam Daoud, COO of SOUQ.com also said in the article, “This innovative initiative is one of the region’s first- enabling customers to choose from the largest assortment of products and categories at the quickest turnaround. This landmark service will allow customers to buy their products in just a few clicks and receive their purchases just a few hours later- a testament to our constant endeavour of utilising technology and our operational expertise to further drive the e-commerce growth in the region.”

Same-day delivery is forecasted to grow to over $987 million by 2019. This equates to more involvement by countries engaging the service into their shipping options, meeting today's shopper demands. Customers want speed and convenience, and a Same-Day Courier like A-1 Express may be just what retailers need to shift how they ultimately sell product. The New York Courier has a national footprint in the US, with a track record of consistently providing same-day solutions.

Reference: 11.10.16, www.arabiansupplychain.com, ASC Staff, SOUQ.com enhances logistics with same-day delivery

PetSmart Launches New Same-Day Delivery in Eight Cities

It doesn't take retailers long to understand that if Amazon continues at its pace of growth, they will lose their relevance in the coming years. Google, Wal-Mart, Macy's, Best Buy, Ace Hardware, and others aren't the only retailers implementing Same-Day Delivery to compete with Amazon. Now PetSmart has decided to do the same and has announced it will roll out the service in several areas this November, right before the holiday shopping season begins.

Flagship.com recently reported that PetSmart will offer same-day and scheduled deliveries in eight US cities in an effort to push against the growth of e-retail leader Amazon. The cities will include Dallas, Houston, Philadelphia, Boston, New York City, Yonkers, Northern New Jersey and Washington DC, most of which are the same cities that Amazon provides free same-day delivery in. Like Macy's, the pet product retailer has partnered with start-up delivery company Deliv to establish the program and perform the actual deliveries. Deliv utilizes a crowd-sourcing model to execute its' pick up and deliveries.

PetSmart is hopeful relative to creating efficient omnichannels to generate online and brick-and-mortar sales. Eran Cohen, chief customer experience officer at PetSmart, said in the article, "As the trusted partner to pet parents and pets in every moment of their lives, we are continually looking for ways to make the shopping experience easier and more convenient for our customers. Our omnichannel strategy is aimed at giving pet parents options tailored to their needs and desires".

Its main driver for taking their online retail to another level via same-day delivery is because of the pressure Amazon is putting on all retailers. Prime Now is in 27 major city markets, including New York, Chicago, Boston, Indianapolis, Dallas-Fort Worth, Baltimore, Washington DC, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, Seattle-Tacoma, San Francisco Bay Area, and San Diego. Amazon also has free same-day delivery in Toronto and Vancouver, showing the e-retail leader is very aggressive when it comes to same-day delivery. For anyone to compete, they will have to do the same with last-mile deliveries, utilizing their store locations as warehouses.

Also like Amazon, PetSmart will be launching a subscription option for shoppers. Others have done it as well, such as Wal-Mart, which is testing its' new service ShippingPass for a $49 per year subscription. E-retailer Google also offers shoppers a $95 annual subscription fee for its' same-day delivery service Google Express, partnering with companies like Costco, Whole Foods, Walgreen's, and others.

Instead of Deliv, other retailers have chosen to partner with a Same-Day Courier like A-1 Express to develop a same-day delivery solution for them. The Chicago Courier has an abundance of service areas, having a nationwide footprint and has a driver fleet to perform deliveries as well. Whether it is in Chicago, New York, San Francisco, and more, A-1 Express can pick up and deliver within a few hours, making for a superior option for same-day delivery. Companies like PetSmart and Amazon, can call on A-1 Express anytime for same-day services, especially to capture online shoppers during the holiday season.

Reference: 11.12.16, www.flagship.com, PetSmart Launches Same-Day Delivery

Amazon Continues to Deliver, Even Driving More Retailer Holiday Sales

No retailer is doing the type of vast implementations with Same-Day Delivery like Amazon is doing. The e-retail leader is expanding itself at a rapid pace, beyond just being in the US with Prime, but also in Canada and around the world. The aggressive investments and establishing same-day delivery has not been for nothing. Now as the holiday shopping season approaches, Amazon has its sights on capturing record sales in the months to come.

Along with Amazon's growth, Internet Retailer reports that there are retailers that will be able to generate sales as of a result of it. 55% of online retailers surveyed are expected to generate their biggest share of sales on Amazon this holiday season, according to a new survey from ChannelAdvisor and Morar Consulting. The reason is because Amazon will be a key selling channel for a lot of online retailers. The report stated that retailers say Amazon outpaces eBay. 19% of respondents said will lead to online sales. This is remarkable that Amazon is growing tremendously online that it will cause other retailers to increase in sales as well.

14% of the surveyed retailers also said that their own sites will be their top web sales channel during the holidays. 48% of retailers expect their holiday web sales to rise, and only 29% believe their sales will stay flat or will decline compared with the 2015 holiday season. The push for sales in the last three months of the year is what retailers wait all year long for. The retailers that can apply the right online strategies, will be the ones that capitalize on the forecasted growth during the holidays.

Many retailers are launching same-day delivery and various value-added services to attract online shoppers. Amazon has free same-day delivery in 27 city markets, including the San Diego, San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, New York, Boston, Tampa Bay, Baltimore, Washington DC, Chicago, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, and more. Amazon Canada now has free same-day delivery in Toronto and Vancouver. In addition to its strides in North America, the e-retailer has Amazon Prime expanding in London.

Google is another e-retailer, stretching itself quickly in recent months in order to capitalize on the upcoming holiday season. Google Express in now in 14 different states, which include its' early month implementation in New York. The service is now available in Alabama, Kentucky, Utah, Florida, Georgia, Tennessee, North Carolina, South Carolina, Idaho, Montana, Oregon, Washington, and Wyoming. It is isn't at the size of Amazon Prime, yet the aggressive pursuit will eventually result in more sales driven to Google and its' partners.

A Same-Day Courier like A-1 Express is an expert at implementation same-day delivery on a national scale. The San Francisco Courier partners with retailers and various companies in the US, delivering online items and fulfilling store orders. Retailers don't have to depend on Amazon sales, but can simply do what Amazon is doing to get results themselves.

Reference: 10.25.16, www.internetretailer.com, Fareeha Ali, Amazon drives the bulk of holiday sales for many e-retailers

UPS Package Deliveries Set to Increase for Holidays by 5.7%

During this holiday season, UPS already is showing signs that it will have an increase in sales from this time last year. Internet Retailer reported that end-of-the-year sales are forecasted to increase for UPS between Thanksgiving and December 31. Kathleen Gutmann, senior vice president of worldwide sales and solutions, said during a call on UPS’s third quarter earnings, “The dramatic growth of online shopping and subsequent returns is expected to lift UPS package levels to a record high during this upcoming holiday period. Between Thanksgiving and New Year's Eve 2016, there are two additional operating days and we expect to complete over 700 million deliveries worldwide, about 100 million more than last year.”

For this year's third quarter, the carrier's US average daily package volume increased 5.7% to 15.364 million packages from 14.540 million during the same time in 2015. International package volume also went up by 7.5% to 2.788 million from 2.593 million in 2015. Some other third quarter numbers for UPS included:

• Total revenue rose 4.9% to $14.928 billion from $14.237 billion in the third quarter of 2015.
• U.S. domestic revenue increased 4.8% to $9.289 billion from $8.860 billion.
• U.S. ground shipment revenue grew 4.8% to $6.616 billion from $6.315 billion.
• Next Day Air revenue was up 2.6% to $1.706 billion from $1.662 billion.
• International revenue increased 2.2% to $3.024 billion from $2.959 billion.
• Net income increased 1.0% to $1.270 billion from $1.257 billion.

Also, UPS' My Choice program will be used to help manage the expected holiday volume surges. My Choice gives consumers who sign up the option to choose the delivery location of their package, whether to their home or an alternate delivery site, including a UPS Access Point location. The program currently has 30 million members worldwide, compared with 20 million last year. The growth shows that customers like options, and UPS has about 8,000 Access Point locations in the US, including UPS stores, Access Point “smart" lockers, in addition to sites like convenience stores and dry cleaners.

Chief financial officer Richard Peretz commented on UPS business-to-business sales. He stated, “It's the best growth we've had there in five quarters. Returns growth in e-commerce is also very strong. It's growing in the mid-teens.” Despite lower industrial production, business-to-business grew roughly 2% primarily due to online retail returns. The question will be will UPS be able to keep pace with deliveries and returns in a timely manner.

Returns are not something that shoppers enjoy, nor do retailers like it either. However, with the evolving of warehousing being sourced from actual physical stores instead of traditional warehousing, correcting error shipments can be easily done with Same-Day Delivery. This is just one advantage of the service, which retailers are partnering with a Same-Day Courier like A-1 Express that can quickly pick up and deliver product from nearby stores. The Miami Courier supplies same-day delivery to hundreds of well-known retailers and companies nationwide.

Online retail is not only driving package increases for UPS, but also same-day delivery. During the holiday season, retailers like Amazon, Google, Macy's, Best Buy, Whole Foods, and more are all gearing up to provide a convenient delivery option that shoppers feel is convenient and at low cost.

Reference: 10.27.16, Internet Retailer, Tracy Maple, UPS expects holiday package volume to grow more than 16%