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

Europe More Comfortable With Online Shopping

The world is on the upswing with online shopping, and it's clear that customers are enjoying the ease of it. Most of the time, the US is predominately in the news about online shopping growth, but now Europe is in the spotlight and customers there are wanting more.

It appears 53% of consumers in Europe bought something online in 2015. EU statistic agency Eurostat performed the study on online shopping there, showing that e-commerce is increasing in Europe. The percentage represents a high-water mark and exceeds the European Commission's Digital Agenda goals for technology adoption in the region. In the article by Internet Retailer, it mentioned specifically that the proportion of consumers age 16-74 who made a purchase online within the 12 months prior to the survey stood at 53% in 2015, compared with 43% in a 2012 report. Therefore, online shopping has increased by 10% in three years there.

The survey also found that 81% of individuals in the target age group in the 28-country European Union used the Internet in the 12 months prior to a new survey, and 65% of those regular Internet users bought or ordered goods or services for private use. This is an increase of 15% since 2007. Also, Eurostat found that 30% of European online shoppers purchased goods or services from sellers in other EU countries, which is up from 25% in a 2012. Lastly, 18% of shoppers bought from sellers outside the EU, compared to 13% three years earlier.

There use to be only a small percentage of shoppers being comfortable with making purchases online. One of the barriers to get past for shoppers was with the protection of secure information, which tech advancements has worked optimally to the point of even implementing high security resulting in trusted retail sources. People are more and more confident with the technology in desktops, as well as mobile devices, to conduct online buying. When this is coupled with the attractiveness of discounts and sales by e-retailers, online shopping becomes more common place in the way we do business now more than ever.

Another plus that retailers have added to make online shopping more comfortable is the service offering of same-day delivery. What first began as a trend, is now a huge competitive advantage to get the edge online that retailers are looking for. Amazon, for example, has rolled out same-day delivery in multiple major US cities in the US, including San Francisco, Dallas-Fort Worth, Indianapolis, New York, Baltimore, Boston, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Washington DC, Tampa Bay, and Atlanta. It has also made big investments into establishing itself in England.

Same-day delivery is playing a big role in being able to offer another dimension to the comfort of shopping online. The service is expected to reach $987 million by 2019, as well as online shopping to climb to $500 billion by 2018. A Same-Day Courier like A-1 Express is a viable option for retailers to partner with to get their same-day delivery program off the ground. The Los Angeles Courier has a national footprint that allows e-retailers and brick-and-mortar stores to accomplish implementing the service fast. Since more people are utilizing online shopping in the US, Europe, England, and China, same-day delivery growth is sure to follow, even worldwide.

Reference: 1.22.16, Internet Retailer, Bill Briggs, Europeans grow more comfortable shopping online

Experts Ask Will Same-Day Delivery Last?

So many companies are going after same-day delivery, as tech gadgets take online shopping to a new level in business e-commerce. Online retail is forecasted to grow to $500 billion by 2018 and the current pace is strong. Technology is supporting the reality of a more convenient shopping experience for consumers, and retailers expect same-day delivery to bridge the gap. From Amazon to Macy's, retailers are engaging more and more major US cities with the service. However, some wonder is same-day delivery as viable as retailers are making it out to be.

In fact, a recent Wall Street Journal article discussed how same-day delivery could be overblown and that it really isn't worth all of the investments that big retailers are putting into it. Satish Jindel, president of SJ Consulting Group, stated, “People don’t have a need for speed, they have a need for predictability”. Jindel is a logistics expert that helped establish small-package carrier Roadway Package System, which was acquired in 1998 by FedEx. Based on a 2013 survey by researcher comScore, 92% of online shoppers were willing to wait four or more days for free delivery, versus paying to have their shipment faster. Therefore, speed could be trending right now, or it could be long-term and even revolutionary in the way we do everyday business.

Also in the survey, shoppers said they would choose the most economical shipping option three-quarters of the time, but the fastest shipping option only 1% of the time. Head of the supply-chain and logistics consultancy for Jones Lang LaSalle Rich Thompson, weighed in on the popular service stating, “same-day delivery is not a requirement by consumers…If you offer it, people will accept it”. He also mentions same-day delivery is just a “a marketing differentiator”. This essentially means that shoppers don't mind utilizing next-day delivery and second-day delivery, but anything faster enables retailers to compete.

Regardless of the how some experts feel about same-day delivery, its' clear that a number of retailers, both brick-and-mortar and web-based only, have set their sights on implementing it and have the investments to prove it. An example is Amazon. The retail giant has picked up the pace with its' same-day program, recently implementing the service in Baltimore and Miami. Late last year, Amazon launched same-day delivery in New York City, Indianapolis, Washington DC, Philadelphia, Dallas, and Atlanta.

Jindel also mentioned how same-day delivery was the most expensive service option for consumers, and as a result, the costs is too much to pay to get something faster. However, a viable option to lower same-day delivery prices is to partner with a same-day courier like A-1 Express that has the expertise to create optimal courier logistic solutions. The Los Angeles Courier has a national footprint and can quickly implement a cost-effective same-day delivery program. It makes sense for all physical store and web-based retailers involved in same-day delivery to partner with a nationwide courier, which can assist with last-mile deliveries at for their everyday shipping.

Reference: 5.4.15, www.wsj.com, Loretta Chao, Is Same-Day Delivery Overblown?

Uber Makes Move To More Same-Day Delivery

It's a big deal when every large retailer and online company make investment after investment into a service that gets customers their products in the same day. The demand for same-day delivery continues to grow, just as many other services and products were moving into worldwide usage like the cell phone. Faster shipping and fast delivery offers shoppers the convenience they are after and retailers know it. This is why companies that offer similar service products are quickly deciding to join the action--and the profit.

Uber is a popular transportation service that can get anyone from point A to point B fast. With the growth of same-day delivery, it makes sense for Uber to do the same thing with online and physical store items. The Wall Street Journal (WSJ) reported the proof of Uber's plans regarding same-day delivery. Uber has picked up Google's Tom Fallows, former head of same-day delivery and e-commerce expert, to assist with its' business plans for growth.

The WSJ received an e-mail statement via Google from Tom Fallows regarding his shift to Uber. “Even though the next stage of my career takes me outside Google, I’m really excited to watch Google Express continue to thrive and expand”, stated Fallows. Google indeed has thrived since the two years Fallows was involved in rolling out the new, aspiring service. Now, Google offers same-day delivery is several major US cities, including its' service launch in Washington DC, Boston and Chicago. The new cities also brought along three new merchants, one located within their respective cities.

Uber is in hot pursuit to compete with retail giants, namely Amazon, to get a share of the retail market and move products for physical store chain. Google Express, formerly known as Google Shopping Express, provides brick-and-mortar retailers exactly what they need relative to same-day delivery. Google has partnered with Target, BestBuy, Wal-Green's, and more to get their products into a customers' hands within hours. Barnes & Noble has also joined with Google Express, closing a number of stores and offering customers same-day delivery of their online orders.

Same-day delivery isn't new to the transportation/taxi company. Uber has already been testing deliveries of items including ice cream, flu shots and fresh meals. UberESSENTIALS was also just launched in August in parts of Washington, DC, letting users order over 60 items, such as deodorant, batteries, chips and popcorn. Inspite of the talk regarding Google and Uber, the two many end of working together. Google Venture has also invested more than $200 million into Uber's business.

Google and Uber could end up working together to compete against Amazon, Wal-Mart, eBay, and others. The common thread for accomplishing success with same-day delivery is the actual delivery system itself. This is why a same-day courier like A-1 Express would be ideal for any retailer looking to tackle same-day delivery and make it a core competency service product. The Los Angeles courier understanding fast deliveries from a simple approach and with quick implementation, which is very fitting for the upcoming holiday season.

References: 11.7.14, The Wall Street Journal, Alistair Barr and Douglas MacMillan, Uber Picks Up Google’s Head of Same-Day Delivery

Newegg Goes For Same-Day Delivery In Los Angeles

If a retailer wants big growth in business in these times, there is no doubt the company will have to do it with a strong online strategy. A retailer will not be able to do it without meeting the demand of shoppers that are on the go, especially the younger market. Technology is making it easy to shop, therefore, e-retailers are seeking to make it easy to get their products to their customers. This is what has unlocked the door for same-day delivery to become a vital niche to increase online and store sales. It's no coincidence that tech company Newegg has decided to join in and make same-day delivery a part of its' arsenal to compete online.

Newegg has announced that it will launch same-day delivery in Los Angeles starting Tuesday, the day after Labor Day. The tech retailer will provide same-day delivery to all of its' customers within 50 miles of its' City of Industry warehouse. Orders placed by 11am will deliver same day, which all retailers providing the service have their respective cut-off times. On the Newegg site, a shopper can simply checkout and select the "Local Express" service, and their order will be delivered by 6pm. Newegg's same-day delivery will cost an additional $20 bucks to each order.

This could be just the beginning of Newegg's same-day delivery moves. If the service has positive results in Los Angeles, Newegg will expand into Indianapolis, Memphis and Edison, New Jersey. One of the key statements Newegg stated regarding same-day delivery in the article is why it has decided to test the service. Same-day delivery is "quickly becoming the gold standard on online retail", PC World quoting the e-retailer. When big name retailers like Amazon, which sells a number of electronics, begins to offer same-day delivery, other competitors will either make the shift or be slowly swept away. Newegg has it sites on testing in Los Angeles until Christmas of this year.

There is something about the demographics for Los Angeles that keeps retailers coming back for more when it comes to same-day delivery. A number of big name retailers have all rolled out the service in this prime California city, including Google, Amazon, eBay, and more. Wal-Mart is even in the race for same-day delivery, launching the service in a number of US cities. "WalMarttoGo" is the giant retailer's online store pick-up service in which customers can order online and then pick up their order at a local participating store. It is currently being tested in Denver, yet if it thrives, it could hit Los Angeles or another city in California.

It truly does make sense for Newegg to be in the business of same-day delivery, since customers have immediate needs to replace their pc parts. Instead of making deliveries itself, Newegg could partner with a Same-Day Courier like A-1 Express and have computer components and electronics delivered in no time. The Los Angeles Courier has the courier expertise to create an optimal delivery system that fits exactly what Newegg or other tech companies are striving to do. With quick implementation, Newegg can continue to its' daily operations without slowing down at all.

Reference: 8.26.14, www.pcworld.com, Ian Paul, Newegg rolls out same-day delivery in Los Angeles