On Demand Era – Opportunity Lies in Optimising Last Mile Delivery

wow expressThis guest column is by Santosh Patil, Founder & CEO, DACK.in

With the acceptance and popularity of Ola / Uber, on-demand service startups are hot topic of the town in India. 

What is “On-Demand Era” all about & what companies are doing in this ? 

Customer demand fulfilment in real time is become on-demand business model. Uber / Ola are on the top in this segment as they are fulfilling demand within a minutes. 

But in same business area, other service providers fulfilling requirement on demand. Like food on demand, laundry on demand, parcel on demand, grocery on demand, personal services on demand etc. 

Every thing runs on real time, so technology plays key role in this to make seamless communication and drive transactions hassle free. 

What is On-demand fulfilment?

Rise in home delivery services brought few entrepreneurs to “on-demand startups” in world, which fulfil or deliver anything and everything on-demand. On-demand companies are connected with customers and providers on real time. And some of the startups are managing to supply on their own by tie-ups or own inventories. Important thing here is to fulfil everything on demand which scheduled by customer.

How does it work?

On-demand startups are mainly dependent on technology to carry out all the transactions hassle free. Customer would make use of mobile applications or web application to place an order. Post ordering, every startup process it either from nearest vendor or from their own warehouse. Once the order is ready to deliver, assigning order to nearest delivery boy will make things more hassle free and bring in optimisation in all sense.The delivery boys usually have smart phones, which help them in viewing their order list as well as end customer details. However, the biggest challenge is to manage everything on real time by adhering schedule.

How last mile delivery optimisation plays key differentiator ?

Optimisation in process execution has direct relations towards business viability. In most such businesses last mile delivery cost is almost 50% of overall cost of fulfilment. More efficient processes and execution is key differentiator in every business model. 

- Resource optimisation

Every resource comes with cost, so resource utilisation will help such businesses to reduce huge cost. All this is possible by adopting right technology. More order per resource will reduce per order cost

- Timely delivery

Delivery on time will boost customer satisfaction and increase tremendous efficiency of entire ecosystem. All this is possible when such companies adopt technology which suits their business model and help them to empower delivery boy to execute things in planned manner 

 – Real time communication

Real time communication with all stakeholders makes things very easier to execute. Seamless communication is helping all such businesses to keep informed about every update to every stakeholder on  real time

Success of such business models lies in the right technology adoption while executing things on field. Tech platform will help every such business idea to make it sustainable and bring long term strength to business. Best thing about this businesses is that it can expand quickly by replicating models across geography. But all this is possible when company selects right technology platform to execute things 

Image Credit: Wow Express

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