How Retailers Like Alibaba Are Leveraging Local Delivery Services For A Faster Last Mile

How Retailers Like Alibaba Are Leveraging Local Delivery Services For A Faster Last Mile
Delivery & Logistics

Retailers are tapping into communities, using local delivery agents and spaces to enable a more flexible and efficient process

PSFK
  • 5 december 2018

Driven by the endless availability of e-commerce channels, today’s consumers are making more impulse purchases than ever, as well as demonstrating a need for immediate access. However, these demands place pressure on retailers to maintain accurate inventory and deliver fast.

To meet these consumer needs, retailers are bringing the warehouse closer to the customer. Here’s how brands are making product acquisition more prompt, marshaling unused space in-store, enlisting the assistance of hyper-local delivery channels or otherwise migrating distribution centers to be closer to the point of purchase or acquisition.

Eli.me + Watsons
Alibaba Group’s on-demand delivery platform Eli.me allows consumers to receive purchases from the drugstore retailer Watsons in less than an hour. Leveraging logistics supplied by Alibaba’s company Cainiao Network, customers’ online purchases are fulfilled in the nearest store to them, rather than a warehouse. As a result of the collaboration, sales have grown by an average of 115% month to month.

Hema
Employees at Alibaba’s offline grocery chain Hema fulfill online orders and pass them onto conveyor belts en route to a delivery center. This distribution strategy allows customers living within a three-kilometer radius to receive their groceries within 30 minutes. The supermarket also expanded its offerings for 24-hour delivery, which includes most items in the store as well as cooked meals.

Target
To better position itself against online retail giants and focus on nimble fulfillment, Target is piloting a new distribution strategy that uses the same inventory sources to fulfill both online orders and stores. This initiative has not only reduced replenishment cycles down to hours, but also allows the retailer to reduce in-store inventory. According to Target, 90% of its orders for two-day delivery are new fulfilled in the back of stores.

For more examples of how retailers are innovating their delivery and distribution strategies to enable faster and more flexible service, see PSFK’s Last Mile Delivery Debrief.

Driven by the endless availability of e-commerce channels, today’s consumers are making more impulse purchases than ever, as well as demonstrating a need for immediate access. However, these demands place pressure on retailers to maintain accurate inventory and deliver fast.

+Alibaba
+analysis
+covenience & supermarket
+Delivery
+Delivery & Logistics
+ecommerce
+eli.me
+Features
+Food
+fulfillment
+Grocery
+hema
+last-mile-delivery-debrief
+post purchase support & service
+target
+Virtual Commerce
+watsons

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