Holste Says: Perhaps the most difficult to manage unintended factor of expedited shipping is the impact on the workforce. What Do You Say? Click Here to Send Us Your Comments Click Here to See Reader Feedback

Given today’s quick response logistics and distribution realities, same-day delivery is simply beyond the capabilities for traditional pick & pack order fulfillment operations. For even the most automated operations, providing even same-day shipping is fraught with major challenges. Of course, in the name of customer service, DC staff is always willing to jump through hoops a few times a day to go around the system and expedite a few orders. But, when expedited orders become a frequent requirement, the physical “bolt-to-the-floor” order processing systems gets in the way and ciaos develops.

Amazon and Google are trying to solve this challenge with an “out-of-the-box” approach.

Amazon Prime members shipping to select metro areas across the U.S. can choose to receive FREE Same-Day Delivery or FREE One-Day Delivery on a broad selection of items. They have large highly automated order fulfillment centers in 12 cities where the service is currently being offered and has created a network of local delivery companies to satisfy the same-day shipping demand. According to recent news releases, Amazon is preparing to take same-day delivery services to the next level with drones. These flying robots are supposed to be able to drop an item at the customer’s door within 30 minutes or less. Currently, Amazon’s average delivery time (for standard shipment) is 3.6 days. Google’s Shopping Express Program allows shoppers to purchase items from participating retailers. They can order via Google’s mobile app or website by 4:00 p.m. for same-day delivery between 6 and 9 p.m. Google has partnered with local retailers and has employees who shop for you in the store and deliver to your home.

So, for retailers with traditional order fulfillment operations, what are the same-day and/or next-day delivery factors? It’s not just the premium shipping cost, which can often be passed along. Not just the extra cost to walk one order through the DC. But, the impact of not being able to:

schedule staffing to meet a work plan

level activity over an 8-hour shift

spread flow over multiple shifts to reduce capital investment

create efficient order batches for picking

Perhaps the most difficult to manage unintended factor of expedited shipping is the impact on the workforce. Most employees are prepared to work unexpected overtime every once in a while. But, when the end of every day is a variable, it disrupts their lives, keeps them from being able to pick up their kids from school or childcare on time and their families from being able to plan on them. These are the realities that are being incurred by DCs and passed along through the supply chain because we've made instant response the norm. Highly automated, flexible and agile systems may offer some relief, but they are not magical cure-alls.

Final Thoughts

No doubt, perfecting expedited services will require major changes in the traditional order picking and shipping model. However, looking back, not that long ago it took days, even weeks (depending on the season), to receive your catalog order. Now we order online and expect delivery in a day or two. Who knows maybe same-day delivery will become the real-deal. One thing we know for sure - putting the “rapid response genie” back in the bottle is not going to happen!