Page 24 - Dainfern Precinct Living Issue 7_2023

Business

IT'S THE
Delivery Experience

THAT COUNTS

Instant gratification drives last-mile technology advancement

Image: Rosebox, Unsplash

or online shoppers, the time it Yet while consumers spent around R5- This is especially true given ‘last-mile
takes for their parcel to reach billion online in South Africa in 2021, delivery’ – this is the final leg in the
them – after pressing pay – getting their products to them has eCommerce process when the parcel is
Fdoes matter. Consumers have become a delicate balancing act, one delivered to the customer. It accounts
become far less patient. During the where speed has become a highly-traded for 53% of the total costs of shipping –
pandemic there was an exponential rise commodity while the cost that it takes to but it’s a stage for which customers are
in eCommerce, with everything from deliver quickly has become a commercial largely unwilling to pay. This threatens
groceries, to alcohol, hair care products conundrum for retailers. profitability, especially for smaller brands.
and medicine all being ordered online.
The primary issue is that it costs more to Antonio Bruni, CEO of smart logistics
In fact, so entrenched has this new get a parcel to a customer faster. Throw in technology solution, Picup, says the last-
behaviour become, that online delivery unknown issues such as traffic, inaccurate mile leg of the delivery journey is the most
options are springing up all over the mapping and even weather, not to crucial but it’s hard for brands to get it
place, with some of the most recent mention that the customer may not be right and it’s often the most inefficient in
grocery options being Pick n Pay’s at their address when the parcel arrives, the entire supply chain.
ASAP, Checkers Sixty60 and Spar2U. and the result is that the brands are
With so many online options now sitting with a financial headache, where “This is sometimes due to reasons outside
available, it is doubtful consumers will they increasingly need to meet their of a brand’s control, but mostly it comes
ever return to pre-COVID-19 shopping customers’ demands but come up against down to a lack of technology solutions
behaviour. a barrage of costly delays. that can track parcels, navigate speed-
24 DPL issue 7 2023
16 DPL issue 4 2023