The Struggles of Same-Day Delivery

Inventory issues and logistics difficulties present challenges for companies tackling same-day delivery.

September 25, 2015

NEW YORK – Companies that promise to deliver food and beverage products on the same day their customers order the products are facing a variety of challenges that complicate the simple concept. Those challenges range from inventory issues to logistics difficulties, according to a new Fortune.com article.

It can be challenging to figure out the right amount and types of foods and drinks to have in stock, the article says, as well as how to set competitive prices and manage all the logistics involved in delivering food and beverage products fresh, safely and on time.

Retailers that hope to soon make same-day deliveries of food a thriving part of their businesses —such as Amazon.com, Google and Uber—are all facing challenges as they try to get their plans off the ground. Discount retailer Target recently partnered with Instacart on a pilot grocery delivery program in Minneapolis.

“Every market had for years expensive B2B courier services but these players are looking to undercut those with a consumer offering,” says Sucharita Mulpuru, vice president and principal analyst at Forrester Research, in a statement. “The problem is that consumers don’t usually want to pay for this service and retailers don’t have the margin to pay for this either.”

Convenience stores hoping to get into this potentially lucrative market may learn that simplicity is crucial as they plan. The consensus of large delivery companies like Amazon and Uber, the Fortune.com article says, is that so far, “the simpler, the better.”

Read more about store-to-door delivery in the current September issue of NACS Magazine.

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