How Technology is Solving Many of the Challenges Posed by On-Demand Delivery

The proliferation of on-demand delivery services has dramatically increased the degree of convenience that customers experience in the purchasing process. For merchants, however, the expectation for on-demand delivery has dramatically increased the complexity of their fulfillment processes.

Whether the products being delivered are prescriptions, groceries, pet supplies or pizza, getting them to the designated location at the designated time requires merchants to engineer a higher level of logistical efficiency. To accomplish this, more and more merchants are turning to the wide range of automation tools that technology provides.

Streamlining the Dispatch Process

In the world of on-demand delivery, each order starts the clock ticking. Merchants must quickly complete a process to identify the best source for the product and the quickest path to get it to its destination. Because any degree of human error can quickly lead to delays, the best option will be systems that leverage artificial intelligence (AI) and machine learning for automation.

The power of AI allows merchants to move beyond mapping deliveries to benefit from sophisticated multistop, multiroute delivery planning systems. These systems take into account all pending orders and their unique delivery instructions to determine the best delivery vehicles and optimal routes. By drawing upon traffic and weather information, these systems also ensure that routes are selected based on the most up-to-date information.

For businesses that don't have their own in-house delivery team, delivery platforms provide the tools for creating a virtual courier management hub. Available couriers can quickly be identified and notified of pending deliveries. Once delivery orders are dispatched, the platform keeps the merchant, courier and customer updated on the delivery process in real time.

Optimizing Flexibility for Drivers

When not managed properly, meeting the demands of on-demand delivery can mean dramatic cost increases for businesses. A glaring example of this is the need to have delivery personnel at the ready in anticipation of incoming orders. By leveraging digital dispatch tools, however, merchants can utilize “on-demand dispatch” to control costs. In essence, merchants can draw upon flexible delivery scheduling to scale their teams up and down as customer behavior demands.

The ability to update routes in real time is another benefit that technology brings to the delivery process. If customers update delivery instructions, drivers can be provided with new route and delivery information at a pace that allows for high levels of efficiency. In addition, when unexpected and unavoidable circumstances slow down or speed up a delivery, customers can be automatically notified of the situation. When deliveries are made, delivery platforms can empower automated proof of delivery systems that are triggered by the delivery driver through the use of secure apps.

Improving Efficiency and Increasing Capacity

The same technology that's utilized to improve the efficiency of current on-demand orders can also be used to increase the capacity for future orders. Leveraging digital systems for delivery empowers businesses to collect data on all aspects of the process, including customer preferences, loyalty, sales trends and delivery performance. By applying AI to the data, businesses can identify patterns, forecast future activity, and plan for future needs.

The expectation for on-demand delivery shouldn't be viewed as a short-term trend. Businesses that ignore it — or, worse yet, fail to deliver on their on-demand promises — will find themselves at a competitive disadvantage. Now is the time for businesses to begin integrating technology that can empower quick and customizable delivery options into their delivery systems.

Anar Mammadov is the CEO of Senpex, a logistics company that provides on-demand pickup and delivery services for business including retail stores, grocery stores, restaurants, health companies, e-commerce shops, and marketplaces.