5 warehouse delivery challenges crowdsourcing helps solve
Forecasting demand is an ongoing challenge for warehouses. Inventory isn’t always where it needs to be. And as a result, workers must often scramble to move goods to where they’re wanted, whether that’s by shipping same-day rush orders, replenishing a fast-selling product at a sales event, or transporting a bulky item that’s too costly to ship through a traditional carrier.
Because they fall outside normal distribution schedules, these last-minute moves are often costly for the warehouse. Warehouses may pay rush fees to a delivery partner or pull their own workers off other tasks to get the job done, slowing productivity.
And expectations for ultrafast delivery are only getting more common. The World Economic Forum forecasts that demand for same-day delivery is growing 36% a year and instant delivery (under 2 hours) is growing 17% annually.
Warehouses need solutions that allow them to respond quickly, efficiently and affordably to these challenges — but that don’t cost them anything when not in use.
Crowdsourced delivery has emerged as a way for warehouses to keep pace with new customer demands while staying nimble and limiting overhead. Just as restaurants have turned to the likes of Uber Eats and Postmates to deliver orders to customers on-demand, warehouses are taking the same approach for last-minute orders, bulky goods and other deliveries that don’t fit typical routes and schedules.
“Our customers are trying to be ahead of the game,” said Rachel Zarach, business development manager at Roadie, a crowdsourced on-demand delivery platform. “If their customer needs that tire by the end of the day, they can under-promise and over-deliver by using us to get the delivery there in under two hours. That really makes them look good, and makes their customer happier.”
Chances are you’ve experienced these common delivery challenges. Here’s how crowdsourced delivery changes the equation with on-demand, cost-effective and scalable solutions.
Challenge: Keeping up with demand during driver staffing shortages.
Some warehouses use their own drivers and fleets for scheduled and on-demand deliveries. But shorter delivery windows and widespread labor shortages have made this option unworkable for many. Nearly a third (30%) of shippers have experienced driver shortages, according to the 2021 Third-Party Logistics Study.
Crowdsourced on-demand delivery solves this problem. Warehouses no longer need to divert trained warehouse workers or recruit drivers in a fiercely competitive market. Instead, they can access a ready workforce of drivers exactly when needed.
Challenge: A bulky item that is hard to package.
Not every product fits neatly into a parcel-sized box. Maybe it’s a pair of tires or a roll of insulation. And since carriers switched to dimensional weights for calculating shipping charges, even a lightweight item with awkward dimensions can quickly run up delivery costs.
Warehouses that stock these bulky items often find crowdsourced on-demand deliveries far more efficient than other options. Because the order is traveling in a private vehicle such as a car, truck or van, the warehouse doesn’t even have to package the item — saving them time and money while getting the product to the customer faster.
Challenge: Urgent deliveries outside of normal routes or schedules.
Customer needs don’t always fit pre-set schedules. When a part breaks at a job site and a construction company faces penalties for missing deadlines, getting that equipment back up and running is critical. Yancey Bros. Co. – an Atlanta-based Caterpillar and Blue Bird bus distributor – was meeting those urgent calls by pulling warehouse techs off the job and sending them out with crucial parts. The customer got what they needed, but Yancey Bros. lost time and productivity.
By partnering with Roadie to make those last-minute shipments, Yancey Bros. cut its average delivery time up to 75% from the previous 12- to 24-hour turnaround. Plus, the company kept its techs focused on the work they were trained to do.
Challenge: A same-day order that missed the daily truck.
Many warehouses maintain a steady shipping cadence via truckload, less-than-truckload, parcel services and even regular routes by their own fleet. But a last-minute order often can’t wait for the next scheduled shipment. Maybe a repair shop needs a part later today, or the delivery location is outside the coverage area of those services.
Flexibility is a hallmark of crowdsourced on-demand delivery. It’s available whenever a need arises — even within the hour — for hotshot deliveries and other one-off needs. With Roadie, same-day delivery is possible as far as 70 miles from the pickup location.
Challenge: A sudden spike in demand.
Even the best inventory forecasts can’t anticipate when an influencer’s offhand mention will cause demand to heat up, or when a weather event will send consumers into stockpile mode. No retailer wants to miss out on that revenue. But warehouses don’t always have a fast, cost-efficient way to get orders to customers outside normal routes.
Whether you’re sending replenishment stock to stores, or delivering orders to customers’ doorsteps, one big benefit of crowdsourcing is its ability to scale up quickly to meet surges in demand on the spot.
Customer demand is notoriously difficult to predict, and the stakes for getting it right are only increasing. Crowdsourced, on-demand delivery helps warehouses make ultrafast delivery a reality — without breaking the bank. Check out our playbook to learn how warehouses can use crowdsourced delivery to keep inventory and orders moving, or visit Roadie.com.