All is quiet in the mall. The stores have closed their doors. Back at home, parents, singletons and students alike, are snuggled up, relaxed in their pajamas. It’s late and dark outside, and no-one is thinking of going out in the cold. Yet, business is thriving online. Driven, in part, by the rise of on-demand delivery.
The “Vampire Economy” refers to people shopping online after-dark. And, according to a recent study by Barclaycard, the Vampire Economy is rising. Demands are growing for everything from clothing to food to pharmaceuticals to be ordered and delivered during the night-time hours. But, like the name implies, there’s something sinister about this online shopping habit. It’s a potential threat and drain on profitability to manage on-demand delivery. So, what do you need to know to survive and not have all profits sucked out of you by meeting demands of the Vampire Economy?
Barclaycard credits, in part, this surge of shopping after 10pm to the the swift and reliable on-demand delivery services such as Deliveroo, Hungry House and Amazon Prime. Increased accessibility to mobile devices for online shopping is another major factor in the ease of instant gratification to satisfy the latest craving. Impulse buying has been made incredibly easy - and to minimize returns - the goods need to arrive fast.
Logistics companies must ensure route density or high revenue per stop to survive. And technology is the answer. Today’s cloud-based solutions have the capability to plot delivery routes in real-time, providing a powerful visualization of every available option and associated cost. Every route and method to deliver goods is instantly analyzed within route planning software. Clever algorithms sort and figure the best way to manage deliveries, fueled by personalized data including your capacity, any restrictions, known traffic patterns and hours of peak traffic congestion. All data is collected and accessed in the cloud, so the technology gets smarter and smarter with every update of information added.
Logistics must be at the heart of the value proposition so companies can more easily determine the real need for speed or if a slower delivery time-frame will satisfy the customer. Using integrated logistics technology at the point of purchase, companies can sort out perceived demand for right now, versus satisfaction within 60-mins. This kind of invaluable data can be the difference to a business fail or success. Just because you can make a delivery right now, doesn’t mean you should. To be able to serve customers interests in the long-term, companies have to figure out what is good enough to match the value of goods sold.
The “Vampire Economy” is a growing change in shopping habits and smart logistics are required to find the optimal route, time and delivery method to match demand so the life-blood isn’t extracted from your company as you keep up with fierce competition.