THE LATEST TRENDS IN SAMEDAY DELIVERY When it comes to quick delivery times, where is the industry heading, and how is that affecting all the players?
hen it comes to same-day delivery, the expectations of consumers have dramatically changed within the last few years. As a result, those in the customized logistics and delivery industry have had to embrace some big changes. Retailers, too, have had to find ways to adapt. We asked two members of the Customized Logistics and Delivery Association (CLDA) to share their thoughts on same-day delivery today and tomorrow. Nick Rozakis is the Managing Director and founder of Spartan Worldwide Logistics. Spartan is a same-day/ final-mile logistics company servicing the Philadelphia, PA and Trenton, NJ metro areas. Nick has been involved in the delivery industry since 1978. Sam Hosseini is Director of Opera-
tions & Supply Chain, VMW Express LLC. The company is involved with all aspects of the supply chain, including trucking, driver and vehicle leasing, distribution services warehousing, asset recovery, and convention and art programs. They have serviced Virginia, Maryland, DC, and the Mid-Atlantic region since 1987. QUESTION: Talk about the evolution of consumer expectations for timely delivery. Not so long ago, consumers were okay with five- to seven-day delivery, then two-day, and now sameday is what they expect. ROZAKIS: I think it helps if we look at the history of this industry. Home delivery of consumer goods began in the late 1800s. Sears Roebuck was the first to market. Sears sent catalogues to consumers who ordered everything from
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food to cameras, clothing, and tools. Sears specialized in delivering to rural areas where Americans had difficulty accessing goods. By 1912, companies like Spiegel developed catalogues for women’s fashion. In the 1970s, Sharper Image delivered gadgets. With the advent of the internet in the new millennium, Amazon became the early leader of what we now call e-tailing or e-commerce. The earlier methods of consumer delivery strictly depended on the postal system (aka “snail mail”) as well as UPS ground service. Both competed to fulfill the delivery of parcels. In the nineties, Federal Express, which had been exclusively an air express carrier, entered the arena of e-commerce when it expanded into the ground delivery segment of the industry. FedEx went from strictly B2B to B2C. This was accomplished by the acquisition of RPS (Roadway Package