Same Day Delivery Options and Factors to Consider for Future Demand

Examensarbete för masterexamen
Master Thesis
Supply chain management (MPSCM), MSc
karnermo, marcus
Sturesson, patrik
Superiority in logistics, distribution and inventory management are emerging as some of the most important success factors in today’s omnichannel world. One observed development on this topic is that more and more retailers are seen to start offering same day delivery to customers. The focal company of this master thesis, a medium sized Swedish company producing high quality premium fashion, has certainly also seen this development and will investigate same day delivery options and its potential in a Pilot Project in the Stockholm region during the autumn of 2018.This thesis is in turn conducted in order to investigate how to approach and set up such an initiative and in order to do so, the purpose is to investigate how a mid-sized company in the apparel industry can approach and design same day delivery distribution to customers in metropolitan areas. The thesis approaches the problem using an abductive research approach and is built upon four different research pillars: a comprehensive literature review, a survey with retailers, secondary data collections with data from the focal company and a far-reaching set of interviews with both industry professionals and academics. In order to fulfil the purpose of the thesis it begins with a market analysis investigating the changes that has been happening into the field of e-commerce and e-commerce distribution. From this study it can be concluded that omnichannel strategies are crucial for every company in retail environment, that customer demands will continue to push the market towards faster and more convenient solutions for e-commerce distribution, that same day deliveries are likely to impact the industry to a very large degree and that the topic thus is of crucial importance for both companies and academics in the field. The research continues with presenting a strategy for The Company’s same day initiative and does so by first investigating different storage solutions that can help solve the same day transportation dilemma. It is concluded that during the initial stage the initiative should be setup around store storage. This solution provides a combination of minimal investment costs, low risks and low response time. Likewise, the transportation service that should be used in conjunction with the storage setup is investigated. The recommendation here becomes to establish a partnership with a service provider that provides the customer centred service, has focusing on home deliveries during evening, and offer flexibility and dependability of the transportation service. The two providers investigated in this study that satisfy this are Best Transport and Budbee. Finally, the thesis also gives recommendation of a series of other omnichannel services that should be included by The Company in order to complete the holistic view and approach. Among these are return in store, drop shipment and click and collect
Samhällsbyggnadsteknik , Civil Engineering
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