A lot happens in the process of delivering an item, and in many cases, too much happens. It’s an over-complicated process that is hindered by archaic methods and logistics that are aggressively negligent of current and future technologies.
More and more, consumers expect things to happen quickly, and it’s only a matter of time until waiting days or weeks for a package is simply no longer acceptable.
In today’s fast-moving economy, you’ve got to keep up. There have never been lower barriers to entry when it comes to starting a business, and complacency will leave you dead in the water.
If you ask how soon people expect their deliveries to arrive, the answer is simply “sooner”. With the current model, it’s not a matter of getting something from point A to point B, it’s not that simple. There’s a lot of unnecessary processing in between those points. Granted, it was necessary at one point, but with the power of the blockchain and the ability to leverage P2P, those extra steps aren’t necessary in a lot of cases.
The “hub and spoke” model is commonly used by delivery companies. Picture the spokes of a bike tire as individual destinations or origins of a package. The item goes from one spoke, to the hub in the center, and then to another spoke.
Imagine if it could simply go directly from one spoke to the spoke that’s right next to it, instead of having to stop off at the hub first? This drastically decreases delivery time, fuel charges, labor costs, not to mention the overhead that comes from running a warehouse.
The reason the hub and spoke model has been used traditionally is because it’s not practical for every courier or delivery company to pick up each package immediately and bring it to its destination. This model takes advantage of the fact that they can take it to the hub, lump it together with other packages going to the same destinations, and do it all at once.
This method has advantages in terms of organization, and having pre-set routes. Logistically, without the technology we have today, it made sense and was an improvement.
Imagine tracking a lost package when there are a countless amount of possible routes and it could have ended up anywhere? Each city or destination only has to coordinate with the hub, rather than having to try to coordinate with every other destination.
Those benefits are outweighed by one very important factor: it’s much slower than direct delivery, and essentially makes same-day deliveries impossible. Also, the logistical nightmare is a thing of the past thanks to the technology offered by VOLT, but we’ll get more into that in just a few moments.
Simply put, hub and spoke is outdated in many cases, costs too much money, and doesn’t allow for the fast same-day delivery that consumers are demanding.
There was a time when it was completely normal to send a package or a letter and expect it to take days, weeks, or even months to arrive. We still see longer delivery times when packages are coming from overseas, but in today’s world, customers have an expectation for things to move more quickly.
You can send an email instantly, you can do your banking online, you can access information on nearly any topic right away, communicate with people via high-definition video on the other side of the world… That’s what younger generations have grown up with, and the rest of the population has grown accustomed to.
With consumers continuing to do more and more online shopping, it’s been a blessing for the shipping industry, however they still haven’t widely updated their obsolete methods. At the core of it all, there’s an inherent flaw with the way packages are delivered.
Right now, people still understand that it can take a little time for their packages to arrive, but with same-day delivery being offered in more densely populated areas, it’s only a matter of time until it’s no longer a nice perk but an expectation.
Thankfully, using the blockchain and a P2P model, companies who want to be ahead of the curve will be able to offer this before it becomes standard, giving them a huge head start and an advantage over their competitors.
In the earlier days of the internet and eCommerce, one of the big obstacles that venders needed to overcome was trust. People weren’t comfortable using their real names online in a lot of cases, not to mention giving out their credit card information to place orders.
That stigma has more or less passed now, people are more comfortable than ever, and more willing to trust that they’ll experience a smooth transaction.
With that initial obstacle out of the way, the saving grace of retail shopping is that people simply don’t like to wait for their packages to arrive.
There are cases where consumers will gladly wait a few extra days to get their product, if it means saving some money by shopping online, but how many times have you, yourself, gone to the store to buy something you needed the same day instead of ordering line?
Without improvements to same-day delivery, like more accessibility and lower costs and smoother-running platforms, brick and mortar businesses would always have that advantage over online orders.
According to Shopify, a recent survey reveals that 49% of consumers said that a same day option for delivery would make them more likely to shop online. Only 15% of global retailers are currently offering same-day delivery, so there’s a huge disconnect between what people want and what they’re getting.
Last-mile refers to the final step of the delivery process, before the package reaches its final destination. It’s not literally just the very last mile, it could be a few city blocks, or it could be 75 miles. It’s just used to describe that last step.
It accounts for a big portion of the total cost involved with delivering a package, so naturally improving this is a huge potential cost-saver for all parties, from the shipping companies, to the vendors, and all the way down to the cnsumers.
A more efficient take on last-mile logistics means people can get their packages sooner, and for less money. But it’s not all about cost-saving, in fact consumers have shown they’re willing to pay a premium for better last-mile delivery.
With eCommerce sales expected to fly past 2 trillion dollars in 2018, and a lot of that being driven by the consumer market who eagerly want their packages as quickly as possible, this creates congestion, logistical nightmares, but most importantly it creates massive opportunities for the forward-thinking companies who are willing to take on the challenge.
One of the issues is navigating urban traffic, parking, and practical things like that. Same-day requires minimal hands in the cookie jar, it’s all about getting the package to the person who is going to drop it off as quickly as possible with minimal hubs or other time-sinks coming in between.
One proposed solution has been to have storage lockers of sorts, where packages can be dropped off for an entire area, and the customers can pick them up from there.
It’s less convenient than a package arriving at your house, but if there are 100 deliveries in a neighborhood, they can be dropped off in the lockers relatively quickly compared to travelling to 100 homes. This is kind of like rural mail delivery currently functions. Another idea is to use drones to help with deliveries, but there are better and much more practical options out there...
With a peer to peer network backed by the blockchain, VOLT empowers businesses to get their products out to their consumers as quickly as possible, without any unnecessary delays.
Volt is a decentralized platform, which drastically reduces overhead and costs for all parties. With something like Uber, for instance, it’s essentially peer to peer but with Uber acting as the central control, and taking quite a large piece of the pie.When it comes to deliveries, VOLT eliminates the need for the hub and spoke model that we discussed earlier, replacing it with a far more viable alternative while also developing the technology to make it all possible.
With the hub and spoke model, if you wanted to send a package to somebody in your city (Like a customer who just placed an order) it would have to travel to some sort of centralized hub first, and then it’s loaded onto another truck for another delivery person to bring it closer to the end destination for what’s known as the “last-mile”.
In some cases, a package may need to stop at several hubs, adding mountains of extra time and resources to the whole process. VOLT essentially gets rid of all of the steps before the last-mile, and all the associated costs as well.
VOLT works by connecting customers and messengers, eliminating the need for central hubs and middlemen altogether. When speed is crucial, the best thing you can do is to have your package in as few hands as possible along the way.
Using a unique algorithm, VOLT has an auction system to find the most efficient ways to get a package from A to B. The weight of the package is still a factor, as is the difficulty of the work (For instance, how far the package needs to travel.)
The world delivery market is worth 10 trillion dollars. There are cases where same-day just isn’t possible, like giant freight deliveries across the world, but there are cases where it makes perfect sense and where the hub and spoke model is simply outdated and not needed anymore. It was a huge breakthrough in its time, but we’re past that now.
Nearly a quarter of consumers are willing to pay more for same-day delivery, however it is nearly universal that everybody would want same-day if it wasn’t much more expensive.
VOLT works to make same-day delivery a more practical and viable option for businesses of all sizes, and thanks to strategic partnerships and big brands that are already on board, their customers are going to experience the benefits of this new model. Brands like DHL, Crocs, Juicy Couture, SoftBank, and over 150 more are in business with VOLT.
We’re looking at industries that are continuing to grow and evolve. There was a time where it seemed like the postal services were in trouble when people stopped sending letters with the same frequency thanks to eMail, however now that we’re sending and receiving more packages than ever, it could be a golden age for package delivery.
We’re seeing Amazon make major strides for same-day delivery, and it shouldn’t come as a surprise that it’s a technology company pushing this forward. Amazon’s acquisition of Whole Foods is very interesting.
When it comes to delivering groceries, nobody wants to buy a loaf of bread and some kale that’s coming from a warehouse on the other side of the country that arrives 4 days later. This is going to be a catalyst for same-day delivery, people want groceries delivered from their local grocery store, the same day, fresh and ready to eat for dinner.
The solution here is technology, and finding better ways to get your products in the hands of your customers as quickly as possible for as inexpensive as you can is going to be what separates the old guard from the leaders of tomorrow.
There is still progress and strides to be made, but VOLT’s platform can help you stand miles ahead of your competitors by offering a better, more affordable, and faster service to your customers.
It’s clear as day that customers want their products quickly, and VOLT can make that happen using their blockchain-based token system, and unique technology to connect messengers with businesses that need to make quick deliveries.
Don’t get caught playing catch-up years from now when same-day is the standard and the bare-minimum expectation, get ahead of the curve and reap the benefits of everything that efficient retail and eCommerce delivery has to offer.
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