The Importance of Efficient Delivery Timescales For Sales Growth – And How an ERP System Can Help

It’s widely accepted that the COVID-19 pandemic has accelerated many trends which had already taken root across the commercial landscape. The decline of the high street retail industry and the astronomical growth of e-commerce businesses is one such example. And while the pandemic may be nearing its end, things aren't getting easier for retailers. The statistics show that just in the UK alone 17,145 shops permanently closed their doors in 2022, an increase of nearly 50% from 2021. Last year the retail industry, already severely battered by the pandemic, also had to deal with rising energy and staff costs, soaring inflation, and geopolitical tensions. So, the trend in which more and more organisations are moving online is likely to accelerate further this year.

In a fiercely competitive online marketplace, getting your products and services to customers efficiently and effectively is the ultimate challenge, and whoever can win the delivery efficiency battle has a huge advantage. Implementing an ERP system into the structure of your business can be a difference maker in this battle. Here’s how.

How an ERP System Can Improve Delivery Efficiency

Whether your business is new or established, the implementation of an ERP system can greatly improve the efficiency of your delivery service. ERP systems can automate administrative processes to ensure the delivery arm of your business is unfettered from what are typically time-consuming parts of a business.

Moreover, the use of stock, sales and order tracking data by an ERP system means that you can be much more responsive to changing situations. If product stock is beginning to run low or data forecasts issues in the production process, changes can be made quickly to ensure the customer doesn’t feel the fallout in terms of their delivery experience. With ERP system implementation, precise, data-driven decisions are available which ensures the smooth transit of products and services from the warehouse to the customer.

The Importance of Delivery Efficiency in 2021 and Beyond

Customer Retention

The online marketplace now collects around 26% of the money spent in the UK, so it’s not difficult to see why getting your delivery strategy right is so important. Research shows that satisfaction with delivery efficiency is a hugely important factor for customer retention. Without a smooth, seamless and punctual delivery of products and services, customers may not return. When your competitor is just one click away, this has a real-time impact on your business, growth and profitability.

A Cutting Edge Over the Competition

Over time, positive customer retention through an efficient and punctual delivery service leads to a consistent advantage over your competitors through reputational advantages. Gaining a positive reputation online can be a significant deciding factor as to whether a new customer chooses you or not. Savvy customers will always check online reviews before buying, so earning a positive reputation is gold dust when it comes to achieving market share ground over the competition.

Improving Cost and Time-Efficiency

Not only does improving the efficiency of your delivery service make sense from a new business and customer retention point of view, but it also makes sense for the logistics backdrop of an organisation. By increasing the efficiency of your delivery service, you can reduce the amount of time that packages need to be handled. By saving time, you can also save money. Reducing the time spent processing deliveries will allow your warehouse staff to ship a higher quantity of goods per day, which will inevitably lead to an increase in profitability.

ICS: ERP Consulting for Effective ERP System Implementation

ERP consulting services from ICS can help you meet your commercial objectives by providing seamless ERP system implementation. We specialise in Microsoft Dynamics ERP product family (AX and D365FO) and can deliver you both ERP implementation and ERP integration services. Contact the team at ICS to learn more about the benefits of ERP solutions for your business today.