We are currently amid a significant transition in consumer culture. Where consumers would traditionally complete all shopping in-store, online shopping from the comfort and safety of your home has instead taken favor, and quickly. Among many other factors, the global pandemic has served to spark the widespread demand for at-home delivery of just about every type of good. And as the volume of delivered products grew, so did the expectation of these orders to be fulfilled almost instantaneously.
The delivery process is multistep and typically takes several days to complete, mainly due to transportation and shipping times. Transportation centers are traditionally placed strategically throughout large regions in order to cater to a greater area, which often entails longer travel distances. And although this is financially practical for the company, it is quickly proving to be outdated and inefficient from a consumer standpoint. In order to comply with customer demand, companies must figure out a way to deliver quicker.
The key is supply chain localization.
Recent trends show that the most effective solution to meeting these shipping time demands is to operate on a local rather than regional level. Opening micro-fulfillment centers that each deliver to a smaller subset of a region allow deliveries to occur faster with higher frequency. The concept of localization not only ensures faster delivery times, but it increases the reliability of transportation which in turn boosts customer satisfaction.
Although localization is the clear, and maybe the most economical solution, it can be difficult to implement, as expanding into local markets is complex and requires a high level of skill and experience. Furthermore, operating in a new region involves deep knowledge of local law, business customs, culture, and needs, which is complicated to fully appreciate if you are not a local. This is where a franchise business model, such as the one Mail Boxes Etc., has, will excel.
Businesses that already have expertise in the field of expanding and entering new, diverse markets have a significant competitive advantage as the trend of localization progresses. Spreading into new markets is a particular speciality of MBE, as it already operates over 1,700 store locations in 53 countries worldwide. Additionally, the unique franchise model encourages store owners to be local, meaning they have the deepest understanding of regional business culture and are therefore more likely to succeed. As we progress further into the instant delivery era, Mail Boxes Etc. is highly prepared to adapt, overcome, and excel.
