In general, on demand delivery, is a set of rules that has to be properly defined in order to satisfy customer requests. The delivery industry is one of the only sectors that is booming during the coronavirus pandemic. In the UK, the delivery business has grown by 11.5% while others struggle to keep their doors open. This has created a huge demand for on demand delivery apps.
Today, the delivery of goods is demand responsive. For this, the request should be available in real-time and must be considered in real-time only. Another key point, routes need to be optimized to include new requests.
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Biggest Challenges of On Demand Delivery business
1. Real Time Vehicle Routing
The main issue is the tracking of delivery requests. In the static situation, the requests are known before the construction of the route. The challenge arises in the dynamic situation when the request comes in real-time. In such situations, the routes have to construct and requests become available in real-time during the execution of the route. Routes need to be changed in order to serve the new requests in real-time.
2. Vehicle Constraint
Usually, vehicles aren’t available all the time. The vehicle has to halt for revitalization, most importantly fuel refilling and maintenance. Such constraints can be solved by introducing a time window of the vehicle. Typically, the time window of the vehicle includes multiple windows such as availability, on duty, under maintenance and many more depending upon the service.
3. Time Constraints
Despite the fact that the time constraint is part of the vehicle routing algorithm, time constraints play an even more important role in On demand delivery business. In a Survey by Capgemini, 40% of consumers stated on time delivery services to be a must-have for any food, and grocery business and 90% of consumers said they track every order detail and want deliveries to fit their lifestyle. Optimization is the best solution that can result in best planning when time-space is very small due to the presence of time constraints.
Objectives of On Delivery business
While discussing on demand delivery business, a wide variety of objectives comes into the picture.
1. Minimizing Delivery Time
The primary objective in any on-demand delivery business is to reduce the delivery time to the minimum. The total delivery time includes travel time, loading time, unloading time, and waiting time. Today, technology is so advance that optimization is being done at every step in order to reduce delivery time.
2. Minimizing Travel Time
In any delivery business, the traveling time to reach the destination from origin or starting point can be reduced by simply using route and traffic optimization. Multiple routes optimizing software are available that suggest the best route to reach the destination in minimum time and using the shortest path. Route Optimizing software capture real-time traffic data and suggest the best way of ensuring delivery of goods in minimum time.
3. Minimizing the number of vehicles
Adding multiple vehicles on the same route to cater to requests that a single vehicle can fulfill adds cost to the business. Drivers and vehicles are the most expensive part of delivery management. Introducing delivery management software and delivery schedule software can result in minimizing the number of vehicles to serve all the requests.
Majorly the requests in on demand delivery business are demand responsive that can be served with geographical allocation in the dynamic situation. The same vehicle can be allocated to multiple requests in case of pick-up locations are in close proximity. Several solutions are proposed but they cater to solve only one issue. Pick-up and delivery business requires multiple solutions such as route optimization, real-time tracking, loading and unloading process optimization, and many more.
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