Milkman Technologies is here to make e-commerce easier
(Photo : Milkman Technologies is here to make e-commerce easier)

Today, the world revolves around e-commerce and even that would be an understatement. We want food? We place an order. We want clothes? We place an order. We want a television set? Again, we place an order. For consumers, it is truly as simple as that. And today, with the onset of the pandemic, there has been a definitive rise in the overall shopping figures across the world. In fact, there has been a 104% increase in the e-commerce sales in 2020, when compared to 2019, which means that the consumers are making the most of clicking a few buttons to place orders. In fact, 80% of Internet users in the US have at least purchased one item online. Just in 2020, consumers have expended $861.12 billion online in the US and €717 billion in Europe.

However, behind-the-scenes, life gets a little more complex. While brick-and-mortar stores have to deal with inventory, warehouses and vendors, e-commerce businesses must also deal with what has always been the most difficult aspect of the supply chain: last-mile delivery of these ordered goods. With the increasing number of online orders placed each day, and a relatively small network of delivery systems, meeting the needs of the customer is more difficult than ever today. Several reports and studies indicate that COVID-19 might alter the shopping trends for the near future, putting further stress on the e-commerce industry.

To address the growing demand for maximum efficiency and speed, last-mile delivery  is evolving with the diversification of fulfillment locations that now include, besides the traditional out-of-town distribution centers, also microfullfilments centers or dark stores. What exactly is a dark store? Essentially, a store does not host people. Instead, it is established with the objective of optimizing pickup for delivery of groceries. In fact, there has been a substantial increase in the number of dark stores since the onset of COVID-19, as many such stores used to be operational for the public before being converted to serve this specific purpose. Several renowned entities such as Amazon, Kroger, and Giant Eagle played a crucial role in the conversion of stores into dark stores after the pandemic took over the world. This made a lot of sense even before COVID-19, since retail was stagnating because more people were shopping online, instead of in brick-and-mortar stores. As a result of the pandemic, safety regulations only further accelerated an already significant trend. But still, logistics continues to be a challenging aspect for most businesses.      

Antonio Perini and Tommaso Baù, decided to solve many of these issues in 2015, with the launch of Milkman Technologies, which is a last-mile delivery orchestration platform that offers technology to design optimal delivery experiences to logistics teams and organizations around the world.

With a promise of providing unparalleled customer experience right from the click of a button to the ringing of the doorbell, Milkman has become a best friend to many retailers of e-commerce. With Milkman, the customers have an option of choosing from a wide range of delivery options and enjoying services that are tailor-made to suit their needs and preferences. Keeping up with the times, the company largely relies on data to facilitate the integration of e-commerce and logistics at the point-of-sale. The outcome is a choice of convenience and cost.

According to Milkman's CEO Antonio Perini, the success of Milkman is rooted in the ideology that human beings always choose an option that is more convenient when they are making decisions. He also added that while cost and convenience are crucial components that entice customers, choice is essentially the common parameter between both of them.   "When your customers are offered convenience as well as attractive prices, they will be more willing to get into business with you.  To create a mechanism for this, there is a need to integrate e-commerce and logistics processes, along with seamless communication right from when they place the order, all the way to delivery," Perini said.

Essentially, this involves offering a range of combinations of cost and convenience and enabling the customer to understand that their choice will dictate each of the subsequent steps, right from how much is paid, to when their package will get delivered. This also explains the success of Amazon Prime, as millions of customers pay a base fee each year to obtain the choice of getting something delivered in just one or two days for a small cost. Today, Amazon is raising the delivery expectations bar even higher by successfully implementing subtle price incentives mechanism to futher optimize the cost/convenience equation. For example, Amazon provides special discounts for people who order items on a particular "Amazon Day", or for orders placed in advance, repeated orders, or by choosing a narrower time window for groceries deliveries. A new survey by Hanover Research and Lasership has uncovered the parameters that impact consumers' decision-making include free shipping, fast delivery, and easy return policies. The study was based on 1000 consumers, among who 50% agreed that they stopped shopping on some website due to high delivery costs. On the other hand, a premium price is something millennials and Gen-z consumers don't mind paying for quick delivery.   

Milkman Technologies has carved a name for itself in this field specifically because the majority of tier-1 e-commerce stores largely pay attention to the decision-making process of the consumers online. Although this is undeniably important, long-term decision-making is often affected by the overall delivery experience that the brand provides. 

Perini has rightly pointed out that typically, substantial disconnect is observed between sales and logistics. While some companies continue to focus on sales, they overlook the fact that the general satisfaction is hampered if there is no flexile, convenient, or cost-effective shipping options or they provide inaccurate delivery timelines. Modern consumers actively seek delivery options, they want to learn when they will receive their order, and hence, there is a need to integrate sales and logistics. 

Today, Milkman is working towards expanding and creating a name for itself in a global scale. Moreover, investors have demonstrated significant confidence in the company's vision, as its rounds of funding have fetched $41 million overall since 2016.  

What exactly makes Milkman successful? In simple terms, the need for personalization among modern consumers is what Milkman is tapping into. All of this is possible, only by understanding your customers, which Milkman does by leveraging a data-driven approach. "For several years, retailers have been dedicated to learning more about their consumers. Now, this is extending to other areas of the customer experience, including logistics. With a better understanding of consumers' home delivery preferences, in tandem with knowledge about learning algorithms and AI, it becomes easier to optimize customer experiences and provide them with personalized solutions. With time, people will enjoy further increase in customized experiences," Perini concluded.

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