Home Improvement Retailers Optimize Delivery Speed

peed of delivery has become one of the most important factors in customer satisfaction. Willingness to pay more for quick delivery increased from 41% in 2023 to 70% in 2024. Consumers are now willing to pay 9% of the order value for two-hour and 10-minute delivery, while 65% of consumers consider a two-hour delivery format a key attribute when they shop, according to a new survey from Capgemini.

In the home improvement industry, where products are often large, heavy, or bulky, this expectation presents unique challenges. However, with a mix of smart logistics, technology integration, and strategic partnerships, home improvement retailers are finding innovative ways to speed up delivery times while maintaining service quality.

Here’s a closer look at how home improvement retailers are optimizing delivery speed.

Some home improvement retailers are taking matters into their own hands by building in-house delivery fleets. By managing their own delivery networks, retailers can have greater control over delivery experiences and optimize resources more efficiently. Managing deliveries in-house also gives retailers more visibility into their delivery operations, enabling them to adapt to demand fluctuations or potential disruptions faster and minimize delays.

Tractor Supply Co. recently unveiled a multi-year initiative to make more last-mile deliveries in-house. The retailer aims to set up hub stores that bring drivers and inventory from different facilities together for customer deliveries. Tractor Supply has seen promising signs for customer experience when it comes to making deliveries in-house, including a product returns rate 10 times lower than when it uses outside carriers and a 13% higher customer satisfaction score. In the years ahead, Tractor Supply plans to expand its delivery coverage, drive more volume to its in-house delivery operations, and increase route density to reduce costs.

Many home improvement retailers are partnering with third-party logistics providers and on-demand delivery platforms to increase speed and flexibility. Partnerships with companies like DoorDash, Instacart, and Uber Eats have allowed home improvement retailers to offer same-day delivery on thousands of products. By outsourcing delivery services, retailers can reduce operational overhead and enhance their ability to offer quicker delivery options. These partnerships allow retailers to scale delivery operations quickly, especially during high-demand periods like seasonal sales or promotional events.

Home Depot expanded its delivery capabilities with two new delivery partnerships. The home improvement retailer has partnered with DoorDash and Uber Eats to offer on-demand and scheduled deliveries to customer houses and work sites. Through the partnerships, Home Depot customers can have products delivered on demand, including gardening supplies, building materials, tools and other essentials. Home Depot has also enlisted Instacart’s Big & Bulky services for same-day and scheduled deliveries of items weighing up to 60 pounds. Similarly, Lowe’s turned to DoorDash for its same-day delivery services.

Technology is a driving force behind faster delivery times. Home improvement retailers are incorporating various technology solutions in order to fulfill and deliver orders faster. By analyzing factors including delivery time-windows, service areas, and package requirements, route optimization software helps retailers plan the most efficient routes for delivery drivers. 

Warehouse automation technologies, such as robotic picking systems and automated storage solutions, are accelerating the process of locating, picking, and packing orders. This reduces the time needed to fulfill orders and gets them into customers’ hands faster. Delivery management platforms allow retailers to plan, optimize, and manage deliveries from a single platform, increasing visibility, efficiency, and productivity. The integration of these technologies not only speeds up delivery but also reduces the likelihood of delays or errors, ensuring that customers receive the right products at the right time.

As customer expectations for fast delivery continue to rise, home improvement retailers are embracing a variety of strategies to meet demand and provide faster, more reliable service. These tactics not only enhance operational efficiency but also play a crucial role in improving customer satisfaction and building long-term success.

For more information about how our delivery management solution can help you manage your deliveries more efficiently, please contact info@bringoz.com.