Fair delivery during lockdown

Tuesday, 1 June 2021 00:58 - - {{hitsCtrl.values.hits}}

When there is a lockdown or restriction of movements, people seem to stock up items which put a strain on the supply chain and also availability of essential items. In situations like this, the Government should mediate for the fairness of all. Also the delivery costs impact the poor and those ordering in small quantities.

The drive to place large orders is sometimes driven by delivery costs, small order costs, minimum orders. Ideally small and just in time orders should be encouraged. For this reason, the Government should encourage that large establishments do not charge a delivery fee or place any restriction or encouragement like discounts or rebates for large orders and also they regularly deliver to areas around their vicinity. There should also be regular delivery routes covering every area so that regular but small orders can be placed. Residents should be made aware of the delivery schedule of the area by multiple means so they can plan what is needed.

The State banks should provide loan facilities for large establishments whose primary business is not currently delivery or logistics or consumer goods to take up such activities. There should be restrictions on the disposal of vehicles bought with such loans. Capital expenditure would force the enterprise to keep their delivery fleet operational even when lock down restrictions are lifted.

Also businesses should be encouraged to charge for delivery in proportion to the value of the order above a free tier, within a certain time period, which would accommodate the majority of normal consumers. E.g. If the free tier is Rs. 20k per week and there is a 3% delivery charge, Rs. 50k worth of orders within a week would be charged Rs. (50,000 - 20,000) * 0.03 = Rs. 900. This will further discourage large orders who may be abusively over stocking while allowing the general consumers to order within their normal consumption pattern.

Also eliminating the cost of delivery would reduce foot traffic to stores outside of lockdown days, hence helping scrub the pandemic situation.

Removing the cost of order can lead to smaller orders and availability of goods to all.

Suminda Dharmasena