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Alfayad, J Account Mark 2017, 6:1
DOI: 10.4172/2168-9601.1000211

Journal of Accounting &
Marketing

ISSN: 2168-9601

Research Article

OMICS International

Marketing Consumer Product Goods in a Shifting Supply Chain
Environment: Same-Day Delivery and Future Drone Delivery
Fadye Saud Alfayad*
Management and Information Technology Department, Jubail Industrial College, Saudi Arabia

Abstract
This report has worked to characterize the way in which the contemporary retail environment is privileging
the omnichannel supply chain for consumer product goods (CPG) retailers. The most accepted supply chain
conigurations such as multi-channel supply chains all integrate the established use of distribution centers and hub
conigurations in the logistics ield. However, as this report indicates, CPG retailers are developing more emergent
supply chain conigurations that integrate different modalities. Furthermore, these modalities are extending the
supply chain directly to the consumer’s front door. These developing supply chain conigurations for CPG retailers
are referred to as omnichannel supply chains and they depend upon both in-house and 3rd party providers to institute
same-day and next-day delivery services. Also, some major retailers such as Amazon are developing drone delivery
modalities and technology companies like Google are not far behind. The report inds that such efforts are designed
to respond to emerging consumer behaviors and purchase patterns such as showrooming . Therefore, CPG retailers
must now identify ways in which their marketing initiatives respond to these emergent omnichannel attributes. These
marketing initiatives must be able to integrate considerations made for how products might be packaged, product

design factors such as weight and form, and also messaging elements that are directed at the consumer. Consumer
messaging in particular must relect the purchase-advantages gained by the omnichannel for the consumer such as
convenience, free-shipping when offered and originality or irst-mover status of the delivery modality. This report’s
indings suggest that all of these types of factors affect not necessarily whether or not a CPG retailer chooses
implement an omnichannel distribution coniguration but whether or not the CPG retailer can afford not do so.
This report makes the recommendation that CPG retailers that are intent on implementing an omnichannel supply
chain and logistics technologies that integrate same-day/next-day delivery can enhance these outcomes through the
marketing function. This can be accomplished by notifying the consumer of a delivery through the use of image or
video conirmation of the CPG delivery and in the case of future drone deliveries, integration of satellite imagery and
GPS mapping as a means to conirm the practicality of drone drop-offs at a targeted consumer residence.

Keywords: Consumer product goods; Omnichannel supply chains;
Drone delivery; Showrooming

within the context of the supply chain and logistics function which
might be summarized by the following elements [2,3]:

Introduction

1.

he marketing of consumer product goods (CPG) is changing due
to emerging delivery options and modes in the supply chain. hese are
emergent delivery solutions and logistical modes such as the sameday delivery service and the developing drone-based delivery models
being proposed by retailers such as Amazon. Traditionally, marketing
as a business function focused on fundamental elements such as
pricing, product, placement and promotion while online marketing
considered further elements including communication, community
and commerce [1]. While all of these elements are still certainly useful,
marketing within the context of contemporary CPG production,
distribution and sales has become much more sophisticated in nature.
here are major cost eiciencies that now must be gained through
supply chain and logistics solutions in order to remain competitive in
the CPG marketplace. Basically, if a CPG competitor fails to achieve
these eiciencies in the supply chain then, regardless of product quality
and demand, it will fail to remain competitive with its peers in whatever
segment its product or products compete in.

a. Order/fulillment cycles

CPG manufacturers, distributors and retailers work within a
highly complex environment. he CPG environment is governed
increasingly by the mechanism of globalization in which the supply
chain and logistics management govern success or failure of a range
of industry competitors. hose CPG irms, whether manufacturers or
retailers, that cannot increase eiciencies through transportation and
distribution in order to control cost are destined to fail. Typically, CPG
manufacturers and retailers then deal with a host of competing factors
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ISSN: 2168-9601

Customer related factors:

b. Product development pipeline
c. Time it takes to get to market
2.

Eiciency related factors:

a. Productivity of workers

b. Cost of transportation
3.

Asset related factors:

a. Warehouse and transportation utilization rates
b. Inventory movement

*Corresponding author: Fadye Saud Alfayad, Management and Information
Technology Department, Jubail Industrial College, Saudi Arabia, Tel: +966 13 340
2000; E-mail: fayad_s@hotmail.com
Received January 15, 2017; Accepted January 23, 2017; Published January 30,
2017
Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting
Supply Chain Environment: Same-Day Delivery and Future Drone Delivery. J
Account Mark 6: 211. doi:10.4172/2168-9601.1000211
Copyright: © 2017 Alfayad FS. This is an open-access article distributed under
the terms of the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original author and
source are credited.

Volume 6 • Issue 1 • 1000211

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 2 of 8
c. Cash reporting cycle on the balance sheet
All of these various elements are important to the overall
management and eicient oversight of the supply chain. Logistics tend
to determine whether or not a CPG manufacturer, distributor and
retailer will be proitable or not.
Within this type of sophisticated milieu, consumers are consistently
demanding immediate or near-immediate fulillment. Fulillment is not
completed until the product that is ordered is actually received and this
has always been one of the main advantages that on-ground retailers had
over online retailers. Yet, presently, on-ground retailers are integrating
online retailing in order to meet their consumers’ demands vis-à-vis
more immediate gratiication. All of these developments have led to
increasing pressures on the traditional retail supply chain and logistics

networks such that “last mile” delivery modalities now populate both
the retail supply chain and the marketing messaging of many retailers
[4]. hese issues involving such last-mile delivery modalities such
as same-day/next-day delivery services and emerging drone-based
delivery services are examined in the context of the marketing function
in this report. he result is that the supply chain for most CPG retailers
has now expanded beyond the limitations of cross-channel retailing,
multi-channel retailing and similar multimodal supply chain models
that all end at the retailer. Presently, CPG retailers, both on-ground
and online, are attempting to develop modalities that extend to the
supply chain directly to the consumer’s front door as it were which is
framed in the context of the omnichannel.

Shiting Supply Chain
Traditional supply chain conigurations are rapidly disappearing.
Traditional supply chains being deined as those with ixed distribution
points moving from a production facility, to distributor, to a retailer
or a wholesaler and then inally to the consumer. Instead, the
contemporary supply chain is one that now focuses on what is referred
to as “all-channel fulillment” in which a purchase by a consumer,

whether in the retail location or online, results in CPG fulillment from
the most convenient supplier point available which includes in-store
stock, direct from warehouse, direct from supplier or even customer
pick-up at other locations [5]. In earlier retailing periods, this type of
eiciency was achieved through drop-shipments in which a consumer
would order some product that was not in stock and the order would

then be placed directly with the manufacturer who would then ship it
directly from its own facility to the consumer. his is, conceptually, the
same type of concept that is occurring presently with respect to sameday and drone-based delivery modalities except retailers are essentially
drop-shipping their own products.
his focus on all-channel fulillment prioritizes the consumer while
simultaneously allowing the retailer to lower cost, lower price and
reduce inventories. he all-channel concept is essentially embodied
in the concept of the omnichannel where product selection, delivery
modality, delivery time, delivery area and product returns are all sutured
together technologically and conceptually (see Appendix 1). Hence,
the omnichannel consists of multiple channels being fully integrated
into the retailer’s delivery model. he result being that inventories
are moderated for it, marketing relects these new capacities and the

consumers are aware of them. he omnichannel environment is, in
almost every sense, a response to the pressures placed on the supply
chain by online retailing. Speciically, online retailing epitomized
by major online retailers such as Amazon have created entirely new
dimensions of value propositions for consumers.
Value propositions are equivalent to value-added dimensions
in retail sales. hat is, a consumer may by a product and the retailer
includes a warranty or a service agreement at no-cost which is a valueadded element to the sales transaction. his type of value proposition
developed by Amazon in particular is one that is driven by lower pricepoints, greater product assortment and improved service delivery [6].
hus, one outcome is that the boundaries that previously deined sales
and distribution channels have eroded. Much of this channel erosion
is apparent in how retailing itself is evolving from on-ground to online
evident in the following graph (Figure 1):
he evidence above reveals that even products once thought
of as being exclusively limited to the on-ground space have now
begun to shit into the online sales space. For instance, where once
consumers considered clothing and furniture to be in the realm of onground shopping, this paradigm has now expanded to include online
considerations. his shit is largely due to the ongoing development
of the omnichannel that can meet consumer expectations while
simultaneously meeting retailer value propositions.

It is apparent then that sales and distribution channels are no longer

Figure 1: Evolution to Online/Digital Retailing [6].

J Account Mark, an open access journal
ISSN: 2168-9601

Volume 6 • Issue 1 • 1000211

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 3 of 8
as clear cut and deined in the online space as they have traditionally
been for on-ground retailing. So pervasive has been this inluence of
online retailing and the value proposition associated with it that even
traditional retailers are now inding that sales and distribution channels
for them have begun to blur. his blurring of sales and distribution
channels for traditional bricks-and-mortar retailers is supported
largely by their ability to partner with certain 3rd party transportation

and delivery services. hese 3rd party providers provide them with the
ability to deliver CPGs to their consumers in a way that has previously
been either impossible or, alternatively, inordinately expensive for the
retailer or the consumer or both. his access to alternative distribution
and delivery channels is epitomized in the increasing use of 1 to 3-day
delivery services. his conceptual outcome is demonstrated in the
following graph which compares 3-day, 2-day and same day delivery
modalities (Figure 2).
he cost associated with these services is increasingly absorbed by
retailers as a means to entice their consumers to purchase from them.
In essence, the adoption of and cost-absorption of these services
by retailers is recognition of their threat to their retail space by online
retailers such as Amazon. Amazon has almost exclusively alone
revolutionized the way in which consumers have thought about retail.
For Amazon, it seemed to always recognize that there was a point of
critical mass in the purchase decision of the consumer. his point of
critical mass occurred where the price attractiveness would tip the
consumer over the conceptual edge into accepting a delayed delivery as
consequence of getting this lower price-point.

Same-Day/Next-Day Delivery Models
he logistics of managing same-day delivery is much simpler to
manage than the marketing of same-day delivery. Same-day delivery
services are now being ofered by many, if not most, major retailers
both on-ground and online. For instance, some writers observe that,
“Macy’s…the department store chain now ofers same-day delivery in
eight markets, with plans to expand to more cities…” [7]. he point is
that traditional retailers have had to ensure that they make many more
CPGs available online through their websites in order to facilitate the
showrooming phenomenon many consumers now prefer. In order to
attract these consumers and placate their need for immediacy, same-

day delivery is fast becoming an expected option. Without such a sameday delivery option, consumers may not make the purchase decision
based on the extremely low price-points that are achievable in the
online environment versus the on-ground environment.
Essentially, same-day and next-day delivery models within the
supply chain are a key expression of the emerging omnichannel concept.
he traditional distribution center logistics framework within retail
simply does not work in the context of emerging consumer demand,
fulillment requirements and the omnichannel with its same-day/nextday integration demands. In fact, a fundamental reconceptualization
of the distribution channel itself away from distribution centers to instore fulillment is required.
Omni-channel fulillment has evolved from a primarily DC-based
model to one that leverages all inventory nodes across the network,
especially the store. For same-day/next-day delivery being demanded
by omni-channel, stores oten provide the best fulillment option for
retailers [8].
In other words, same-day and next-day fulillment of CPG
purchases does not work well in the context of the traditional supply
chain.
his requires that retailers who seek to market rapid fulillment of
CPGs to consumers must irst invest in their supply chain and logistics
operations. his demands an investment in the supply chain and logistics
operations that is much more than merely using a 3rd party provider for the
same-day/next-day delivery but requires system changes in the logistics
design because the products still must be delivered to the carriers in an
eicient manner. he omnichannel forces CPG retailers to rethink where
inventories are held with retail outlets now seen as distribution centers
in some respect. Once retailers are able to make this type of conceptual
leap in envisioning their retail spaces both as distribution centers as well
as shopping centers, then the extension of the supply chain becomes
very achievable. Retail outlets as distribution centers are a key in the
establishment of the last-mile extension of the supply chain from the
retailer to the consumer’s front door.

Drone-Based Models
he concept of drone-based delivery irst hit mainstream

Figure 2: Same-Day, 2-Day, 3-Day Delivery Options [6].

J Account Mark, an open access journal
ISSN: 2168-9601

Volume 6 • Issue 1 • 1000211

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 4 of 8
consciousness when Amazon announced it was developing a dronedelivery system. Amazon has historically been a irst-mover with
respect to technology systems and this initiative, while radical at irst
blush, is in line with Amazon’s technologically focused innovation.
Amazon’s drone-delivery model is referred to by the company as
Amazon PrimeAir and is a system designed to deliver packages to
consumers in 30 min or less within urban areas served by the system.
Rather than purchase a drone delivery platform of the shelf, the
company’s research and development division designed a purposebuilt drone platform. his particular purpose-built drone delivery
platform is unique to the company and is designed from the ground up
to achieve the types of eiciencies and consumer satisfaction outcomes
necessary with same-day delivery modalities (Figure 3).
Although relying on established drone technology and design,
Amazon’s drone delivery vehicle is bespoke to the company’s unique
delivery requirements. As Amazon describes the system, drone
delivery will, “deliver packages up to ive pounds in 30 min or less using
small drones. Flying under 400 feet and weighing less than 55 pounds,
PrimeAir vehicles will take advantage of sophisticated ‘sense and avoid’
technology” [9]. he emphasis on drone delivery then is on speed of
delivery, immediate gratiication for the consumer and technology
leadership in the retail space.
However, Amazon is not the only major technology driven irm
that is developing drone-based delivery models for CPGs. Another
potential entrant into the marketplace that has the inancial and
technological het to be successful is Google. Google recently applied
for a technology patent detailing a complex drone-based delivery
system for CPGs: “he drone lies to a local delivery box that is
equipped with infrared beacon transmitters that help guide the drone
to close proximity. he drone would then place the package into the
wheeled box…Customers would then receive a notiication…” [10].
Fundamentally, this is a largely similar drone-based delivery system as
Amazon’s. Yet, the business model behind it is remarkably diferent.
Where Amazon’s drone-based delivery business model is a direct to
consumer model, Google’s envisioned system is direct to warehouse
and then to the consumer. In this fashion, Google’s drone-delivery
system still retains what amounts to a warehousing layer within the
supply chain system although the overall time-to-delivery is reduced
through the drone-based technology.
Despite the signiicant inroads into drone-based delivery models
for CGPs made by major technology irms such as Amazon and Google,
there are diicult impediments to fully executing on this strategy. he
technology actually exists to enact this drone-based delivery system in
an of-the-shelf platform that can be purchased by any CPG competitor.

Figure 3: Amazon PrimeAir Vehicle [9].

J Account Mark, an open access journal
ISSN: 2168-9601

But the largest impediment is the regulatory and the safety factors that
are associated with drone technology and use. One company, Matternet,
which is a drone manufacturing company, explains that, “technical
hurdles including short battery life…US regulators…prohibit drone
lights beyond eyeshot of the operator if the devices lack collisionavoidance technology” [11] both place considerable constraints on full
drone adoption by CPG irms. While Amazon and Google are both
advocating US regulatory agencies to develop the regulatory policy
relating to drone use, there is still substantial pushback against full
implementation by regulators.
he use of drones within the logistics ield directly impacts how
consumer goods are managed and distributed. Drones are providing
supply chain managers with entirely new sets of tools that were
previously not possible or, alternatively, cost prohibitive. For instance,
researchers have found that manufacturing facilities, storage facilities
with large yards and other outdoor logistics operations can beneit from
the use of RFID sensor-equipped drones that are able to navigate these
immense spaces eiciently and quickly [12]. Drones have the potential
to become an invaluable tool in the management of supply chains and
logistics operations. heir capacity to be operated remotely and, in the
future, autonomously ensures that logistics will only become much
more consumer product friendly. hese beneits to outdoor supply
chain nodes can even be gained at large indoor facilities since drones
are oten physically small, easy to operate and can hover in the fashion
of helicopters [12]. Simply put, many indoor supply chain and logistics
facilities are large, expansive areas in which products are stacked on
multiple layer shelves to great height which means that some sort of
automation and machinery must be utilized to retrieve it. Yet, drones
can be designed to lit products from elevated spaces, deliver them to
other supply chain event points and determine if product is where it is
supposed to be.

Marketing Adaptations
Retailers, both on-ground and online, have long attempted to
enhance CPG delivery to the consumer. For on-ground retailers, this
was a mandate necessary in order to expand retail services required to
maintain sales in the face of online retailers. For online retailers, CPG
delivery was an added expense that either the retailer or the consumer
had to cover and added to the cost of goods sold (COGS). herefore,
many retailers in both formats began to sell and market their products
with free shipping services either included outright or ofered ater
a certain sale threshold was reached. Companies such as Amazon
managed to achieve this free shipping threshold through sophisticated
technology applications and strategies that utilized established delivery
services. hese are solutions like “postal injection” in which Amazon
developed: “It also ramped up a system called ‘postal injection’ in
which it uses prediction algorithms and complicated network analysis
to igure out how to deliver every package to the United States postal
facility nearest a customer’s house” [9]. his type of postal injection
works to realize eiciencies that actually require no real or tangible
investment in supply chain or logistics related equipment. By simply
delivering products to the nearest post oice the retailer can save what
amounts to days to the overall delivery process. hese types of strategies
enhance a retailer’s marketing strategy because the free shipping label
on its CPG WebPages woos consumers who otherwise might have
purchased on-ground due to cost-avoidance.
he marketing adaptations for CPG retailers who implement
solutions involving omnichannel logistics involve awareness of how
the consumer perceives CPG delivery. Consumers basically have
to be able to envision how their interaction or involvement with the
Volume 6 • Issue 1 • 1000211

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 5 of 8
delivery process is expected to be. Much of this awareness involves
speed of delivery, the convenience factor as well as the gratiication
related to certain types (sizes) of products. In this regard, the table
below positions consumer experience within the omnichannel
framework from a marketing perspective. his juxtaposition between
the consumer experience and the omnichannel framework can then
be utilized to develop what amounts to a CPG’s marketing collateral
which informs the consumer of the retailers’ series of core product
delivery capabilities (Table 1).
As the information in this table would indicate, consumers may
experience higher level of gratiication with alternative delivery
modalities depending on the form factor of the CPGs they order. hese
types of considerations must be taken into account when formulating
the marketing messaging that accompanies a CPG retailers marketing
collateral.

Showrooming
For some types of retailers such as furniture retailers, developing
a showroom has been considered to be an essential part of their
retail market space. Yet, for others that have not traditionally needed
to develop and maintain an actual showroom, having one would be
considered a liability. he term showrooming has emerged in the
sphere of CPG retailing over the past decade or so. Showrooming
involves the use of an on-ground retailer as a kind of display store for
products that can be found online by consumers interested in them. In
efect, showrooming has been deined in the research in the following
manner: “consumers using a retailer as a showroom to view products
in-person before buying them from an online retailer” [13]. In this
regard, consumers who are viewing and researching some CPG online
are hesitant to make the purchase without fully knowing what it is like.
Hence, there exists a dilemma in these consumers about whether

to make the commitment to purchase the product online or not. hen,
in order to resolve this dilemma, the consumer goes to a suitable onground retailer in order to touch, feel and utilize the CPG in advance of
the online purchase. hese types of consumers are noted for carrying
their mobile devices directly into an on-ground, traditional retailer and,
ater investigating the product, making the purchase online while still
in-store. hese types of consumers have been termed “mobile-assisted
shoppers” and are categorized into a series of ive groups (Figure 4).
As the igure above reveals, consumers engaged in showrooming
come in all varieties. However, they are all united in their intent to
make online purchases ater investigating the CPG on-ground.

3rd Party Retailer to Door
he use of 3rd party providers to build out a retailer’s CPG
distribution network is well-established. Retailers specialize in the
marketing of CPGs rather than the actual transportation and delivery
of CPGs. hat is, retailers are not leet vehicle operators or intermodal
transportation specialists nor should they be. A retailer is focused on
managing the inventory, shelving and transaction processes related
to selling the products that it sells and markets. However, retailers
in today’s environment ind that they have certain advantages that
retailers in prior eras did not have. hus, the current retail environment
has witnessed the emergence of what are referred to as channel
intermediaries which perform the following tasks [4,14].
1. Placement utility: ensure that a CPG is delivered to a consumer
in a convenient manner
2. Time-based utility: ensure that a CPG is received by the
consumer when desired
3. Form-based utility: ensure that the CPG is in a form that is
usable (no need to be assembled, etc…)
4. Knowledge utility: ensure that information about CPG use,
quality, return and maintenance is on-hand
5. Consequently, it is apparent that such channel intermediaries
perform many of the traditional functions of supply chain
participants. However, it is also evident that they also perform
many of the services traditionally expected of the retailer and
post-sales service providers as well.

Evolving Marketing Messages
Figure 4: Types of Mobile Empowered Shoppers [13].

Presently, it is diicult for major CPG retailers such as Amazon
and Wal-Mart to fully beneit, marketing-wise, from emerging logistics

Cost Factor

Performance

Inventory

Higher than distributor storage with package carrier delivery

Transportation

Very high cost given minimal scale economies. Higher that any other distribution option

Facilities and Handling

Facility costs higher than manufacturer storage or distributor storage with package carrier delivery, but lowers than a chain of
retail store.

Information

Similar to distributor storage with package carrier delivery

Service Factor

Performance

Response time

Very quick. Same day to next day delivery

Product variety

Somewhat less than distributor storage with package carrier delivery but larger than retail stores.

Product availability

More expensive to provide availability than any other option except retail stores.

Customer experience

Very good, particularly for bulky items.

Time to market

Slightly higher than distributor storage with package carrier delivery.

Order traceability

Less of an issue and easier to implement than manufacturer storage or distributor storage with package carrier delivery.

Return ability

Easer to implement than other options. Harder and more expensive than a retail network
Table 1: Omnichannel Logistics and the Consumer [23].

J Account Mark, an open access journal
ISSN: 2168-9601

Volume 6 • Issue 1 • 1000211

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 6 of 8
channels such as drone-based delivery. Drone-based delivery ofers
a remarkable opportunity not only from the logistical perspective of
the delivery channel direct-to-consumer but also from the marketing
message itself. It seems fairly evident that, at least in the early stages
of the model, consumers would be inclined to purchase CPGs just to
experience the drone light and delivery [15]. Beneiting from this type
of consumer stimulus in the marketing message is currently diicult
because of the regulatory barriers that exist. Drone-based delivery
involves unmanned vehicles operating in what is highly regulated
airspace above urban areas. he problem with adoption of this type of
delivery channel is, as previously observed, not so much technological
as it is regulatory: “government regulators have still not established a
framework for unmanned drones to be integrated into the national
airspace” [16]. he management of airspace and particularly airspace
over residential areas is an extremely sensitive topic. he issue has
security as well as privacy implications that all must be dealt with prior
to any sort of wide-scale adoption of the technology. Test markets may
eventually be allowed but until then, the primary beneit of dronebased delivery models from a marketing perspective is the anticipatory
nature of the service.

Social Media Channels
Social media has come to afect the retail environment in dramatic
ways. Additionally, social media inluences the retail environment from
all perspectives including the consumer side, the retailer/wholesaler
side, the producer side and inally from the logistics side. For instance,
public social networks such as Facebook, LinkedIn and Twitter have
all been integrated into some intra-company and intra-industry supply
chains as a means to share critical information among relevant parties
and nodes along the supply chain such as product warnings, recalls
and supplier/vendor updates and so forth [17]. hese public social
media platforms provide a level of transparency and immediacy that is
diicult to mimic in traditional IT infrastructures.
here are several other very tangible applications that can be
immediately integrated into any supply chain management platform
other than the ones mentioned above. hese alternative solutions for
social media use in the supply chain and logistics ield do not require
extensive resource commitment. his is resource commitment in the
form of technology redesign or upgrading because of social media’s
inherently cross-platform features that are designed into them from
their inception. Chiely, several inexpensive and decidedly nonresource demanding solutions for supply chain management that
integrates social media solutions are the following [18].
1.
Create social media accounts for all vendors and suppliers on
Twitter or Twitter-like services which logistics workers use to post all
delivery arrivals and departures in real-time.
2.
Provide all transportation employees with the appropriate
social media account necessary for them to post updates on road
closures, accidents and traic issues on a real-time basis with
photographs.
3.
Review and update performance related posts for all vendors,
suppliers and 3rd party service providers across the supply chain on
social media applications.
hese types of actionable social media solutions provide a
sustainable competitive advantage to supply chain and logistics
operators. his competitive advantage comes with little cost but great
reward because of the capacity to essentially benchmark best practices
and isolate data that might interfere with supply chain eiciencies.

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ISSN: 2168-9601

Furthermore, there are emerging social media channels which
are still in development that can improve supply chain and logistics
operations. hese are social media solutions that cater speciically to
the supply chain and logistics industry such as Sourcemap. Sourcemap
is an enterprise social network which supports conceptual mapping of
supply chains that integrate not only 1st tier but also 2nd and 3rd tier
suppliers/vendors, producers and manufacturers [19]. his conceptual
mapping goes much further than merely building a graphical
representation of a supply chain. Rather, Sourcemap and similar
applications facilitates collaboration among the supply chain nodes, use
of local language sotware, tutorial integration, real-time discussion,
worklow management and live-messaging in addition to the graphical
representation of the supply chain [19]. his type of enterprise social
media application combined with public social media applications has
led to the rapid open-sourcing of supply chain management away from
the closed-source enterprise resource planning (ERP) platform.
Upon initial examination, it might thought that social media and
the supply chain and logistics ield are two completely diferent ields.
However, social media and the supply chain environment tend to
overlap in several important areas which mean that the potential utility
for social media within the supply chain environment is immense. It
must be understood from the outset that the sheer scale of social media
use throughout the world makes it an attractive utility for supply chain
and logistics management. According to a recent report by Pew Media,
some 67% of the global population utilizes some aspect of the Internet
and of these individuals it is reported that an estimated 76% of this
group make use of some sort of social media service or application
[20]. herefore, given this degree of social media use among the
general population and its adoption by most irms, large and small,
the potential integration into supply chain management processes is
signiicant.
he elements that make social media so attractive for the general
population are in fact the same elements that make social media so
beneicial for supply chain and logistics operators. For instance, it is
estimated that some 70% of businesses report utilizing social media in
one respect or another although this is primarily for marketing and
public relations purposes [20]. In efect, social media is both pervasive
and readily integrated into a irm’s technology platform and operations
that are already fully established. Of course, achieving full and efective
integration of social media into existing supply chain and logistics
operations requires a great deal of organizational discipline.
One of the key areas in which social media can and perhaps
should be integrated into the supply chain management domain
lies in the area of information management. Social media has the
advantage of being designed as a cross-platform application service
as well as functioning within the context of a real-time service. hese
two qualities, cross-platform and real-time, ensure that social media
and supply chain management are extremely compatible because
social media is ideally suited to capturing, updating, recording and
monitoring supply chain events [21]. he way in which social media
updates, reports and ongoing feedback can improve supply chain
management processes is contextual in character. Supply chains and
logistics operations are extremely dynamic processes that constantly
shit due to circumstances that demand minute adjustments over time.
Hence, in terms of supply chain and logistics operations social media
can potentially be relied upon to update traic pattern information for
transportation operations, immediate notice updates for late or failed
deliveries and emergent weather conditions from market to market
[21]. All of these types of data points can be collected and analyzed
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Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 7 of 8
via social media platforms in an unobtrusive way that promotes supply
chain eiciencies.

Conclusions and Observations
his report attempts to characterize the way in which the
contemporary retail environment is privileging the omnichannel supply
chain. Traditional and even more recent supply chain conigurations
such as multi-channel supply chains all integrate the established use of
distribution center and hub mentalities in the logistics ield. However,
as the research has indicated, CPG retailers are developing emergent
supply chain conigurations that integrate diferent modalities and
are extending the supply chain directly to the consumer’s front door.
hese developing supply chain conigurations are referred to as
omnichannel supply chains and they depend upon both in-house and
3rd party providers to institute same-day and next-day delivery services
for CPGs. Additionally, some major retailers such as Amazon are
developing drone delivery modalities and technology companies like
Google are not far behind. Of course, one of the major impediments
to emergent delivery strategies like drone-based delivery lies not in the
technology but rather in the regulatory policies that currently constrain
its implementation.
It is clear that CPG irms beneit greatly from their ability to
sale and market their products under the provision of enhanced
delivery modalities. hese same-day and drone delivery modalities
are a relection of the value-added approach achieved by the evolving
supply chain and logistics environment. One of the most important
but overlooked recommendations that can be made is that improved
delivery modalities actually reduce the product lifecycle in some sense.
his is the product lifecycle from production to delivery which means
that CPG irms can book the sale faster than would otherwise be the
case. his seems like a minor detail but over the course of a iscal
reporting year on a irm’s balance sheet, the implications for free cash
low are immense.
herefore, CPG retailers must now identify ways in which their
marketing initiatives respond to the omnichannel attributes. hese
marketing initiatives involve considerations made for how products
might be packaged, product designs in which considerations are
made for weight and form factor, and inally messaging directed at
the consumer. Consumer messaging in particular must relect the
purchase-advantages gained by the omnichannel for the consumer
such as convenience, free-shipping when ofered and originality or irstmover status of the delivery modality. In the end, all of these factors
afect not necessarily whether or not a CPG retailer chooses to develop
omnichannel distribution but whether or not the retailer beneits
from it operationally and cost-wise. hus, as developments in retailing
continue to evolve like showrooming and social media integration,
CPG retailers must identify ways in which the omnichannel supply
chain can be integrated with these emergent consumer behaviors and
shopping patterns. Showrooming in particular can be integrated into
the concept of last-mile delivery by the CPG retailer which enhances
the immediacy of purchases made in-store but when inventory is not
onsite.

Recommendations
One recommendation for developing marketing messages for CPGs
that relect emerging supply chain and logistics developments relates to
the delivery interaction itself. Many online and on-ground retailers do
not give much thought to the actual moment of delivery of a CPG to a
consumer who has purchased a product set for delivery. his moment
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ISSN: 2168-9601

of delivery is one that occurs regardless of the delivery mode be it sameday/next-day delivery via traditional delivery modalities or emergent
modalities via drone-based delivery. his moment of delivery actually
provides a great deal of opportunity to strengthen the relationship
with the consumer, lose the consumer’s trust or interfere with receipt
of the CPG. his moment of delivery is described in the literature
as one researcher discusses it in relation to the delivery of groceries:
“Unattended home delivery enables grocers to deliver online orders
regardless of whether the customer is at home or not. he shopping
basket is placed in front of the customer’s home to be collected upon
arrival” [22]. As this statement indicates, some consideration must be
made by the CPG on if the consumer has to be home or not [23].
he CPG retailer has to give some consideration to the actual
moment that the product is delivered. he value-added beneit of
same-day delivery and emergent delivery modes such as drone-based
delivery models is lost if no thought is given to the actual way in which
this delivery occurs. hat is, the CPG irm must give some thought
to what kind of moment should the retailer envision at the moment
that this purchase transaction is inally completed. Ater all, the use of
same-day delivery and drone-based delivery implies that the purchase
portion of the transaction took place at an earlier period whether it be
earlier on the same day or perhaps late in the day on the previous day.
A lot can take place during the interim between when the transaction
was initiated and when the transaction is inally completed at delivery.
Hence, the CPG irm must recognize on how the delivery will occur if
the consumer is not at home or at the place of delivery. If a signature is
required for example then the entire convenience factor in the sameday and drone-based delivery is lost. he consumer might as well have
gone to the store and picked up the product rather than wait for it only
to be taken back to the delivery company’s warehouse for the night.
his is a question of understanding if the consumer needs to sign
for the package or, in the case of drone-delivery, does the consumer
have to facilitate the drone’s landing or drop-of of the product in some
fashion. Ater all, if the CPG retailer enacts an ineicient omnichannel
fulillment strategy, it loses the marketing message beneit of the
service. In essence, the convenience advantage marketed by the
same-day/next-day and drone-based delivery modalities is lost if the
consumer is inconvenienced by the methodology. Consequently, the
recommendation is that irms intent on implementing omnichannel
supply chain and logistics technologies enhance these solutions
through both technological and policy means. Same-day and next-day
delivery of CPGs has been in place for some time with some deliveries
requiring signatures and others not.
In the future, convenience can be enhanced by notifying the
consumer of a delivery through the use of image or video conirmation
of the delivery and in the case of future drone deliveries, integrating
satellite imagery and GPS mapping in order to conirm the practicality
of drone drop-ofs at a given consumer residence. It is clear that some
consumer residences simply cannot facilitate drone CPG delivery. For
these consumers the marketing of same-day drone delivery would
result in frustration as they discover at the point of purchase that this is
not possible at their residences.
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Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone
Delivery. J Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Page 8 of 8
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Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting
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ISSN: 2168-9601

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