When it comes to the shipping industry, overnight delivery is one of the most important(and profitable) parts of the service. Why is this?
Well, every business comes across a time when they have a spike in demand very quickly and don’t have enough of the product in-house to fill everyone’s orders. Many businesses use a just-in-time inventory system that doesn’t carry more than the usual forecasted demand to prevent wasting money buying too many products. This leaves them vulnerable to the aforementioned situation. Overnight shipping comes in the clutch here.
Another example is businesses that can have emergencies or extremely time sensitive things happen such as the medical industry. A hospital or veterinarian, like Americana Animal Hospital, may really need a certain piece of equipment or drug delivered to them that isn’t readily available.
Both of these scenarios are main reasons why overnight shipping and delivery is important for non-consumer related transportation. Because of the time sensitivity and importance of the issues creating the demand, it allows for a lot of profitability to come from this part of a shipping service. Not having overnight shipping would be a huge missed opportunity and mistake for almost any business in the industry.