Agenda The importance of delivery in eCommerce How to manage your Carriers Using delivery to delight customers Further Advice and New Developments
The Customer Experience CurveSatisfaction Buying Sourcing Delivering Returning Customer Delivery Promise Time 1 hour 10 days 4 days
The Customer Experience CurveSatisfaction Buying Sourcing Delivering Returning Delivery Value Add Customer Delivery Promise Time
The Perfect Delivery ExperienceThis means: Your website should offer the right delivery services available to that specific customer buying those items at this time of day located at this destination That your warehouse can fulfil and the carrier can deliver first time
B2C Deliveries: Total Cost to Serve WISMO* enquiries to call centre £5-10 £25 Returns processing cost Total Cost to Serve Re-Delivery charges £3 = £38Mis-routesCarded Headline to‘Ugly’ traffic handlingAddress queries Delivery Cost £5 £43Cost of delivering the perfect parcel – (£3 in this example) *Where is my order” enquiries Source: IMRG Valuing Home Delivery 2010
Adopting a Multi-Carrier Business StrategyGoal: To achieve your maximum First Time Delivery.
Carriers have grown from different specialitiesPostal Integrators Catalogue Independent Royal Mail & TNT Hermes UKMail Parcelforce UPS Yodel CityLink Geopost FedEx APC DPD Interlink Specialists La Poste Nightfreight Deutsche Post CitySprint DHL
Traditional Carrier Management creates a Vicious Circle Old School Vicious Circle New carrier selected Poor carrier New ITT management Carrier under performs“We’ve tried all the carriers before and none of them seem to be able to cope with our business”
Multi-Carrier Management generates a Virtuous Circle Multi-Carrier Model Virtuous Circle Carrier Management FinePerformance Tuning Carrier Management Niche skills utilised Select carriers Time Use specialist carriers for niche capabilities Joint continuous improvement programmes improve overall performance
Allocating Carrier Services Before 9.30 Before 12 Next day Services Evening etc. Weight Dimensions Constraints Geography etc Finite capacity management byCarrier Capacity weight or areaMatrix Cost Charge by Costs weight, area, dims, # parcels Engine etc. Retailer preference based Preference on quality, contracts etc.
Turning delivery into a commercial advantageStep 1 – Manage YourselfStep 2Step 3
Understand your Logistics needsProduct delivery needs and customers’ location and habits. Example questions: Are your products letterbox deliverable and low in value? Are customers for specific products at home during the day? Are you delivering to business or residential locations Example solutions: Balance value with tracked or cover with insurance policy Standardise box sizes
Turning delivery into a commercial advantageStep 1 – Manage YourselfStep 2 – Manage Your CarrierStep 3 – Manage God!
Step 3 - Manage GOD! Introduce Contingency to manage all those unforeseen circumstances.
Delivery ContingencyIntroduce Contingency to manage all those unforeseen circumstances.For example: Bad weather Strikes Carrier-over capacity Christmas PeakSolution:Use all services available from your contracted carriers and prioritise
Managing Carriers Understand the logistics needs of your products and customers Decide which delivery services you should offer. Match your delivery promises with your delivery capabilities.
Practical Reports for a 360 view of E-Commerce Snow Valley IMRG Royal Mail Valuing Homee-Commerce Retail Delivery Matters Delivery Delivery Report Report (Bi-annual) (Annual) IMRG Consumer Delivery Survey (Annual)
Delivery Services can be Matched to Customer Demographics Time / Wealth / Segment ValueHigh Welfare Borderline Municipal Dependency 2-3 Day Service Next Day Delivery Grey Perspectives Suburban ComfortTime Collection Point Urban Symbols of Success Intelligence Twilight Blue Collar Premium Services Subsistence Enterprise (Named Day, Time slots, Evening, Ties of Rural Isolation Saturday) Community Happy FamiliesLow Low Wealth High Consumer classifications
Delivery touches every element of e-Commerce Despatched from anywhere Despatched using anyone Fulfilment Multiple Warehouse Carriers Direct Ship Own FleetOrders taken from anywhere Monitored by anyone Online Call centre In store Phone Delivery Customer Head Office Catalogue Supplier Web Based Home Store Total Transparency Accessible Anywhere, Work International Anytime Multi Channel Delivered to anyone
MetaPack can manage your delivery issues for you CDS
Seamlessly Integrate over 60 Carriers into MagentoPrivate and confidential Page 28
Summary: Generating Revenue “We have experienced a 30-40% increase in turnover” – Tackle Discounts INTERNATIONAL Revenue growth in a recession57% of ASOS sales now from international markets grown in just in 2 years.20% of all UK e-tail sales now international RANGE EXTENSION Facilitated through Direct Ship89% of all products available are not stocked by top 50 online retailers REPEAT PURCHASE Proactive communication and new delivery options77% say positive delivery experience encourages repeat purchase100% increase in basket value / 10% sales conversion through ‘same day’ delivery. EFFICIENT RETURNS Self serve, visibility and early refund/replacement40% of shoppers not satisfied with returns MULTI-CHANNEL Facilitated by Mobility of despatch and delivery locations90% basket value increase (£189 vs £104 for catalogue vs pureplay)50% of high street and 20% SME retailers now offer this service SOURCE: IMRG MetaPack Delivery Index 2012/ Micros Online Delivery Report 2012 / IMRG Blackbay Consumer Home Delivery Report 2012 / Royal Mail Delivery Matters 2011 / Shutl 2011 / RangeSpan 2011
Summary: Saving costs Inbound calls reduced by half reducing customer service staff hours Liverpool FC Increase in despatch rate meaning reduced overheads Past Times Output increase from 400 orders per day to 1,000 per day Route One Reduction in time it takes to pack orders by 5 hours a day PHD Fitness Reduction of staff required at packbench from 10 to 6 Tackle Discounts
3 Take Aways…1 – Delivery touches every element of e-commerce2 – Focus on achieving your maximum ‘first time’ delivery3 – Promises, promises, promises!
Summary - The Perfect Delivery Experience Your website should offer Dynamic delivery options the right delivery services Dynamic service queryavailable to that specific customer Customer locations and habits buying those items Product logistics at this time of day Alternative carrier services located at this destination Fill in the ‘gaps’ That your warehouse can fulfil Delivery service rules andthe carrier can deliver first time Contingency …then apply to International and Returns
Visit www.metapack.com for more info, case studies and advice... Currently processes 85 million parcels pa 120m for 2012 excluding eBay volumes De Facto standard used by the majority of UK’s major retailers 64 of the top 100 High profile board Includes Sir Terry Leahy, ex CEO, Tesco and Bob Willet, ex CEO Best Buy Strong partnership program Includes several blue chip providers such as IBM, Oracle etc. Integrated with around 100 carriers UK and EU offering over 1500 services Internationalized product Multiple languages, currencies and time zones Shiran Liyanage email@example.com
Fraud ManagementStart the clock One hour later Delivered window of opportunityOrder Pickingphase Packing Collection 6 hours later Sorting Delivery ‘extending the window Card 3rd Man MetaPack Not Present Validate up to “send orders for picking”
Consolidated Delivery ConsolidatedConsolidated Delivery DeliveryThe Consumer: Shop across your favourite online sites and ONE receive “One Delivery”To the Retailer: Provide consumers with a more convenient environmentally friendly option - Offer a lower cost Improve the brand proposition vis-a-vis Amazon* Be part of a marketable “consolidation network”To the Carrier: Reduce cost for consolidated delivery - Increase “good traffic” - Deepen drop density in areas of strength - Increase industry delivery capacity*Who provide apparent appearance of single order but often multiple delivery
Visit www.metapack.com for more info, case studies and advice...QuestionsShiran LiyanageHead of Marketingshiran@metapack.com