The retail last mile is becoming more rushed, more expensive, and an ever-more-critical contributor to a positive customer experience. This has caused retail leaders to quickly evolve their final mile teams, processes, technologies in order to remain competitive.
This workshop, led by Chris Richter, will provide a framework for understanding where your delivery organization sits relative to the delivery experience you are offering your customers. Participants will learn how to target efforts to reach the next level of maturity and how to remain competitive. We will share a maturity model based on best practices observed across some of the top retailers and share a vision for what next generation delivery will look like.
5. What are the cornerstones of
amazing delivery experiences?
Carrier mix
Commitment to service
Customer Control
& Communication
Vendor collaborationVisibility
Inventory Localization
6. Final Mile Within the Context
of Broad Logistics Maturity
Final Mile Model
7. 4 Stages of Final Mile Maturity
Stage 1: React (45%) Stage 2: Anticipate (40%) Stage 3: Prevent (10%) Stage 4: Automate (5%)
GOAL/CULTURE
& ORGANIZATION
• Cost reduction
• Siloed departments
• CX goals, poor incentive
alignment
• Limited collaboration between
transportation and service
• Alignment on goals, metrics
between transportation and
service
• Compensation tied to
NPS/CSAT
• Strong sales, supply chain, and
service collaboration
CUSTOMER
CONTROL
& COMMUNICATION
• Few delivery options at
checkout
• Customer initiated
calls/exceptions
• Branded tracking page with
basic delivery updates
• Several delivery options at
checkout
• No post-purchase delivery
options
• Short list of delivery status
notifications
• Limited post-purchase delivery
options
• Automation of myriad status
notifications
• Service team enabled for
proactive outreach
• Variety of self-service delivery
options pre- and post-purchase
• Predictive, automated
notifications for many EDD and
delivery exceptions including
recommended actions
LOGISTICS
VISIBILITY
• Internal siloed data only
• Latent and delayed updates
• A mix of real time and latent data
• Disconnected systems
• Real-time data
• Centralized order, logistics,
carrier, and case management
data
• Logistics data tied to CRM,
position data
• Predictive insights
INVENTORY
LOCALIZATION
• Fully reliant on 3PL • Addition of 1+ owned distribution
center for bicoastal
• Multiple regional DCs
• Ship from store fully activated
• Hyper-localized inventory via
mix of flexible warehousing
and/or 3pls
CARRIER/ AGENT
MIX
• Single/National Carrier
• Limited Service levels
• A mix of national and regional
carriers
• Additional modes
• Dynamic optimization of carrier
mix based on pricing and
contract
• 10+ diversified carriers
• Specialized service offerings
(install, etc.)
VENDOR
COLLABORATION
• Audit of quarterly reviews of
past performance
• Manual resolution of exceptions
via spreadsheets and email
• Tech-enabled workflows for
collaborative exception
resolution within specific SLAs
• Automated, multi-party system-
to-system exception resolution