Are you ready for final mile services as part of a complete supply chain?

1. Bill O’Connor
CLOSING THE
LAST MILE
A Guide to White Glove Service©2016 Bill O’Connor, Gardner, KS. All rights reserved – world-wide.. This information is
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2. The opportunity to provide a
single-source-logistics-solution
for a complete supply-chain, may
never be better. You are likely
already providing industry
leading package movement,
expedited services, and
customized logistics solutions.
This guide helps close the last
mile gap.
The e-commerce fulfillment
market is extremely fragmented.
It can be said that all logistics
services are available. However,
they are not integrated or linked
in a client friendly platform.
What the market needs is a
single provider for all logistics
services. A complete supply chain
would include ocean/container,
customs, warehouse/fulfillment,
freight, final mile/delivery, and
installation/product support.
This guide helps you look at the
need and opportunity for the
products requiring more than
movement and delivery. In
particular, the assembly and
installation services that are not
well provided to the e-commerce
fulfillment, supply chain.
Additionally we will review the
strengths, weakness,
opportunities, and threats for
maintaining the current status
versus moving forward with a
truly differentiated ‘White Glove
level Service.’
Your business may want to
exploit the opportunity of
particularly related final mile and
installation, but are you really
ready?
Are you ready to differentiate
your business with the well
focused ability to handle the
unique demands for heavy,
oversized and assembly required
products?
Are you ready to provide ‘Game
changing focus’ for your
industry?
Are you ready to offer hassle free
service to your customer’s door
step?
Introduction

3. Mission, Goals
& Strategies
The Mission
Provide professional, efficient,
timely service to fulfill all of a
client’s, logistics needs with
the highest level of customer
and client satisfaction.
Our focus is on the enhanced
final mile services. The
installation services operating
within your existing
operations network. For
convenience, in the guide this
will include all pertinent
services bundled as “final
mile” services. (Final mile
delivery, installation, product
support, and troubleshooting.)
You may already have had
some experience and maybe
even success in this endeavor.
You know how to move and
deliver products. White Glove
Service allows you to leverage
your existing processes,
clients, office/admin support,
and field services network.
The lack of experience with
managing the final mile and
the associated installation
services should not be a
difficult issue. Your
competitors do not have the
combination of corporate
strength, field resources, and
proven satisfaction in the
logistics industry.
The opportunities ahead are
numerous and wide reaching.
The industry is being re-
defined and the timing of
these enhanced capabilities
could not be better.
Professional structure and
providing consistent,
quantifiable results are being
demanded by the industry.
You can capture a large
portion of the final mile and
installation services if you
leverage your traditional
freight and logistics services.

4. The opportunities ahead are
numerous and wide reaching.
The industry is being re-
defined and the timing of
these enhanced capabilities
could not be better.
Professional structure and
providing consistent,
quantifiable results are in high
demand in every industry.
You should be able to capture
a large portion of the final
mile and installation services.
Many of the existing industry
players will not survive the
expected changes. They
simply will not be able to
respond to the pace and
demands of the final mile &
installation market.
Positioning yourself as an
industry leader for multiple
logistics services will allow for
profitable results and
increasing market share versus
existing competitors.
Goals
A few key goals have been
targeted to facilitate your
thinking…
1) For every job/order there
will be immediate and ongoing
communication with the
consumer/end user, client,
and all parties throughout a
product’s supply chain. Data
visibility will vary based on the
entity. Upon receipt of a job
and throughout its life cycle,
automated calls, emails, on-
line access and proactive
compliance management will
provide regular status updates
to those concerned. This
leverages on one of the
existing strengths of logistics
providers. Adding visibility for
the final mile stage and
product supply chain should
not be difficult. This is one of
the primary weaknesses in the
current, fragmented supply
chain.
2) Product and technical
support for the items will be
readily available, to the entire
supply chain, to resolve any
product or service failures.
Data files will be available, as
well as included with jobs
dispatched to the supply chain
agents. Real-time support for
installation agents, while on-
site will be available. This will
allow all agents to access
necessary support as well as
real time information to ensure
proper, product handling. This
is a critical factor to maximize
successful delivery and
installation and the customer’s
related satisfaction.
3) Final mile agents, with
capabilities for installation and
troubleshooting will be a
flexible and dynamic work
force. Utilizing a traditional,
logistics hub network will allow
a superior level for
management of these agents.
Leveraging the evolving
availability of the contingent
work force, Independent
Contractor management will
build a network of agents
based on product and service
capabilities. Additionally, the
challenge of rural, low-volume
coverage will provide
competitive advantages .
This network will be built
through a combination of
individuals, area companies,
and local dock partnerships.
Criteria related to products and
services will determine agent
suitability. This network of
providers can be grown quickly,
in the short-term, with existing
service providers integrated
into the logistic’s management
platform. Long-term efforts will
focus on skills improvement to
expand preferred providers
capabilities and increase their
value to the network.

5. There will also be a
management element related
to local regulations of
products and services. This
will be part of the supply
chain development and
management. For example, if
specific certifications are
required for a product
installation, this becomes part
of the agent qualifications. It
is foreseeable that some
services may be restricted, or
not available, based on local
ordinances or requirements.
4) Client satisfaction, based
on Key Performance Indicators
(KPIs) and quantifiable data
collected throughout the jobs
life cycle, will be identified and
monitored for constant
improvement. The clients will
become partners in identifying
the relevant data, improving
performance and increasing
end user satisfaction.
5) Productivity and efficiency
will be maximized through the
development and use of KPIs.
Staff and agent productivity
will be monitored at all levels.
This includes the office staff,
technical support, carriers,
and field technicians.
Establishing the KPIs related
to superior customer
satisfaction as well as
profitability of the
division/services will be an
ongoing function. It will be
optimal to develop a
performance based,
compensation package for the
service providers. It will
include components covering
service competency, job
compliance, and customer
satisfaction.
What does a full-service,
single-source, logistics
provider do?
Logistics
Supply
Chain
Freight
(TL/LTL)
Oceans /
Customs
Field
Resources
Product
Knowledge
and support
DC/
warehousing
IT
Management
Field Service
Management
Final Mile /
Installation

6. As a leader in the freight
industry, you know industry
needs are rapidly changing. E-
commerce and needs of
assembly-required products
are transforming the
fulfillment models. Although
the omni-channel discussion
encompasses all products, the
needs of the heavy, oversized,
and assembly-required
products pose unique
challenges.
Currently the supply chain is a
very fragmented. A single-
logistics-source to provide all
services has not yet emerged,
but one invoice - one customer
service contact is becoming a
common request from clients.
Providing the final mile,
installation, and white-glove
services will enhance your
market position and increase
your traditional freight
business. Today, you can set
the standard for home delivery
and specialized solutions.
Fulfillment from back-of-store
is becoming less viable. Retail
stores are not well suited for
heavy and oversized products.
Some seasonal products, such
as game tables and play sets,
would be better served from a
distribution center or direct
ship fulfillment.
Product damage, employee
accidents and the higher cost
of storage space all contribute
to this need for change.
Although not a focus of this
guide, offering warehousing
and DC fulfillment is another
emerging value-added service.
Many logistics providers are
trying to address these unique
challenges, and they are
struggling.
As the customer’s logistics
needs evolving someone will
emerge above the rest and
truly differentiate themselves.
Is has to happen!
Present Status

7. With the addition of installation
capabilities, your business takes
a tremendous step forward.
Traditional product movement
will be enhanced by offering
service thru the installation
stages.
The goal of providing exceptional
product support requires linking
the supply chain from
manufacturer, through the
logistics chain to the final
mile/installation.
You will be able to offer and
charge for troubleshooting and
service at any stage of the supply
chain. For example, if damage is
noted en-route, the opportunity
to offer resolution prior to the
consumer experience, provides
tremendous advantage.
White glove service will create
totally new income
opportunities. Manufacturers
and retailers become part of
your product supply chain. You
will now be the source for an
integrated platform.
Product support capabilities will
also expand revenue
opportunities. When product
failures happen, you will have
escalation protocols. This will be
part of a service level agreement
(SLA), necessary for all your
customized solutions.. You will
be the source of information
about product liability rather
than a victim when services are
needed.
Many times this falls under the
manufacturer warranty, resulting
in even more income potential!
Service Level Agreements will be
designed with resolution
protocols. Since you now
connect the entire supply chain
you will manage the resolution,
and will know who has liability
for any accessorial charges.
Once this supply chain
management is developed, with
a focus on superior product
support services, the capabilities
for handling an even wider range
of products becomes viable.
Product/Service
Offerings

8. Establishing the requirements
for product services, providing
technical support throughout
the supply chain, and
providing services to enhance
the skills of the final mile
providers and partners will be
standard elements as products
are added.
There are an abundance of
products that need
exceptional, final mile
services. This includes fitness
equipment, furniture,
electronics, game tables,
appliances (gas and electric),
sheds, play sets, basketball
goals, massage chairs, and in-
home medical products.
An implementation plan can
be developed based on
current needs and
opportunities. This plan can
vary based on current clients
and products, coverage area,
and agent capabilities. The
addition of products and
service areas will be part of
the long-term strategy.
We are way beyond just
transporting products!
Link Supply Chain from Manufacturer to Consumer
•Manufacturer relationship for product knowledge, parts, service
•All agents in logistics chain involved
•Sellers, retailers, distributors, consumers have visibility to product movment
Identify & Resolve damage and product issues
•Ability to resolve issues throughout all stages of the logistics chain
•Ability to resolve issues at delivery/installation
•Reduce returns and dead inventory
Maximize consumer satisfaction with their sales experience
•Confidence in product with superior delivery experience
•Improve satsifaction with product through in person tutorials during set-up
Value Added service opportunities
•Product information captured for warranty registration
•Product life cycle servicing and eventual replacement
Additional revenue opportunities
•additional product related services offered to clients and manufacturers

9. Retailers, both store and e-
commerce, already have
confidence in your ability to
handle freight. The addition of
final mile services will fill a
vital need. And your ability to
move virtually any product to
any location makes you the
preferred provider, every
time!
With escalation procedures
established, providing
immediate resolution to
product and service failures
you make a complete supply
chain solution a reality! The
ultimate focus on maximizing
the consumer’s satisfaction is
your brand.
Manufacturers will be a
natural fit with these
expanded services. Many
manage their own freight and
installation services. You have
rarely been given a shot at this
business.
Quality product support,
provided thru the
manufacturer warranty, will be
a tremendous opportunity to
increase revenue and
differentiate your business.
The relationships with
manufacturers, retailers and
warranty companies provide a
unique opportunity to
maximize the efficiency. As a
critical partner, linking all
parties, you are relied on for
overall product expertise.
There will be very few times
when you will not be able to
assist with a retailer’s
customer satisfaction needs.
Rural and low volume
coverage will be another
service advantage.
Profiles of
Target
Markets

10. Utilizing your distribution
network and freight docks
allows these additional
services to be offered to
areas that are currently under
served. Places you previously
could not service because it
was too costly, now have
great revenue potential, and
well worth the effort!
It should be noted that
incorporation of contractors
and a contingent work force
will be a necessity for some of
the products, services, and
geographic needs. The
knowledge and expertise in
this field is well-defined, but
currently beyond the reach of
most people in the industry.
This labor pool is willing,
eager, and capable… but are
yet to properly utilized.
And finally, the capabilities
created from the final mile
services provide
opportunities beyond the
traditional supply chain. All
clients and prospects have
needs beyond fulfillment of
product.
This includes trade-show set-
up, store display sets, and
more. You will have the
agents to handle these
services. There is always
freight associated, many
times in and out, that can be
part of the client agreement.
Although these opportunities
may be beyond the
immediate plan, they create
ongoing growth for revenue
and market share.
What stages of a SC do you
offer? What stages do your
customers need?
Anand Subramaniam

11. Rolling out final mile services is
be based on the needs of the
product, capabilities of your
existing operations, and
coverage areas. It is likely that
the addition of services will be
prioritized by demand from
clients and industry
opportunities.
Once you make final mile
services available marketing
and sales can pursue multiple
avenues. The first effort would
be to increase business with
current clients.
You currently move a
tremendous amount of
product, but you’re leaving
money on the table… someone
else is providing the final mile
services. When these services
can be offered under one
invoice and a single point of
contact, the clients respond
and you cash in.
New clients, including retailers,
on-line, and manufacturers,
will be targeted based on the
roll-out of the service and
product capabilities. You will
be able to market a complete
supply chain.
Marketing can be tailored to
specific products and
industries as capabilities are
developed. You can include
trade shows for fitness
equipment, lawn and garden,
furniture, home décor,
electronics, consumer, medical,
hospitality and more.
Once the final mile services are
in place, the addition of
products becomes much
easier. Relationships created
can be fully leveraged for other
sales opportunities. Reliance
on you for all logistics needs
will become your industry
advantage.
Marketing &
Sales
Strategies

12. Two IT areas are critical: service
provider management and
product support.
The final mile and installation
services will be handled by a
wide variety of agents. Until
very recently, technology was
non-existent or cost prohibitive.
But today, a dynamic, flexible
network that connects client
requirements, product needs,
volume, and local
considerations is not only
possible, it is feasible.
From employee based to
traditional outsource to
installation only agents, the IT
platform will need to
accommodate the variety of
supply chain needs.
Your IT will need to provide
compliance based management
structure, ongoing performance
review, and you will need a
method for skills development.
Since you may already have
relationships with third party
providers of final mile services,
these can be improved, with
product support and a higher
level of job compliance.
However, the long-term strategy
will focus on direct
management of the field.
Current final mile providers
offer a nationwide coverage,
through a call-center platform,
with little, direct field contact.
Utilizing your current locations
and related management will
provide interaction and
supervision for field providers.
A second technology area for
review will be product support.
All products handled will need a
sku based tracking system. A
product sku will not only
provide item weight and dims, it
will allow all technical support
and product info to be
accessible. Product support may
include live support, on-line
access, service updates, and
resolution procedures.
Technology &
Development

13. It is crucial that product support
be integrated into the supply
chain.
Product skus allow ease of
access to information. Product
specific info can then be
accessed prior to a job, for
education and preparation, as
well as accessed while on-site
for troubleshooting and
support.
This is a critical component, not
readily available in today’s
service. E-commerce and direct
ship requires exceptional
product support,
troubleshooting and escalation
resolution which is why this
service has lagged in the market
to this point
A service extension of this
product support should include
tutorials and training aids to
assist the installation agents
with the products. Some
manufacturers produce videos
and product aids.
Ensuring a full range of support
will be a critical area that
directly impacts job success and
customer satisfaction and your
revenue potential.
Working with manufacturers to
build these tools (and they are
happy to partner) differentiates
you from competitors. Help
from manufacturers with the
learning curve for first time
installations will be part of the
ongoing management of these
products and services.
Additional IT capability means
visibility for shareholders in the
supply chain. It is not
uncommon to have photos of
an installed item included as
part of a job completion,
creating a great secondary
marketing tool and
communication.
Your existing technology
provides the opportunity to
quantifiably measure and
increase client satisfaction.
With internal productivity
measurements and external
data from clients and end-
users, we can identify how our
client defines superior service.
New technologies are ever
evolving for supply chain and
product management. This
includes barcode tracking,
RFID, gps, and more.
Maintaining leading edge in
available technology should not
be difficult based on the
current business practice.
Is the technology ready?
Real Time, Proactive
Compliance
• IT Integration
• Visibility and access
to all
• Route optimization
• Escalation protocols
BYoDevice?
• EDI - freight
• mobile apps
• on-line/web
• Phone dispatch
Product Knowledge
• SKU based
• All support data
available
• Linked via WO to all
agents
• Live support
• Agent capabilities

14. You can expect some
additions to office and
support staff capacity. Of
importance is the
responsiveness to escalations
in the field. This is particularly
important when offering
installation services to
address a product or service
failure.
Ideally, your first line of
support will be in-house, with
access phone # on the job.
This could vary based on
product or client. Your
existing support center can
easily provide immediate,
real-time knowledge of the
escalation procedures and
how to obtain required
support.
Most likely the method for
product support will vary, but
direct support from the
manufacturer will be a
primary resolution avenue.
Some manufacturers offer
tremendous product support,
others virtually none. As
product capabilities are
developed and client SLAs are
implemented, operating
procedures will be
constructed. In particular are
demands for residential
services, which can happen
after hours.
Any product support,
following procedures as
defined in the SLAs, will
determine resolution for the
problem and any subsequent
services to be performed.
Accessorial charges, as part of
the service agreement, will
take into account
troubleshooting fees, minor
repairs, reverse logistics, and
return trips to the consumer.
Management
&
Administration

15. It is not uncommon for items to
arrive in less than perfect
condition. Ideally if there are
known issues, such as cosmetic
damage, the unit can be repaired
prior to the customer install. This
may involve inspection at the
local dock and assembly with a
blanket wrap for final mile.
An example would be a scratch
on a plastic cover. )This cover can
be replaced, at the dock or
customer.
A service fee will be charged to
the appropriate party, usually
the manufacturer or seller, as
defined in the service
agreement.
The result is lower returns or
rejected shipments and a higher
customer satisfaction. Most of
the items being discussed are
higher value items.
Add to that the lag time from
purchase to item receipt and
most customers do not want to
wait for a replacement item. If
the unit functions properly the
goal is to keep it at the
consumers. The final mile
management will have the ability
to provide the additional
services needed, or provide a
thorough inspection so proper
resolution can be completed.
A challenge for IT!
Product database designed & update protocols
Field Services Management program built
• Coverage list management, Routing
Optimization
• Product services requirements
Integration of Supply Chain communications
• POS to end user, scheduling of D&I
• Logistics tracking
• Field Resources – mobile communications
Compliance protocols developed
Automation in updating jobs and parties
Warehousing/Inventory tracking integration
Compliance Dashboard for all stages

16. Two components are integral
to this final mile service
development. These are agent
and product management.
Agent Management
Product installation will
require a diverse set of skills
for the service providers.
White glove service, as
generally understood today, is
un-wrap and light assembly.
Although the product
challenges can vary widely,
the process for qualifying,
developing, and managing the
service providers will be the
same, regardless of the
product complexity.
Installation services will
always be a dynamic
component utilizing route
optimization based on a
variety of factors.
There will be product and
client requirements. There
will also be high volume
versus low volume coverage
areas. And there will be
seasonal fluctuations in the
volume.
Products requiring extensive
time and particular skills for
installation include fitness
equipment, basketball
systems, sheds, furniture,
appliances, game tables, play
sets, and recreation products.
Agent capabilities will not be
the same. Building the
network of final mile and
installation service providers
will be a specialized focus for
management.
It is expected that the service
providers will be composed of
four different types of
entities.
Implementation

17. 1. An installation/assembly
industry can be utilized as
outsource vendors. These
are management
companies overseeing
local, field agents. This
industry provides a
development avenue to
establish an immediate
final mile footprint. You
may currently have
relationships that can be
enhanced with higher
levels of product support
and service management
by utilizing this industry.
However, most companies
cover major metros only.
2. Product specific service
providers can be
leveraged for immediate
services and offer part of
a long-term solution.
Some products provide
unique challenges best
suited by specialty
providers.
3. Direct management of
local agents will be a
necessity. These are
generally independent
contractors, capable of
providing a direct contact
in the final mile stage.
These agents will need
more support for product
knowledge and
compliance management.
4. Developing internal, asset
based providers is an
opportunity that sets
some companies apart.
Utilizing asset based
agents will probably not
be the primary, or even
preferred, method.
However, having this
option, to develop in-
house capabilities, will
have tremendous value in
route optimization. It also
offers a significant tool for
back-up and redundancy
in coverage.
Regardless of the type of
vendor, you must demonstrate
an ability to identify, recruit,
qualify, monitor, and provide
constant improvement. This
will be an ongoing,
administrative responsibility.
Routing a product requiring
final mile services will
leverage multiple agent
resources. Rural, low-volume,
areas may have fewer options
than urban areas. It is
expected that many areas will
have multiple options for
service agents.
Your current freight dock
network is a tremendous tool
to build and manage supply
change. The knowledge and
expertise of the freight dock
network you bring to this new
venture, regardless of which
agent(s) are utilized for final
mile services, will be a core
competency.
Adapting to seasonal
fluctuations, flexibility to meet
client needs, and managing a
diverse agent network are
current strengths of the
supply chain model. There is
every reason to believe that
management of these
enhanced, final-mile services
will fit into the enhanced,
supply chain, management
model.
Product Management
The second, critical
component, will be
developing the product
support for every sku that
utilizes final mile services.
Although the discussion is
focusing on the heavy,
oversized, and assembly
required items, this product
support process has value for
every product. With focus on
specific, product information,
as well as related, agent
service skills, development of
this tool will be a competitive
advantage .

18. Finding qualified agents
based on product needs is
one challenge. Equally as
important is developing the
tools to enhance existing
agent’s capabilities for
additional products and
services.
A product sku database will
allow accumulation and
utilization of info necessary
for exceptional product
support. When clients and
products are brought on,
linking all support will be part
of every SLA. This will not
only provide support to the
supply chain agents, but will
establish a relationship with
every entity in the chain. This
is where the single-source
provider becomes a value-
added partner to the
solution.
The focus of this support is to
ensure successful product
delivery & installation and
maximize customer
satisfaction. However,
capturing product data has
numerous benefits beyond
the primary objective.
What does success look like?
Consumer
& Client
Satisfaction
means…
Movement –
LTL,TL, Final
Mile, more?
Field
Resources
and agents
Product
Knowledge
&
capabilities
Field
Service
Management
Product
Management
/
Technical
support
IT/
Integration

19. The industry is in need of a
single, logistics provider for a
complete supply chain. The final
mile and installation services
are the most fragmented
component of this supply chain.
Managing this service is a
natural extension to the current
logistics services. From the time
a product leaves its origination,
clients will provided a single
customer service point for all
logistics services.
Metrics will be developed to
track, evaluate, and improve
these services. These KPIs are
present in today’s logistic
industry and just now becoming
a part of the final mile stage. E-
commerce, and direct ship are
changing the fulfillment model
for retailers. Stores are
becoming showrooms instead
of an inventory warehouse,
particularly for oversized and
heavy items. The omni-channel,
fulfillment model has created a
need and tremendous
opportunity.
Your ability to offer the solution
for a complete supply chain is a
natural, next-step to the current
services. Becoming the value-
added partner, with a focus on
exceptional product installation,
and being measured by
customer satisfaction, puts your
business in an indispensable
position with all players in a
product supply chain. The first
single-source provider to
market will become formidable
in its competitive edge.
Conclusion