Global Logistics and Supply Chain Strategies - June 2008 - (Page 46) Good Last-Mile Delivery Favorably Impacts Your Company Performance BY WILL O’SHEA Will O’Shea is chief of sales and marketing for 3PD Inc., one of North America’s largest providers of last-mile delivery and logistics. S everal years ago, fulfillment was one of the hottest topics in logistics—and with good reason, because many retailers with new internet sales channels were having a tough time figuring out how to ship small quantities without giving away the store. Today, it’s a different story. Since the demise of the many cyber-stores that brought this function to national prominence, fulfillment seems to have regained its long-held position at the bottom of many companies’ supply chain agendas. Perhaps this is because so many are focused on the complexities of moving their products from farflung manufacturing venues such as Asia. But I think the main reason is closer to home: Companies assume that last-mile delivery is solely a tactical function with little potential for impacting company performance or market share. Unfortunately for them, they couldn’t be more wrong. As a longtime logistics professional, I’ve had a chance to see a variety of fulfillment scenarios up close—most recently as part of a company that solely provides last-mile delivery service. In the process I’ve discovered that fulfillment has far more facets and strategic potential than many people give it credit for, provided companies are willing to go above and beyond—and to exercise best practices such as the following. Think Brand Consistency Product quality is only part of the reason people buy well-established brands. Most also enjoy knowing that they can expect the same purchasing experience regardless of whether they’re shopping in Florida or Fresno. The more your company can extend that consistency to the last mile, the more loyal your customers are likely to be. This doesn’t necessarily require a private or dedicated delivery fleet (although either can certainly help.) But it does call for a well-defined delivery protocol that’s clearly conveyed to every player in your last-mile chain—and exercising quality control to ensure that any delivery provider you use has the necessary tools, training and personnel to follow this protocol down to the letter. Aim For Better Timing In today’s two-income and single-parent households, many customers must take time off work to accept home deliveries. Acknowledge and minimize their inconvenience, and your company will be a hero. For starters, be as precise as possible in terms of the delivery windows you give your customers. Asking them to sit around for half a day is a sure way to convey that your company is either too inefficient to plan ahead or too inconsiderate to care. And if you don’t think your company or 3PL can time things that carefully, you may need to consider investing in better processes and technology. Be vigilant about arriving within the delivery window—and quick to contact customers to let them know as soon as you realize you’ll be running behind. (After all, we’ve all heard about customers canceling orders just because they’re frustrated with a tardy delivery truck.) And if you really want to get on customers’ good side, make arrangements to contact them when your truck is 30 minutes away from arriving at their home. Improve Visibility When it comes to inventory visibility, most shippers have a disturbing double standard. They’re more than willing to pay for sophisticated tools that allow them to keep a handle on inventory all the way from Asia to the Americas. Yet they’re often working blind after products leave the DC to travel the final 50 to 100 miles—the time when most customers are likely to want very precise details about their shipment location. A small investment in last-mile technologies could make all the difference in this respect, especially if you use these tools to connect all of your stakeholders. For example, by implementing technology that sends real-time event updates at each “touch point” in the delivery process and then allowing this information to be visible via the internet, your customer 46 JUNE 2008
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