U-turn In Last Mile Delivery Customer Experience
People, processes, and technology turned around a threatened retail business.
Key Challenge
Inability to meet customers’ expectations for timeliness and professionalism led to dissatisfaction and loss of the customer base. The company began using a reputation management service to try to ward off bad reviews but was not able to address the core of the problem.
Competitors began capturing market share. Alarm bells rang, too, as company leadership realized they had no delivery metrics or management tools, and they suspected their delivery staffing was off kilter. Trucks were staffed with 3 team members, with the third person supporting assembly. The retailer’s impression was that they were making 8-9 stops per day and that this metric should be about 11.
In addition, the company lacked the desired visibility for managing inventory and tracking sales and deliveries. They were exploring a delivery management application but hit a brick wall because it would not integrate with their ERP.
Solution
The FIDELITONE team applied The Path to Loyalty™, its proven process: Understand > Design > Implement > Perform > Review. As a first step, the team analyzed timing and staffing needs. They found that the operating assumptions were incorrect. Compared with the retailer’s understanding, the current status was fewer stops per day, more pieces per delivery, and longer time per stop than thought.
FIDELITONE designed and implemented a dedicated delivery solution with 5-6 driver teams of 2 each, supported by a delivery management system, an onsite dispatcher, and centralized scheduling. They added 1.5 warehouse FTEs on the dock to help with assembly and decrease time spent in homes. Upon review, the team also adjusted allocations and routing to optimize performance—all part of continuous improvement in The Path to Loyalty™.
FIDELITONE successfully integrated with the company’s ERP and created real-time visibility through the FIDELITONE Partner Portal. FIDELITONE also implemented customer surveys and a weekly scorecard to keep a pulse on performance and satisfaction. This turnkey solution addressed every aspect of the retailer’s last mile delivery.
Outcomes
With integrated technology, visibility opened up all along the chain. This new solution was not only cost-conscious, it proved to be a true game-changer for customer experience—a winner for earning customer loyalty!
Applying best-in-class last mile experience, the FIDELITONE team was able to help this company pivot at a challenging time. The retailer is now positioned for sustainable growth. In fact, it quicky recruited the FIDELITONE team to begin a similar process with its kitchen cabinet business as well. In the end, every move is about applying the right people, processes, and technology to earn customer loyalty.
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