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Post-pandemic delivery experience vital for differentiation

Posted on by David Priestman

The pandemic changed consumer shopping behaviour for good. With physical stores forced to close, many had to adjust to shopping online with speed and convenience key to the experience. Whilst necessity drove this rapid change, retailers had to fight to keep up. Many invested heavily in improving their websites and optimising the online experience, however failed to invest properly into the delivery experience. Perhaps it seemed of lesser importance…

Yet, with the world opening up again and a well-publicised shortage of HGV drivers leading to escalating delivery costs, will this neglect backfire on retailers’ online investment? And do customers perceive the online and home delivery experience as good enough to retain their loyalty now the options are not so limited?

Andrew Tavener, Head of Marketing at Descartes, argues that retailers should not undervalue the importance of the delivery experience. When it comes to customer expectations, the delivery service leaves a lasting impression and can make or break brand loyalty. With spiralling costs and the risk of losing customers to better performing competitors, retailers simply cannot afford not taking ownership of the full, end-to-end experience.

Growth in online sales

Descartes commissioned independent research in July 2021 to assess changes in online buying habits. It was found that 43% of all purchases are now made online, with 51% of European consumers buying online once a week (a huge increase from the 28% pre-pandemic). The growth in online purchasing is stronger in the UK and, looking to the future, UK consumers expect 50% of all purchases to be delivered to their homes in 12 months’ time.

Convenience is key and 50% stated this was the primary driver for its increase and expected continuation. However, whilst 41% believe the ease of buying online has improved, retailers cannot afford to become complacent. Problems with the overall online experience are less likely to be tolerated as economies open back up. Almost half (48%) stated that delivery concerns would affect online buying decisions, including worries that deliveries are not environmentally friendly (19%), can be unreliable (18%), bad delivery experiences (16%) and dissatisfaction with the delivery process (14%).

Retailer perception damaged by the delivery experience

Clearly, the delivery experience is vital to the overall online shopping experience and continued consumer loyalty. Over two thirds (68%) of consumers had an issue with a delivery in the last three months, which led to 24% losing trust in a delivery company and 24% losing trust in the retailer. As over a third share their perception with friends and family, this creates a ripple effect and can dramatically impact repeat purchases and brand perception.

The efficiency of the last mile model is more vital than ever as consumer demand grows at the same time as the well-publicised HGV and van driver shortage. Businesses are finding this a challenge as costs increase with pay rises for drivers, large sign-on incentives and rising fuel prices, whilst customer expectations for their delivery service increase. An inefficient and traditional reliance on managing orders in batches has damaged reputations and left the delivery process wanting. Excessive contingency has also often left drivers waiting in a lay-by to avoid arriving too early or items being left in unsecure locations (18% of UK consumers have experienced this), with neighbours or missed entirely. These lead to an increase in experiences of damaged packages (17%) and a spike in customer service calls, further increasing cost and time expenditure.

As people have become more familiar with online purchasing and the end-to-end experience, their expectations have increased to want what they want, where and when they want it. Any issues that affect this will inevitably drive them to competitors.

In order to maintain the benefits from access to a new marketplace due to the pandemic, retailers need to improve the consistency and quality of the delivery experience. Taking ownership of the delivery process and understanding the demand and delivery capacity is vital to vastly improving the entire end-to-end experience. Through continuous, real-time optimisation of all orders, delivery commitments and available delivery capacity, delivery efficiency and performance can be transformed.

Technology will help retailers make the most of their existing resources by managing drivers’ time effectively and retaining them with an improved working experience. The retailer can use this technology to monitor delivery capacity and existing commitments with new orders to enhance and update the delivery options that are passed to the customer at the point of sales in real-time, gaining the confidence of customers that promises will be met.

Competitive differentiation and environmental gains

Finding a way to make an improved delivery experience a selling point is challenging. However, when done well, retailers will increase sales, improve customer perception and gain new customers. 60% of UK adults consider the environment whilst ordering online, which rises to 88% of those aged under 25 making it an important consideration that will sway consumers, particularly the younger generation.

27% of UK consumers would be interested in bulking orders into a single weekly delivery and 26% are happy for their orders to be delivered when there are multiple deliveries in their area. An option already available to larger marketplaces, this is not so easy to implement in smaller organisations. There is an opportunity, however, for retailers to work together through fulfilment collaboration to optimise delivery models and third parties could leverage real-time capacity optimisation solutions to provide this option in the future.

Electric Vehicles are being used more by delivery companies in a bid to improve environmental credentials but the solution should go beyond the purchase of these. Intelligent route management is essential to ensure the right vehicles are deployed to reflect environmental goals and address the growing costs associated with the UK’s Clear Air Zones. Additionally, continuous background optimisation can match capacity with demand and allocate the correct vehicles to suitable routes for them.

Also, by using real-time information about the fleet, capacity and demand, a retailer has the power to influence buyer behaviour by offering differential pricing to incentivise delivery slots that would be greener or maximise density. This presents many benefits to the retailer, including aiding sustainability, as well as producing a more efficient delivery for both consumer and driver.

Conclusion

Online purchasing is not slowing down and consumers’ confidence in the end-to-end experience of shopping online has increased significantly since the pandemic began. With an increase in the frequency of online orders and deliveries received, consumers’ expectations over the past 18 months have risen as they become more familiar with the service and the quality that can be achieved. As this research shows – with only 16% of UK consumers completely satisfied with the delivery service – retailers must act fast to prevent lost sales or a negative impact on perception.

The lasting impression a customer has of a retailer is the delivery service. Online retailers have enjoyed the benefits from the COVID-19 bounce in building a larger customer base but now need to look to the future. In order to retain and satisfy these new customers, it is key for businesses to ensure a robust end-to-end experience is in place that is both efficient and considerate of the environment.

Report: London delivery boom could become unsustainable

Posted on by David Priestman

With the number of parcels delivered in London expected to double by 2030, a new report has set out an ambitious roadmap to make deliveries and freight journeys more sustainable and efficient. The proposals include introducing 10,000 pick-up points and lockers for parcel deliveries, new mayoral powers to incentivise deliveries to pick-up points instead of homes, and prioritising delivery and servicing vehicles under a London-wide pay-per-mile road user charging scheme.

Published to coincide with COP26, the report by Centre for London highlights the environmental impact of existing delivery methods. Most goods and services are moved by diesel and petrol vans which contribute up to a quarter of London’s carbon emissions and PM2.5 emissions from transport. And fuelled by the deliveries boom during the pandemic, diesel van sales in the UK were up 82% in the year to March 2021, while petrol van sales increased twofold over the same period.

The report argues that consumers need to change their behaviour, but businesses, national and local government must also act to turn the tide on an unsustainable system and reduce the number of polluting van and lorry journeys at all stages of the delivery process.

It calls on the Mayor of London to work with parcel delivery companies to put 90% of Londoners within 250m of a universal parcel pick-up/drop-off point by 2025, equivalent to installing 10,000 in-store pick-up points or lockers across the city. Just 17% of parcels are delivered this way in London at present, despite pick-up options generally being cheaper than home deliveries.

Introducing more of these pick-up points would allow companies to deliver large numbers of parcels at once to fewer locations, reducing vehicle traffic on the roads, and the knock-on-effect on air pollution and congestion. It would also mean that Londoners receive their parcels the first time they’re delivered: an estimated 60% of untimed home deliveries end in failure, and redeliveries increase van traffic on the roads.

If progress on setting up universal pick-up points is too slow, the report also recommends that the Mayor of London is given new powers to incentivise Londoners to use pick-up/drop-off locations. This could include an online sales tax for at-home deliveries which would also encourage delivery companies to set up more pick-up/drop-off locations across the city.

The report also calls on the Mayor of London to do more to prioritise efficient and sustainable deliveries in the capital. It calls on the Mayor to introduce a pay-per-mile road user charging scheme that could give priority to delivery and servicing vehicles. This would help to cut congestion, save time and money for drivers and businesses, and reduce the number of private car trips. The report’s authors welcome the recent extension to the Ultra Low Emission Zone but highlight that many diesel and petrol vans are already compliant with the scheme standards so don’t have to pay the fine.

Alongside the shift to electric vehicles, forecasts suggest that at least 4,000 rapid charging points will be needed in London by 2025, an 800% increase from the 500 in the city at the end of 2020. The report argues that national government should fund the installation of charging facilities at commercial properties such as consolidation centres. The government should also invest in reactivating London’s piers, wharves and rail-road interchanges so that the river and railways are a viable alternative to van and lorry journeys on London’s roads.

The report also highlights how a shortage of land available for logistics in central London can increase the distance that vans have to travel. It calls for the Mayor to work with local authorities to ensure space is available for logistics hubs where delivery companies can consolidate deliveries. London boroughs should also embrace dynamic kerb management to give delivery vehicles reliable access to space for loading and unloading, and avoid unnecessary additional driving.

Nicolas Bosetti, Head of Data and Insight, at Centre for London said:  “Delivery drivers and service workers need to be able to get from A to B as quickly and efficiently as possible. Londoners may like the convenience of doorstep deliveries but the way we currently move most of our goods comes at a high cost for our health, climate and for the businesses and workers who need to use our roads to get around.

“Many delivery companies already have plans to make their journeys more sustainable, but we need to encourage them to deliver to and from fewer places and support more of them to switch to cleaner vehicles. This means creating space for pick up points, consolidation centres and electric vehicle charging points.

“They won’t be able to do this alone. The Mayor of London and London’s boroughs need to take action to make freight journeys as green and clean as possible, alongside serious investment from the government too.”

Robin Woodbridge, Head of Capital Deployment and Leasing, Prologis UK said:  “With online sales unlikely to drop back to pre-covid levels, cities like London urgently need to find a solution to the last mile delivery problem and the challenge of balancing surging consumer demand for home deliveries with a need to improve air quality and reduce traffic noise and congestion.

“As the UK’s largest developer and owner of logistics parks, we were delighted to support Centre for London to produce this report. This important piece of research shines a light on the complex interdependencies at play when it comes to last mile delivery and proposes key recommendations for businesses, consumers and government to drive positive change.”

Neil Herron, CEO, Grid Smarter Cities said: “We welcome the timing of the report and the key Centre for London research finding that: ‘London boroughs and Transport for London should embrace dynamic kerb management, which would give delivery vehicles safer and more reliable access while minimising impacts on other road users’.

“At present, we have a unique opportunity to showcase London to the world with the implementation of a dynamic, bookable kerbside management solution that reduces congestion, improves air quality and enables businesses and communities to receive goods and services more efficiently.

“In 10 years’ time we will look back and say: Did we really allow delivery companies to fight for kerbspace on a first-come-first-served basis, rather than booking delivery slots that guarantee access?’’

Kate Langford, Programme Director of Impact on Urban Health’s Health Effects of Air Pollution programme, said:  “There is substantial evidence that air pollution disproportionately affects the health of children, older people and people with heart and lung conditions. Air pollution also intersects with other systemic causes of ill health, like unemployment and noise pollution, and so has a disproportionate effect on people who live in lower income neighbourhoods. That’s why rising numbers of polluting vehicles and journeys in our capital is particularly concerning.

“We urgently need to design systems that manage the rise of deliveries and online shopping, and reduce vehicle traffic on the roads. Residents must be engaged in the design of these new systems, to make sure that they protect people’s health and work for everyone.”

DeliveryApp poised to disrupt logistics industry

Posted on by David Priestman

DeliveryApp, the Manchester based tech start-up, has been on a supercharged growth strategy in 2021 following significant investment in January.

The technology-based logistics platform connects independent couriers with end users for fast deliveries through its Apps (available on Google and Apple stores) and website.

DeliveryApp says the platform is unlike other operators within the logistics industry due to its unique, agile structure. It has no slow and expensive hubs across different cities generating service costs. Instead, it’s formed a network of over 500 independent couriers across the country who will collect and deliver the parcel personally. That ever-expanding driver network is in-part thanks to its ethical approach to its drivers.

Drivers can earn a higher price per mile, take control of their own jobs without difficult-to-achieve targets and will be paid thanks to its fast, full automated payment system. It is a framework which has been developed through driver focus groups in order to create a platform which understands its audiences.

As DeliveryApp co-founder and Silicon Valley magnate Ioannis Verdelis explains: “Our platform lives and breathes through our drivers, if they’re not happy, we’re not happy. So, during our development phase we channelled just as much energy into creating an eco-system which works as well for them, as it does our end users booking deliveries. Faster payments, fair pricing and being in-control of their own deliveries were all important objectives for us to get right from the outset.”

The App, which is in BETA phase 3.1 and went live across App stores in May, has been experiencing rapid growth as its reputation and network starts to build organically.

Its customer proposition is defined, too, as Vedelis continues: “Our customers are on the whole driven by two things – price and trust. They want to get the best-possible price for their delivery, and they want to be confident it’s going to make the journey unscathed. Our transparent pricing through the platform means they can very quickly calculate the cost of their delivery, and thanks to our technology-based infrastructure, we cost around one-third less than the competition.

“Our customers are also given ownership of their delivery. They can see and control the whole process from prescribing collection and delivery times, to tracking the parcel as it travels to its destination with evidence provided on completion.”

By the end of June, DeliveryApp had signed up over 200 businesses, no mean feat for a platform which had only been live for two months and is still its BETA phase. It echoes the businesses’ last eight months which has seen DeliveryApp really scale its operations.

Lance Jones, Founder and CEO, describes DeliveryApp’s rapid growth: “The last eight months really articulate DeliveryApp’s clear vision and the size of the opportunity the platform represents. In January we unlocked our potential, we generated a multi-million-pound investment in order to turbo charge development and take the concept to market.

“Since then, it’s been a process of getting the right infrastructure in-place in order to achieve this – people like Ioannis Verdelis who has a proven track record of bringing disruptive apps to market and digital expert Justin Blackhurst whose outstanding reputation in digital marketing, SEO and web development through his consultancy DigitalNext makes him the perfect fit.”

“The business now has a 15 strong team of specialists in user experience, development, sales and driver operations based at our Manchester head office.”

To accommodate the new team and the businesses’ rapid growth strategy, DeliveryApp has taken an office at Department Bonded Warehouse in Manchester’s Tech and Enterprise City. Painted a vibrant green in-line with the brand’s fresh colour palette, it creates a sense of place for those news starters to collaborate and thrive as a team. Empowering quotes adorn the walls, and a table tennis table creates a space for the team to bounce ideas off one and other.

Jones continues: “For me, our people are just as important as our platform. Our culture and identity are driven by our people. We’re exciting, fun and innovative. We have good values, purpose and ethics, our people need to embody all of these things.”

DeliveryApp’s strong sense of purpose can be seen through its TechForFutures initiative. The business is re-investing a percentage of its profits and company resource to help inspire the 4.1m children living in poverty to learn digital and tech skills through funding for courses and local community work.

Justin Blackhurst, Co-founder, said: “DeliveryApp is an incredibly exciting business to be a part of. We’ve built the foundations for success and now it’s all about taking the business to the next level, whilst the platform maybe in its infancy, the scale of opportunity is huge.

“The logistics industry has on the whole been sluggish and a little reluctant to adopt new technologies. DeliveryApp brings these new intuitive consumer technologies and capitalises on the demand at people’s fingertips. Whether you’re an individual selling something on Facebook market place and want to provide a price for getting a bed or sofa from one side of the city to the other, or you’re a business using 50 couriers a week, DeliveryApp provides a slicker, cost effective solution.”

 

DHL green-lights cargo drone deliveries

Posted on by Keith McKinley

International express service provider DHL Express, and Pen Aviation, an industry-leading ecosystem provider for Unmanned Automated Solutions (UAS), have signed a Memorandum of Understanding (MOU) to commercialise time-critical goods deliveries with unmanned aerial vehicles, leveraging PEN UAS-based solutions. This initiative is in partnership with Raya Airways as the cargo drone operator.

DHL will participate in a Proof of Commercialisation (POC) by the end of 2021 to demonstrate the commercial viability of time-critical cargo drone delivery for port logistics missions, focusing on the maritime industry. The POC will undertake first- to last-mile port logistics missions jointly conducted by DHL, Pen Aviation, and Raya Airways. The POC will specifically demonstrate the cost and time optimisation of a fleet of drones to streamline port logistics, and distribution activities for goods at commercial ports. PEN55V, Pen Aviation’s medium-size cargo drone, will pick up and drop off packages weighing up to 12kg from the cargo ship deck to the port and vice versa, both in the day and at night.

“Cargo drones will be the next generation of transportation in logistics. This POC comes in the wake of the recent 12th Malaysian Plan announcement where the Government of Malaysia highlighted the importance of seamless connectivity and reliability in transport and logistics,” said Julian Neo, Managing Director, DHL Express Malaysia & Brunei. “The use of drone technology will enable us to reach rural communities especially in East Malaysia, where critical items such as vaccines, medicines, and medical devices are needed while allowing us to fulfil our purpose of Connecting People and Improving Lives.”

Under this agreement, DHL and Pen Aviation will work together to certify and utilise the PEN55V to move shipments to seaports over long distances. The long-term goal is to set up a mixed fleet of PEN55V and PEN1360V, Pen Aviation’s heavy-size cargo drones designed and manufactured in partnership with Cavok-UAS.

Jean-Bernard Boura, Managing Director and Founder of Pen Aviation, said: “We decided to tackle every single pain point that hinders unmanned aerial vehicle (UAV)-based businesses today, starting with UAV designs that can meet aviation certification standards. But above and beyond the UAV design, we are excited to confront our overall ecosystem to DHL demanding cargo environment and demonstrate our business enabling logistics solutions, whatever the mile, whatever the mode of transportation.”

For the same payload capability, the PEN55V micro turbine requires three times less energy to fly than battery powered UAVs and does not cause any pollution challenges related to battery manufacturing, charge, and recycling. In line with Deutsche Post DHL Group’s aim to achieve net-zero emissions by 2050 (“Mission 2050”), this solution provided by PEN UAS supports our drive toward clean operations for climate protection.

This initiative will be performed in compliance with the Civil Aviation Directive CAD 6011, a regulation by the Civil Aviation Authority of Malaysia which allows the development of unmanned aircraft technologies. The POC will demonstrate Pen Aviation’s ecosystem superiority to successfully deliver high-volume automated logistics operations with a 24/7 UAV-based freight service.

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Streamlined delivery process for flooring distributor

Posted on by David Priestman

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Carpet & Flooring, a leading UK independent distributor of floor covering products, is using its mobile proof-of-delivery solution (ePoD) to improve delivery efficiencies, enhance the customer experience, and prevent any delivery issues.

Peter Russell, IT Director, Carpet & Flooring, comments: “Descartes’ ePoD solution has unlocked considerable benefits for both our business and our customers. We have seen the number of requests for paper-based PoD decline dramatically and have received increasingly positive feedback from our customers.

“When COVID-19 struck, we instantly saw benefits from the ePoD solution because it meant that we were immediately able to offer our customers a Covid-safe, paperless PoD – with photographs and a full record of the delivery. We witnessed an 80% reduction in customer requests for proof of delivery, so the solution has saved both our time and our customers’ time.

“Being able to integrate Descartes’ ePod into our existing system and mobile technology has meant that it has been quick and easy to implement and roll out. We look forward to continuing to work with Descartes and develop our great relationship.”

Carpet & Flooring is one of the largest distributors of floor covering products, stocking and distributing products from Europe’s leading flooring manufacturers. It relies on convenient and successful deliveries across its 10 UK branches in order to provide an effective and optimised customer experience. With a desire to streamline delivery processes from the traditional pen-and-paper method and provide customers with full visibility of order status and location, Carpet & Flooring deployed Descartes’ ePoD solution to transform its processes.

No longer having to rely on manually scanning, processing and archiving paperwork and delivery confirmations, Descartes’ ePoD solution has increased efficiencies, reduced costs and improved customer satisfaction. Customers have benefitted by receiving text notifications on the progress of their delivery, allowing them to plan their work and be on-hand to receive their delivery, resulting in an increase in successful first-time deliveries. In addition, administration in retrieving proof of delivery information and answering customer queries has been reduced by 80%.

Pol Sweeney, VP Sales and Business Manager UK for Descartes, adds: “We’re delighted to be working with Carpet & Flooring. Providing a solution that supports both the team and the customers is essential for business success, and it is great to hear that Carpet & Flooring’s customers have been pleased with the ePoD solution. With its customer-centric approach, Carpet & Flooring will no doubt continue to provide exceptional service for deliveries and we are proud to be working with them to achieve this now and in the future.”

 

InPost forms partnership with Tesco

Posted on by David Priestman

Leading out-of-home and eCommerce delivery company InPost formed a new partnership with Tesco Plc, the UK’s largest supermarket chain.

The deal will see InPost’s automated parcel machines (APMs) deployed across Tesco’s entire large-format store estate in the UK, potentially up to 500 sites, by the end of November 2021.

This new partnership adds InPost’s lockers to Tesco’s concession offering, increasing the range of services and facilities Tesco has to offer its customers at stores and further maximising the value of its commercial real estate.

With Christmas fast approaching, the new parcel machines will bring extra convenience and much needed postal services to existing community hubs, providing shoppers with a fast, convenient and greener way to collect their online orders or send parcels.

They will also be able to drop off returns in seconds thanks to InPost’s market-leading paperless Instant Returns service, whilst 24/7 accessibility provides a vital service to key and shift workers in the community.

Importantly, this partnership allows Tesco customers to ‘trip-twin’ and save time by combining these errands with their regular grocery shop, instead of waiting in for online deliveries at home or making a special journey to post goods or send returns to retailers.

The deal continues InPost’s rapid growth in the UK, bringing the total number of InPost lockers in the country to approximately 2,500. InPost aims to have the largest automated parcel machine networks in the UK, with ambitions for around 3,000 APMs by the end of 2021 and over 10,000 by 2024.

Jason Tavaria, CEO at InPost UK, said: “We’re incredibly proud to provide Tesco shoppers across the country with the most convenient way to collect parcels and make returns. Very soon they’ll also be able to enjoy our enhanced service for posting items, making it even easier to skip the queues and send parcels using lockers.

“People are always looking for new ways to access essential amenities and convenient services that fit in around their busy lives, saving them time and effort. Our lockers do just that. And by reducing the number of deliveries needed, the new lockers will reduce local traffic, helping create more sustainable, greener communities.”

Louise Goodland, Head of Strategic Retail Partnerships at Tesco, said, “We’re delighted to be improving the range of services in our stores by partnering with InPost. The new partnership will enable customers to collect and send parcels alongside their weekly shop. We know our customers are always looking for ways to make their lives easier, and to save time and effort. The new lockers will help them do just that.”

In a clear sign of Tesco’s commitment to the new partnership, more than 200 lockers are already installed, with the supermarket chain opting to go straight to a national rollout of these, rather than a pilot scheme.

Once the InPost APM network is fully operational across all of the planned Tesco locations, it has the potential to eliminate 250,000 last mile deliveries, reducing carbon emissions by up to 70% per parcel versus home delivery. This will help reduce congestion in local areas by reducing the number of deliveries needed, and create healthier and greener local communities. It also supports Tesco’s ambition to become a zero-carbon business by 2050.

Descartes’ research highlights impact of delivery experience

Posted on by David Priestman

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has published the findings of its Consumer Online Delivery Research, which set out to assess consumers’ online purchasing experiences across Europe.

Undertaken by SAPIO Research during July 2021, the interviews with consumers across Europe highlighted that quality of the delivery service is undermining overall customer perception of both delivery companies and retailers – leading to lost sales. The research concludes that retailers need to take ownership of the end-to-end experience, in order to address consumer expectations regarding tracking and communication; safe delivery and ease of return; and, increasingly, environmental considerations.

Key findings include:

  • The quality of the experience has been far from perfect: just 16% of UK consumers are satisfied with the delivery service every time.
  • Over two thirds (68%) have had an issue with delivery in the last three months – and, as a result, 24% lost trust in a delivery company and 24% lost trust in the retailer.
  • Over a third (37%) of consumers also share their perception of both delivery company and retailer with friends and family – creating a ripple effect that rapidly undermines consumer perception.
  • 71% of European consumers consider the environment when making an online order.
  • Almost a third are interested in bulking all orders to one weekly delivery.

Since the beginning of the COVID-19 pandemic, the proportion of purchases made online has grown from an average of 32% to 43% and is expected to remain at 41% for the foreseeable future. More than half (51%) of consumers have increased the number of purchases they make online, and 51% now make an online purchase at least once a fortnight – almost double the number (28%) pre-pandemic.

Despite these statistics, the research findings underline the fact that deliveries are failing to achieve complete customer satisfaction, with nearly nine in ten (87%) customers not always satisfied with the delivery services received. With satisfaction rates even lower for consumers who have reduced their online buying behaviour during the COVID-19 pandemic, the implications of inadequate delivery experiences cannot be overlooked.

Timing is the biggest issue for home deliveries – with two in three (68%) UK consumers reporting a delivery problem in the last three months. Delivery problems radically affect customer perception – and not just of the delivery company. While almost a quarter (24%) lost trust in the delivery company, 24% also lost trust in the retailer and 23% did not buy from that retailer again.

Given that many consumers were a captive audience during COVID-19 pandemic lockdowns, these delivery problems should raise serious alarm bells for retailers. With just 16% of UK consumers confirming they are totally satisfied with the delivery service, a company’s ability to meet its delivery promises will become increasingly important to reinforce the quality of customer experience and maximise the chances of customer retention.

Questions retailers should, therefore, be seriously considering, include:

  • How proactively is the retailer tracking delivery performance?
  • What is the strategy for managing spiralling delivery costs and optimising driver time?
  • What is the strategy for meeting customers’ environmental expectations? Can the delivery model support bulk orders and green scheduling? Are the right vehicles being automatically assigned to deliver in Clean Air Zones?

Pol Sweeney, VP Sales and Business Manager UK, Descartes, comments: “Consumers will not return to pre-pandemic shopping habits; having become used to the convenience of ecommerce, online purchasing will continue to dominate. Individuals have become far more confident and sophisticated online over the past 18 months and expectations have risen, leading retailers to enhance the online experience, but as this research reveals, the quality of the delivery service is undermining the overall customer perception and leading to lost sales.

“Retailers that take ownership of the entire end-to-end experience and truly optimise the delivery process have the opportunity to transform customer perceptions, drive additional sales and, critically, entice customers from poorer performing competitors.”

Delivery management firms become nShift

Posted on by David Priestman

nShift, global provider of cloud delivery management solutions for e-commerce shops, retailers, manufacturers and 3PL companies, announces its launch. Bringing more than 53 years of shipping and returns management experience through the merger of Unifaun, Consignor and Returnado, nShift will unite under leadership of Lars Pedersen as new CEO. With over 100+ pre-built third-party integrations into e-commerce and other shippers’ most critical IT systems and a carrier library delivering connectivity into over 700+ carriers, nShift offers customers an end-to-end cloud platform to automate and optimize the entire delivery management process – from label creation to delivery tracking and last mile logistics to returns management.

nShift’s solutions have successfully enabled almost 1 billion annual shipments globally for e-commerce shops, retailers, manufacturers and 3PL companies. Through its extensive carrier library, nShift has shipping visibility and reach, unlocking significant scalability for its customers – from 1 to millions of shipments annually – across the globe.

“I am extremely honoured and excited to be joining nShift at such a pivotal time in its growth,” said Lars Pedersen, who was recently appointed CEO of nShift. “While our name is changing, we are more committed than ever to continuing to provide the vital connectivity in delivery management, visibility, and efficiency for which our 90,000+ customers rely on us. We are thrilled to announce our new brand together with our latest e-commerce innovations, nShift Checkout and nShift Return (formerly known as Returnado). Our platform enables customers to worry less and ship smarter with up to 10-20% higher e-commerce-shop conversions, 60% fewer delivery related support calls, and 30% increase in repurchase rates on returned products.”

Through the acquisition of Returnado, a Stockholm-based e-commerce returns management provider, nShift adds critical technology to its cloud delivery management platform with a streamlined return process for shippers, carriers, and recipients. Returnado’s returns expertise spans marquee brands such as Helly Hansen and Asket and demonstrates its significant capabilities to serve a very complicated portion of the logistics value chain.

Marlin Equity Partners and Francisco Partners, two of the world’s leading technology investors, will remain the majority stakeholders in nShift. Peter Chung, a Managing Director at Marlin Equity Partners, said, “We are excited to continue delivering against the nShift mission of enabling our customers to worry less and ship smarter via the Company’s collective scale and breadth of its consolidated, end-to-end cloud delivery management platform. Today, e-commerce and other shippers have a singular platform from which they can eliminate geographical barriers to growth and drive supply chain efficiency and visibility all while improving the overall delivery experience for constituents across the logistics value chain.”

Petri Oksanen, a Partner at Francisco Partners, added, “This is an exciting step forward and the beginning of the next chapter of transformational growth for nShift. With the recent acquisition and integration of Returnado, we are in a position now more than ever to continue to deliver the very best solutions for our customers and help them solve first-to-last mile logistics challenges, deliver tangible cost savings, and drive innovation in our industry.”

Every parcel should be your brand ambassador

Posted on by Keith McKinley

Remember when receiving a parcel was an event? For your birthday, perhaps, or for Christmas, a complete surprise, or a purchase you had saved up for and keenly anticipated, writes Jo Bradley, Business Development Manager for packaging solutions at Quadient.

Now, of course, parcels are a daily occurrence, and our attitude towards packaging is somewhat different – more enlightened. With the same- or next-day, ‘free’ delivery, our orders are smaller and smaller but it seems that the boxes are bigger and bigger. Actually finding the lipstick or the printer cartridge in a mountain of void-fill is a challenge – is there anything in this box at all? And what are we supposed to do with all this packaging and void-fill?

Surveys show that up to half of consumers rate grossly oversized packages among the things they really don’t like about Internet shopping. And if you don’t believe surveys, just look on social media. ‘Unboxing’ is a ‘thing’ on Instagram and the like. Someone has estimated there are at least 74 million unboxing videos across the social media channels. Many of these, of course, are entirely positive, but what social media really feeds on is the epic fail, and gross mismatches between box and product rate highly.

What do we do with all these cardboard boxes? We break them down, squash them up and cram them into our recycling bins, if we can. But with the bins only emptied every two or three weeks, it is unsurprising that a large cardboard manufacturer claims that 22% of consumers say there isn’t enough room in their bins to dispose of all their boxes. 44% of consumers hoard cardboard boxes – for future arts and crafts projects or storage needs, or for no obvious reason at all – “135 million are believed to be sitting in sheds, garages and wardrobes in the UK”. With the boom in e-commerce over the least 18 months, it’s hardly surprising that cardboard is being called ‘beige gold’.

But it isn’t just the outsize boxes themselves that annoy consumers; it’s all the void-fill, such as air bags, bubble wrap, and horrid polystyrene beads. At least with card we know it’s recyclable.

And although, as consumers, we are seduced by the idea of ‘free delivery’, we know that all this excess material must have a cost. While we may not be up to speed on the intricacies of Dimensional or Volumetric Weight as applied to shipping rates or realise that the average shipped box contains 60% air, we intrinsically know that shipping fresh air around the country has a significant financial, as well as a high environmental, cost. Consumers are increasingly aware, even anxious, about the negative impact of wasteful shipping practices on air quality and bigger than necessary boxes mean more vehicles on the road, more congestion, more particulates and more CO2.

In one survey, 77% of consumers said they believe that the packaging a brand uses reflects its environmental values – and by implication, its other values as well. Loading consumers with excessive and unnecessary volumes of packaging isn’t just annoying – it’s seen as lazy, irresponsible and uncaring – not a good brand look for the merchant or their carrier.

For ecommerce businesses with high order volumes, this is an issue that needs to be solved. But how? They can’t have packers manually cutting boxes down to size – far too slow and messy, and the result may be a box that fails in delivery, let alone if it’s re-used for a return, as many are. There are limits to the number of different-sized preforms a packing station can cope with. And, particularly if there are multiple items in one box, packers, who may be inexperienced, or casual staff, have to guess which size is just big enough to accommodate a jumble of different shapes.

However, there is a solution that will greatly improve packing line productivity and maximise transport utilisation, while minimising the monetary and environmental cost of materials and giving the consumer a consistent, positive brand experience.

The CVP Everest and CVP Impack automated packaging solutions from Quadient create ‘right-size’ boxes in seconds by scanning and measuring the goods – single or multi-item orders – cutting and erecting the box, sealing, weighing, and labelling, all in one seamless process.
With the CVP Impack, one or two operators can pack up to 500 parcels an hour; with the CVP Everest, two operators can pack 1,100 an hour. Typically, this replaces between 8 and 20 manual packing stations. On average, right-sizing packages cuts parcel volumes by 50% – significantly reducing freight charges – and saves up to 30% on material costs.

Will this delight your customers? Well, if the ‘free’ and almost instant delivery model that is so valued by consumers is to be sustainable, these sorts of savings in cost and in labour are essential. But, more significantly, opening the box is the only ‘In Real Life’ touch point you have with your consumer, and as we have seen, wasteful and careless packaging can strongly alienate them from your brand – which, in an age of endless social media comment, means all their friends as well. With right-sized packaging every parcel serves as a brand ambassador.

DPD UK announces acquisition of CitySprint

Posted on by Keith McKinley

DPD UK, part of DPDgroup, one of Europe’s largest parcel delivery networks and CitySprint, a UK same day delivery company, today announce that CitySprint will become part of DPDgroup, subject to regulatory clearance.

This follows a period of growth for CitySprint, which has seen continued demand for its services as businesses require more urgent and time critical same day deliveries. Once completed, DPD UK’s customers will be able to access CitySprint’s same day and specialist delivery services in the UK, while CitySprint will be able to offer its customers access to DPD UK’s domestic next day and international expertise.

The existing CitySprint leadership team will remain in place. Elaine Kerr, CEO of DPD UK, commented:

“Same day delivery is one of the fastest growing segments of the logistics market and so we are delighted to announce the intention to offer this new and exciting service to our customer offering. Even before the pandemic, demand for both next day and same day deliveries was soaring, and this trend has only escalated, something which we see continuing. DPD UK is already a market-leader, and once this acquisition completes, our position in the market will be strengthened further.”

Gary West, CEO of CitySprint, commented:

“We are pleased to be joining DPDgroup and excited about the new opportunities for growth this will bring. Our two businesses are experts in their respective fields, with very complementary offers. This move is testament to both the continued strong demand for same day delivery and our successful growth strategy. We look forward to working with DPDgroup to explore new opportunities for our same day expertise and services.”

CitySprint supports businesses across the UK with a range of delivery solutions, including same day, bespoke logistics design and specialist services for key sectors such as retail and healthcare. Its unique national same day delivery network comprises 30+ service centres across the UK with geographical reach to over 88% of the mainland population within 60 minutes.

This transaction is subject to approval by the Competition and Markets Authority and is expected to complete later this year. No further financials will be disclosed at this juncture.

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