TruckandTrackSpring2020

www.truckandtrack.com Spring 2020 Truck and Track 17 TELEMATICS need to understand the stock that is in transit from suppliers, with accurate Estimated Time of Arrival. With a complete and virtual real-time picture of all stock, including expected deliveries, retailers can embrace far more intelligent fulfilment models across every channel, including in-store. Addingvirtualreal-timedeliverycapacityinformationand,critically, proposed route information enables retailers to completely transformtheway delivery options are offered to customers. Rather than set very specific ‘same day’, ‘one day’ or ’three day’ delivery options with a sliding price model, retailers can leverage real-time capacity insight and intelligent algorithms to offer delivery options and prices that reflect actual delivery capacity available. For example, a customer could be offered free delivery next Wednesday because the retailer is already making a delivery in that area on that day; while Thursday could be more expensive because the customer lives outside the projected route for that day. Ultimately, of course, the choice is still the customer’s but by leveraging real-time information in this way a retailer can make the process work far more efficiently, using incentives to encourage buyer behaviour that will reduce costs and emissions, while minimising delivery van downtime and improve productivity. Continuous Optimisation Extends Experience To achieve this continuous optimisation of the customer offer retailers need to work with logistics providers - internal or third party - that have evolved beyond the blunt, daily batch route scheduling model. Using real-time demand data to continually refine delivery routes not only enables retailers to use pricing to influence customer behaviour to improve optimisation but also allows companies to offer farmore specific delivery times, including half hour windows. In addition, by continuously assessing capacity and fulfilment requirements in advance, logistics companies can better forecast resources – a key consideration given the shortage of HGV and van drivers. In addition, real-time route data provides essential information to keep customers up to date on the progress of the delivery. From ‘you are next on the delivery list’ to apologies for delays due to accidents, timely and relevant communication is a fundamental component of a good customer delivery experience. Furthermore, with the ability to continuously optimise a route, even on the day of delivery, retailers can begin to effectively combine deliveries with returns collections, further enhancing the customer experience. By extending this information on inbound stock deliveries plus delivery / return options to in-store staff, Store Associates can replicate this frictionless retail model, reinforcing the consistent customer experience across all channels. Conclusion A frictionless experience is without a doubt key to retaining customers in a challenging market but it is essential to consider every aspect of that interaction, from social media posts to customer delivery and return. Blanket delivery pricing options are no longer good enough – for either customers or retailers. Retailers that actively use virtual real-time stock and delivery capacity information can not only transform the customer experience but also encourage customer behaviour to support specific goals – such as reducing emissions. Indeed, the improvement in productivity and reduction in empty miles is just the start – the future will be far more collaborative. With this level of real-time information 3PLs can start to share deliveries to improve the experience, using intelligent routing to avoid city centres, reduce inefficiencies and cut emissions. Retailers can work together, sharing click & collect services, for example, to improve the customer experience. Effective utilisation of virtual real-time data is providing retailers with the chance to reimagine frictionless retail and truly deliver an experience that will delight the customer. www.descartes.com Retail Experience