{"id":6038,"date":"2020-06-05T13:07:46","date_gmt":"2020-06-05T11:07:46","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=6038"},"modified":"2020-06-05T13:07:46","modified_gmt":"2020-06-05T11:07:46","slug":"e-commerce-6","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/06\/05\/e-commerce-6\/","title":{"rendered":"Super-sizing E-commerce Deliveries"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">When Marcia Turner decided to buy two sofas at Pier 1, she knew she&#8217;d have to pay a delivery and set-up fee because she didn&#8217;t have a vehicle that was large enough to haul the furniture home.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The $169 fee was the same whether she ordered in the store or online, so Turner made the purchase online through Pier 1 affiliate Ebates.com, a third-party cash-back site. The $174 rebate she received made it easier for Turner to accept the steep delivery fee. &#8220;I thought the delivery price was high, but I didn&#8217;t have other options,&#8221; says the Western New York resident.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Like millions of other consumers, Turner is conditioned to expect &#8220;free&#8221; shipping when ordering online, regardless of what she purchases. Online shoppers don&#8217;t always realize that delivering oversized goods such as furniture, appliances, and big screen TVs requires far more expense, effort, skill, and communication than the typical e-commerce order.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;If drivers can&#8217;t find the front door when delivering a book, they walk around looking for it. Imagine two people doing that while carrying a sofa,&#8221; says Chris Bell, head of custom supply chain at online home goods retailer Wayfair.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Manufacturers, retailers, and carriers, though, are acutely aware of the many challenges large e-commerce deliveries present, particularly in the last mile. Among the issues:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #0000ff;\">Because of their size, cost, and packaging, deliveries typically can&#8217;t be left outside.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Customers need to be home to accept delivery, so good communication and tracking are essential.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Depending on the service level provided, delivery personnel might need to set up and test the items.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Delivering oversized items often requires at least two strong people.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Because delivery personnel come into homes, they need more than muscles\u2014they must also be personable and have customer service skills.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Since oversized goods can&#8217;t be put on a conveyor in a warehouse, moving them is more labor-intensive than other types of merchandise sold online.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Bulky oversized merchandise is more likely to get damaged than other types of e-commerce goods. Inspecting orders before delivery can add to the timeline.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Large items take up more space in trucks, so they&#8217;re more expensive to ship.<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Returns of oversized items are costly and time-consuming.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In spite of these issues, as consumers continue to feel more comfortable buying large items online, those making, selling, and transporting them are forced to find ways to address the challenges.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">After deciding that outsourced fulfillment didn&#8217;t give it enough control over the process, Wayfair brought it in-house. The Boston-based retailer, which offers more than 10 million products, now uses a network that includes27 of its own last-mile delivery facilities and seven consolidation and crossdock centers.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;Until about four years ago, a third party took the order from the supplier to the customer,&#8221; says Bell. &#8220;Today, we still have hundreds of partners that include truckload and less-than-truckload carriers, but 60 percent of the orders flow through our own middle-mile and final-mile hubs.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Pilot Freight Services, which specializes in home delivery of what it refers to as &#8220;H3D&#8221; (heavy, hard-to-handle) cargo, knows that its transportation and logistics services are an extension of the retailer&#8217;s brand. For that reason, Pilot&#8217;s final-mile delivery services include value-added options that coincide with a brand&#8217;s consumer promise.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;Some retailers offer various levels of service that consumers can choose from, but it depends on the commodity, its value, and what the retailer wants to provide,&#8221; says Mark Fierek, Pilot&#8217;s vice president of e-commerce sales.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">One of its service levels lets Pilot do a quality check in the distribution center after receiving furniture from the manufacturer. If there&#8217;s damage\u2014a chipped corner or broken leg\u2014Pilot gets retailer authorization to use a local furniture technician for the repair before scheduling delivery.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;When our customers use this &#8216;deluxing&#8217; service, we see a 98.7-percent stick rate inside customer homes,&#8221; says Fierek.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">SEKO Logistics, a freight forwarder and third-party logistics provider based in Illinois, recently introduced its &#8220;Save the Sale&#8221; program, which offers an in-home process for addressing potential product problems during delivery.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">For example, if SEKO delivers a new smart TV in a carton with a tear, the customer might worry the product is damaged and refuse delivery.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;We have a small window of opportunity to address this so the retailer doesn&#8217;t lose the sale and the customer is happy,&#8221; says Brian Bourke, SEKO&#8217;s vice president of marketing.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The SEKO driver addresses the situation immediately by connecting the consumer with customer service\u2014either SEKO&#8217;s or the participating retailer&#8217;s\u2014to explore possible options that will help avoid a return.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;When you ship big and bulky items, returns are incredibly expensive because the retailer can&#8217;t recover the cost of returning a refused item and shipping another one,&#8221; explains Bourke. &#8220;We&#8217;re trying to mitigate that loss.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Another challenge with last-mile delivery involves customer communication. It&#8217;s not just about consumers expecting the ability to track and monitor shipments. The customer also has to be home to allow entry and accept delivery.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;Scheduling is the biggest problem, because the driver has to be at the pickup location at the right time and the consumer needs to be home for that drop-off,&#8221; says Valerie Metzker, head of business development at Roadie, the first &#8220;on-the-way&#8221; delivery service.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Roadie lets consumers use a combination of real-time GPS tracking and telephone communication.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;If you&#8217;re expecting your love seat delivery at 3 p.m. Tuesday, we send text updates,&#8221; she says. &#8220;That means if you&#8217;re dropping off your dry cleaning and get a text that your delivery will arrive in five minutes, you know to hustle back home. You can&#8217;t get this down-to-the-minute visibility with a less-than-truckload or parcel carrier.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Is finding drivers who can embrace that level of communication, handle product set-up, and provide acceptable\u2014if not superior\u2014customer service skills another challenge given the truck driver shortage?<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">One reason for the driver shortage actually works in favor of the final-mile oversized delivery segment, notes Fierek, who has deep experience with this as chairman of the board of the Specialized Furniture Carriers. Millennials, he says, don&#8217;t want long-distance, over-the-road work so they migrate to final-mile jobs because they can be home every night.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;You can make a decent living in this space,&#8221; he adds.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In addition, platforms such as uShip, which connect shippers with carriers, allow drivers who prefer to drive regionally to fill their unused capacity with oversized orders.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;Thousands of high-quality owner-operators with small truck fleets operating regionally and nationally can deliver great service from origin to destination,&#8221; says Mike Williams, CEO of uShip.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Last-mile delivery of oversized goods is evolving as more shoppers like Turner order big and bulky items online and companies gain experience delivering goods in ways that meet consumer expectations for speed, quality, and service. They aren&#8217;t there yet, though, as 2018 research from uShip shows: More than one in five consumers surveyed have ordered something that arrived damaged and more than one in seven ordered something that was never delivered.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;Oversized deliveries are ripe for disruption,&#8221; says Bell at Wayfair. &#8220;We&#8217;re using technology, people, and processes to change what normal looks like. We&#8217;re transforming what used to be a poor experience into one that&#8217;s not only seamless, but also one that customers would enjoy having again.&#8221;<\/span><\/p>\n<div class=\"sidebar\">\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Oversized Orders by the Numbers<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Research shows that consumers are buying more big and bulky items online; 22 percent of Americans have bought an oversized item online in the past year, according to uShip.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #0000ff;\"><strong>23%<\/strong> of consumers surveyed say they&#8217;ve purchased furniture, d\u00e9cor, or tools online. <em>(Nielsen)<\/em><\/span><\/li>\n<li><span style=\"color: #0000ff;\">In 2018, retail e-commerce revenue from furniture and home furnishing sales amounted to <strong>$65.1 billion<\/strong> and is projected to increase to almost <strong>$100 billion<\/strong> in 2022. <em>(Statista)<\/em><\/span><\/li>\n<li><span style=\"color: #0000ff;\">In 2018, furniture and home furnishing sales accounted for <strong>12.9%<\/strong> of total U.S. retail e-commerce sales. <em>(Statista)<\/em><\/span><\/li>\n<li><span style=\"color: #0000ff;\">Online furniture purchases began growing at a compound annual rate of about <strong>15%<\/strong> in 2014 and that rate will continue through 2019. <em>(Forrester)<\/em><\/span><\/li>\n<li><span style=\"color: #0000ff;\">Between <strong>17-20%<\/strong> of U.S. online shoppers purchased home textiles, housewares, and small appliances online in 2017. <strong>About 2%<\/strong> bought major home appliances through e-commerce. <em>(NPD Group)<\/em><\/span><\/li>\n<li><span style=\"color: #0000ff;\">Online mattress sales have skyrocketed in recent years, with e-commerce market share doubling from <strong>5% to 10%<\/strong> between 2016 and 2017. <em>(VisualCapitalist.com)<\/em><\/span><\/li>\n<\/ul>\n<div class=\"sidebar\">\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Odd Oversized Orders<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Companies providing final mile delivery of oversized e-commerce orders report that it&#8217;s not all big-screen TVs and BarcaLoungers.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">During 2018, shipping marketplace uShip helped get a cigarette vending machine, vintage coin-operated children&#8217;s rocket ship ride, and 1969 Bolens Diablo Rogue snowmobile to their destinations.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Roadie, the first &#8220;on-the-way&#8221; delivery service, has transported pole vaulting sticks and dog kennels, among others.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Online home store Wayfair routinely ships goods that need special delivery vehicles or handling, including a 28-foot shuffleboard that was too long for a standard 26-foot box truck, an indoor hot tub that required three men to carry it upstairs in the customer&#8217;s home, and a 3,000-pound wooden storage shed.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>By <a href=\"mailto:editorial@inboundlogistics.com\">Sandra Beckwith<\/a><\/p>\n<p><span class=\"posted-by\">Source: <a href=\"https:\/\/www.inboundlogistics.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.inboundlogistics.com<\/a><\/span><\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>When Marcia Turner decided to buy two sofas at Pier 1, she knew she&#8217;d have to pay a delivery and set-up fee because she didn&#8217;t have a vehicle that was large enough to haul the furniture home. The $169 fee was the same whether she ordered in the store or online, so Turner made the&#8230;<\/p>\n","protected":false},"author":3,"featured_media":6039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[94],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6038"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=6038"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6038\/revisions"}],"predecessor-version":[{"id":6040,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6038\/revisions\/6040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/6039"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=6038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=6038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=6038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}