In today’s highly competitive business environment, brand differentiation heavily rests on providing a superior customer-experience, making speedy all-mile deliveries all the more crucial. In recent years, the rise of e-commerce and increased technological innovation have placed the customer at the center of supply chains. Companies such as Amazon have significantly raised customers’ expectations on delivery times, making two-deliveries the norm and even providing one-day and same-day deliveries with greater frequency.
To understand the intricate relationship between all-mile and customer experience, Locus, in association with Indago’s parent company Adelante SCM, compiled the research report available below. It showcases the top priorities of leading supply chain and logistics executives in the all-mile space, evolving customer expectations, and the challenges and recommendations around providing a superior customer experience for the all-mile.
“All-Mile delivery is finally getting the attention it deserves. Since the delivery driver is the last person who touches the shipment before it reaches your customer it is important that they're representing your company in the same way your retail employees would. A bad delivery experience can sour a customer's perception of your brand,” said an executive from Indago’s research community.
All-Mile delivery crucial to providing competitive edge Most of the executives surveyed for the report agreed that over the next five years, customer experience will overtake price and product as the number one brand differentiator. One executive noted, “As we provide a commodity product, delivery experience and customer experience are intrinsically linked. We provide a low-cost product, but the customer doesn't necessarily see a relationship between cost of product and cost of service; they expect the same delivery experience as a high value / high margin experience.”
Balancing customer expectations and all-mile costs a top priority All-Mile delivery has a reputation for being notoriously expensive. According to a Capgemini report, all-mile delivery costs account for 41% of the total supply chain costs. Majority of the executives surveyed for the report agreed that balancing these costs and providing the exceptional experience that customers seek is one of their top-most challenges.
Technology investments in all-mile essential to profitabilit According to one of the executives surveyed, “Customer order patterns and delivery requirements are becoming more challenging. Being flexible and able to adjust on-demand is a differentiating factor for all-mile delivery. There is really no going back to a rigid delivery concept; it's all about enabling late changes and accommodating the evolving all-mile requirements.” To that end, investing in a technology platform that can reduce or control costs, and provide an unparalleled customer experience is a cornerstone for long-term growth and profitability.
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