Company Announcement - The e-commerce boom has already disrupted many a  strategic plan in both the retail and logistics industries, with an increased requirement  for home delivery being at the forefront of ever-changing customer demands.  Although online shopping still has some way to go before reaching critical mass  in South Africa, retailers are already under pressure to make everything  available everywhere for delivery anywhere. The retail market has evolved beyond competing on  product and price. Retailers face the difficult task of having to offer the  best delivery service possible without significantly impacting their profit, while  simultaneously providing the same level of customer satisfaction as they would  in-store.

While some retailers have already implemented a number  of changes in line with customer demands, very few find the exercise profitable  or value adding in terms of customer satisfaction. Home delivery for instance  tends to be a high cost center that seems to incite rather than reduce customer  complaints. Home delivery schedules based on static calendars, long  lead times, wide time windows and assumptions on the capacity available make it  extremely difficult for retailers and their delivery agents to align with  customer expectations that include tighter delivery windows, more delivery  options, installation services, visibility of the delivery progress and  real-time accurate feedback.

Part of the problem stems from the technologies  currently supporting logistics functions. “Future retail success lies in a move  away from a siloed logistics approach and towards implementing changes with an  holistic overview and full understanding of the knock-on effect each necessary  change will have across the entire business,” says Grant Marshbank, COO of VSc Solutions www.vscsolutions.co.za , South African resellers of the Descartes www.descartes.com home delivery product  suite used by leading retailers all over the world.

“Exceeding customer expectations usually imply  difficult and costly strategies, especially as customer needs tend to change  very quickly. With new technologies available, home delivery is one area where  retailers can impress customers without breaking the bank.” While there are numerous challenges for any company  providing a home delivery service as part of its offering, the solution doesn’t  lie in the customer-facing details but rather in the concepts built into the  technologies supporting the necessary logistics.

Optimise  continuously

Home delivery that satisfies both customer and bottom  line demands requires real-time continuous incremental optimisation technology,  rather than the batch processing functionality that the majority of logistics  systems currently employ. This allows for the creation of precision routes and  schedules based on current conditions and the actual resources required.

Do more  with less

Fleet resources that are reallocated in real-time  according to new orders received can optimise operating efficiencies, deliver  priority service to the most profitable accounts and routes, and maintain  overall customer service objectives.

Place the customer in charge

With dynamic delivery timeslot generation retailers are  able to present delivery appointments based on real-time options, instead of  assumptions informed by static and less accurate data. This places the customer  in charge of the retailer’s home delivery scheduling, enabling the retailer to  profitably meet customer expectations.

Decrease  impact on the environment

Smart home delivery can contribute to a reduction in  greenhouse gases and waste by tightening of delivery time slots at the point of  sale, incentivising customers to consider more profitable and eco friendly  delivery timeslot choices, and replacing paperwork with secure digital  alternatives. Disruption in the retail sector demands that the  supporting technologies are able to calculate, advise and report faster and  smarter than ever. Customers will soon demand the automation of proactive  interaction via their chosen communication method, online availability of  real-time order progress, and digital photos taken at the point of delivery to  provide real-time proof of delivery time and quality. “Technologies that will be able to quickly adapt to the  ever-changing business environment have a small IT infrastructure footprint,  can easily integrate and communicate with existing systems, are user friendly  and support mobile usage by operators with various levels of skill,” says Marshbank.

“Retailers need to adopt next generation thinking now  if they want to increase profitability. One of the first disruptions that must  be embraced is that change no longer happens in line with the cycles we’ve  become used to. There is no more time for medium term strategic plans to come  to a close before new approaches and technologies are being considered. The  time to implement changes for future success is now, whether it fits into  current plans or not.”