When the analysis was complete, it was determined that the new product line was better served by USPS Priority Mail due to the characteristics profile. iDrive gathered six months of package data from the manufacturer, whose new product had substantially different cost drivers than their previous lines. This was experienced by a medical device manufacturer and iDrive client when they launched a new product line. One of the largest hurdles to small-parcel success enters when a shipper experiences trend changes. Instead, our involvement tends to improve the relationship, as the needs of both the customer and vendor are met,” says Rothwell. We are able to bridge the gap between the customer’s expectation of receiving the product quickly and the company’s desire for enhanced profitability “This becomes a tremendous win-win for both the shipper and carrier when we perform contract optimization, as we are not simply playing whack-a-mole with a benchmark. By reverse-engineering existing FedEx and UPS cost models to suit the specific client distribution model, iDrive is able to drive down contractual rates while respecting the carrier’s profitability and the relationship between client and carrier. Most of iDrive’s competitors utilize benchmarks to perform contract optimization this approach is woefully inadequate when considering the myriad differences in characteristics from shipper to shipper. Touted as the “Difference Maker”, contract optimization is a critical solution for shippers routinely buffeted by exorbitant, complex carrier rate increases. “The business intelligence software often provides extensive assistance in building future growth plans for e-tailers,” explains Rothwell. Spurred by the information provided by BI, the e-tailer was able to allocate a volume to a different carrier to vastly improve the delivery experience and customer retention. The ROI on the campaign resulted in a significant order volume increase-and the discovery of significant carrier underperformance in one of the markets. Recently, an iDrive client embarked on a major marketing campaign in several metropolitan areas. Oftentimes, the lion’s share of the cost reduction attributable to BI is found in internal process improvement, as the software provides actionable insights that can be used to drive down costs and increase delivery performance. The software assists in identifying solutions to both internal and external pain points, while ensuring that iDrive clients are billed accurately by the carriers. The keystone of iDrive’s consultancy is found in their exceedingly robust BI platform, a web-based solution providing unparalleled insight into logistics operations. “We are able to bridge the gap between the customer’s expectation of receiving the product quickly and the company’s desire for enhanced profitability,” states Shaun Rothwell, Founder, and CEO of iDrive. iDrive Logistics’ pioneering carrier cost-model approach to contract optimization partnered with a proprietary business intelligence (BI) platform provides a solution to this challenge, helping shippers across all verticals exceed customer expectations with the greatest cost-efficiency. Few industries find themselves at the mercy of a duopoly for such a significant share of their operating expenses, making the exorbitant rate and surcharge increases consistently implemented by UPS and FedEx particularly threatening. The challenges posed by the rapid shift in consumer tastes are compounded by an increasingly complex small-parcel carrier market. Shipping is no longer simply a tertiary requirement of retail, but an integral, value-add aspect of the customer experience. Many of these challenges surround small-parcel logistics, as omnichannel and e-tail merchants cope with overwhelming consumer desire for faster delivery speed and reliability. A transformed landscape of customer expectations has created fresh challenges for players in the space-and incredible reward for those who are equipped to exceed them. Shaun Rothwell, Founder & CEO The disruption posed by the rise of e-commerce has been unprecedented in the retail industry.
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