evgeny glazov

Evgeniy Glazov, POSTMAN

Features ofВ2С delivery

специально для «Торговая Миссия в Украину»

The bad news is that modern people have tasted the quality of first-class services, such as McDonalds, Federal Express. And now, their needs have grown so that it is necessary to offer at least not worse.

Special for “Trade Mission in Ukraine”


quicklyaverage price

predictable qualityclean WC



alas …

to raise quality

to minimize costs≠

• Is it possible to make a delivery service with just hundredths of 1% undelivered parcels, with financial guarantees of up in-time delivery and other additional services for customers?

• Yes. But the price will be in few times higher the current one.



Customers expectations from delivery

Operatively In a convenient place Safe and sound For a minimum price With a simple return procedure



Main customer complaints to the courier service:

1. Delivery did not take placeLost orders, the operator use wrong address, there was no available goods at the stock. Whatever the reason, the customer has not received their order.2. The courier did not arrive at the appointed timeNobody likes to wait. The client, who was forced to wait an extra hour the next time he spends on the search for another shop. It is clear that it is necessary to plan the route and schedule of delivery. But if can’t avoid being late - warn about it as soon as possible.3. Reluctance to solve "controversial" issuesThere are situations when in the order is missed some detail, “it is in the wrong color," or simply has small defect. If the courier is not ready to bring the missing stuff, replace the

product or make a discount - reputation of shop will be seriously hurt. Faults occur in any case. This should be taken for granted it is necessary to teach the couriers to solve the problems by themselves.4. Courier doesn’t know the cityWhen the courier calls and specifies address 1 or 2 times, this is normal. Unfortunately there are situations when the address is not found even after six rings. The ability to find address is a basic skill required from courier.5. The general attitude of the courier to workLet me remind, the courier is the face of your business. If he's untidy, irritable and unable to communicate with people, all these qualities client will transfer to the whole shop.



2 ways

in-house logistic

department

outside courier

service or outsourcing


Own delivery service OUTSOURCING

BUSINESS PROCESSFlexibility an opportunity of prompt transformation according to market

changes

Within the scope of standard service package

FINANCEHigh costs on creation

and permanent maintainPermanent cost due to agreed

tariffs

ATTITUDE TO THE END CONSUMER

Opportunity to rank customers (and the attitude to them) by type / level

All consumers are similar

HUMAN FACTORDifficulties in selecting, constant

control, the risk of theft, ...Minimal risk (the correct choice

of the contractor)

PEAK PERIODSRegulated by additional (often

increased because of emergency situations) costs

Planned and controlled under the agreed tariffs

GUARANTEE OF DELIVERY

Risks absenteeism and not in-time delivery

contractor's responsibility

FINANCIAL GUARANTEE At their own expenseRefund the theft or loss of the

goods (financial responsibility of contractor under the contract)

CASH RECEIPT FROM CUSTOMERS

Every day From 1 up to 5 days


At what stage is beneficial to outsource logistics?

1. There are more than 1 order for delivery to another region2. There is no possibility / desire / time to attract investments in the logistics business.

Information:min for delivery across Ukraine should be: • 26 warehouses branches• specialized soft and equipment• 50 cars• storage facilities and equipment• recruitment of experienced managers (hunting)• more than 350 trained employees



Types of courier delivery & business processes

2 – 3 days Next day To a dayExpress delivery

(1-2 hours)

Available goods at the stock

not necessarily not necessarily preferably obligatorily

Available free courier

not necessarily not necessarily preferably obligatorily

Qualification of dispatcher

weak weak average high

Cash discipline

CC costs above normal above normal ordinary below normal

Price for delivery extra low low average high



Quality of

delivery

Quality of client

service

List of provided services

Reliable contractor, who is he?



percent deliverability first time (a good indicator from 93%)

the overall percentage of deliverability (good indicator : from 97%)

percentage of cancellations / transfers caused by the contractor

(a good indicator: up to 1%) company's response to complaints

Quality of

delivery




The method of application for the delivery (Excel, XML, by integration API, My Account)

Response time for incoming requests Method of receiving requests (phone, e-

mail) Speed of providing delivery report Availability of e-mail and SMS notifications

to change the status of delivery and / or other important events for the store

Terms of return of goods and money Time and days of receiving goods from

customers

Quality of client service




List of provided services

The possibility of a partial return, fitting, return of documents

The possibility of taking orders from the supplier’s stock and / or shop

Secure storage Cash on delivery Cash service ...




Don't put all your eggs in one basket!

Contractor’s selection



++++ ----

• reduce the dependence of your business from one contractor

• allow you to compare the quality of work and to redistribute volumes

• give access to a wide geography and "range" of

services

• more org. Questions and administration / coordination

• may increase the final cost of delivery

Outsourcing?!



NB the price of services

'Hidden' payments :– charge for the return of goods– charge for returns storage– charge for taking orders from the client– commission for accepting funds– payment in case of cancellation of

delivery– separate fee for extra services (labeling,

kitting, SMS alerts, ...)



NB points of self-delivery

20-25% of consumers are willing to pick up an order on their own to pay less, but:

• rate of return using the self-delivery points higher than standard delivery.

• if the goods are not paid in advance and it is not delivered to the door, the buyer rarely makes an effort to pick up the order himself.



NB delivery to regions

When you send the goods to the regions without prepayment of 20 to 50% of the orders may come back.

And the more expensive the product, the greater the percentage of refusal. Reasons: as the buyer waited goods, money has been already spent; he changed his mind to buy, bought in the own city, friends advised not to buy this model, etc.



"Own" Logistics: stumbling blocks

Courier is not that kind of profession where people go for self-realization, but for the purpose of feed themselves. Software. You can ignore this issue, but only when you have ten deliveries a day ...The structure of the delivery service should be always with a margin of safety, should minimize Couriers negotiations with customers (delivery service should be limited to a discussion of the nuances of delivery and not to discuss details of the sale itself or the object of the sale).



"Own" Logistics: stumbling blocks

Reserve for development - all business processes

should be designed initially with the possibility of

scaling



Prospects of delivery market

• Annual market growth of 30 - 50%• Increased competition

• The introduction of technology• Creation and improving quality standards

• Cost optimization• Improving the quality of



Questions?

Evgeniy Glazov director

POSTMAN (PGK Groupe)

+38 067 517 60 [email protected]


tel:+38%20067%20265%2072%2010

evgeny glazov

Documents

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betrade mission special

courier calls

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quality of percentage

reliable contractor

wrong address

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