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Having earned a living writing about supply chain issues in one form or another for the past twenty years, it’s often interesting when something called a ‘moment of truth’ hits you between the eyes. While I am used to waxing lyrical (usually in the form of press releases or feature articles aimed at the logistics trade media), it’s only when the theory of supply chains hits you as a consumer that you begin to fully appreciate the ‘practice’.

A couple of years ago, I bought two items over the internet; and this experience really showed me how the delivery service can play a big part in my overall perception of the retailer and its brand. I won’t mention names (to spare blushes) but my retail dealings were with two British manufacturers, one of watches, the other radios. On the Friday, I ordered a replacement aerial for my digital radio. Two days later (Sunday), I ordered a very nice watch (it was my birthday!) from an internet retailer, which required the strap to be altered to fit my size.

When the following Thursday came, I got a note from the postie, saying that an item had arrived for collection. As the aerial was ordered two days earlier, and required no alteration prior to dispatch, I expected to collect a long thin package from my GPO sorting office. What a surprise to see a square, watch-shaped package being handed to me over the counter!

More to the point, what a pleasant surprise! And what great customer service! These guys had taken an order on Sunday PM, got cracking to prepare the watch for dispatch on Monday, taken out the required number of links to fit my Adonis-like wrist and sent the package special delivery.

This then got me thinking. What were those ‘bozos’ at the radio shack doing? All they needed to do was pick the replacement aerial up, pop it in the right padded envelope and stick it in the post; no preparation, no alteration, no fuss.

A day later (Friday) and still no aerial; I was missing my daily fix of Radio Four with my morning toast and feeling resentful and unimpressed with the radio people.

The big lesson here? If you get your logistics slick and reliable; you get happy smiley customers. I love my watch and love the way it came to me with no hassle. If you get it wrong (or even ‘less right’ than the competitor) you won’t look good and could lose a customer.

The supply chain boffins call this ‘multichannel retailing’; whatever the technical term, it’s a hugely important issue which retailers of every hue need to consider.

This is especially the case as the industry sees ever-increasing reliance on virtual shopping, click and collect and same-day delivery.

According to British Retail Consortium (BRC) figures, a record amount of online shopping was undertaken in December 2013. Close to one in five non-food items was bought online that month, while there was also a 19.2% growth in internet purchases compared to the same period a year earlier.

However, it is only the retailers that can meet the delivery demands of an increasingly mobile-savvy consumer that are able to benefit from this trend.

For example, the growth in online sales has resulted in consumers becoming more confident in leaving their shopping to the last minute, expecting more flexible dates and times that fit around their lives. This trend continues year-long.

As such, retailers that don’t offer multiple delivery options, particularly click and collect, continue to put themselves at risk of missing out on potential sales.

What does this mean for the supply chain as a whole? As the retail industry is placed under increasing demand to fit around the lives of busy consumers, the logistics sector will have to develop ever more sophisticated technology and processes to keep up. It’s an exciting time for UK logistics!

 

About the author

St John White is a qualified marketing professional who delivers big picture thinking and strategic insight to Europe-wide logistics and transport businesses in his role as board director at Prova PR.

With more than 20 years’ experience, St John has extensive knowledge of driving PR and marketing campaigns which deliver tangible business growth across the transport, logistics, fleet management and automotive sectors.

A leading award-winning international PR consultancy, Prova has specialised in the logistics, transport and technology industries for more than a decade. Based in Warwick, Prova delivers strategic PR and marketing campaigns for UK and international organisations

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