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IRUK Top500 The Customer Report: 2018

IRUK Top500 The Customer Report: 2018

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The Delivery Market

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DELIVERING CHRISTMAS



FIGURES FROM THE LATEST Christmas Shipping study from Kurt Salmon, part of Accenture Strategy, suggest that UK etailers under-promised and over-delivered this Christmas.The study measured the ability of 50 UK apparel, luxury, beauty and consumer goods retailers across a broad range of categories, including bricks-and-mortar, ecommerce and department stores, on how quickly and accurately they were able to fulfil customer orders over the peak period.

The results showed that 86% of retailers offered a free delivery option over the busy Christmas period, but half offered it on the condition shoppers picked up goods in-store through click and collect, as opposed to getting goods delivered to their door. It also showed that 66% offered a free standard delivery option to homes, but the majority (73%) of these retailers only did so if customers met a minimum spend threshold.

Siobhán Géhin, Managing Director at Kurt Salmon said that on the whole the results were impressive. “Many UK etailers outperformed their bricks-and-mortar counterparts this Christmas when it came to speedy shipping, with deliveries taking on average 2.6 days compared to 3.4 days respectively. They gave themselves added flexibility during the busy period with shipping date ranges, but the majority delivered for customers much earlier than promised,” she said.

The following retailers came out on top for delivering a seamless customer experience and exceeding shipping promises over Christmas: Amazon ; Argos ; Beauty Bay; Boohoo ; Escentual ; Lookfantastic ; Missguided ; New Look ; Whistles ; White Stuff .

Yodel, meanwhile, saw customer satisfaction rise over the Christmas period despite a marked increase in volume during Cyber Week, as well as a 28% increase in parcels in the week before Christmas. In the four weeks to Christmas Eve Yodel delivered 11% more parcels compared to the same period last year.

TESLA TRUCKS FOR DHL SUPPLY CHAIN



DHL SUPPLY CHAIN, part of Deutsche Post DHL Group , is to test the Tesla Electric Class 8 Semi Trucks after placing an order for ten. It is one of the first third-party logistics companies to order the trucks. Available in 2019, the trucks will be tested at its customer operations in major US metro cities and be used for shuttle deliveries and same-day customer deliveries. They will also be tested for mileage efficiency on longer runs from major markets to other DHL operations across the country.

“At DHL Supply Chain, we’re always thinking beyond today’s shipment – whether that be thinking about tomorrow, next month or two years from now when these trucks become available,” said Jim Monkmeyer, President of Transportation at DHL Supply Chain North America. “This is a revolutionary approach to trucking, and we want to be a part of it for our customers, for our employees and for our industry.” As well as testing the trucks themselves DHL Supply Chain also plans to evaluate the trucks’ impact on drivers’ quality of life and job satisfaction.

ASOS EXPANDS SAME DAY BEYOND LONDON



FASHION GROUP ASOS has expanded its Asos Instant service to Leeds and Manchester. It follows the initial launch of the service in London in October 2017. The same-day delivery option is now available to customers with deliveries to selected Leeds, London and Manchester postcodes on orders placed before 10am, Monday – Friday. The service costs £9.95 and as with the London offering parcels will be delivered by CitySprint’s On the dot service between 6 – 10pm on the same day. Further availability in other UK cities will follow in 2018.

“We’re excited to be extending the reach of Asos Instant to Leeds and Manchester following its successful launch in London,” said Matt Rogers, Delivery Solutions and Returns Director, Asos. “It is illustrative of our commitment to exploring delivery options that provide convenience and choice for Asos customers,” he said. In the last year alone Asos claims to have introduced 200 related delivery improvements around the world. Current UK delivery options include next-day delivery, click and collect, one-hour delivery times and free returns as standard on all Asos orders.

SHOPPERS WANT FASTER FULFILMENT



MORE THAN HALF OF SHOPPERS (59%) want faster fulfilment and nearly a third (32%) also want ultra express delivery services that take less than two hours, according to a new report. Nearly half (47%) of shoppers also said that they shouldn’t have to pay if a delivery took more than a day to arrive.

The conclusions come from a survey of 2,000 UK shoppers by Sorted. It found that two fifths (39%) thought they shouldn’t have to wait more than 24 hours for a delivery, suggesting ‘next day’ delivery no longer adds value to online shoppers. More than half (55%) said that speed of delivery was the most important factor when shopping online. If they need an item earlier just over half (57%) said that they were prepared to pay for delivery so that they could receive the item quickly.

David Grimes, CEO, Sorted, said retailers need to ensure they offer a range of delivery options to their customers. “By letting a customer choose from a wider range of the best available delivery options, at different pricing bandings, the consumer becomes in control of crafting and defining what perfect delivery looks like to them on that buying occasion,” he said. However, he also said he had to ensure retailers could meet their delivery promises too. “Practically, retailers should consider opting for delivery partners who are experts at delivering to certain postcode areas and for different types of products,” he said.

URBAN HUB FOR JOHN LEWIS



DEPARTMENT STORE GROUP John Lewis has become the first company to sign for a unit at a new urban logistics development called South Central in Nursling, Southampton. The retailer has signed a pre-let for a 46,000sq ft .com customer delivery hub. The new build-to-suit facility will provide John Lewis with additional capacity to service the City of Southampton and wider south coast region. The South Central development comprises three facilities totalling 202,000sq ft. John Lewis’ facility will be completed by September 2018. Construction of the two other facilities (117,000sq ft and 39,000sq ft) is underway on a speculative basis and they are expected to be completed by May 2018.

Meanwhile, Waitrose launched self-service check-in for John Lewis click and collect orders in 140 stores in time for Black Friday. Customers are sent a barcode as part of the notification confirming that their order is ready for collection and this can be scanned by iPads at the welcome desk when they arrive in store so that their parcel is ready for them to pick up more quickly. Glenn Cox, Service Experience Development Manager at Waitrose, said the new service will help improve the customer experience. “70% of John Lewis click and collect orders are now being picked up in Waitrose branches so it’s hugely popular with our customers. “Checking in to collect an order is the first thing many shoppers do when they visit our stores and can set the tone for the rest of their experience with us, so introducing the option of a self check-in system will ensure they enjoy the best possible start to their shop,” said Cox.

SAME DAY FROM CURRYS PC WORLD



CURRYS PC WORLD is to launch a same-day delivery service across the UK. The company has partnered with On the dot to allow customers to select a two-hour delivery timeslot of their choice that day between 12 and 10pm. The service will initially be limited to customers purchasing small items – classified as everything apart from major kitchen and laundry appliances and TVs over 40 inches in size. Orders must be placed before 4pm and will cost £9.95 for delivery for shoppers within a 10-mile radius of one of 242 Currys PC World stores across the UK.

Stuart Ramage, eCommerce Director at Currys PC World, said: “At Currys PC World, we pride ourselves on helping our customers get it right when it comes to purchasing electrical items and home appliances. From small screen televisions to microwave ovens, it’s important we get their purchase to them wherever they want it, when they want it. We’re excited to be partnering with On the dot to introduce same-day delivery, meaning our customers now have a suite of delivery options available to them, both online and in-store.”“We know that consumers today expect to shop on their terms and it is retailers like Currys PC World who have put convenient delivery at the top of their agenda, that will succeed in retaining and attracting new customers,” said Patrick Gallagher, CEO of On the dot – part of the CitySprint Group.
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