Intelligent CIO Africa Issue 28 | Page 51

CASE STUDY C oricraft wanted to reignite the magic of the last mile, transforming how customers perceived their performance and delivery efficiency. Today, Coricraft has reduced its delivery window to less than two hours, reduced customer complaints to a record low, increased delivery drops per route, and has transformed the customer experience, all while cutting costs. Last mile logistics is becoming increasingly difficult to perfect and is evolving at a rapid rate due to the growth of e-commerce. There is a growing need to get goods to customers faster and more cost effectively. Customers are willing to pay a premium for faster delivery fulfilment and companies like Amazon are raising the bar and raising customer delivery expectations. According to McKinsey, last mile logistics have been identified as the cornerstone to driving growth and profitability and companies like Coricraft are under increasing pressure to create logistic strategies that align business and customer expectations. Last mile logistics are troublesome, especially in South Africa. There are challenges around infrastructure, addressing accuracy and security that impact on delivery timing, fuel costs and efficiency. This is further compounded by the complexity of delivering irregular size furniture items that requires skilled unpacking and assembly upon delivery. For Coricraft, these issues were affecting its customer relationships and brand reputation. “In our industry, the journey doesn’t start and end in the store,” said Craig Schneeberger, Chief Operating Officer of Coricraft. “The real magic is in the last mile when we deliver to your home. Purchasing furniture is a very emotive thing and, with us, you pay money and leave empty handed. We needed to refine our delivery element which is one of the most difficult things for a business to do successfully and profitably.” Prior to its implementation of the Trackmatic Driver-Led Visibility solution, Coricraft was experiencing about 45 complaints a month. The complaints were all centred around one specific issue – customer service on delivery. The delivery window sat at a lengthy three WE NEEDED TO REFINE OUR DELIVERY ELEMENT WHICH IS ONE OF THE MOST DIFFICULT THINGS FOR A BUSINESS TO DO SUCCESSFULLY AND PROFITABLY. hours and customers were left uncertain as to when their furniture would arrive, what service they would receive on delivery and timing around the re-delivery of any incorrect or damaged items. In addition, it was impossible to proactively respond to failures in the field in real time. www.intelligentcio.com “When we started working with Coricraft the first challenge was to address the visibility of their fleet,” said David Slotow, CEO, Trackmatic. “They needed a tool that would allow them to communicate more clearly with their customer service team by developing richer engagement with their operations team and their drivers.” For Coricraft, it was essential that delivery fulfilment be transformed in such a way as to revolutionise customer experiences. In addition, the company also faced challenges around address capturing. Customers often provided incorrect location details or left out critical delivery information. Coricraft needed technology that helped their drivers get to the right place at the right time. The solution had to ensure that when they delivered, the destination was location-perfect to meet faster, tighter delivery windows. “We could not tell customers accurately when their deliveries would take place, especially as we didn’t have an accurate measurement to easily determine the time it would take between customer deliveries,” said William Webb, Operations Executive, Coricraft. “We needed to find a way to manage the drivers to ensure that they adhered to the scheduled routes, stock on the truck was secure and the customer experience was pleasurable.” Any failures on route resulted in delays further down the line. If a customer wasn’t home or if the driver took longer than planned to find an address, the waiting times then had a knock-on effect until the last customer had waited for far longer than anticipated and the driver kicks into overtime. This often resulted in failed deliveries or high overtime expenditure for teams returning late. “Those challenges of wasted kilometres and frustrated clients were endemic, further impacted by unknown addresses, failed deliveries and drivers wasting time and fuel driving up and down a road looking for the right place,” added Slotow. “For a company as aspirational and professional as Coricraft, these delays and challenges were impacting on the way customers perceived their service and professionalism.” INTELLIGENTCIO 51