Management of deliveries from an online store

Problem statement and delivery requirements

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The REZINA.NET online store operates as an e-commerce outlet selling automobile tires and wheel disks. The Customer needed to ensure an effective flow of products from the supplier to the client in compliance with the “golden rule of logistics”: the correct number of goods of proper quality must be delivered to the consumer in due time at a right place with the lowest shipping costs possible.

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Objectives
  • Cut delivery costs
  • Dispatching control of orders, acceptance of requests, efficient delivery planning, prompt customer notices of any delivery issues
  • Fetch the goods ordered by customers from suppliers on the same or following day
  • Prompt delivery of the goods on the day of the order or the next day after receiving the goods from the suppliers

  • Efficient management of orders in the Customer’s own warehouse

  • Provision of transport vehicles taking into account the seasonality of the business. Flexible response to higher demand
  • Cash services to customers
  • Real time monitoring of deliveries
  • Organization of a safe and convenient document flow and cash transfer system

Key Customer challenges
  • Seasonality of business: demand for tires and disks soars in off-season time, while sales decline in winter and summer. The unsteady demand for vehicles makes the internal delivery service inexpedient
  • The large number and diversity of suppliers and the lack of territorial consolidation of delivery zones imply longer delivery periods
  • Cash services to buyers require substantial financial and time costs (purchase and maintenance of cash registers and POS terminals) 
Requirements for a transport company
  • Own vehicle fleet sufficient to cover the seasonal peaks in the flow of orders
  • Automated delivery management
  • Option to conclude an agency contract to provide cash services to customers
  • Availability of a warehouse to enable the pooling of orders in terms of delivery time and destination, the customer pickup and possible returns
  • Packaging of goods
  • Timely provision of reports and return documents
TLS solution
  • In-depth study of the online store’s business processes for further optimization
  • Use of a modern transport management system (TMS) to ensure efficient planning and control of deliveries
  • Collection and deliveries of goods in due time using own GPS equipped vehicles to control deliveries
  • Consolidation and packaging of goods in the warehouse
  • Real-time order status tracking
  • Cash services to customers with debit / credit card payment options under an agency contract
  • Easy document flow, daily transfer of the funds received from the consumers

Results
  • Better customer satisfaction with the high quality of service and prompt delivery, resulting in a higher sales result of the online store
  • The store in a position to focus on marketing development
  • Lower cost of delivery
  • Faster processing of requests, shorter delivery periods

  • Uninterrupted deliveries in the peak season or for express orders
  • Lower losses of cargoes, fewer stock regrading issues and delivery errors