Metapack presentation at Screen Pages client event Sept 2012

1. Taming the
Delivery Beast
Turn your delivery into a
performing spectacle to
delight your customers

2. Shiran Liyanage
Head of Marketing

3. 64 of the top 100 retailers use MetaPack
Sports & Department
Fashion Shoes Accessories Beauty & Health Home & Garden Electrical
Leisure Store

4. 160 million delivery experiences enhanced in 2012
MetaPack Community
40m 450 400 100 1500 45 230
Consumers Retailers Suppliers Carriers Carrier Application Countries
Services Providers
MetaPack Services – Service Offerings
Carrier Carrier Label Visibility & International Direct Ship Supplier Program Technical Service
Management Integration Printing Reporting On-Boarding Management Support Availability
Pilot Innovation
Consolidated Business Fraud Duty WISMO
Delivery Intelligence Analysis Calculator App
ONE

5. Standardised labels

6. Agenda
 The importance of delivery in eCommerce
 How to manage your Carriers
 Using delivery to delight customers
 Further Advice and New Developments

7. The Customer Experience Curve
Satisfaction
Buying
Sourcing
Delivering Returning
Customer
Delivery
Promise
Time
1 hour 10 days 4 days

8. The Customer Experience Curve
Satisfaction
Buying
Sourcing
Delivering Returning
Delivery
Value Add
Customer
Delivery
Promise
Time

9. The Perfect Delivery Experience
This means:
Your website should offer
the right delivery services
available to that specific customer
buying those items
at this time of day
located at this destination
That
your warehouse can fulfil
and
the carrier can deliver first time

10. B2C Deliveries: Total Cost to Serve
WISMO* enquiries
to call centre £5-10
£25
Returns processing cost
Total
Cost to
Serve
Re-Delivery charges £3 =
£38
Mis-routes
Carded
Headline
to
‘Ugly’ traffic handling
Address queries Delivery Cost £5 £43
Cost of delivering the perfect parcel – (£3 in this example)
*Where is my order” enquiries
Source: IMRG Valuing Home Delivery 2010

11. Adopting a Multi-Carrier Business Strategy
Goal:
To achieve your maximum
First Time Delivery.

12. MetaPack: Carrier relationships

13. Carriers have grown from different specialities
Postal Integrators Catalogue Independent
 Royal Mail & TNT Hermes UKMail
Parcelforce
UPS Yodel CityLink
 Geopost
FedEx APC
 DPD
 Interlink
Specialists
 La Poste
Nightfreight
 Deutsche Post
CitySprint
 DHL

14. Traditional Carrier Management creates a Vicious Circle
Old School Vicious Circle
New carrier
selected
Poor carrier
New ITT
management
Carrier
under
performs
“We’ve tried all the carriers before and none of them
seem to be able to cope with our business”

15. Multi-Carrier Management generates a Virtuous Circle
Multi-Carrier Model Virtuous Circle
Carrier
Management
Fine
Performance
Tuning
Carrier
Management
Niche skills
utilised
Select
carriers
Time
 Use specialist carriers for niche capabilities
 Joint continuous improvement programmes
improve overall performance

16. Allocating Carrier Services
Before 9.30
Before 12
Next day
Services Evening etc.
Weight
Dimensions
Constraints Geography etc
Finite capacity management by
Carrier Capacity weight or area
Matrix
Cost Charge by
Costs weight, area, dims, # parcels
Engine etc.
Retailer preference based
Preference on quality, contracts etc.

17. Turning delivery into a commercial advantage
Step 1 – Manage Yourself
Step 2
Step 3

18. Understand your Logistics needs
Product delivery needs and customers’ location and habits.
Example questions:
Are your products letterbox deliverable and low in value?
Are customers for specific products at home during the day?
Are you delivering to business or residential locations
Example solutions:
Balance value with tracked or cover with insurance policy
Standardise box sizes

19. Turning delivery into a commercial advantage
Step 1 – Manage Yourself
Step 2 – Manage Your Carrier
Step 3 – Manage God!

20. Step 3 - Manage GOD!
 Introduce Contingency to manage all those
unforeseen circumstances.

21. Delivery Contingency
Introduce Contingency to manage all those unforeseen circumstances.
For example:
 Bad weather
 Strikes
 Carrier-over capacity
 Christmas Peak
Solution:
Use all services available from your contracted carriers and prioritise

22. Managing Carriers
 Understand the logistics needs of your
products and customers
 Decide which delivery services you should
offer.
 Match your delivery promises with your
delivery capabilities.

23. Practical Reports for a 360 view of E-Commerce
Snow Valley IMRG
Royal Mail Valuing Home
e-Commerce Retail
Delivery Matters Delivery
Delivery Report
Report (Bi-annual)
(Annual)
IMRG
Consumer Delivery Survey
(Annual)

24. Using Delivery to
Delight your
Customers…

25. Delivery Services can be Matched to Customer Demographics
Time / Wealth / Segment Value
High
Welfare
Borderline Municipal
Dependency
2-3 Day Service Next Day Delivery
Grey Perspectives
Suburban
Comfort
Time
Collection Point
Urban
Symbols of Success
Intelligence
Twilight Blue Collar Premium Services
Subsistence Enterprise
(Named Day, Time
slots, Evening,
Ties of Rural
Isolation
Saturday)
Community
Happy Families
Low
Low Wealth High
Consumer classifications

26. Delivery touches every element of e-Commerce
Despatched from anywhere Despatched using anyone
Fulfilment Multiple
Warehouse Carriers
Direct Ship Own Fleet
Orders taken from anywhere
Monitored by anyone
Online Call centre
In store
Phone
Delivery Customer
Head Office
Catalogue Supplier
 Web Based
Home Store
 Total Transparency
 Accessible Anywhere, Work International
Anytime
Multi Channel Delivered to anyone

27. MetaPack can manage your delivery issues for you
CDS

28. Seamlessly Integrate over 60 Carriers into Magento
Private and confidential Page 28

29. Summary: Generating Revenue
“We have experienced a 30-40% increase in turnover” – Tackle Discounts
INTERNATIONAL Revenue growth in a recession
57% of ASOS sales now from international markets grown in just in 2 years.
20% of all UK e-tail sales now international
RANGE EXTENSION Facilitated through Direct Ship
89% of all products available are not stocked by top 50 online retailers
REPEAT PURCHASE Proactive communication and new delivery options
77% say positive delivery experience encourages repeat purchase
100% increase in basket value / 10% sales conversion through ‘same day’ delivery.
EFFICIENT RETURNS Self serve, visibility and early refund/replacement
40% of shoppers not satisfied with returns
MULTI-CHANNEL Facilitated by Mobility of despatch and delivery locations
90% basket value increase (£189 vs £104 for catalogue vs pureplay)
50% of high street and 20% SME retailers now offer this service
SOURCE: IMRG MetaPack Delivery Index 2012/ Micros Online Delivery Report 2012 / IMRG Blackbay Consumer Home Delivery Report 2012 /
Royal Mail Delivery Matters 2011 / Shutl 2011 / RangeSpan 2011

30. Summary: Saving costs
Inbound calls reduced by half reducing customer service staff hours
Liverpool FC
Increase in despatch rate meaning reduced overheads
Past Times
Output increase from 400 orders per day to 1,000 per day
Route One
Reduction in time it takes to pack orders by 5 hours a day
PHD Fitness
Reduction of staff required at packbench from 10 to 6
Tackle Discounts

31. 3 Take Aways…
1 – Delivery touches every element of
e-commerce
2 – Focus on achieving your maximum
‘first time’ delivery
3 – Promises, promises, promises!

32. Summary - The Perfect Delivery Experience
Your website should offer Dynamic delivery options
the right delivery services Dynamic service query
available to that specific customer Customer locations and habits
buying those items Product logistics
at this time of day Alternative carrier services
located at this destination Fill in the ‘gaps’
That
your warehouse can fulfil Delivery service rules
and
the carrier can deliver first time Contingency
…then apply to International and Returns

33. Visit
www.metapack.com
for more info, case studies
and advice...
 Currently processes 85 million parcels pa
120m for 2012 excluding eBay volumes
 De Facto standard used by the majority of UK’s major retailers
64 of the top 100
 High profile board
Includes Sir Terry Leahy, ex CEO, Tesco and Bob Willet, ex CEO Best Buy
 Strong partnership program
Includes several blue chip providers such as IBM, Oracle etc.
 Integrated with around 100 carriers
UK and EU offering over 1500 services
 Internationalized product
Multiple languages, currencies and time zones
Shiran Liyanage shiran@metapack.com

34. Fraud Management
Start the clock One hour later Delivered
'window of opportunity'
Order Picking
phase Packing
Collection 6 hours later
Sorting
Delivery
‘extending the window'
Card 3rd Man MetaPack
Not
Present Validate up to
“send orders for picking”

35. Consolidated Delivery
Consolidated
Consolidated Delivery Delivery
The Consumer: Shop across your favourite online sites and ONE
receive “One Delivery”
To the Retailer: Provide consumers with a more convenient
environmentally friendly option - Offer a lower cost
Improve the brand proposition vis-a-vis Amazon*
Be part of a marketable “consolidation network”
To the Carrier: Reduce cost for consolidated delivery
- Increase “good traffic”
- Deepen drop density in areas of strength
- Increase industry delivery capacity
*Who provide apparent appearance of single order but often multiple delivery

36. Visit
www.metapack.com
for more info, case studies
and advice...
Questions
Shiran Liyanage
Head of Marketing
shiran@metapack.com