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Features of
В2С delivery

Evgeniy Glazov, POSTMAN

The bad news is that
modern people have
tasted the quality of
first-class services, such
as McDonalds, Federal
Express. And now, their
needs have grown so
that it is necessary to
offer at least not worse.

специально“Trade Mission Миссия в Украину»
Special for для «Торговая in Ukraine”

quickly
average price
predictable quality
clean WC


alas …
to raise quality

≠
to minimize costs

• Is it possible to make a delivery service with just
hundredths of 1% undelivered parcels, with financial
guarantees of up in-time delivery and other additional
services for customers?
• Yes. But the price will be in few times higher the current
one.


Customers expectations from delivery

 Operatively
 In a convenient place
 Safe and sound
 For a minimum price
 With a simple return procedure


Main customer complaints to the courier
service:
1. Delivery did not take place seriously hurt. Faults occur in any case. This
Lost orders, the operator use wrong address, should be taken for granted it is necessary to
there was no available goods at the stock. teach the couriers to solve the problems by
Whatever the reason, the customer has not themselves.
received their order. 4. Courier doesn’t know the city
2. The courier did not arrive at the appointed When the courier calls and specifies address 1 or
time 2 times, this is normal. Unfortunately there are
Nobody likes to wait. The client, who was forced situations when the address is not found even
to wait an extra hour the next time he spends on after six rings. The ability to find address is a basic
the search for another shop. It is clear that it is skill required from courier.
necessary to plan the route and schedule of 5. The general attitude of the courier to work
delivery. But if can’t avoid being late - warn Let me remind, the courier is the face of your
about it as soon as possible. business. If he's untidy, irritable and unable to
3. Reluctance to solve "controversial" issues communicate with people, all these qualities
There are situations when in the order is missed client will transfer to the whole shop.
some detail, “it is in the wrong color," or simply
has small defect. If the courier is not ready to
bring the missing stuff, replace the product or
make a discount - reputation of shop will be


2 ways

in-house
logistic
department

outside
courier
service or
outsourcing


Own delivery service OUTSOURCING

Flexibility an opportunity of prompt
Within the scope of standard
BUSINESS PROCESS transformation according to market
service package
changes

High costs on creation Permanent cost due to agreed
FINANCE
and permanent maintain tariffs

ATTITUDE TO THE END Opportunity to rank customers (and the
All consumers are similar
CONSUMER attitude to them) by type / level

Difficulties in selecting, constant control, Minimal risk (the correct choice of
HUMAN FACTOR
the risk of theft, ... the contractor)

Regulated by additional (often
Planned and controlled under
PEAK PERIODS increased because of emergency
the agreed tariffs
situations) costs

Risks absenteeism and not in-time
GUARANTEE OF DELIVERY contractor's responsibility
delivery

Refund the theft or loss of the
FINANCIAL GUARANTEE At their own expense goods (financial responsibility of
contractor under the contract)

CASH RECEIPT FROM
Every day From 1 up to 5 days
CUSTOMERS

At what stage is beneficial to outsource
logistics?
1. There are more than 1 order for delivery to another region
2. There is no possibility / desire / time to attract investments in
the logistics business.

Information:
min for delivery across Ukraine should be:
• 26 warehouses branches
• specialized soft and equipment
• 50 cars
• storage facilities and equipment
• recruitment of experienced managers (hunting)
• more than 350 trained employees


Types of courier delivery & business processes
Express delivery (1-
2 – 3 days Next day To a day
2 hours)

Available goods at
not necessarily not necessarily preferably obligatorily
the stock

Available free
not necessarily not necessarily preferably obligatorily
courier

Qualification of
weak weak average high
dispatcher

Cash discipline

CC costs above normal above normal ordinary below normal

Price for delivery extra low low average high


Reliable contractor, who is he?

Quality of
delivery

Quality of
client
service

List of
provided
services



 percent deliverability first time (a good
indicator from 93%)
 the overall percentage of deliverability
(good indicator : from 97%) Quality of
 percentage of cancellations / transfers delivery
caused by the contractor
(a good indicator: up to 1%)
 company's response to complaints



 The method of application for the delivery
(Excel, XML, by integration API, My Account)
 Response time for incoming requests
 Method of receiving requests (phone, e-mail)
Quality  Speed of providing delivery report
of client  Availability of e-mail and SMS notifications to
service change the status of delivery and / or other
important events for the store
 Terms of return of goods and money
 Time and days of receiving goods from
customers



 The possibility of a partial return, fitting,
return of documents
 The possibility of taking orders from the
supplier’s stock and / or shop
 Secure storage
 Cash on delivery
List of
 Cash service provided
 ... services


Contractor’s selection

Don't put all your eggs in one basket!


Outsourcing?!

++++ ----

• reduce the dependence of
your business from one contractor
• more org. Questions and
• allow you to compare the
administration / coordination
quality of work and to redistribute
volumes
• may increase the final cost of
delivery
• give access to a wide
geography and "range" of
services


NB the price of services
'Hidden' payments :
– charge for the return of goods
– charge for returns storage
– charge for taking orders from the client
– commission for accepting funds
– payment in case of cancellation of
delivery
– separate fee for extra services (labeling,
kitting, SMS alerts, ...)


NB points of self-delivery
20-25% of consumers are willing to pick up an order on
their own to pay less, but:

• rate of return using the self-delivery points higher than
standard delivery.
• if the goods are not paid in advance and it is not
delivered to the door, the buyer rarely makes an
effort to pick up the order himself.


NB delivery to regions

When you send the goods to the regions without
prepayment of 20 to 50% of the orders may come
back.

And the more expensive the product, the greater the
percentage of refusal. Reasons: as the buyer waited
goods, money has been already spent; he changed
his mind to buy, bought in the own city, friends
advised not to buy this model, etc.


"Own" Logistics: stumbling blocks

Courier is not that kind of profession where people go for
self-realization, but for the purpose of feed themselves.
Software. You can ignore this issue, but only when you
have ten deliveries a day ...
The structure of the delivery service should be always with
a margin of safety, should minimize Couriers negotiations
with customers (delivery service should be limited to a
discussion of the nuances of delivery and not to discuss
details of the sale itself or the object of the sale).


"Own" Logistics: stumbling blocks

Reserve for development - all business processes should
be designed initially with the possibility of scaling


Prospects of delivery market

• Annual market growth of 30 - 50%
• Increased competition
• The introduction of technology
• Creation and improving quality standards

• Cost optimization
• Improving the quality of


Questions?

Evgeniy Glazov
director
POSTMAN (PGK Groupe)

+38 067 517 60 30
eglazov@postman.ua
www.postman.ua


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Evgeny Glazov

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