Nailing Down Logistics for a Home Improvement Giant’s Omnichannel Commerce Strategy

Situation

With demand soaring on both big & bulky store-to-door and e-commerce orders, delivery shortcomings were standing in the way of effective omnichannel retail execution for one of the world’s largest home improvement retailers.

The company was using a dedicated delivery network solution that only utilized full truck capacity. That approach led to continuously sold out capacity and inflexible delivery options that constrained growth, increased costs and negatively impacted customer satisfaction. They needed to find a better way.

Solution

Understanding the order volume, geographic scope and growing demand for time-sensitive delivery, USPack implemented a shared delivery model based on per-delivery pricing as opposed to pricing by the truck. The arrangement guaranteed the retailer unlimited capacity during the critical 8am to 5pm window, while also providing next-day, same-day and time-sensitive 2-hour and 4-hour delivery options.

To enhance the level of service, USPack also provided appointment confirmation, carry-in, room of choice and returns. The solution accommodated both store-to-door delivery within a 30- to 60-mile radius from the store and final mile less than truckload (LTL) delivery within a 150-mile radius of a distribution center – including line haul from an LTL carrier to crossdock. Adding another level of complexity, USPack worked with the retailer to pilot and successfully implement a Universal Delivery Order (UDO) solution to manage the order and shipping process more efficiently.

Results

The program was rolled out in Chicago and scaled across the Midwest and Northeast regions in just seven months. USPack quickly elevated from a delivery partner to a business partner, communicating with and coaching the client throughout the process to monitor store readiness while ensuring delivery capacity stayed ahead of order demand. The ability to nail down the delivery strategy turned into a competitive advantage, enabling true omnichannel commerce and increasing bottom-line impact. Now this home improvement behemoth has a delivery program that’s truly built for the long haul. Specific results include:

 

  • 30% increase in store-to-door order volume
  • 50% increase in store-to-door premium time slot service
  • 20% increase in store-to-door
  • 30% year-over-year growth in spring and holiday peak periods
  • 50% increase in next-day transit orders from the distribution center
  • 10% increase in online order Gross Merchandise Volume (GMV)

 

USPack named 2017 Box Truck Carrier of the Year

The ability to nail down the delivery strategy turned into a competitive advantage, enabling true omnichannel commerce and increasing bottom-line impact.

Get it Delivered by a USPack Partner Today