Bill O’Connor

CLOSING THE LAST MILE

A Guide to White Glove Service ©2016 Bill O’Connor, Gardner, KS. All rights reserved – world-wide.. This information is

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The opportunity to provide a single-source-logistics-solution for a complete supply-chain, may never be better. You are likely already providing industry leading package movement, expedited services, and customized logistics solutions. This guide helps close the last mile gap.

The e-commerce fulfillment market is extremely fragmented. It can be said that all logistics services are available. However, they are not integrated or linked in a client friendly platform. What the market needs is a single provider for all logistics services. A complete supply chain would include ocean/container, customs, warehouse/fulfillment, freight, final mile/delivery, and installation/product support.

This guide helps you look at the need and opportunity for the products requiring more than movement and delivery. In particular, the assembly and

installation services that are not well provided to the e-commerce fulfillment, supply chain.

Additionally we will review the strengths, weakness, opportunities, and threats for maintaining the current status versus moving forward with a truly differentiated ‘White Glove level Service.’

Your business may want to exploit the opportunity of particularly related final mile and installation, but are you really ready?

Are you ready to differentiate your business with the well focused ability to handle the unique demands for heavy, oversized and assembly required products?

Are you ready to provide ‘Game changing focus’ for your industry?

Are you ready to offer hassle free service to your customer’s door step?

Introduction

Mission, Goals & Strategies

The Mission

Provide professional, efficient, timely service to fulfill all of a client’s, logistics needs with the highest level of customer and client satisfaction.

Our focus is on the enhanced final mile services. The installation services operating within your existing operations network. For convenience, in the guide this will include all pertinent services bundled as “final mile” services. (Final mile delivery, installation, product support, and troubleshooting.)

You may already have had some experience and maybe even success in this endeavor. You know how to move and deliver products. White Glove Service allows you to leverage your existing processes, clients, office/admin support, and field services network.

The lack of experience with managing the final mile and the associated installation services should not be a difficult issue. Your competitors do not have the combination of corporate strength, field resources, and proven satisfaction in the logistics industry.

The opportunities ahead are numerous and wide reaching. The industry is being re-defined and the timing of these enhanced capabilities could not be better. Professional structure and providing consistent, quantifiable results are being demanded by the industry.

You can capture a large portion of the final mile and installation services if you leverage your traditional freight and logistics services.

The opportunities ahead are numerous and wide reaching. The industry is being re-defined and the timing of these enhanced capabilities could not be better. Professional structure and providing consistent, quantifiable results are in high demand in every industry.

You should be able to capture a large portion of the final mile and installation services. Many of the existing industry players will not survive the expected changes. They simply will not be able to respond to the pace and demands of the final mile & installation market. Positioning yourself as an industry leader for multiple logistics services will allow for profitable results and increasing market share versus existing competitors.

Goals

A few key goals have been targeted to facilitate your thinking…

1) For every job/order there will be immediate and ongoing communication with the consumer/end user, client, and all parties throughout a product’s supply chain. Data visibility will vary based on the entity. Upon receipt of a job and throughout its life cycle, automated calls, emails, on-line access and proactive compliance management will provide regular status updates to those concerned. This leverages on one of the existing strengths of logistics providers. Adding visibility for the final mile stage and product supply chain should not be difficult. This is one of the primary weaknesses in the current, fragmented supply chain.

2) Product and technical support for the items will be readily available, to the entire supply chain, to resolve any product or service failures. Data files will be available, as well as included with jobs dispatched to the supply chain agents. Real-time support for installation agents, while on-site will be available. This will allow all agents to access necessary support as well as real time information to ensure proper, product handling. This is a critical factor to maximize successful delivery and installation and the customer’s related satisfaction.

3) Final mile agents, with capabilities for installation and troubleshooting will be a flexible and dynamic work force. Utilizing a traditional, logistics hub network will allow a superior level for management of these agents.

Leveraging the evolving availability of the contingent work force, Independent Contractor management will build a network of agents based on product and service capabilities. Additionally, the challenge of rural, low-volume coverage will provide competitive advantages .

This network will be built through a combination of individuals, area companies, and local dock partnerships. Criteria related to products and services will determine agent suitability. This network of providers can be grown quickly, in the short-term, with existing service providers integrated into the logistic’s management platform. Long-term efforts will focus on skills improvement to expand preferred providers capabilities and increase their value to the network.

There will also be a management element related to local regulations of products and services. This will be part of the supply chain development and management. For example, if specific certifications are required for a product installation, this becomes part of the agent qualifications. It is foreseeable that some services may be restricted, or not available, based on local ordinances or requirements.

4) Client satisfaction, based on Key Performance Indicators (KPIs) and quantifiable data collected throughout the jobs life cycle, will be identified and monitored for constant improvement. The clients will become partners in identifying the relevant data, improving performance and increasing end user satisfaction.

5) Productivity and efficiency will be maximized through the development and use of KPIs. Staff and agent productivity will be monitored at all levels. This includes the office staff, technical support, carriers, and field technicians. Establishing the KPIs related to superior customer satisfaction as well as profitability of the division/services will be an ongoing function. It will be optimal to develop a performance based, compensation package for the service providers. It will include components covering service competency, job compliance, and customer satisfaction.

What does a full-service, single-source, logistics

provider do?

Logistics Supply Chain

Freight (TL/LTL)

Oceans / Customs

Field Resources

Product Knowledge and support

DC/ warehousing

IT Management

Field Service Management

Final Mile / Installation

As a leader in the freight industry, you know industry needs are rapidly changing. E-commerce and needs of assembly-required products are transforming the fulfillment models. Although the omni-channel discussion encompasses all products, the needs of the heavy, oversized, and assembly-required products pose unique challenges.

Currently the supply chain is a very fragmented. A single-logistics-source to provide all services has not yet emerged, but one invoice - one customer service contact is becoming a common request from clients.

Providing the final mile, installation, and white-glove services will enhance your market position and increase your traditional freight business. Today, you can set the standard for home delivery and specialized solutions.

Fulfillment from back-of-store is becoming less viable. Retail stores are not well suited for heavy and oversized products. Some seasonal products, such as game tables and play sets, would be better served from a distribution center or direct ship fulfillment.

Product damage, employee accidents and the higher cost of storage space all contribute to this need for change.

Although not a focus of this guide, offering warehousing and DC fulfillment is another emerging value-added service.

Many logistics providers are trying to address these unique challenges, and they are struggling.

As the customer’s logistics needs evolving someone will emerge above the rest and truly differentiate themselves.

Is has to happen!

Present Status

With the addition of installation capabilities, your business takes a tremendous step forward. Traditional product movement will be enhanced by offering service thru the installation stages.

The goal of providing exceptional product support requires linking the supply chain from manufacturer, through the logistics chain to the final mile/installation.

You will be able to offer and charge for troubleshooting and service at any stage of the supply chain. For example, if damage is noted en-route, the opportunity to offer resolution prior to the consumer experience, provides tremendous advantage.

White glove service will create totally new income opportunities. Manufacturers and retailers become part of your product supply chain. You will now be the source for an integrated platform.

Product support capabilities will also expand revenue opportunities. When product failures happen, you will have escalation protocols. This will be part of a service level agreement (SLA), necessary for all your customized solutions.. You will be the source of information about product liability rather than a victim when services are needed.

Many times this falls under the manufacturer warranty, resulting in even more income potential!

Service Level Agreements will be designed with resolution protocols. Since you now connect the entire supply chain you will manage the resolution, and will know who has liability for any accessorial charges.

Once this supply chain management is developed, with a focus on superior product support services, the capabilities for handling an even wider range of products becomes viable.

Product/Service Offerings

Establishing the requirements for product services, providing technical support throughout the supply chain, and providing services to enhance the skills of the final mile providers and partners will be standard elements as products are added.

There are an abundance of products that need exceptional, final mile services. This includes fitness equipment, furniture, electronics, game tables, appliances (gas and electric),

sheds, play sets, basketball goals, massage chairs, and in-home medical products.

An implementation plan can be developed based on current needs and opportunities. This plan can vary based on current clients and products, coverage area, and agent capabilities. The addition of products and service areas will be part of the long-term strategy.

We are way beyond just transporting products!

Link Supply Chain from Manufacturer to Consumer

•Manufacturer relationship for product knowledge, parts, service

•All agents in logistics chain involved

•Sellers, retailers, distributors, consumers have visibility to product movment

Identify & Resolve damage and product issues

•Ability to resolve issues throughout all stages of the logistics chain

•Ability to resolve issues at delivery/installation

•Reduce returns and dead inventory

Maximize consumer satisfaction with their sales experience

•Confidence in product with superior delivery experience

•Improve satsifaction with product through in person tutorials during set-up

Value Added service opportunities

•Product information captured for warranty registration

•Product life cycle servicing and eventual replacement

Additional revenue opportunities

•additional product related services offered to clients and manufacturers

Retailers, both store and e-commerce, already have confidence in your ability to handle freight. The addition of final mile services will fill a vital need. And your ability to move virtually any product to any location makes you the preferred provider, every time!

With escalation procedures established, providing immediate resolution to product and service failures you make a complete supply chain solution a reality! The ultimate focus on maximizing the consumer’s satisfaction is your brand.

Manufacturers will be a natural fit with these expanded services. Many manage their own freight and installation services. You have rarely been given a shot at this business.

Quality product support, provided thru the manufacturer warranty, will be a tremendous opportunity to increase revenue and differentiate your business.

The relationships with manufacturers, retailers and warranty companies provide a unique opportunity to maximize the efficiency. As a critical partner, linking all parties, you are relied on for overall product expertise. There will be very few times when you will not be able to assist with a retailer’s customer satisfaction needs.

Rural and low volume coverage will be another service advantage.

Profiles of Target

Markets

Utilizing your distribution network and freight docks allows these additional services to be offered to areas that are currently under served. Places you previously could not service because it was too costly, now have great revenue potential, and well worth the effort!

It should be noted that incorporation of contractors and a contingent work force will be a necessity for some of the products, services, and geographic needs. The knowledge and expertise in this field is well-defined, but currently beyond the reach of most people in the industry. This labor pool is willing, eager, and capable… but are yet to properly utilized.

And finally, the capabilities created from the final mile services provide opportunities beyond the traditional supply chain. All clients and prospects have needs beyond fulfillment of product.

This includes trade-show set-up, store display sets, and more. You will have the agents to handle these services. There is always freight associated, many times in and out, that can be part of the client agreement.

Although these opportunities may be beyond the immediate plan, they create ongoing growth for revenue and market share.

What stages of a SC do you offer? What stages do your

customers need?

Anand Subramaniam

Rolling out final mile services is be based on the needs of the product, capabilities of your existing operations, and coverage areas. It is likely that the addition of services will be prioritized by demand from clients and industry opportunities.

Once you make final mile services available marketing and sales can pursue multiple avenues. The first effort would be to increase business with current clients.

You currently move a tremendous amount of product, but you’re leaving money on the table… someone else is providing the final mile services. When these services can be offered under one invoice and a single point of contact, the clients respond and you cash in.

New clients, including retailers, on-line, and manufacturers,

will be targeted based on the roll-out of the service and product capabilities. You will be able to market a complete supply chain.

Marketing can be tailored to specific products and industries as capabilities are developed. You can include trade shows for fitness equipment, lawn and garden, furniture, home décor, electronics, consumer, medical, hospitality and more.

Once the final mile services are in place, the addition of products becomes much easier. Relationships created can be fully leveraged for other sales opportunities. Reliance on you for all logistics needs will become your industry advantage.

Marketing & Sales Strategies

Two IT areas are critical: service provider management and product support.

The final mile and installation services will be handled by a wide variety of agents. Until very recently, technology was non-existent or cost prohibitive. But today, a dynamic, flexible network that connects client requirements, product needs, volume, and local considerations is not only possible, it is feasible.

From employee based to traditional outsource to installation only agents, the IT platform will need to accommodate the variety of supply chain needs.

Your IT will need to provide compliance based management structure, ongoing performance review, and you will need a method for skills development.

Since you may already have relationships with third party

providers of final mile services, these can be improved, with product support and a higher level of job compliance. However, the long-term strategy will focus on direct management of the field.

Current final mile providers offer a nationwide coverage, through a call-center platform, with little, direct field contact. Utilizing your current locations and related management will provide interaction and supervision for field providers.

A second technology area for review will be product support. All products handled will need a sku based tracking system. A product sku will not only provide item weight and dims, it will allow all technical support and product info to be accessible. Product support may include live support, on-line access, service updates, and resolution procedures.

Technology & Development

It is crucial that product support be integrated into the supply chain.

Product skus allow ease of access to information. Product specific info can then be accessed prior to a job, for education and preparation, as well as accessed while on-site for troubleshooting and support.

This is a critical component, not readily available in today’s service. E-commerce and direct ship requires exceptional product support, troubleshooting and escalation resolution which is why this service has lagged in the market to this point

A service extension of this product support should include tutorials and training aids to assist the installation agents with the products. Some manufacturers produce videos and product aids.

Ensuring a full range of support will be a critical area that directly impacts job success and customer satisfaction and your revenue potential.

Working with manufacturers to build these tools (and they are happy to partner) differentiates you from competitors. Help from manufacturers with the learning curve for first time installations will be part of the ongoing management of these products and services.

Additional IT capability means visibility for shareholders in the supply chain. It is not uncommon to have photos of an installed item included as part of a job completion, creating a great secondary marketing tool and communication.

Your existing technology provides the opportunity to quantifiably measure and increase client satisfaction. With internal productivity measurements and external data from clients and end-users, we can identify how our client defines superior service.

New technologies are ever evolving for supply chain and product management. This includes barcode tracking, RFID, gps, and more. Maintaining leading edge in available technology should not be difficult based on the current business practice.

Is the technology ready?

Real Time, Proactive Compliance

• IT Integration

• Visibility and access to all

• Route optimization

• Escalation protocols

BYoDevice?

• EDI - freight

• mobile apps

• on-line/web

• Phone dispatch

Product Knowledge

• SKU based

• All support data available

• Linked via WO to all agents

• Live support

• Agent capabilities

You can expect some additions to office and support staff capacity. Of importance is the responsiveness to escalations in the field. This is particularly important when offering installation services to address a product or service failure.

Ideally, your first line of support will be in-house, with access phone # on the job. This could vary based on product or client. Your existing support center can easily provide immediate, real-time knowledge of the escalation procedures and how to obtain required support.

Most likely the method for product support will vary, but direct support from the manufacturer will be a primary resolution avenue.

Some manufacturers offer tremendous product support, others virtually none. As product capabilities are developed and client SLAs are implemented, operating procedures will be constructed. In particular are demands for residential services, which can happen after hours.

Any product support, following procedures as defined in the SLAs, will determine resolution for the problem and any subsequent services to be performed.

Accessorial charges, as part of the service agreement, will take into account troubleshooting fees, minor repairs, reverse logistics, and return trips to the consumer.

Management &

Administration

It is not uncommon for items to arrive in less than perfect condition. Ideally if there are known issues, such as cosmetic damage, the unit can be repaired prior to the customer install. This may involve inspection at the local dock and assembly with a blanket wrap for final mile.

An example would be a scratch on a plastic cover. )This cover can be replaced, at the dock or customer.

A service fee will be charged to the appropriate party, usually the manufacturer or seller, as defined in the service agreement.

The result is lower returns or rejected shipments and a higher customer satisfaction. Most of the items being discussed are higher value items.

Add to that the lag time from purchase to item receipt and most customers do not want to wait for a replacement item. If the unit functions properly the goal is to keep it at the consumers. The final mile management will have the ability to provide the additional services needed, or provide a thorough inspection so proper resolution can be completed.

A challenge for IT!

Product database designed & update protocols

Field Services Management program built

• Coverage list management, Routing

Optimization

• Product services requirements

Integration of Supply Chain communications

• POS to end user, scheduling of D&I

• Logistics tracking

• Field Resources – mobile communications

Compliance protocols developed

Automation in updating jobs and parties

Warehousing/Inventory tracking integration

Compliance Dashboard for all stages

Two components are integral to this final mile service development. These are agent and product management.

Agent Management

Product installation will require a diverse set of skills for the service providers. White glove service, as generally understood today, is un-wrap and light assembly.

Although the product challenges can vary widely, the process for qualifying, developing, and managing the service providers will be the same, regardless of the product complexity.

Installation services will always be a dynamic component utilizing route optimization based on a variety of factors.

There will be product and client requirements. There will also be high volume versus low volume coverage areas. And there will be seasonal fluctuations in the volume.

Products requiring extensive time and particular skills for installation include fitness equipment, basketball systems, sheds, furniture, appliances, game tables, play sets, and recreation products. Agent capabilities will not be the same. Building the network of final mile and installation service providers will be a specialized focus for management.

It is expected that the service providers will be composed of four different types of entities.

Implementation

1. An installation/assembly industry can be utilized as outsource vendors. These are management companies overseeing local, field agents. This industry provides a development avenue to establish an immediate final mile footprint. You may currently have relationships that can be enhanced with higher levels of product support and service management by utilizing this industry. However, most companies cover major metros only.

2. Product specific service providers can be leveraged for immediate services and offer part of a long-term solution. Some products provide unique challenges best suited by specialty providers.

3. Direct management of local agents will be a necessity. These are generally independent contractors, capable of providing a direct contact in the final mile stage. These agents will need more support for product knowledge and compliance management.

4. Developing internal, asset based providers is an opportunity that sets some companies apart. Utilizing asset based agents will probably not be the primary, or even preferred, method. However, having this option, to develop in-house capabilities, will have tremendous value in route optimization. It also offers a significant tool for back-up and redundancy in coverage.

Regardless of the type of vendor, you must demonstrate an ability to identify, recruit, qualify, monitor, and provide constant improvement. This will be an ongoing, administrative responsibility.

Routing a product requiring final mile services will leverage multiple agent resources. Rural, low-volume, areas may have fewer options than urban areas. It is expected that many areas will have multiple options for service agents.

Your current freight dock network is a tremendous tool to build and manage supply change. The knowledge and expertise of the freight dock network you bring to this new venture, regardless of which agent(s) are utilized for final mile services, will be a core competency.

Adapting to seasonal

fluctuations, flexibility to meet client needs, and managing a diverse agent network are current strengths of the supply chain model. There is every reason to believe that management of these enhanced, final-mile services will fit into the enhanced, supply chain, management model.

Product Management

The second, critical component, will be developing the product support for every sku that utilizes final mile services. Although the discussion is focusing on the heavy, oversized, and assembly required items, this product support process has value for every product. With focus on specific, product information, as well as related, agent service skills, development of this tool will be a competitive advantage .

Finding qualified agents based on product needs is one challenge. Equally as important is developing the tools to enhance existing agent’s capabilities for additional products and services.

A product sku database will allow accumulation and utilization of info necessary for exceptional product support. When clients and products are brought on, linking all support will be part of every SLA. This will not only provide support to the

supply chain agents, but will establish a relationship with every entity in the chain. This is where the single-source provider becomes a value-added partner to the solution.

The focus of this support is to ensure successful product delivery & installation and maximize customer satisfaction. However, capturing product data has numerous benefits beyond the primary objective.

What does success look like?

Consumer & Client

Satisfaction means…

Movement – LTL,TL, Final Mile, more?

Field Resources and agents

Product Knowledge

& capabilities

Field Service

Management

Product Management

/ Technical support

IT/ Integration

The industry is in need of a single, logistics provider for a complete supply chain. The final mile and installation services are the most fragmented component of this supply chain. Managing this service is a natural extension to the current logistics services. From the time a product leaves its origination, clients will provided a single customer service point for all logistics services.

Metrics will be developed to track, evaluate, and improve these services. These KPIs are present in today’s logistic industry and just now becoming a part of the final mile stage. E-commerce, and direct ship are changing the fulfillment model for retailers. Stores are

becoming showrooms instead of an inventory warehouse, particularly for oversized and heavy items. The omni-channel, fulfillment model has created a need and tremendous opportunity.

Your ability to offer the solution for a complete supply chain is a natural, next-step to the current services. Becoming the value-added partner, with a focus on exceptional product installation, and being measured by customer satisfaction, puts your business in an indispensable position with all players in a product supply chain. The first single-source provider to market will become formidable in its competitive edge.

Conclusion