Enhancing NPS and reducing costs with global integrated last-mile fulfillment

In an insightful session at DELIVER Europe 2024, Naud Frese, Regional Head of E-Commerce Growth and Sam Coiro, Head of Global E-Commerce business Development, joined forces with a retail customer to discuss how businesses can simultaneously improve their Net Promoter Score (NPS) and reduce costs through global integrated last-mile fulfillment and deliveries. In this article, we dive into the key points from their discussion, focusing on the latest trends in NPS and last-mile logistics, best practices from leading companies, and actionable steps for businesses.

Trends in NPS and last-mile deliveries

Net Promoter Score (NPS) is a critical metric for measuring customer satisfaction and loyalty. In recent years, there has been a growing emphasis on enhancing NPS through improved last-mile delivery services – customers today expect fast, reliable, and transparent delivery processes. Retail and e-commerce businesses are increasingly leveraging advanced technologies such as artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) to optimize their last-mile operations.

Key trends include:

1. Cross-border commerce: Around 75% of European consumers shop from web shops abroad – while there is still growth to be seen, some businesses report stabilising cross-border commerce numbers.
2. Factory to sofa: In the last 18 to 20 months, we have seen an accelerated trend of businesses looking to work with logistics providers that can take their products from the manufacturing facility and move it all the way to the final consumer through one integration.
3. Ship from store vs ship from source: Two different approaches are present in the market. Some businesses want their products closer to the market, to be able to ship faster to the final consumer and at a lower cost, while others choose to ship from source to circumvent the fulfillment need in each local market.
4. Global returns: Last thing businesses want is bringing products back to their warehouses. But when done right, returns can create a better customer experience and create opportunities for upselling and cross-selling.
5. Consumer-centricity: Consumers have different individual demands when it comes to their delivery options and offering a variety of options is essential to increasing consumer satisfaction. There is an increased demand for speed, flexibility, and visibility through same- and next-day deliveries, and track&trace functions.

How leading companies increase consumer satisfaction

The session highlighted several best practices from companies excelling in last-mile fulfillment:

1. Single integration systems: There are many providers in the market, and businesses are looking to consolidate their supply chains for ease of movement of products. Utilizing integrated logistics platforms that connect all stakeholders, from suppliers to end consumers, but also internally, can ensure seamless communication and coordination.
2. Free delivery: When determining free delivery threshold, businesses have to balance average order size, consumers’ willingness to purchase, and cost of fulfillment and delivery.
3. Data-driven decision making: Most successful companies learn from their consumers and how they shop and use this information to guide their inventory management strategy. While shoppers in a physical retail store might want a variety of products, those shopping on third-party platforms with fast deliveries look to fulfill an immediate need – whether it is a replacement phone charger or a last-minute gift.
4. Sustainability: For European businesses, it is increasingly important to offer more sustainable delivery and packaging choices to appeal to environmentally conscious audience. While consumers might be sensitive to delivery pricing and will go for the most affordable option, a portion is willing to wait longer for their delivery, if it is a more sustainable option.

Through the power of collaboration, businesses can leverage these trends and act on the learnings, consequently enhancing their NPS, reducing costs, and delivering exceptional customer experiences. Forming strategic partnerships, both internally and along the entire supply chain is essential for a seamless consumer experience. Investing in the right technology can help streamline operations and improve efficiency, enhance real-time visibility, and foster customer-centricity through personalised delivery options and delivery time. Maersk, for example, has been investing in end-to-end supply chain solutions that provide visibility and control across the entire delivery process, reducing costs and enhancing customer satisfaction. Find out more about our last-mile delivery services.

To watch the entire session recorded at DELIVER Europe, click here.