Conference Coverage: "Is Your Distribution Evolving to Manage the Last Mile?"

The session, "Is Your Distribution Evolving to Manage the Last Mile?" led by Bill Denbigh of TECSYS addressed the question, "Why are distributors becoming couriers (and often doing it badly)?" Simply, because they are trying to satisfy customer expectations. But, the "doing is badly" part does not have to be the case – if you approach the problem from a solution standpoint and turn it into an advantage. Before tackling it, though, make sure you have a solid understanding of the basics. 

First, understand what’s happening in the marketplace from a customer perspective. For years, Walmart, Amazon and Staples, for example, have been offering customers same-day deliveries and rush deliveries. "And all of us are increasingly being demanded: ‘Faster! Smaller! And I don’t want to pay for it!"" Then, look at the distributor perspective. Order sizes are going down, the orders are coming more frequently and the shipping modes (e.g. same- and next-day delivery) are more expensive. 

But you can’t say no! If a customer asks for something, you can’t say you cannot do it. "So, if there is any piece that I want you to take away from this, it is these five steps," said Denbigh, which will guide a distributor to becoming a courier: 

But you can’t say no! If a customer asks for something, you can’t say you cannot do it. "So, if there is any piece that I want you to take away from this, it is these five steps," said Denbigh, which will guide a distributor to becoming a courier:

1.Delivery Tracking.
2. Dock Control: "A courier wants to sort a package once, to allow it to flow through the distribution network once. It is about building efficiency for downstream delivery."
3. Driver Management: "Drivers are independent souls. This is management of independent behavior.... making sure (the driver) knows what to do at each particular place."
4. Courier Dispatch: "This is a high ROI step that, if engaged in it effectively, you are able to see huge returns and the ability to be very responsible for customer requirements.... and be innovative."
5.Home Delivery.

"You might want to do just two of them or the whole suite, but this is where you will be going, sooner or later," said Denbigh. 

One company leader made this leap, and turned what had been a problem into an advantage. Amazon Business was "slaughtering the mom and pop organization," and potential would have done exactly that to this company, if not for their response to the threat. "He took a problem and mixed in some interesting approaches is now... growing 20 percent a year." The question you might want to ask is, "How can I control the last mile to give me a competitive advantage?" 

Some other key takeaways from the session were:

· Customer expectations around logistics for distribution has changed. You MUST respond.
· The technology exists to allow you to compete in a complex courier marketplace.
· Logistics can be a key competitive advantage to your business rather than a cost.