Last-mile delivery at Masco

Last time we talked about distribution network designs and six ways to deliver. One of these options is Distributor Storage with last-mile delivery and I found a quite interesting article about the impact of last mile delivery.

The last-mile delivery as the “last leg of the supply chain” in which consumer products are delivered to the home is a crucial part of Masco’s (kitchen cabinet manufacturer, Michigan, U.S.) supply chain: “Our delivery network is part of our value proposition to customers and their consumers”.

Masco even received a first-place rating from JD Power for its delivery model and service standards. But why is Masco so successful?

  • Outsourcing last-mile delivery through partnership with two big logistics providers that specialize in last-mile delivery: 3PD and Cardinal Logistics –> breadth and depth of delivery options, physical assets, and cost efficiencies
  • Transactional-style business relationship –> providers adjust to Masco’s volume, constant price per unit
  • No necessity to maneuver a 28-foot trailer along residential streets
  • No special caring about the customer’s home (e.g. to destroy the customer’s carpet in his house when delivering kitchen stuff)
  • Order-tracking possibility for customers –> new for heavy goods, last-mile was a black hole

3PD’s view:

  • Investments in technology that automates communication among the various parties involved in the last mile
  • Offering a three-hour window the night before delivery and a phone call 30 minutes before arriving at a consumer’s house (–> customer service)
  • About 12 minutes after delivery, customer receives an automated call to ask whether service parameters met customer’s expectations –> every-day measure of customer satisfaction

Conclusion:

“Any supply chain is only as strong as its weakest link,” notes Streamlite’s Rover. “A company can move a product from China to the United States, clear it through Customs, move it to a distribution center, and fulfill it in record time. But if it doesn’t deliver the product to consumers quickly enough, they are not happy, and the company’s supply chain has failed.

Post 2_Last-mile delivery_v3

See more at: http://www.inboundlogistics.com/cms/article/the-last-miles-lasting-impact/

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