#TDC17 - M&S - Turning Logistics to Face the Omni-Channel Customer
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How do today’s logisticians meet customers’ demands as their expectation for speed and control increases? Head of Logistics for M&S.com, Richard Pugh, discusses how M&S harnesses data to deliver a flexible and convenient collection and delivery proposition that puts customers at its heart. Learn more about how the M&S logistics function is aligned with retail and marketing insight to have one clear view of the customer. Experience more great The Delivery Conference content at http://www.thedeliveryconference.com.
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#TDC17 - M&S - Turning Logistics to Face the Omni-Channel Customer
- 1. RICHARD PUGH Head of Logistics Turning logistics to face the omni-channel customer
- 2. Providing flexibility and convenience in a multichannel environment LOGISTICS AT THE HEART OF CUSTOMER EXPERIENCE Richard Pugh Head of Logistics – M&S.com
- 3. Who We Are International presence 82,000 people 133 years 681,000A pp users 33 million customers
- 4. Invested in the future
- 6. Vocal about their experience 1 2 3 Higher expectations of delivery & collection services Interacts with brands in many different ways Our evolving customer Technology empowered
- 7. Harnessing Insight Listening to our customer feedback Offering what they want
- 8. How to create a customer centric proposition Certainty Convenience CommunicationControl
- 9. Control Customers feel in control when browsing & purchasing but anxiety increases in the post- purchase delivery period
- 10. Customer concerns Where is my parcel? Will it make it on time? What if my neighbours aren’t in? What does out for delivery mean ? Will I be left hanging around ?
- 11. Communication Customer focused Internally Suppliers
- 12. Certainty Emphasis on getting it right first time And there with a solution if it doesn’t
- 13. Convenience
- 14. Conclusion • Introducing a digital mindset takes a cultural shift • Customers want control, certainty, communication & convenience. Logistics plays a key part in this • Data and insight driven decisions to keep the customer at the heart of what we do
Notes de l'éditeur
- M&S like many companies represented in the room has been on a journey to build a true omni-channel retail experience and on a transformation journey to change culture and to transform the digital capabilities. Over the next 20 minutes I will share with you how we have transformed our Logistics network to meet the demand for multichannel shopping. When you start from the premise of a strong historical presence on the high street / unlike many pure plays, the blending of the store and online customer proposition isn’t an option! You have to create the structure and the management focus to make it happen – however if you succeed, creating a superior customer experience can be a powerful competitive advantage
- We moved away from the Amazon platform and the decision we made in 2010 to build an M&S website – which we launched in Spring 14 and behind this has been a substantial investment in the logistics network with the opening of a ….. Sqft EDC at Castle Donington to support the growth of the digital business. Critically these investments have been instrumental to our ability to make our customer proposition more competitive. We have developed a flexible customer proposition, we now have Click and Collect points at 663 locations nationwide (one of the widest reaches in the country) To help us maximise the benefits of the new infrastructure – NEED TO REASSES AND RESTRUCTURE NEW TALENT: We acquired new capabilities not just in the obvious areas – like software engineering and product developers but also editorial teams - who can deliver inspiring content + give us a point of view to demonstrate our expertise. SIMPLIFIED DISTRIBUTION NETWORK: from many small centres to one mega-hub NEW WAYS OF WORKING: NEW operating structure: It is about eliminating the operational silos: Collaboration is key in the new world of brand engagement This includes the way we work internally – more data and great insight must be shared RAPIDLY across the organisation AND TAKE ACTIONS FROM DATA.
- The Castle Donnington NDC, which was built to support the growth in online shopping. The 900,000sq ft warehouse can hold up to 16 million products and is capable of processing one million items a day.
- Let’s start with the M&S customer: Let’s take a snap shot of one of our core customers and her changing behaviours/priorities. Customers are increasingly evolving their expectation around speed and certainty of delivery. The changing needs and wants of customers has had an enormous impact on logistics operations, not least on the logistics team, which is now customer facing rather than being a service. Team members have had to gain a better understanding of the end customer to learn how their part of the business impacts on the customer directly. Speed and agility in distribution are paramount.
- Our customer insight team speaks to 60,000 customers a month and that informs how we model our delivery proposition to offer customers what they want.
- What do customers want when it comes to delivery and collection. The 4 critical pillars are …….
- We did some extensive research into how our customers feel about their ecommerce experiences. An overarching theme centred around control. Customers feel in control as they browse and purchase online but post-purchase anxiety kicks in.
- There is a loss of control that leaves customers worried about receiving their purchase.
- Update customers on their purchase Keep all teams notified on process
- The key to providing a consistent experience for customers that works for the colleagues that have to deliver that experience is creating consistency and simplicity. We’re committed to getting it right for our customers first time round and this is central to training at Castle Donington around accuracy. We also have a large team of customer service experts who can manage any customer issues.
- Our delivery and collection proposition is built around making shopping convenient for our customers. We’ve one of the best reaches in the country for delivery. We’ve worked hard to improve proposition – we’ve now extended cut off times for next day delivery to 10pm. While three quarters of our online purchases touch a store as customers blend the digital and physical shopping.
- - Introducing a digital mindset and capability into a heritage high-street brand requires significant investment and a cultural shift, but the flexibility and human interaction that an omni-channel approach can give customers, should not be underestimated.