Challenge
The company faced significant challenges in its European cross-border business of furniture distribution, characterized by high cubic meter (m3) costs and extended delivery times. These inefficiencies were affecting customer satisfaction, competitiveness, and profitability. The complexity of furniture logistics, requiring careful handling and delivery, compounded the issue, making the existing distribution model unsustainable in the face of growing customer expectations for speed and service quality.
Actions
To address these challenges, the company embarked on a strategic overhaul of its distribution execution strategy. The key actions included:Optimization of Distribution Network: The company analyzed its existing distribution network and identified opportunities for optimization, including route consolidation, strategic placement of distribution centers, and improved carrier management.Implementation of 2-Man Handling Home Delivery: Recognizing the specialized nature of furniture delivery, the company introduced a 2-man handling home delivery service. This approach ensured that furniture was delivered with the care it required, reducing the risk of damage and enhancing customer satisfaction.Technology Integration: Advanced logistics and routing software was implemented to optimize delivery routes, improve load planning, and ensure efficient use of transportation resources.Carrier Collaboration: The company fostered closer collaboration with its logistics partners, negotiating better rates and ensuring that they were aligned with the new distribution execution strategy.Customer Communication Improvements: Enhanced communication channels were established with customers, providing them with real-time updates on their delivery status and improving overall service perception.
Results
The comprehensive strategy to revamp the distribution execution led to significant achievements:Overall m3 Cost Decrease: Through network optimization, technology integration, and carrier collaboration, the company achieved a 22% decrease in overall m3 costs, directly impacting the bottom line.Delivery Time Decrease: The optimized routes, combined with the efficient 2-man handling home delivery service, resulted in a 40% decrease in delivery times, significantly exceeding customer expectations.Enhanced Customer Satisfaction: The introduction of specialized delivery services and improved communication led to higher levels of customer satisfaction and loyalty.Operational Efficiency: The strategic changes brought about enhanced operational efficiency, with better utilization of transportation resources and reduced incidence of delivery-related issues.This success story highlights the impact of a holistic and strategic approach to distribution execution, particularly in the specialized sector of furniture logistics. By optimizing the distribution network, introducing specialized delivery services, leveraging technology, and enhancing customer communication, the company not only achieved significant cost savings and reduced delivery times but also enhanced customer satisfaction and operational efficiency. 10 MLN PLN OVERALL SAVING
Short summary
The company significantly improved its European cross-border furniture distribution by implementing a new execution strategy, which included the introduction of a 2-man handling home delivery service. This strategic overhaul led to a 22% decrease in overall cubic meter costs and a 40% reduction in delivery times. The optimized distribution network, advanced technology integration, and enhanced carrier collaboration contributed to these results. This initiative not only increased operational efficiency but also significantly boosted customer satisfaction by ensuring faster, more reliable, and careful delivery of furniture, showcasing the effectiveness of tailored logistics solutions in specialized sectors.