TOP-10 alternatives to DHL and Hermes for the last mile
All theory is gray - even when it comes to the currently prevalent topic of "last mile". For all those who have always wanted to know how to achieve a better negotiating position with DHL/Hermes/... here is the top 10 action plan.
In the comments to the DHL article on Exciting Commerce, Dan asked an important question as a representative of a typical medium-sized online store:
Not only Dan, but a large number of online merchants, with 150k parcels per year (and a few less), are already moving into the "sweet spot" for some of the following measures. These can at least help to improve your own negotiating position with the established CEP service providers (CEP = courier, express, parcel). At best, they will provide substantial alternatives and backup solutions on the last mile.
Regular, i.e. annual, renegotiation of existing CEP/freight rates; often by (re)tendering
Regular, i.e. quarterly review meetings on KPIs in delivery
Mix and match: main carrier and backup carrier for peaks and permanent benchmarking
Smart postal products instead of parcel rates
Direct injection models for the delivery of parcels via line haul connections Crossborder and direct injection into the hub of a local carrier
Same-day provider in metropolitan areas for flexible services and substitution of relatively expensive express products
Optimization of internal processes: Reduction of large parcels and / or bulky goods surcharges
Optimization of internal processes II: Reduction of order splits, away from multiple parcel shipments to one shipment
In the case of stationary stores: Delivery to the surrounding area with own transport vehicles or via the crowd
In the case of no stationary branches: Use of last-mile start-ups for local delivery
For a deeper insight into the individual points and a little more hands-on, there is now a separate series on the action plan here at Beyond E-Commerce. For strategy execution to implement these measures, we recommend a Theory U approach.
Reading tip: the strategic importance of Hermes' search for investors for online retail in general + Fedex & Hermes