T he words “expedited shipping” can sometimes prompt the notion that someone, somewhere along the supply chain, goofed. As a result, the company needs to spend more to speed a shipment along. While expedited shipping remains an important tool for compensating for missteps, savvy organizations take a more strategic approach. For example, they might leverage expedited shipping to boost customer satisfaction and their competitive position. About one-third of consumers say they’re more likely to do business with a company that offers same- or next-day shipping, says Dan Spitale, vice president with UPS Digital, a business unit of UPS. Companies that use expedited shipping to meet these expectations may gain an edge. EYES ON SATISFACTION A goal of ensuring customer satisfaction is one driver behind Glasses USA’s use of expedited shipping, says Eldad Rothman, chief operating officer and co-founder of the leading online eyewear retailer. Many consumers are new to buying glasses online, and some worry that they may need to compromise on quality. Glasses USA, which produces about 4,000 orders every 10 hours, aims to shatter that misperception. “We always want to surprise customers with the physical experience,” Rothman says. The glasses take between several minutes and several days to produce, depending on their complexity. Shipping takes no more than another one or two days. This compares to up to the 10-day lead time that has been the industry norm, he adds.
The company recently opened a logistics center in Atlanta. The site, which brings together operations previously spread across several locations, was chosen in part for its proximity to Hartsfield-Jackson Atlanta International Airport. Typically, orders heading to the West Coast will go via expedited air shipping, so they arrive within two business days—generally, the same amount of time as shipments to customers in the southeastern United States, many of which travel via the U.S. Postal Service. While it’s difficult to place a dollar amount on the value of expedited shipping to Glasses USA, Rothman notes that customers return an average of 1.5 times per year. That compares to an average of about once every 26 months for many competitors, he says. On any given day, roughly half of Glasses USA’s customers have previously purchased from the company. KEEPING UP WITH DEMAND Exceeding customers’ expectations is also a goal for Michael Green, chief executive officer of Ontario- based Alternative Roofing, which specializes in metal roofing. Demand for these roofs in the Canadian market is growing about 5% annually. “To stay competitive and meet rising demand, we’ve had to improve on logistics,” Green says. In particular, demand for the company’s services can spike during the spring and summer, given the difficulty of working during the colder winter months. “We can often start and finish jobs quicker than our competitors, who are waiting on standard shipments,” Green says.
November 2024 • Inbound Logistics 31
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