Inbound Logistics | January 2023

Saatva uses more than 150 delivery carriers shipping from 19 U.S. factories. Although the company is setting up retail viewing rooms nationwide where shoppers can interact with products using technology, purchases will be delivered using the carrier network. “If there’s an issue, we solve it in the best, most expedient way possible,” Dimilta says. “We always put the customer rst and want to ensure that their experience with us is as exceptional as the products we deliver.” Still, some retailers have invested in their own networks. Warehouse giant Costco acquired Innovel Solutions in 2020 to support the growth of online ordering and fulllment. Under the name Costco Logistics, the company uses 18 e-commerce fulllment centers and 11 distribution centers in the United States to feed products through 100 last-mile delivery hubs. At the hubs, the products are slotted for third-party delivery. With the hubs, Costco can provide accurate inventory information and estimated arrival times to shoppers, notes Jorge Cerda, Costco’s assistant general merchandise manager of e-commerce merchandising. Depending on the item, shoppers can

Retail giant Costco delivers about 85% of its LTL shipments for U.S. e-commerce through its Costco Logistics division, which provides in-home delivery of big and bulky items.

“Even if the consumer doesn’t want to take full advantage of the optionality, just by offering it, retailers put themselves at a competitive advantage,” Bourke says. “Their customers know that they at least have the option to choose a higher level of service.” BUILDING A NETWORK To maintain exibility and redundancy in their last-mile network, it’s critical for shippers to diversify their carrier base. During the pandemic, some carriers capped the number of parcels a shipper could submit to the network, delaying shipments. It’s wise to use multiple carriers for specic niches or geographies. For example, SEKO uses its own box trucks and vans for bulky, medium- sized deliveries like at-pack furniture. It contracts with other carriers for smaller parcel sizes and larger, heavier products. If a shipper has a broad range of products, the 3PL chooses the correct mode for each type. “If a retailer ships everything from socks to bed frames, the socks may go by parcel while the larger items go by crowd-sourced delivery options such as Roadie or Axle Logistics,” Bourke says. Diversifying the carrier base can help shippers nd alternatives to companies adding peak surcharges and general rate increases. Online retailer Uncommon Goods wanted to offer faster shipping for its unique artisanal and artistic products at lower costs. 3PL ITS Logistics

choose from delivery at the curb, or threshold, or complete set-up delivery. Shoppers can view delivery dates, select a preferred date for fulllment, and track the location. Giving consumers delivery options can help drive sales. Some customers will shop by expected delivery dates, especially for larger items such as furniture. If a shipper can promise shorter delivery windows for some products, consumers are more likely to click the buy button. The shipper can offer faster shipping for a fee, giving customers information so they can balance cost and service levels.

Direct-to-consumer mattress company Saatva partners with a variety of mid-sized and smaller white-glove transportation firms to deliver its products throughout the country.

110 Inbound Logistics • January 2023