Hubo is implementing an intensive omni-channel strategy and wishes to investigate whether home delivery of (part) of the range is financially profitable, logistically feasible and appealing from the customer’s point of view. This embodies concrete challenges to investigate
- whether there is market potential in the DIY market for online purchase with home delivery
- with what (type of) product range it can take on the home delivery challenge
- what the internal organisation (with emphasis on how it is dealt with logistically) might look like in the future.
The above challenges were tackled in four phases:
Insight into the strategic direction and into ‘the voice of the customer’
To get sufficient guidance at a strategic time, Möbius unpicks Hubo’s business strategy and gains insight into the organisation’s underlying drivers. At the same time, an extensive customer expectation study is carried out which clarifies what potential online DIY customers expect of home delivery. A preliminary insight into the Hubo organisation is achieved by combining a number of techniques: interviews, process surveys and data analysis.
After an exploratory phase, a three-part question can already be answered concretely:
- What (type of) product range does the online DIY customer expect for home delivery?
- What level of service (delivery time, delivery window, return policy…) do customers expect with this?
- The totality of logistics options that will enable home delivery to be organised.
Analysis of the postulated, logistic scenarios
Based on the information gathered, Möbius analyses the postulated logistic scenarios – both quantitatively and qualitatively:
- Qualitatively: based on criteria such as scalability, manageability, degree of compliance with customer expectations, etc…
- Quantitative analysis: based on a comparison of the cost per order in the different logistic set-ups (stock, picking & packing, last mile, infrastructure, IT investment)
As the final stage, Möbius facilitated the choice of the desired logistic scenario for Hubo for home delivery.
Achieving the desired logistic scenario
To achieve the chosen scenario, Möbius is drawing up a detailed implementation plan together with Hubo (including timing, roles and responsibilities and dependencies). Möbius goes along to the very end, and is supporting Hubo in achieving the implementation plan.
A co-operation with Möbius has led to the following concrete results:
- Clear and thorough insight into customer expectations for home delivery (delivery time, price levels, expected range…)
- Full list of all possible logistic scenarios with evaluation.
- In-depth analysis and detailed elaboration of selected logistic scenario, including implementation plan
- Support in achieving the implementation plan