Orders placed in the evening are collected from the warehouse for delivery that evening and delivered to selected postal codes the following day. The aim of the pilot is to improve the online shopping experience of Telia's customers, bring competitive advantage and increase sales.
Speed is of the essence, says the familiar wisdom of e-commerce. Telia wanted to test that in practice. Telia, Posti and Transval are testing the effects of delaying the cut-off time on customer experience and sales in the pilot. - There is a lot of talk about the need for a fast e-commerce process and consumers expect fast deliveries. This is what we wanted to test," says Elina Järvinen, Procurement Manager at Telia. Telia's goal since the establishment of the online store has been to make it the fastest in Finland. Initially, the cut-off time for next-day deliveries was from 6 p.m.: if an e-commerce order was placed by 6 p.m., it could be shipped the same day and would arrive in many postal areas the next day. The partners have a long history of working together. Transval takes care of the warehousing and collection of products for Telia's online shop, Posti takes care of the transport. - We already had a very late cut-off time and have received good feedback on delivery times. We wanted to see if the customer experience would improve even more if orders received by 9pm were delivered the next day.
The pilot is based on accurate delivery data
Together, the pilot was carefully evaluated and planned using Telia's order data. Telia's systems provided information on the postal code areas to which products were ordered and how many orders were received between 6pm and 9pm. According to Järvinen, the key question was whether the number of orders placed in the evening in the areas covered by the pilot would be sufficient to make the pilot worthwhile. "We did a data analysis of where packages are usually delivered and what potential we have to reach customers if the outage time is extended. Together we were able to assess how we could make the pilot as large as possible at a smart cost. Posti made us a proposal for implementation. In addition to the standard deliveries, we added evening deliveries to pick up products ordered before the outage. Now, Telia customers in certain postal code areas receive their orders placed before 9pm the next day.
Success will be measured throughout the pilot
The pilot, which started in October, will continue until early next year and its results will be measured regularly. According to Järvinen, Telia will monitor performance both in its own systems and together with Posti and Transval.- NPS surveys measuring customer satisfaction and experience will be sent to customers as part of the normal process. Mutually agreed KPIs are used to monitor success. Järvinen stresses that Telia, Posti and Transval have one customer in common. The customer evaluates the supply chain as a whole from the moment he places an order in the online shop, through to collection at the warehouse, packaging and delivery to the pick-up point or doorstep. The open comments left by customers in recent weeks have shown that the parcel has arrived quickly. However, the real conclusions can only be drawn after the pilot.
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