Watch the webinar
This webinar was recorded on 19th May 2021. It explored the impact of retail delivery and returns experiences on business' ability to attract and retain the custom of high-spending online consumers. What you will learn:
What matters to online shoppers in light of the pandemic
Insights from our consumer research with YouGov
How other organisations are levelling up in logistics
Using real customer case studies
How to save 30% on your direct logistics costs
By using a multi-provider logistics strategy and AI technology
An introduction to the 7bridges AI-powered logistics platform
And some of the ways we can help you deploy world-class retail supply chain solutions
Responses to the webinar Q&A Session:
We received some questions during the recording. Here are the responses:
Q: The data you shared about sending small orders at £2.30 is interesting, but our business sends much bigger heavier orders out. How much do these type of orders cost to send?
A: With smaller lighter packages there tends to be more complexity as volumetric weight plays a more significant role in billing – here it’s even more important to optimise the box dimension for the items you’re sending.Heavier items still need optimised packing but the carrier cost is generally driven by the weight of items more than the volumetric dimensions. What we see, though, is that carriers have different thresholds as to when prices increase.
Q: With fulfilment from multiple warehouses, does LEO attempt to predict future demand from that location to (in deciding which location to ship from)?
A: Short answer, yes!
LEO does consider the predicted future demand from different locations, and uses that to inform where it recommends stock to be held, and where it recommends stock to be dispatched from. So, as demand changes dynamically around certain fulfilment locations, LEO is always optimising and identifying;
- What is the confidence that this demand can be fulfilled with the current placing of inventory?
- What is the cost if we were to fulfil that demand from where the inventory currently sits' and 'if we supplied the demand in the optimal way, what's the difference to performance and cost?
- And, therefore, where should stock be moved to make sure it's in the right position in the context of the cost of the transfer versus the cost of fulfilling the order?
Are you looking for an inventory optimisation solution? Talk to 7bridges.
Q: You mentioned that 7bridges AI is not rules driven - why is this and what does this mean?
A: Rules tell you what you have to do in a given situation.
They are a brittle way of operating logistics as they quickly become outdated – e.g. if a new provider is onboarded, if your shipment volumes/ profile changes or if prices change. If they do become outdated then this results in suboptimal decisions being made. Therefore, they require constant review and maintenance, which is a massive time drain for the organisation and tech team.
It’s much better to work with constraints, which is how 7bridges tackles the decision process. These tell you what you can’t do and leave space to optimise within what’s possible. As this optimisation is aligned to the business goals, then an optimal decision will be made out of the possibilities that remain. Therefore if prices change for a provider, for example, then you just need to update these in the 7bridges’ platform and this provider will likely be lower down in the selection choice, rather than you having to update every rule that previously drove the selection of this now sub-optimal provider.
An analogy that I like to use to just help underline this is to imagine if you were cooking dinner for 6pm. My cooking skills aren’t great, so it would be beans on toast! I find that I don’t have a can of beans at home. A rule, in this situation, could be: if you have no beans in the house, then leave for the shop ASAP and buy Tesco’s baked beans (as they’re the cheapest). However, this results in me arriving at the shop at the time when all the pesky school kids are there, which puts me in a bad mood. Also I miss out on the opportunity to buy much nicer Heinz baked beans, which happen to be on offer and available for a cheaper price than Tesco’s baked beans... A constraint, in this situation, would be: "if no beans in the house, then go out to buy beans, making sure that you’re home by 5:45, such that you can cook dinner in time for 6pm, minimise any bad mood and spend the least amount of money on beans".
This gives me much more flexibility to optimise my decisions and results in better outcomes than rules.
If you're looking to upgrade your logistics systems and processes, and want to learn more about the 7bridges AI-powered logistics platform, drop us a line.
You might also like: The 2021 Retail Logistics Guide >
7bridges is a next-generation, AI-powered logistics platform used by retailers and other businesses to unify data and operations across their supply chain, while saving on average 30% on their direct costs.
The platform connects businesses to an open ecosystem of transportation carriers and logistics suppliers, and uses real-time AI technology to dynamically select the best route, carrier and packaging for every shipment. 7bridges ensures the best outcome for every order that's sent, and offers an unprecedented level of flexibility and resilience in these uncertain times.