Fight to compete with the big boys

It was only a decade ago when the majority of online retailers worked exclusively with a single carrier to fulfill deliveries with an overall objective of securing the best value for money through economies of scale. At that time, carrier management technology was scarce and this option was also considered to be relatively stress-free.

However, this brought with it its own challenges. By entering a single carrier partnership, retailers’ eCommerce strategies were being guided by the competencies of that particular carrier, which would often have a detrimental impact in terms of service expansion and growth. For instance, if a retailer’s chosen carrier was unable to deliver an efficient Next Day service, it may have forced the retailer’s hand to withdraw that option, which would result in lost sales and a drop in customer satisfaction.

Back then the larger retailers held the advantage as they enjoyed the spending power that allowed them to contract out to specialist providers. In turn, this gave them a competitive edge over their smaller competitors, who faced being left behind. However, time has moved on and so has consumer demand, which are both intrinsically linked to an explosion in new technology.

In response to these market drivers, iForce took the decision to offer its carrier management platform, Route Genie, as a stand-alone SaaS solution to compete in the monopolised market and create a needed and credible alternative within the industry. The software is beneficial to retailers who already have a warehouse or fulfillment facility, providing complete control and visibility over the management of carriers and helping to improve efficiency across the supply chain.

iForce ensured that Route Genie was developed from a logistics point of view, not just a software point of view. The solution integrates with each of the leading domestic and international industry carriers, allowing retailers to manage fulfillment proficiently. Route Genie has been built to help businesses rapidly determine how best to utilise their carrier relationships. It allows retailers to divert traffic if any of their carriers are suffering from service issues. Volumes can also be spread across any number of delivery companies, helping to future-proof the industry against the strain of peak seasons and unpredictable events. This was evident on Boxing Day, when Route Genie allowed to users to switch volumes away from City Link within minutes of the announcement that the company had entered administration.

Route Genie is also revolutionising how companies are charged for using carrier management software. Over recent years the industry has become accustomed to ‘paying by the label,’ however retailers of all sizes can access the platform via the acquisition of flexible licenses, which are scalable according to use. As well as helping to create a level playing field in terms of access to carrier management software, this method ensures that retailers will be able plan their carrier management budgets more effectively.

Earlier this year the IMRG Capgemini e-Retail Sales Index revealed that UK consumers spent £104 billion online during 2014, the very first time the £100 billion barrier has been broken. As a result of this phenomenal growth, consumers are demanding more choice and convenience when it comes to delivery, as well as expecting higher levels of customer service and visibility across the supply chain.

To address this, Route Genie has developed a feature that enables retailers to choose how they contact their customers regardless of which carrier is deployed. In contrast to some carriers who contact online shoppers via text, whilst some do not at all, Route Genie allows retailers to deliver a consistent customer journey. Also, as final mile delivery is an extension of the overall brand experience, it ensures all communications are client branded too, from start to finish.

In summary, a recent and significant technological investment is challenging a previously monopolised market, creating a level playing field for smaller retailers who should be reaping the benefits from operating an efficient carrier management solution. Businesses of all sizes are now firmly in the driving seat to dictate and mould an eCommerce strategy they have absolute confidence in for years to come.