Delivery Management
MCepisode6banner.png [https://images.squarespace-cdn.com/content/v1/5a07b3af6957da9b9b9b5cde/1571678954663-ONKMTXP2ADFAN8GRUJVV/MCepisode6banner.png?format=1000w] THE VALUE OF DELIVERY MANAGEMENT SYSTEMS FOR IMPROVING PROFITABILITY. It is 2019 and distribution companies are still using outdated paper-based delivery tracking. In Episode 6 Georgia goes back to Episode 5 with John McCabe, and revisits the topic to discuss how an electronic solution drives profitability in your delivery operations. GOING TO IFDA DISTRIBUTION SOLUTION CONFERENCE OCT 27-29, 2019? Join us in booth 948 to get your Growth Through Delivery Assessment — Helping food distributors grow their business with top-notch customer service and reliable delivery data visibility. Learn more [https://www.extendata.com/eventscalendar/ifda-2019-distribution-solution-conference] [https://images.squarespace-cdn.com/content/v1/5a07b3af6957da9b9b9b5cde/1637178202354-ZJU7BLHZJ51E27CU9AIM/Honeywell%2BPlatinum%2BPartner?format=1000w] SPONSORED BY Helping your business deliver increased productivity and profitability. PODCAST TRANSCRIPT Georgia: Hi Everyone. I’m Georgia Brown with ExtenData. For episode 6 we are going back to episode 5. To keep our podcasts short we have to do some heavy editing at times, but there was some good stuff we don’t want you to miss it! So as we jump back in John McCabe was just telling me about the value of delivery management systems when trying improving profitability. So earlier you had mentioned increasing profitability in these delivery operations, and we’ve talked in the past about all the different ways that you can create that profitability by using a delivery management tool like mobile conductor, but just to prove our point a little bit, can a food distributor get the same type of ROI out of their delivery operations without a mobile conductor delivery management application? John: I think it’s more difficult, we hear stories across the board of how our tool mobile conductor and its visibility can capture things like miss delivered items, or we were told by a customer recently where when they used to get a call from a customer saying, “hey I didn’t receive Product X,” in the past, they were a good customer, so they would immediately say “okay, no problem, sit tight, we’ll get that to you shortly,” and what they would do is scramble around, they’ll expedite the item, get it out to the customer, to maintain that level of customer service. So right there they had additional labor, additional product, additional transport cost, where now, in a mobile conductor environment, they have the power to at least say, “hey, let me just check, it looks like that item was actually signed for at 10:39 this morning by Larry or whoever is on the signature, could you just check, it may not be where it’s exactly supposed to be, and 9 times out of 10 the customer will call back and say, “yup, we got it, one of the chefs had taken that and already started preparing some of the items on the menu, we had it, no problem.” We heard that at multiple instances and upwards we had one instance where they expedited order because of the distance, was one of our customers could cost us more than 1,500 dollars for that one expedited order to ship out that product, that labor, that transport, the return trip, and everything associated with it. Whereas now, that’s all with a phone call, with the customer. And then again it’s full circle on customer service, when your customer calls, or when their customer calls them, they kept that answer quickly. The answer may be, “yeah, we missed it, we’ll send it out to you,” but we are hearing 9 times out of 10 that’s not the case, it was delivered, it was signed for, we have the proof and the visibility, and that’s getting a lot quicker at a lot lower cost. Those things drive profitability, things that are delivered or ordered and once the driver gets to the customer for delivery, and the customer may not need the exact quantity that they ordered, with mobile conductor they can quickly make adjustments, make sure they track the inventory that was not delivered, that’s the way so that they can be sold, so it’s not just taken or lost in the shuffle, or lost in the paperwork. So there’s a number of areas where that can impact and that all those examples all are profitability in a very tight market. Georgia: Yeah. So for our listeners out there, we can draw the conclusion for them that it’s not like we are talking about paper methods vs. electronic methods, and a delivery operations can choose between the two and still get efficiency out of it. The reality is that you are not gonna get the efficiency you want until you move to an electronic proof of delivery or direct store delivery management application. John: That’s exacty right, and it changes the game, because it’ll then sit across the entire last mile of their supply chain and in their delivery management, so as we started this conversation, you asked me what was the number thing that people ask for, start with the visibility, it goes down to the accuracy, and we drive profitability through to all the labor associated with streamlining these operations. We haven’t even touched on, and I know we probably don’t have time to, but we have even talked about some of the supplies and saving the company, we see our customers save just on, what are they reducing, and paper side printing and all the materials associated with how they are currently doing it today. Georgia: Sure. Well, that actually is a great segue into my next question which was that if you could tell us a little bit more about the growth through delivery assessment that we are offering at the IFDA show for attendees? Could you speak a little bit to what attendees might receive if they come by booth 948? John: Yeah, that’s it, we look forward to that. That’s something we developed straight from our customers, and what we try to do is keep it very simple, and spend some time with folks that want to stop by the booth, and just look at some of the parameters that they face everyday. The last one I touched on was we obviously look at what are the supplies, what are we printing with, all of the back office things so that when a driver gets in a vehicle he’s got this big stack of paper and what does that cost. We look at the labor time, and again we keep it simple. What sort of time are drivers spending what I call “pre-ignition,” getting their paperwork in order so that they can perform their jobs. Post-ignition, their end of day, and then one segment within the day is how much time have we talked about this on this podcast, is how much time are they spending at customers’ side, and how can we make that more efficient, more effective, more of a customer ambassador vs. just delivery. So we take those parameters and again we try to keep it simple, because each business is, we are all in wholesale foods obviously, but each business is unique, we put some parameters around that total number of rounds you are making a day, per week, per year, those sort of things, put that into a simple calculator, and let our prospects know the types of streamlining and return on investment if they were to invest in an electronic delivery management system, what they might see. We’ve been doing this for 16 years now, and we have a lot of evidence around this, and again, we try to keep it simple, and what we’ve come up with is let’s just be super conservative and say we can just improve that 30%, and have a total calculator on that. We are better than that, it’s 50%, so it’s just the impact on the business in real, measurable ways, the labor, supplies, time, things against fixed cost you have today. So it’s a very simple exercise, and I’ll be able to just print out a one page for the folks to take away and go through, but the nice thing though is that they’ll be able to use their numbers, they may say, “my driver only spends 3 minutes every morning, he can get in and out of the truck and then okay, you are doing great. Typically what we will see is you know, that 15 minutes will end up to be quite a lot if you’ve got 50 drivers over 52 weeks a year. So, yeah, we look forward to many of these assessments, and just at least putting the power of that information in folks’ hands so they can take it away and consider the impact it may have on their business. Georgia: Fantastic. Yeah, I really encourage everyone listening to if you are going to be at the IFDA Distribution Solution Conference this year, to stop by our booth, that’s 948, this growth through delivery assessment is gonna be really valuable and power for anyone who takes up the opportunity to sit down with John. And as I mentioned, he’s got tons of experience helping food distributors of all sizes and varieties figure out how delivery management can transform their business. So this is going to be really powerful for companies of all sizes and shapes to see how they can transform their business. So we’ll see you guys at IFDA, if not, feel free to reach out to us through mobileconductor.com, and again we’ll be in booth 948. So thanks for your time, John, I appreciate it, and we’ll talk to you again soon! John: And thank you, I look forward to seeing everybody at the conference. Georgia: And that’s our podcast. Make sure you get episode 7 by subscribing on Apple Podcasts.
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