How Shippers and Couriers are Responding to Escalating Customer Expectations - CLDA
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Customer expectations of rapid, visible and free delivery are putting enormous pressure on both shippers and carriers.  How do last-mile providers balance customers’ expectations for speed, cost and quality while controlling costs?  And how have they learned to partner with their shipper customers to help them meet the demands of their customers?

Thinking Outside the Box recently had the opportunity to get up close and personal with a shipper and their carrier to get answers to these questions. Last-mile provider Harold Boyett is the President and CEO of Blue Streak Couriers. His long-time customer, Mark Meier, is a supply chain executive in the medical industry.

Here is part of their conversation:

QUESTION: How have customer expectations changed over the years?

Meier: Our customers expect the right products to be in their hands at the right time. Their main concerns are that we are fulfilling at the speed they want with the right products.  Because we operate in the healthcare space, there’s no room for error.  They expect the product to arrive in good shape. That’s essentially our three-legged stool: quality, on time, and reasonable cost.

Boyett: From our point of view as carriers, the thing that’s changed the most is all about information – the information about a shipment, whether it’s a package, a pallet or an envelope. Information today is equally as important, if not more important, than the shipment itself. It’s all about knowing that it’s coming, what is coming, and, most importantly, when it’s coming. It ties in with some of the things Mark said. It’s all about the right product in the right place, at the right time.

Customers today have precise, time-definite expectations.  They want to know if the delivery will arrive on Tuesday between 8 and 4, as that’s the most critical information. They’d rather know that it’s coming Tuesday between 8 and 4, with a lower cost, than to pay more to have it expedited to arrive Monday morning. If they know it’s going to be there within a specified time window, they can plan accordingly.

QUESTION: Have those expectations changed since COVID?

Meier: Yes.  COVID forced customers into new patterns of behavior. They now expect that almost everything can be delivered to them.  It happened with deliveries to people’s homes, and it’s played out for our customers and their businesses. Our customers are small businesses.  They are healthcare offices, and they don’t keep a lot of inventory on hand. So they rely on their suppliers to have everything as readily available as possible. That’s the new normal. Everyone expects to be able to get what they need when they need it.

Boyett: There’s no question that COVID has and will continue to have an impact on customer expectations.  During the pandemic, numerous packages were flowing, and seemingly everything was delayed.  It didn’t matter who the carrier was, what you were ordering, or where you were ordering it. I think that’s where the emphasis on knowing when it would arrive came from.  Customers saw this as more important than the actual speed of delivery.

Mark: I agree with the points Harold shared.  Our customers value stable deliveries, allowing them to plan accordingly.  For example, if they’re accustomed to receiving delivery within a time-definite window, on the same day, week after week, that’s what they expect.  Therefore, we need to collaborate with the last-mile carrier to ensure that we meet the expectations of those customers. Setting up a stable pattern is a very important aspect of our distribution.

QUESTION: What about returns?  Have customer expectations changed over the years on this issue?

Boyett: I think from a business-to-consumer perspective, my understanding is that because people are so used to ordering things–things they can’t touch or feel–that they are doing things differently. You see customers ordering three different sizes, knowing they can return the ones that don’t fit.

And today, with the omnichannel mindset of shopping, that exact scenario applies when it comes to returns.  You can drop it off at the store where it was purchased or at another designated location.  You can drop it at the Post Office or the UPS store. You can arrange for it to be picked up from your house. All those are things that didn’t exist five years ago.

Meier: Since our customers are healthcare providers, returns in our world are handled differently.  Our customers aren’t ordering things they are unfamiliar with.  So, returns usually happen because the need has shifted. These products have high intrinsic value, so returning them properly is crucial.  In our case, the speed at which a return is completed isn’t as critical to the customer. If it happens within a reasonable number of business days, it’s fine as long as the return is credited promptly. 

Boyett: On the other end of the spectrum, today’s consumers want almost instantaneous credit for their returns. In the B2C world, as soon as a consumer drops it off at the UPS store and when that barcode is scanned, customers expect retailers to issue a credit almost immediately.

QUESTION: As customer expectations continue to rise, how can last-mile providers face the challenge of meeting these demands while controlling costs and maintaining service quality?

Boyett: You have to leverage technology. You need to leverage technology to streamline processes, reduce costs, and build efficient workflows.  The data that accompanies the packages, specifically the exceptions, is everything.  You need to have technology in place that helps you manage exceptions, allowing you to identify them quickly and communicate them to the customer promptly.  The best-case scenario is that they realize it before it happens. 

What that means is that the customer understands you’re being as transparent as possible.  It’s our job to help our customers serve their customers best. Therefore, if a carrier is aware of a problem that will cause the package to be delayed, they must notify the shipper, who can then inform their customer.  It’s all about having and making the most of information as it happens.  So, it’s really the information that’s the game changer.  How you handle that information makes all the difference in the world to the customer who is relying upon your service.

QUESTION: Harold talks about harnessing the power of information.  How important is that information in terms of the shipment’s visibility?

Meier: That’s a critical factor.  It speaks directly to our credibility as a supplier. For us, credibility is carried out by the last mile, which is facilitated by the parcel carrier. I couldn’t agree more with what Harold said.  It’s all about knowing where that shipment is and what’s going to happen next. Imagine a scenario where an office manager is searching for something the doctors need but can’t find answers about where it is. The worst-case scenario is when they can’t find answers. On the other end of the spectrum, if they know about an exception before they discover it, that’s a better situation.  Therefore, we must trust that the information received from the carrier aligns with our real-life experience. We have to be able to trust that technology.

We know that, in the real world, traffic, outages, and weather happen. So, whatever disruption occurs, if the carrier lets us know they are addressing it appropriately, we can inform our customer.  If the carrier’s data is communicated quickly, there’s less friction in a shipper’s relationship with their customer. That builds confidence, ultimately leading to increased customer loyalty.

QUESTION: We’ve discussed technology extensively, but is the human touch still important?

Meier: It is.  But it all depends on the customer.  When there’s an issue, some may want to talk to somebody to hear about your plan to fix it.  Having a CSR with information at their fingertips who can do that well is very important.

In other situations, customers may want to get what they need with just two clicks on a website. They want to be able to see the information they need, in the way that they want to consume it, when they need it. One of the things we do when we have an exception is to point them to a self-service source. We do so not because we don’t want to talk to them face-to-face, but because it’s available to them in the moment.

QUESTIONS: Let’s end by having each of you talk about where you see customer expectations going in the next few years.

Boyett: The technology is the main thing. Technology is happening. Artificial intelligence is poised to become a significant presence in our field.  The use of autonomous vehicles and robotics is expected to become increasingly important in the near future.

Meier: I’d add a couple of things there. One is that we just discussed technology and people’s comfort level with it. That was accelerated over the past couple of years. Some of those new opportunities, delivery methods, and increased information availability are being consumed much more widely than they have in the past.

We discussed the need for information to match the speed of product development. Harold mentioned something earlier about the importance of being able to tell a customer about an exception before they discover it. That will become the norm. And that bolsters customer loyalty.

Today, most of our customers are not checking websites. They’re not watching for tracking. They’re expecting it to be either Tuesday afternoon or Thursday afternoon, because that’s how it happened last time. They expect it to be fulfilled in the same way.

In other words, if you can obtain that information before they notice the package hasn’t arrived, that’s not exactly customer delight, but it’s better than the alternative. With today’s technology, that’s happening.  Tomorrow’s tech will make it happen even faster.  And with that, we’ll be able to continue to improve customer satisfaction and loyalty.

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How Shippers and Couriers are Responding to Escalating Customer Expectations

Customer expectations of rapid, visible and free delivery are putting enormous pressure on both shippers and carriers.  How do last-mile providers balance customers’ expectations for speed, cost and quality while controlling costs?  And how have they learned to partner with their shipper customers to help them meet the demands of their customers?

Thinking Outside the Box recently had the opportunity to get up close and personal with a shipper and their carrier to get answers to these questions. Last-mile provider Harold Boyett is the President and CEO of Blue Streak Couriers. His long-time customer, Mark Meier, is a supply chain executive in the medical industry.

Here is part of their conversation:

QUESTION: How have customer expectations changed over the years?

Meier: Our customers expect the right products to be in their hands at the right time. Their main concerns are that we are fulfilling at the speed they want with the right products.  Because we operate in the healthcare space, there’s no room for error.  They expect the product to arrive in good shape. That’s essentially our three-legged stool: quality, on time, and reasonable cost.

Boyett: From our point of view as carriers, the thing that’s changed the most is all about information – the information about a shipment, whether it’s a package, a pallet or an envelope. Information today is equally as important, if not more important, than the shipment itself. It’s all about knowing that it’s coming, what is coming, and, most importantly, when it’s coming. It ties in with some of the things Mark said. It’s all about the right product in the right place, at the right time.

Customers today have precise, time-definite expectations.  They want to know if the delivery will arrive on Tuesday between 8 and 4, as that’s the most critical information. They’d rather know that it’s coming Tuesday between 8 and 4, with a lower cost, than to pay more to have it expedited to arrive Monday morning. If they know it’s going to be there within a specified time window, they can plan accordingly.

QUESTION: Have those expectations changed since COVID?

Meier: Yes.  COVID forced customers into new patterns of behavior. They now expect that almost everything can be delivered to them.  It happened with deliveries to people’s homes, and it’s played out for our customers and their businesses. Our customers are small businesses.  They are healthcare offices, and they don’t keep a lot of inventory on hand. So they rely on their suppliers to have everything as readily available as possible. That’s the new normal. Everyone expects to be able to get what they need when they need it.

Boyett: There’s no question that COVID has and will continue to have an impact on customer expectations.  During the pandemic, numerous packages were flowing, and seemingly everything was delayed.  It didn’t matter who the carrier was, what you were ordering, or where you were ordering it. I think that’s where the emphasis on knowing when it would arrive came from.  Customers saw this as more important than the actual speed of delivery.

Mark: I agree with the points Harold shared.  Our customers value stable deliveries, allowing them to plan accordingly.  For example, if they’re accustomed to receiving delivery within a time-definite window, on the same day, week after week, that’s what they expect.  Therefore, we need to collaborate with the last-mile carrier to ensure that we meet the expectations of those customers. Setting up a stable pattern is a very important aspect of our distribution.

QUESTION: What about returns?  Have customer expectations changed over the years on this issue?

Boyett: I think from a business-to-consumer perspective, my understanding is that because people are so used to ordering things–things they can’t touch or feel–that they are doing things differently. You see customers ordering three different sizes, knowing they can return the ones that don’t fit.

And today, with the omnichannel mindset of shopping, that exact scenario applies when it comes to returns.  You can drop it off at the store where it was purchased or at another designated location.  You can drop it at the Post Office or the UPS store. You can arrange for it to be picked up from your house. All those are things that didn’t exist five years ago.

Meier: Since our customers are healthcare providers, returns in our world are handled differently.  Our customers aren’t ordering things they are unfamiliar with.  So, returns usually happen because the need has shifted. These products have high intrinsic value, so returning them properly is crucial.  In our case, the speed at which a return is completed isn’t as critical to the customer. If it happens within a reasonable number of business days, it’s fine as long as the return is credited promptly. 

Boyett: On the other end of the spectrum, today’s consumers want almost instantaneous credit for their returns. In the B2C world, as soon as a consumer drops it off at the UPS store and when that barcode is scanned, customers expect retailers to issue a credit almost immediately.

QUESTION: As customer expectations continue to rise, how can last-mile providers face the challenge of meeting these demands while controlling costs and maintaining service quality?

Boyett: You have to leverage technology. You need to leverage technology to streamline processes, reduce costs, and build efficient workflows.  The data that accompanies the packages, specifically the exceptions, is everything.  You need to have technology in place that helps you manage exceptions, allowing you to identify them quickly and communicate them to the customer promptly.  The best-case scenario is that they realize it before it happens. 

What that means is that the customer understands you’re being as transparent as possible.  It’s our job to help our customers serve their customers best. Therefore, if a carrier is aware of a problem that will cause the package to be delayed, they must notify the shipper, who can then inform their customer.  It’s all about having and making the most of information as it happens.  So, it’s really the information that’s the game changer.  How you handle that information makes all the difference in the world to the customer who is relying upon your service.

QUESTION: Harold talks about harnessing the power of information.  How important is that information in terms of the shipment’s visibility?

Meier: That’s a critical factor.  It speaks directly to our credibility as a supplier. For us, credibility is carried out by the last mile, which is facilitated by the parcel carrier. I couldn’t agree more with what Harold said.  It’s all about knowing where that shipment is and what’s going to happen next. Imagine a scenario where an office manager is searching for something the doctors need but can’t find answers about where it is. The worst-case scenario is when they can’t find answers. On the other end of the spectrum, if they know about an exception before they discover it, that’s a better situation.  Therefore, we must trust that the information received from the carrier aligns with our real-life experience. We have to be able to trust that technology.

We know that, in the real world, traffic, outages, and weather happen. So, whatever disruption occurs, if the carrier lets us know they are addressing it appropriately, we can inform our customer.  If the carrier’s data is communicated quickly, there’s less friction in a shipper’s relationship with their customer. That builds confidence, ultimately leading to increased customer loyalty.

QUESTION: We’ve discussed technology extensively, but is the human touch still important?

Meier: It is.  But it all depends on the customer.  When there’s an issue, some may want to talk to somebody to hear about your plan to fix it.  Having a CSR with information at their fingertips who can do that well is very important.

In other situations, customers may want to get what they need with just two clicks on a website. They want to be able to see the information they need, in the way that they want to consume it, when they need it. One of the things we do when we have an exception is to point them to a self-service source. We do so not because we don’t want to talk to them face-to-face, but because it’s available to them in the moment.

QUESTIONS: Let’s end by having each of you talk about where you see customer expectations going in the next few years.

Boyett: The technology is the main thing. Technology is happening. Artificial intelligence is poised to become a significant presence in our field.  The use of autonomous vehicles and robotics is expected to become increasingly important in the near future.

Meier: I’d add a couple of things there. One is that we just discussed technology and people’s comfort level with it. That was accelerated over the past couple of years. Some of those new opportunities, delivery methods, and increased information availability are being consumed much more widely than they have in the past.

We discussed the need for information to match the speed of product development. Harold mentioned something earlier about the importance of being able to tell a customer about an exception before they discover it. That will become the norm. And that bolsters customer loyalty.

Today, most of our customers are not checking websites. They’re not watching for tracking. They’re expecting it to be either Tuesday afternoon or Thursday afternoon, because that’s how it happened last time. They expect it to be fulfilled in the same way.

In other words, if you can obtain that information before they notice the package hasn’t arrived, that’s not exactly customer delight, but it’s better than the alternative. With today’s technology, that’s happening.  Tomorrow’s tech will make it happen even faster.  And with that, we’ll be able to continue to improve customer satisfaction and loyalty.