Strategic challenge
Hubo is implementing an intensive omnichannel strategy and wishes to investigate whether home delivery of (part) of the range is financially profitable, logistically feasible and appealing from the customer’s point of view. This embodies concrete challenges to investigate
- whether there was market potential in the DIY market for online purchase with home delivery
- with what (type of) product range could be started in the home delivery challenge
- what the internal organisation (with emphasis on how it was dealt with logistically) might look like in the future.
Approach
The above challenges were tackled in four phases:
Insight into the strategic direction and into 'the voice of the customer'
To get sufficient guidance at a strategic time, Möbius unpicked Hubo’s business strategy and gained insight into the organisation’s underlying drivers. At the same time, an extensive customer expectation study was carried out clarifying what online DIY customers would expect of home delivery. A preliminary insight into the organisation was achieved by combining a number of techniques: interviews, process surveys and data analysis.
After this exploratory phase, a three-part question could already be answered concretely:
- What (type of) product range did the online DIY customer expect for home delivery?
- What level of service (delivery time, delivery window, return policy ...) did customers expect?
- The totality of logistics options that would enable home delivery to be organised.
Analysis of the postulated, logistic scenarios
Based on the information gathered, Möbius analysed the postulated logistic scenarios - both quantitatively and qualitatively:
- Qualitatively: based on criteria such as scalability, manageability, degree of compliance with customer expectations, etc.
- Quantitative analysis: based on a comparison of the cost per order in the different logistic set-ups (stock, picking & packing, last mile, infrastructure, IT investment)
As the final stage, Möbius facilitated the choice of the desired logistic scenario for Hubo for home delivery.
Achieving the desired logistic scenario
To achieve the chosen scenario, Möbius drew up a detailed implementation plan together with Hubo (including timing, roles and responsibilities and dependencies). Möbius went along to the very end, and supported Hubo in achieving the implementation plan.
Result
A co-operation with Möbius has led to the following results:
- Clear and thorough insight into customer expectations for home delivery (delivery time, price levels, expected range ...)
- Full list of all possible logistic scenarios with evaluation
- In-depth analysis and detailed elaboration of selected logistic scenario, including omnichannel strategy implementation plan
- Support in achieving the implementation plan of the omnichannel strategy
