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Showing posts with label brand. Show all posts
Showing posts with label brand. Show all posts

Monday, October 21, 2024

Enhancing Brand Trust Through Last Mile Innovations: A Look at Veho and J.B. Hunt Final Mile Services and Disproving the Myth that a Brand Must Own Their Own Network.

The last mile of delivery is the most crucial part of the supply chain, as it directly impacts customer satisfaction and brand perception. It's the part that directly connects with the customer, and it can either make or break the promise a brand makes. I've been following Veho, a company that's really changing the game in last mile delivery, and I have to say, I'm excited about the difference they're making.

While I am mentioning specific companies in this post, I think it is important to understand the key aspects of what I am trying to say. BLUF (Bottom Line Up Front):

  • The Final Mile is where your brand interacts with your customer. Your customer has three main touch points as they get to know your product: 1) When they see it in the store and buy it 2) When it is delivered (If delivered) 3) The first time they use it. 
  •  The Final Mile is likely an area of the supply chain which is outsourced. 
  •  The belief that in order to protect your brand you have to own the final mile is a myth. Veho and J.B. Hunt FMS prove this. 

I order Nespresso Coffee pretty regularly (my wife is not happy) and the delivery comes through a service called Veho. Veho is doing something new with last mile logistics: they focus heavily on the customer experience, offering features like flexible delivery scheduling, live tracking, and proactive customer communication that set them apart from competitors. Their service isn't just about getting a package from point A to point B—it's about building trust and loyalty with the brand. Imagine ordering something and knowing exactly when it will arrive, with consistent updates and the confidence that it will be handled with care. That's what Veho offers, and it makes a big difference in protecting the brand’s reputation. The unique part is that they actually enhance the brand but they are not part of the companies who hire Veho. This is rare as a lot of final mile systems actually detract from the brand, especially when they are a third party service. 

The final mile is the part of the supply chain that the customer actually sees and interacts with, so it must be seamless and efficient to maintain customer trust. Any mistake—like late deliveries, damaged packaging, or poor communication—can hurt the trust customers have in a brand. Veho's approach makes sure that this important step is not only smooth but also enjoyable. This kind of service reinforces the quality of the product and keeps customers coming back.

Veho isn't the only company setting high standards in last mile delivery. J.B. Hunt Final Mile Services is also doing an excellent job, especially with big, bulky, and heavy products. They know how to handle items like furniture and large appliances, where the risks are even higher. Imagine buying a new refrigerator—something that's not just expensive, but a key part of your home. The last thing you want is a missed delivery or damage during setup. J.B. Hunt's specialized teams provide white-glove service, which means they handle every aspect of the delivery process—bringing the item into the home, unpacking it, installing it, and ensuring everything is set up properly. They make sure these large items are delivered, installed, and ready to use, all while treating the customer's home with respect. This level of care not only makes for a better customer experience but also protects the reputation of the product manufacturer.

Protecting the brand is crucial, especially today, when customers have more choices than ever before. It's not just about selling a great product; it's about making sure every part of the customer journey—including the final mile—matches the brand's promise. Companies like Veho and J.B. Hunt know that the delivery experience is part of the product itself. Veho's ability to personalize delivery times, give real-time updates, and make the experience feel more human gives customers confidence and makes them feel valued. J.B. Hunt's expertise in handling difficult deliveries makes sure that even the most challenging products are delivered without issues, which builds trust in the brand.

I'm genuinely impressed by the impact these companies are having on last mile delivery, and I believe their methods represent the future of logistics—customer-focused, reliable, and consistently enhancing the brand experience. They also disprove the myth that a company must own everything to protect their brand in their service to their customers. You can use outside experts and when properly incorporated into a customer's strategy, these outside experts can be additive to your brand reputation. 





Sunday, January 27, 2013

Cost Control Gone Bad..Subway Agrees to Make all "Footlongs" well.. A Foot Long

We have all seen it in just about everything you buy; packaging is thinner (resulting in more damaged product), metal is replaced with plastic, minor features just no longer exist, what was 4oz is now 3.8oz (same price)... well, you get the picture.  To "manage costs" just about every company eventually goes too far.  What is that limit you ask?  It is when the brand promise is violated to save a few cents.

This is the case of the "Footlong" sandwich which it turns out was not a footlong.  At first the company declared that the word "footlong" was more of a trade name and not intended to imply the sandwich was actually a foot long.  Yea right.  And now the company finally comes out and agrees they will make all future sandwiches a foot long.  

I bring this up because all who run companies have to realize there is an unwritten brand promise to customers which cannot be violated or you risk huge backlash.  Virtually every company's single largest asset is its brand and the brand is based solely on trust.  The only reason any brand would command any premium over a commodity price is that the consumer believes somehow the people behind that brand name are doing something no one else is.  So, without knowing what that is (i.e, they trust) people will pay a premium.

When the consumer realizes the trust has been violated they turn on the brand fast and furiously.

This is the reason why there is virtually no intrinsic brand loyalty in air travel.  Most (not all with Southwest being a notable exception) have decided the best way to make money from customers is to declare war on them.  Every consumer of air travel knows it does not cost the company $150 to change a flight.  Yet, the airlines charge it because they are exerting quasi-monopoly power.  Because of this there is no trust and therefore the brand is essentially meaningless.

So, don't forget:  The brand is built on trust and as we see here when the trust is violated, the wrath will come down.

Sunday, November 14, 2010

Supply Chains Used As An Extension of The Brand - Part 1

This week I am going to put some thoughts down about whether companies use their supply chain as an extension of their brand or just as an evil necessity that they would rather do without.  I have personally been involved in many companies and I have seen it done many ways.

Here are some characteristics of supply chains when used in the following manner:

1) Used as an extension

  • Company does not separate the product from the acquisition experience for the customer. They are intertwined.
  • Company puts protection of brand above all else (including cost).
  • Company probably does not do a lot of outsourcing in supply chain (Do you want your brand in another person's hands?).
  • Company cross trains between marketing, sales, product development and supply chain.
  • Company is most likely not "stovepiped". In other words they are not organized around functional silos but rather around products, categories of products or channels / customers.
2) Not used as an extension

  • The reverse of everything above.
  • The customer gets additional feeling of benefiting when dealing with the supply chain. 
  • Service is matched to the brand experience the company is going after
  • Supply Chain is seen as a cost to be cut. 
  • The big one:  When people in the commercial side of the business refer to themselves uniquely as "the business" and the supply chain is just something to execute at the lowest cost imaginable. 
This is just a short list and as I develop my thoughts further I am sure this list will be adjusted and added to.

Can anyone think of a company that makes their supply chain experience part of the brand v other companies which make it just a back office function?