Logistics Team Delivers with Shipping Enhancements
An Exchange trailer delivers merchandise to the Innovel facility warehouse in Pendergrass, Ga.
Major appliances purchased at ShopMyExchange.com are being delivered to customers in 10 days—and possibly fewer—thanks to a new delivery method that also shaves millions in transportation costs.
The Exchange is continually working to improve the shopping experience for Warfighters, retirees, Veterans and their families while cutting costs.
Nearly 16,000 appliances were shipped in 2018 using streamlined distribution, saving the organization an estimated $3 million, a nearly 87 percent improvement compared to 2017.
Customers received their major appliances in 10 days as of February, compared to 25 days in December 2017.
“The Logistics team is committed to improving the shopping experience for the best customers in the world,” said Artie VanRiper, senior transportation analyst. “We are evaluating all delivery practices to provide the best customer service while also cutting costs to the organization.”
Streamlining delivery
To streamline the delivery of major appliances, the Exchange used existing fleet vehicles and contracted two additional commercial carriers as well as Innovel Solutions. The truckers could then deliver directly to Innovel Solutions, which delivers to CONUS shoppers.
Because of these successes, the Exchange is now exploring shipping TVs and exercise equipment through the same method.
An Innovel TV pilot program that began in January with just five models, has already saved the Exchange nearly $11,000. Managers plan to add more models in February and decide whether to add all TVs by the end of the month.
Reducing delivery from three to five days
LG also plans to test stocking high-volume appliances at Innovel’s 11 district distribution centers instead of Exchange distribution centers, as Innovel’s DCs are closer to Exchange shoppers in certain parts of the country. This could reduce the average delivery time to three to five days.
The first tests of this process are anticipated in the Dallas market this spring.
The Exchange is giving shoppers on ShopMyExchange.com more control over deliveries, specifically text message notifications and ability to schedule a delivery appointment at the time of purchase.
Testing for the new processes should begin later this year.
“I have only been part of the Logistics Directorate for about a year, and I am proud of what we have been able to accomplish in that time,” VanRiper said. “We made some good improvements in 2018 and are starting 2019 off in the right direction.”
