IKEA Case Study: Home delivery customer experience excellence
"We see ANC as experts in their field. We give them an equal seat at the table so expectations are high.”
ABOUT THE CLIENT
IKEA is one of the world’s largest manufacturers and retailers of furniture and homewares with 340 stores in 28 countries, including 10 stores in Australia. ANC is proud to be their home delivery partner in Australia.
We have partnered with IKEA since 2007 and now service stores in SA and the ACT plus the massive CDC in NSW with a dedicated delivery fleet of 50 vehicles including 2 tonne vans, 4 tonne light trucks and 8 tonne Pantech tailgates.
Our home delivery professionals ensure over 469 consignments per day are safely delivered into the homes of IKEA’s smiling customers.
- Total number of deliveries (January-March 2020): 42,707 delivers, 469 per day
- Delivery on Time and in Full: January 93%, February 92%, March 95%
- Net Promotor Score: 47
- In April 2020, IKEA volumes increased to 660+ deliveries per day, and continue to grow
TRANSPORT & DELIVERY CHALLENGES
INCONSISTENT CUSTOMER EXPERIENCE
- IKEA needed their commitment to the customer experience to extend from the store into the home delivery service, including the “in home” component of the service.
- Service and quality issues led to dissatisfied customers, disruptive customer complaints, low staff morale and loss of revenue.
HIGH COSTS. LOSS OF REVENUE. NO SOLUTION
- Delivery and transport was considered a cost, not a service, and removed from the overall customer experience value commitment.
GENUINE COLLABORATION and TRANSPARENCY
- ANC has partnered with IKEA to maintain a transparent process.
- Together we created a series of metrics to gauge ANC outcomes, improve processes and ensure best possible business practices for both partners.
INSIGHT and INNOVATION
- Worked backwards from the IKEA customer’s ‘in home’ experience and reengineered the delivery process into IKEA’s business.
- For the first time, actual metrics were used to help improve and enhance the IKEA service offerings to customers.
REVOLUTIONISED TRAINING and PERFORMANCE STANDARDS
- Additional levels of training and performance standards were developed to ensure the ‘in home’ experience could exceed the customers delivery experience.
- Two-man delivery teams that are highly skilled, motivated and well-trained in systems and procedures.
PERFORMANCE METRICS CONTROL and SURVEILLANCE
- Delivery in full and on time (DIFOT) performance metric averaging 95%.
- Together, ANC and IKEA are constantly innovating and challenging ourselves to drive efficiency gains and improve the customer experience.
TRANSITION HIGH CALIBRE INCUMBENT DRIVERS
- Account Manager and Operations identified needs and process gaps based on their experiences of ANC’s high performing teams in other IKEA sites.
- Train and induct new and transitioning drivers in both ANC and IKEA expectations six weeks before start date.
WORLD FIRST – NEXT DAY DELIVERY
- In July 2018, ANC completed the very first delivery out of the new IKEA Customer Distribution Centre (CDC), Marsden Park, a significant milestone for IKEA and ANC’s partnership, as Marsden Park is the first CDC operation in the world to offer next day delivery.
- The new offer of next day delivery from the CDC exceeds expectations worldwide, as many long-standing CDC’s who work on a three to five day delivery offer thought it impossible to offer next day delivery.
- ANC were proud to be a part of this exciting moment in IKEA’s history and to be able to achieve these levels of customer service.
THREE COMMERCIAL ELECTRIC VEHICLES
- ANC launched three commercial electric vehicles (EV), dedicated to last mile home delivery services in New South Wales, in March 2019.
- These 100% EV’s are part of our strategy to introduce a sustainable transportation alternative to our clients and customers, launching with IKEA.
- ANC’s EV’s comprise a Hino 917 Series truck base built without a motor, gearbox, and exhaust, replaced with SEA Drive 120a electric components by Australian-based SEA Electric and a custom designed cargo box. The modular electric driveline enables the replacement of individual components as technology advances, extending the vehicle’s lifecycle.
- These EV’s boast zero emissions, using less energy compared to diesel trucks and less noise in metro urban areas (see Benefits & Outcomes for full details, or read the full story here).
BENEFITS & OUTCOMES
- Ensuring the delivery is right the first time is saving IKEA by removing multiple rectification costs.
- Significantly reduced problems mean significant direct saving through reduced IKEA customer service staff.
- Protection and enhancement of the IKEA brand – including on social media – through positive customer experiences.
- IKEA co-worker and customer confidence in the home delivery service drives sales growth further through repeat store visits and referrals.
- Electric Vehicle benefits include: zero emissions saving an estimated 36 metric tonnes CO2 saved annually per truck (compared to a diesel vehicle), using 33-40% less energy per kilometre compared to diesel trucks (energy measured in Mega Joules per Kilometre), less noise in our metropolitan urban environments.
- ANC’s EV fleet has saved 70 tonnes of CO2e in the first 12 months.
WHAT OUR CLIENTS SAY
“We wanted to take the time to thank you for your ongoing support and commitment during these times of change (COVID-19). As an essential partner in our business, your assistance in ensuring the continuity of services to our operations is greatly appreciated. Your service is, now more than ever, highly valued to our business operations and ensures we continue to meet the customer in the best way possible.”
IKEA Country Retail Manager Australia
“ANC has a solid offer we can rely on thanks to management, people, roles and responsibilities. With IKEA always evolving it can be an impost to some service providers but ANC has the management and structure to meet IWAY. We see ANC as experts in their field. We give them an equal seat at the table so expectations are high.”
Business Development, Market Operations, Service Business Fulfilment and Distribution Services, IKEA Australia
“We have faced an unprecedented situation over the last month or so, forcing us to increase capacities significantly and at almost immediate notice, whilst having to transform how we meet and interact with our customers in a contactless fashion. Our KPIs and customer feedback during this time has been incredibly positive and demonstrate that even under the most severe pressure we are able to execute our operations and business in a very strong way.”
Service Fulfilment Operations Manager, IKEA Australia
“I wanted to send this through to you directly as it was feedback regarding an Allocator. We had a mattress exchange. Genesis was on the same page as us and didn’t want to send a new Driver on a separate day just to complete the return. He ended up sorting it out with the Driver on the spot with some quick resourceful thinking and was really easy to correspond with. He’s a really great example of IKEA and ANC working well together.”
CSC Deliveries Specialist, IKEA Customer Support Centre
WHAT OUR CUSTOMERS SAY
“I have just had my order IKEA delivered by a fantastic guy called Paul. Not only have my items arrived early (amazing!), Paul was completely unconcerned by the fact that I’m on the third floor with no lift. Paul was really speedy, very smart and so polite. I hope ANC takes very good care of this man as he is an incredible asset to your company.”
“Today I was washing the car when a truck started to back up the driveway of the units I live in. The three guys in ANC uniforms were a credit to your business. It was a stinking hot day, and they had to trolley and carry a lot of stuff. But they were chatting, smiling all the time and very friendly to everyone in the complex. They worked hard and were in and out quickly. Don’t know the driver names but what a great bunch of blokes.”
“Yesterday I had a package delivery from IKEA via your ANC delivery service. The Driver for my delivery was a guy named Paul and I just want to pass on that he did an exceptional job. He was professional, courteous, and was committed to managing the customers expectation – even phoning in advance when he knew delivery would be late. He is a great example to your staff, and an asset to your company being in the front line and in the public eye. I thought I’d pass on the great work Paul did because as management, you’ll only ever hear when someone has done something wrong, but Paul did an exceptional job I felt compelled to let someone know so that his dedication does not go unnoticed by his line management. Please pass on a heartfelt thanks to Paul for me.”
“I was so impressed with the careful service given by Nazar (546) when delivering a large number of items to my house from IKEA. He was meticulous in counting and double-checking the delivery and he made sure we had all our items. There was a confusing label on one package and he discovered this was for another recipient and that avoided a lot of hassle and confusion for us and the intended recipient. Really excellent, friendly, competent service.”
“I just wanted to write to thank your driver Naresh for his excellent service he gave today for a delivery of IKEA furniture. He called 10 minutes prior to advise he was nearly at my home and carried up 5 heavy boxes of flat packed furniture up 5 flights of stairs into my kitchen all with a pleasant smile on his face. I am sure it would have been extremely heavy and he was so professional. Not once indicating it was heavy or a struggle or out of his way to bring it up to my apartment that was a few floor up. We really appreciated the excellent service. Given that we had over the last month had many deliveries to our home through a variety of couriers, it was great to finally come across a courier that was prompt with the delivery, happy to bring heavy pieces of furniture up numerous flights of stairs without complaint or leaving it outside my apartment block for me to have to carry up myself or have someone else help me, and to actually turn up on the day specified in the time frame has been a rarity amongst other companies I had ordered furniture from. Thank you to Naresh for his excellent friendly service. Just if every other courier company were the same as ANC we would all be very happy.”
“I’m writing to congratulate one of team for exceptional service and a great delivery to my home at 16 Bligh Crescent, Seaforth. The items were multiple heavy items up over 50 steps and both of the guys were fantastic. Well done to Harsim and his co-worker.”
“Hello, I just wanted to say thank you to the guys that delivered the sofa from IKEA. They were polite, professional and efficient. Great combination! Highly recommended!”
“I want to give a 10 star rating for a driver named Harsim who delivered some furniture from IKEA Tempe. Our lift didn’t work on the day, so Harsim and his workmate were happy to carry everything up to my unit. Please pass my thank you to both of them.”
“Richard delivered the mattress and bed frame which I bought from IKEA yesterday. They are very heavy, but Richard is very professional which help us move them quickly. He is a friendly man and nice person. My partner and I just came to Australia, so we feel it was very good and appreciate him. We would give him rate 10.”
“Two lovely men from your company (driver 7156) delivered an apartments worth of IKEA furniture today and they were spectacular. The apartment is a difficult delivery, with a steep looping driveway that the truck couldn’t fit up. They were unfazed, and carried everything up the driveway instead. Incredible service, I’m extremely impressed!”