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Retail in the UK is changing rapidly and it is placing ever greater importance on same-day-fix requirements of solution providers writes Claudine Mosseri, General Manager, Field Services, ByBox explains...

As card payments and online banking continue to rise, Britain’s high street banks are facing closure. Research suggests that two local branches have shut shop every day for the past three years. And, with RBS recently announcing the closure of 162 physical branches, it doesn’t appear to be slowing down anytime soon. For local towns and high streets, this poses a problem, as it becomes increasingly difficult for consumers and merchants to access and manage cash.

Traditionally, many small businesses would only deal exclusively in cash, a whopping three million* in the UK alone. Owing to rental prices on payment terminals, facilitating card payments can often be too expensive to maintain when operating on small margins. Yet not having access to a local bank, means these retailers are not only missing out on possible revenues streams but they now need to also travel to a different town during business hours to pay in takings. Leading to additional expenses, missed interest and other threats such as theft if cash is left on the premises.

As large retailers lead the charge, offering more payment options and increased technology within stores, it’s not just bank closures putting pressures on local, high street stores. Today’s consumer is used to a seamless, integrated shopping experience, whether in-store or online.

Working with a provider that offers same-day fixes and ensures device uptime can help stores adapt to an increasingly cashless societyIn July this year, the British Retail Consortium (BRC) reported that with cash no-longer being the most popular payment method, card payments accounted for 54% of retail transactions and almost 75% of total sales in the UK. In addition, demonstrating our desire for fast convenience, contactless payments were up 121.9% in April 2018, compared to the same period the previous year.

Now a more connected and contactless nation, reliance on payment terminal uptime is paramount. It’s not enough to simply accept card payments onsite anymore, with research suggesting that non-functioning payment devices leave one-in-three customers unable to complete a purchase. Even with more payment options in place, retailers must ensure they are working in order to enhance the customer experience.

Bank closures and changing customer expectations will undoubtedly result in a shake-up of the payment industry and retail environments, but how can independent merchants be supported during the transition?

For starters, as facilitating card payments becomes the only convenient option, technology providers will need to ensure that devices, and the supporting software, is affordable, dependable and user-friendly. Two-thirds of consumers report experiencing failing card machines on at least one occasion. For small organisations, this could easily result in lost customers and business. And if card is the only option, it’s even more important that devices are functioning.

With any new installation, device maintenance must be considered to minimise faulty technology, negative shopper experiences and lost sales. For small businesses, the support of the payment industry in increasing uptime isn’t a nice-to-have, it’s a necessity. ByBox’s Switch service aims to mitigate the knock-on effects of retail device downtime, on the consumer, merchants and the payments industry. The service, which uses a network of App and Bluetooth controlled lockers in strategic locations, ensures same-day fixes via pre-positioned parts.

Britain’s high streets are changing. Stores, whether large or small, are under increased pressure to modernise in-store offerings. Customer demand and closing banks are resulting in independent retailers needing to keep pace with large, big-name chains.

In order for any store to succeed in this competitive, connected environment, they must adopt new technology with confidence in the reliability of such devices. Working with a provider that offers same-day fixes and ensures device uptime can help stores adapt to an increasingly cashless society while offering an enhanced customer experience.

Resources Used

• https://brc.org.uk/news/2017/debit-cards-overtake-cash-to-become-number-one-payment-method-in-the-uk
• https://www.theukdomain.uk/smaller-businesses-offer-cashless-payments/
• https://squareup.com/gb/news/one-in-six-brits-is-now-a-card-only-shopper
• http://www.theukcardsassociation.org.uk/contactless_contactless_statistics/

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Claudine Mosseri outlines how in an age of increasing consumer power it is critical field service engineers are able meet SLAs and explains how technology in service logistics is making that happen...

News headlines would suggest that the high street is fast heading to a retail graveyard, with longstanding titans like Debenhams and House of Fraser the latest to face tough times.

Yet only after a period of turmoil, only one in 10 shops is vacant.

Factors such as the need to try before you buy, instant gratification and the convenience of returns are just a few of the factors that keep consumers returning to the high street.

The most successful stores are not only driving e-commerce, but also optimising the in-store experience by implementing new technologies and interactive features for customers.

We are starting to see the emergence of brand leaders such as Amazon Go, whose model is being mimicked by Tesco in its cashless store trial.

Whistl also discovered that over half of shoppers prefer unmanned tills to deal with cashiers, as it’s faster. As retailers become ever bolder in their use of tech, they rely more heavily on those integrated devices working flawlessly.

But as the old adage says, the best-laid plans often go awry. At some point, technology will fail, whether it’s a shopper-facing device or the datacentres serving them. When this happens, problems result for both consumer and retailer.

 

"ByBox recently surveyed 1,000 shoppers, two-thirds reported they had experienced problems and breakdowns in-store. For one-third of these dissatisfied consumers, this meant they were unable to complete their purchase at all..."

 

ByBox recently surveyed 1,000 shoppers, two thirds reported they had experienced problems and breakdowns in-store. For one third of these dissatisfied consumers, this meant they were unable to complete their purchase at all.

What was designed to be a positive customer experience can quickly turn into a negative with long term consequences when the technology fails.

Over a third (38%) of shoppers told us they felt angry or irritated because of these breakdowns.

Over a fifth complained to store staff about nonfunctional devices. And for a very angry one in 10, their opinions of the store were damaged in the long term.

With revenue and reputation at risk, it is vital that retailers implement strategies to limit risk and ensure rapid response times when the inevitable does happen and their tech lets them down.

It starts with making sure service providers are equipped to manage speedy same-day fixes.

Ensuring this needs to be the norm when it comes to setting service-level agreements.

There are new technologies that can support this requirement. For example, creating micro-FSLs (forward stock locations) by combining sophisticated software and smart locker technology, means repair items can be prepositioned using overnight or through the day deliveries. Shortening the mean time to repair (MTTR) can also limit the risk to retailers.

The world of retail is moving at a swift technological pace – but this isn’t the only sector where the support services for connected devices must move with the times.

If networks and other background tech systems fail the entire customer experience is interrupted, and it’s often the front-end business which bears the brunt of customer dissatisfaction and lost revenue.

Modern retail is all about convenience and ease for the consumer, delivering the fastest way to shop in the most seamless and engaging way.

As we see one ‘rush’ to improve the shopping experience by implementing new technologies, retailers should prepare for another – maintaining these innovations.

This will keep the high street alive and kicking.

 

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Claudine Mosseri, is General Manager, ByBox 

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Inner city congestion has long been a major cause for consternation for field service organisations, but with environmental factors such as air pollution becoming increasingly high on the political agenda of many countries across Europe and beyond, additional regulatory challenges are fast adding to the issue as Claudine Mosseri, General Manager, Field Services, ByBox explains...

The issue of air pollution in the UK is high on the political and environmental agenda, following a High Court ruling in February that the levels in many UK cities are ‘unlawful’. Given increasing pressure to do more to tackle this issue, along with rising inner-city congestion, councils are looking at new initiatives to cut traffic. These include calls for congestion charges, zero emissions zones and even a rumoured cable car for Oxford.

The estimated cost of congestion in the UK is predicted to rise 63% by 2030, to a cost of £21bn. British roads are some of the most populated in Europe, with double the number of traffic hotspots than Germany and France.  The estimated cost of congestion in the UK is predicted to rise 63% by 2030, to a cost of £21bn. London, of course, is top of the congested heap. Its weight of traffic is set to also increase by 60% by 2031, according to Transport for London (TfL).

A major contributing factor is the number of delivery vehicles on the roads during peak times. TfL states a quarter of London’s traffic during the peak hours of 7-11am is freight. It’s easy to see why the numbers of delivery vans on the roads are increasing. The number of workplace deliveries being ordered by people who cannot accommodate home delivery is rising. Expectations when it comes to next day and even same day delivery of items are high. And according to TfL, van space itself is often underutilised, with many shipping fresh air and making multiple stops around the capital. In response, the London transport organisation advocates greater delivery consolidation – ensuring more space, in fewer vehicles, is used more effectively.

While TfL has focused on delivery consolidation, there are also options around changing delivery times themselves. This would spread out the weight of traffic and avoid peak congestion hours. After all, when roads are busy, it becomes a vicious cycle of more delivery vehicles being stuck in traffic, further reducing their efficiency in getting from drop-off to drop-off. It seems unlikely that consumer demands about quick and convenient delivery will decline – and of course as businesses and cities themselves become ever more dependent on technology due to the integration of smart ‘Internet of Things’ devices and other automation, there will also be a rising need in urban areas for quick provision of replacement parts and engineers to provide fast and efficient fixes. Without exploring different solutions for getting these parts from point A to point B, this could easily lead to more vehicles on the road, simply trying to minimise the impact of device downtime.

Until recently, delivering during off-peak times was not possible – where would be open at two in the morning to take delivery?Until recently, delivering during off-peak times was not possible – where would be open at two in the morning to take delivery?

Yet now, there are networks of consumer click and collect locations in newsagents, stores and locker banks all over urban areas, many of them accessible 24/7. Similar solutions for part delivery have been used across the country for years to increase efficiencies in the field service supply chain. These 24/7 accessible, fixed point delivery locations not only reduce the number of stops delivery vehicles make but also reduce the numbers of vehicles on the road in city centres. Using this kind of point-to-point delivery planning with lockers, located in convenient, edge of city locations, essential parts are easy to access with minimal environmental impact and maximum speed.

Delivery to these locations overnight reduces failed deliveries, allows for the more efficient use of vehicle capacity, and doesn’t add to the existing congestion problem. For businesses with a high frequency for these deliveries, or where the delivered parts are especially time-sensitive or high value, hosting their own secure drop-off location could well prove a significant boon in timely delivery of essential items.

Some believe that clogged and congested cities are a problem that will only get worse. At ByBox we believe no problem is insurmountable.With predictive analytics on stock levels and given increasingly ‘smart’ devices communicating their status back to businesses, it is even possible for these holding stock and collection points to house particularly critical parts in advance of breakdowns, so they are to hand well before they are needed as well as being able to collect multiple items from one location at the same time.

Some believe that clogged and congested cities are a problem that will only get worse. At ByBox we believe no problem is insurmountable.

New thinking facilitated by technological innovations which can reduce transportation costs and optimise delivery routes can also help to tackle some of the issues around inner-city congestion and air pollution. By approaching the issues differently when it comes to vehicle use, drop-off and delivery schedules can answer on environmental necessities, the effective flow of traffic around urban areas, and the needs of demanding and always-on customers.

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Ensuring your field service engineers are best positioned to deliver a first-time fix becomes a moot point unless you have an efficient service supply chain.

Claudine Mosseri, General Manager, Field Services, ByBox outlines the benefits of outsourcing this critical function...

Running an effective supply chain can seem like a necessary evil for many businesses.

With multiple touchpoints and high margins for error, supply chain management requires a comprehensive and considered approach.

Running an effective supply chain can seem like a necessary evil for many businesses.After all, being unable to successfully deliver goods to customers is detrimental to both service and reputation. For many companies, a solution to the supply chain conundrum is to outsource the operation – either in its entirety or in parts – leaving them to focus on the day-to-day running of their operation and growing their business.

Supply chain collaboration goes beyond transactional relationships in warehouse management and transportation to encompass value-added processes, such as demand planning, configuration and returns management. At ByBox, we have made significant investments into effective parts management and increasing stock visibility.

Our approach is to move the data, not the part.

What does this mean?

It enables us to take a holistic view of where all spare parts are, whether they are with an engineer, in a warehouse or stock holding facility, or in a secure location such as a locker bank. This view of the supply chain provides customers with new ways of getting an item from A to B.

Establishing a dramatic improvement in inventory visibility is at the heart of next-generation supply chain methods.Establishing a dramatic improvement in inventory visibility is at the heart of next-generation supply chain methods. Historically, pallets of parts have been moved blindly through distribution networks, only to be moved somewhere else the following day. Our approach exposes that data, helping customers make informed management decisions.

All movements can be traced in real-time online to see at precisely what stage of the supply chain a customers’ part is located. As a result, businesses spend less money on same-day transport and unnecessary stock holding.

Modern logistics is constantly moving forward, with businesses trying to stay on top of the latest trends and technologies while satisfying customers. Re-evaluating supply chain partners can help businesses to speed up service, improve customer experience and review costs.

There are additional reasons for reviewing visibility within a supply chain:

1. Increased Efficiency:

Working with a partner that understands the need for efficiency can help you increase it within the business. By exposing real-time data and full visibility of stock movements, your technicians always know what parts are available for collection.

Visibility in a supply chain not only reduces stock loss but also provides clarity over what jobs can be completed.

2. Saves Time and Money:

When you outsource to an external partner, you can save a great deal of time and money by cutting down on wasted stock. Finding suitable space to store your products, a means for transporting them, and qualified staff to carry out the dispatch process can quickly add up.

Outsourced providers can leverage economies of scale, and scope, to provide compelling value-added services.

3. Consultancy:

Exploring more effective ways to manage and improve the supply chain could take up a great deal of time.

The same goes for hiring a team of staff and providing them with necessary training. Working with a business that invests in spare part visibility can provide you with the information needed to reduce stockholding, while also increasing efficiencies and SLA performance.

4. Scalability and Flexibility:

Outsourcing some of your supply chain management needs can lead to more flexibility to scale up or down, accommodating your current, and future, business requirements. As your business needs change, you’ll need to be able to adapt accordingly.

Not having enough space, manpower, or transportation could prove detrimental to your business.

By working with an outsourced company, you have access to their knowledge and resources, which means expert help in developing a more extensive and appropriate infrastructure.

5. Adapt to Customer Demand:

Customers now demand 100% uptime of technology in the field and are intolerant of failure. To achieve this, businesses are required to get vital spare parts to field engineers as quickly as possible. At ByBox, we don’t believe this should come at a higher cost, which is why we don’t rely on same-day deliveries.

Our unique technology is paired with app activated locker collection, so engineers can access parts delivered overnight, whenever they need them.

Outsourcing your field service supply chain, focusing on stock management and visibility can mean you’re better equipped to cope with changing business requirementsIn conclusion, outsourcing your field service supply chain, focusing on stock management and visibility can mean you’re better equipped to cope with changing business requirements, shifts in customer demands and changing market conditions.

Using a supplier that offers full visibility and flexible solutions - such as locker delivery - can reduce cost on stock, transportation and overheads. It’s not just about reductions, the right partner can also increase efficiency and customer satisfaction, adding value to your business and reducing the bottom line.

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Claudine Mosseri, General Manager, ByBox explains how the use of technology and Big Data has allowed field service to lower emissions and reduce environmental impact...

Simply type the word emissions into Google news, and it’s clear that the issue of what’s coming out of our exhausts has never been so high on the agenda. Obviously, this has a tremendous impact on those who move items and parts around the country daily.

Recent news about the number of vehicle fleets looking at shifting the proportions of their alternative fuel vehicles is just the tip of this iceberg. However, the use of technology and big data has allowed field service to lower emissions and reduce the environmental impact of their, and others’, businesses, beyond simply looking at the fuel sources of their engines.

Operating in the sector that we do, of course we are all aware of the simple fact that moving goods from A to B creates emissions, and the vehicles used in large supply chains are often among the worst polluters. Heavy good vehicles and vans produce, on average 7% of the UK’s overall carbon emissions.

With that being said, the investment in technology and the better use of data has allowed us to find cost and resource effective ways to send replacements. The world is becoming ever more reliant on technological automation, especially given Gartner’s recent prediction that 8.7 billion Internet of Things (IoT) devices will be installed by the end of this year. These connected devices and the data they produce are allowing business to pin point areas of improvement.

 

The industry’s environmental role goes well beyond head office commitments to carbon offsetting.

Our products, such as virtual warehouses, use data so that wherever your parts are, they can be accessed and moved to the right place. For example, in a busy field service supply chain, there will always be a significant amount of stock out in the field.

This might include good stock that an engineer has just picked up or it might also include returns which have just been taken off a customer site. This data tells you precisely what stock you have in the field and where it is. Clever stock systems, big data and tracking allow a logistics manager to raise an order, reroute and group together items, ultimately reducing congestion and reducing carbon emissions.

Away from cities, deliveries still require large vehicles, so to cut down on emissions, many are looking to instead limit their mileage. One approach involves investigating downtime data. For example, when replacing parts for a client, we spotted that typically, within a week of part A breaking and a replacement being issued, part B would also fail.

This allows us to be able to get our engineers to replace part A and part B simultaneously, which cuts down transport times, and ultimately reducing congestion due to fewer vehicles on the road.

 

ByBox has integrated technology and data to every part of its products, with Smart Boxes, our mobile applications, the use of our Thinventory™ platform and Stockonnect which has systematically allowed us to connect devices into our field services. With continuous changes like these occurring and influencing how we live our lives, there is a real demand on supply chains to ensure that when products or parts wear out or fail, they can be fixed or replaced quickly.

Of course, not all of these technological solutions will work for every business. Some face a lack of 24/7 access to their facilities, or have to factor in travel to remote locations. ByBox is lucky: point to point delivery is part of the DNA of the business, so we move the data, not the part.

However, by looking at the big picture and considering the influences of increasing automation on a number of different industries, it is clear that the field services sector has a bright and fascinating role to play in keeping businesses and devices running both effectively and environmentally.

 

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