eKart is India's leading logistics and supply chain service provider. They started operations in 2009 as Flipkart’s in-house supply chain arm and expanded to provide end-to-end supply chain and logistics solutions to other businesses as well. Their consistent excellence in consumer experience, with reliable delivery and managing variability at scale, has made them the preferred partner for various businesses. The company delivers around 10 million shipments a month to more than 3800 pin codes across India.
The impact created by Delivery Executives
The Delivery Executives (DEs) are the bedrock of robust logistics management. Delivery performance can make or break the customer’s brand experience and it is seen that 73% of customers will not return after just one poor delivery experience. That said, the last mile of a package’s journey can cost up to around 25% of the shipping costs, and 28% of an online brand’s bottom line seemingly comes from last-mile delivery costs. Additionally, eKart also incurs high costs from hiring, training, and re-hiring DEs, as this industry has a high attrition rate of nearly 70% per year.
- Delivery delays leading to high costs: Delayed deliveries and deliveries to wrong locations was increasing delivery costs and affecting the bottom line.
- Low DE engagement and high attrition: Low disengagement due to a lack of motivation was leading to attrition and high cost of training, hiring, and re-hiring.
eKart wanted to motivate their DEs and influence them into delivering higher efficiency using a Recognition and Reward program. As eKart’s DEs work at different locations across the country, they needed a solution that could help them launch and scale their country-wide Recognition and Reward program to sufficiently motivate and incentivize the efforts of their DEs.
- Catering to multiple incentive levels
The solution must allow eKart to manage multiple types of incentive structures. Their incentive program includes different award categories for DEs, at the hub, zone and regional level.
- Improving delivery efficiencies
The solution should reinforce DEs to do more of the right activities that help in improving delivery efficiencies. The primary goal of the executives is to achieve top ‘conversion rates’ which is a combination of successful deliveries made versus daily delivery targets achieved.
- Reducing fake delivery attempts
The solution should help eKart eliminate fake delivery attempts. A fake delivery attempt is when a DE updates the status as “delivery was attempted but the customer was not available” despite the receiver being at the destination address leading to customer complaints.
Enter Xoxoday Compass
eKart partnered with Xoxoday Compass to automate and digitize their incentive program for delivery executives. With game-like elements, rewards, recognition, and complete access to incentive program information, Compass turbocharged eKart 2 lakh-strong army of delivery agents.
- The timely nudges in Compass are helping DEs know which activities led to more recognition, rewards and incentives, helping them do more of the right activities resulting in delivery efficiencies for eKart.
- The leaderboards in Compass are providing the much-needed visibility to the leadership and DEs at every level, from the hub to the regional and zonal levels. The managers can view top performers at every levels and meaningfully appreciate them for the excellent performance.
- By capturing the ‘fake rate’ metrics in their delivery management system in real-time and combining them with an inverse incentive design in Compass, eKart is motivating DEs to do fewer fake deliveries thereby greatly improving their delivery efficiency.