Supporting tendering and negotiations for last mile services for Allegro Group, a top European e-commerce player based in Poland 

 

BUSINESS CONTEXT

Allegro made a strategic decision to create a new portfolio of courier services for merchants selling their products on the allegro.pl website. As they did not have the necessary in-house expertise to structure the tender and execute negotiations, they turned to Last mile Experts for support. The project was aimed to improve the  “customer experience”  and to obtain better conditions for last mile delivery for Allegro’s merchants.

MAIN CHALLENGES

Currently, merchants were contracting directly with courier companies. They were often adding a mark-up to transport prices, which resulted in less transparency when choosing the method of transport by the consumer. Allegro did not have sufficient visibility as regards the shipping process and especially its duration. There were multiple (over 30) and inconsistent transport options to select from on the Allegro website which was confusing for consumers. 

The project supported by Last Mile Experts was aimed at:

  • obtaining more attractive financial terms of cooperation from courier companies
  • ordering and unifying the terms of delivery of courier services, including uniform SLA,s
  • achieving greater transparency of delivery times (shipping process and transport process)
  • shortening delivery times
  • simplifying the process of selecting a transport method for the service's clients
  • obtaining Track & Trace data from courier companies allowing for tracking SLA’s and enforcing associated contract terms

Last Mile Expert’s ROLE

Providing latest insights of the market and competition getting connected with selected operators. Preparing tender documentation related to pricelist, terms, and conditions for the last mile delivery and SLA. The scope included delivery to door, to parcel locker or PUDO point, as well as delivering heavy and bulky items (so called “white gloves” service). Analysis of tender responses, benchmarking and direct support in negotiations with suppliers.   

 

CUSTOMER BENEFITS

In depth analysis of the industry and competition with a high level of professionalism and with a successful closure of negotiations with supplier in a very tight timeframe.