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Ecommerce retailers face substantial shipping challenges: demand spikes reaching 300-500% during sales events, customers expecting 2-3 day delivery regardless of volume fluctuations, and peak season influxes.
Historically, the bulk of Veho’s clients were meal kit companies, who operated with a 7-10 day planning horizons through subscription models. This allowed us to optimize delivery routes with predictable density.
But as our business expanded into the retail sector over the past few years, we encountered unique challenges that our original routing system wasn't designed to handle.
Luckily, at Veho, we’re constantly reimagining and improving the way packages are delivered.
That's where the Next Gen Marketplace comes in—our new, cutting-edge platform is designed to adapt to the unpredictable nature of retail deliveries and streamline the end-to-end process for brands, driver-partners, and customers alike.
The Problem: Inflexibility and Inefficiency in Routing
Veho’s original routing system was tailored for predictable package volumes. When volumes were consistent, routes were optimized and efficient.
However, as we entered the world of retail deliveries, things got trickier. Retail volume can be unpredictable—sometimes packages don't arrive as expected, or unexpected packages suddenly need to be delivered. This led to inefficient routes, wasted time, and higher operational costs.
Our old system lacked the flexibility we needed to make routing adjustments in real time. To solve this, we needed something smarter, more agile, and more capable of adapting to the dynamic needs of our delivery environment.
The Solution: Next Gen Marketplace
Next Gen Marketplace is a flexible, data-driven platform that enables smarter routing decisions. By collecting and processing more complete data, up until the last possible moment, we can make more accurate and efficient routing decisions.
This allows us to reduce delivery cost per package, improve operational efficiency, and create a better experience for both driver partners and customers.
But the benefits don’t end there. Our platform empowers Veho’s network of driver partners with flexibility, transparency, and control over their schedules. Driver partners can select routes that best match their preferences—whether it’s the delivery area, route length, or time of delivery. As the route time approaches, driver partners receive increasingly detailed information, all the way down to the neighborhood they’ll be delivering in. We know that when we provide our driver partners with clarity and control, it not only makes their job easier, but also helps improve the overall efficiency of the delivery process.
Key Benefits of Next Gen Marketplace
Higher Reliability
Our improved data collection and more accurate routing decisions have resulted in a 120%+ increase in Packages Per Hour (PPH) since launching Next Gen. This efficiency translates to more on-time deliveries (OTD) for customers, scalability for shippers, and incremental cost savings across the board.
Lower Delivery Costs per Package
Our new pricing model and enhanced routing have reduced delivery cost per package by 26% since launching Next Gen, allowing us to provide better value to our clients.
Improved Customer Experience
The combination of increased delivery speed, fewer delivery issues, and reduced costs creates a smoother, more reliable experience for end customers– contributing to our industry leading 4.9/5 CSAT score.
What Makes Veho’s Next Gen Marketplace Different?
Unlike traditional delivery systems, our Next Gen Marketplace utilizes a combination of machine learning, data science, and route optimization to offer a flexible, scalable solution. Here's how it works:
- Flexible Routing: Traditionally, Veho published routes, driver partners selected their offers, and we locked assignments. Today, with Veho’s continuous optimization technology, we continue to refine delivery routes in real time—even after drivers have claimed them. This ensures that packages are delivered in the most efficient way, reducing delays, improving cost efficiency, and enhancing the customer experience.
- Auto-Publishing Offers: Offers are automatically generated and published to driver partners without manual intervention. This ensures timely and efficient route planning.
- Personalized Offers: Driver Partners are presented with personalized route options based on their preferences and historical data, making it easier for them to select routes they’re familiar with and comfortable with.
- Dynamic Pricing: We’ve introduced a pricing model based on pre-defined schedules and premium rates to ensure that routes can be effectively marketed to driver partners, especially in markets with higher demand.
The Road Ahead
Next Gen Marketplace is just the beginning of what’s possible. By laying a solid foundation for data-driven decisions and operational efficiency, we’ve set the stage for a host of future innovations, such as route-to-offer matching, neighborhood-based sorting, and advanced scheduling. These features will help us scale our operations even further while maintaining our commitment to providing a positive experience for both driver partners and customers.
We’re proud of the progress we’ve made, and we’re excited about the future. As we continue to evolve the Next Gen Marketplace, our goal is to build a delivery system that not only meets but exceeds the expectations of all the stakeholders involved—shippers, driver partners, and customers alike.
