If the Black Friday cap fits

Phil Streatfield sees several shades of grey in Yodel's position, not least of which is how draw-down of the agreed capacity is to be managed in real time

This raises a dilemma for retailers in planning.  Stock that might have been pre-positioned in fulfilment centres for delivery to customers using carriers may now have to be deployed in stores. 

There is a need for some really clear in flight management of the situation with Yodel notifying their retail customers as they approach their full capacity limit, so that they can quickly respond by turning off the taps through adjusting their offer to their customers.  To not act in this knowledge would mean a retailer is knowingly over-promising.

Stuart Higgins also shares his views

As Black Friday 2014 showed, retailers accumulated orders that were way beyond their capability to deliver through their existing infrastructure or via their carrier partners - yet they continued to take orders knowing that they could not fulfil on that promise within the quoted lead times.

In placing a cap on the volume of next day deliveries they will accept, Yodel are simply aiming to plan what they will deliver and ensuring they will deliver what they plan. Carrier capacity is not a bottomless pit.

They have taken a decision to resource up to a realistic peak level for their business, and offer that capacity to their retail customers to ensure they deliver on their promise for themselves and for their retail partners.  To do otherwise would be reckless, both from the point of view of their investors, their retail customers and the end consumer.

 

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