Dive Brief:

• CommerceHub today announced Active Delivery Management, a solution devised to streamline last-mile delivery processes and facilitate the shipment of large or bulk merchandise such as furniture, exercise equipment and high-end electronics, as well as other products, the company said in a press release emailed to Retail Dive.
• Retailers like Best Buy, Macy's and Walmart already use CommerceHub's drop-ship platform and network, but now retailer can access white-glove, curbside or in-home delivery services for more items that are logistically and operationally complex, the company said.
• Active Delivery Management gives retailers access to a large network of carriers and centralizes delivery tracking, while gaining control over the end-to-end fulfillment process — including communication with customers. It can reduce operational costs and improve customer experience, and also provide customers with enhanced visibility into the transportation process, according to CommerceHub.

Dive Insight:

Retailers, their suppliers and logistics support companies are attempting to make strides in delivering products quickly over the "last mile" to customers' homes. This is especially challenging for oversized items like furniture and products requiring special handling such as large electronics like TVs. 

A study released last month by uShip reported that 21% of U.S. consumers who bought an oversized item had it arrive damaged, and 15% said it never arrived at all. Additionally, 16% of respondents had to figure out the transportation logistics for themselves. The report stated 28% of consumers would be satisfied if they were provided with proactive updates on their shipments, 24% wanted more choice about their delivery such as selecting a carrier, and 19% wanted oversized items delivered directly into their homes.

These challenges come against the backdrop of the Amazon-driven, "I-want-it-now" market environment. A survey by Radial reported that 60% of respondents expected free shipping in addition to the lowest possible price. Only 23.5% were willing to pay up to $10 for shipping. A study by Deloitte found that shoppers were more interested in free shipping than fast shipping for an additional fee. But as uShip's CEO Mike Williams pointed out, "There's no such thing as free shipping. It's just a matter of who pays."

Last year, Walmart implemented an on-time, in-full policy that requires suppliers to deliver products when and how the buyer needs it. Food and consumable suppliers must deliver within a one-day window, while general merchandise or soft-line suppliers must comply with a two-day period. If a delivery arrives early, late or improperly packaged, a supplier could be fined a 3% off-invoice charge. This year, Home Depot debuted a $1.2 billion program to improve its outbound delivery system and become the "best delivery agent in home improvement."

CommerceHub has a long list of prominent clients and partners, according to its website. These include Walmart, Amazon, Best Buy, Google, QVC, Facebook, JCPenney, eBay, Dick's Sporting Goods, Jet, Kohl's, Google Express, Dell, BJ's, Newegg, HSN and Walgreens. It recently announced that retailers using its platform can enhance delivery experiences because of a partnership with delivery software provider Convey for the active delivery management solution, according to a press release.

In May, private equity firms GTCR and Sycamore Partners completed the take-private acquisition of CommerceHub, according to a press release. Frank Poore stayed on as his roles of founder, president and CEO. In July, the company named former JCPenney executive Mike Amend as COO. Amend was vice president for omnichannel for JCPenney and previously was head of online for Home Depot.

"With Active Delivery Management, retailers and brands can better capture new revenue growth opportunities in product categories that require complex delivery orchestration, such as furniture, appliances and exercise equipment," Amend said in the press release. "To ensure a positive delivery experience for everything from large format items to small parcels, the solution provides more effective workflows for the management of exceptions, provides real-time insights into individual deliveries and enables proactive communication with customers."