Pérez highlights the importance of KPIs (Key Performance Indicators) to determine effectiveness throughout the value chain.
“For us, KPIs are fundamental. We have them at a commercial level (number of sales, units by weight, average ticket, etc.), then there are the website indicators where we analyse visits, conversion percentage, logistics indicators (delivery times, SLA, delivery compliance, percentage of returns) and finally the customer service indicators where we indonesia email database measure the NPS (customer satisfaction) that gives us results in terms of the shopping experience,” he says in an interview with the eCommerce Institute.
As for customer satisfaction until the purchase is fully completed, the person in charge of Digital Marketing at Totto states that delivery time is essential to keep customers satisfied.
“In the end, it is the point that closes the cycle of the entire purchase. Delivery times depend on the city we ship to (in Bogotá orders are delivered within 24 hours, main cities within 2 to 3 days and the rest of the country or hard-to-reach areas within 4 to 5 days).”
All these new needs that had to be met, not only with the introduction of online commerce into its formula, but also with its national growth and the goal of becoming a global brand, also led to important changes in infrastructure and logistics, which resulted in a tremendous eCommerce success story in Latin America.
Adapting physical space to digital
Growth was remarkable for Totto. In 2008, work began on the Titan project, which resulted in consolidating the company's operations into a single main distribution center that would group together all the warehouses they had up to that point.
Santiago Posada, Totto's Director of Operations for that year, explains that at times it was difficult to locate the products and this resulted in customer complaints regarding response times.
“It all comes down to infrastructure. We didn’t have enough space to be able to locate our products. We were growing in a somewhat disorganized way and it was clear that we needed a single distribution center to support the operation.”
The company hired to develop the Titan project alongside the brand was Fortna, experts in logistics services.
Indra Contreras, Project Manager at Fortna, outlined the steps that made up the action plan they executed together with Totto. “ It was a semi-automated solution with the capacity for dispatch, picking and storage that allowed the brand to support growth.”
“The solution was to design, build and implement a new distribution center with processes, infrastructure and systems, adapted to the needs of Totto's growth.”
The objectives set included: increasing dispatch capacity by 400% (from 4 boxes per minute to 17), increasing inventory reliability and dispatch frequency.
The final result was a space of approximately 20,000 square meters as a distribution center for the entire country.