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AO wants to deliver other retailers’ furniture

AO World, a major UK online retailer specialized in electrical goods, is experimenting with delivering non-electrical products on behalf of third-party retailers. The company is focusing continuously on its third-party logistics business.

AO revealed the trial project with furniture delivery on behalf of third-party retailers during the presentation of its latest financial results [pdf]. The company wants to leverage its green van fleet by driving across the country to customers who’ve bought non-electrical products from external vendors.

Delivering for third party retailer, with more to come

“Exploiting market demand for AO’s 2-man delivery expertise; commenced trial to deliver for third party furniture retailer with others in the pipeline” is one of the retailer’s competency developments presented with the financial results. The trial is part of AO’s focus on its third party logistics business.

AO now has 17 outbases

“We added an additional transhipping outbase to our UK logistics infrastructure in Telford and a further two since the period end, one in Coventry and the other in Luton. This takes the number of outbases to 17 and we have identified a further two sites which we plan to be operational prior to the end of our financial year”, CEO Steve Caunce explained.

“This will help ensure resilience in our delivery network and maintain our market leading product availability for customers, whilst reducing stem mileage and improving efficiencies in our logistics division.”

Premium installation service

The company has also improved its installation service, available with any of the built-in products sold by ao.com, which allows them to deliver, install and remove products in one visit to a customer. “Premium installations have, since the period end, been launched in the Netherlands and in Germany.”

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