Spring 2008 Newsletter

April 1, 2008

New Strategic Initiative Launched

“Superior  service  and  dedication  to  our  clients has always been our mission,” said the President of NVC Logistics Group, parent of NVC Express. “That’s the reason behind our opening an NVC Express office in Southern California.”

 

The  45,000  sq.  ft.  facility  is  located  in  Brea, California, strategically located close to the Port of Long Beach and Los Angeles International airport. NVC Express– LAX will service all Southern California, and be equipped with advanced safety, security and surveillance systems.

 

“We  are  extremely  pleased  to  establish  a local  presence  in  Southern  California”  the NVC president said. “With the high volume of freight moving throughout the area, we’ll be able to provide more effective and efficient service to our clients and positively impact transit times,” he said. In addition to getting closer to customers, the new LAX facility will allow for more efficient processing of returns, improve consolidation efforts and increase overall freight handling performance. More...

Market Forces Raise the Bar for Delivery

July 1, 2007

While retail web sites work to differentiate themselves from stores with web-only features, personalized services, detailed imaging and other tactics, there always will be one thing that separates sites from their bricks-and-mortar counterparts: a reliance on delivery services to fulfill online customers’ orders.

And as shoppers have become more accustomed to online retail, their expectations of timely and reliable delivery services—across a variety of delivery options—have only increased. A comprehensive shipping policy has become a crucial part of e-retailing, experts say.

“A critical component of the online checkout process is the determination and selection of a shipping option,” says Rob Garf, vice president of retail strategies at research and advisory firm AMR Research Inc. “Retailers must offer multiple delivery methods, including overnight, ship-to-store and split shipments, and be crystal clear regarding cost and time frame.”

Rising rates

At the same time, however, direct-to-consumer retailers also are facing increased shipping cost pressures through rising shipping rates and fuel costs. FedEx Corp. and UPS each implemented rate increases of 4.9% at the beginning of the year and in May the U.S. Postal Service launched a new rate structure based on the size and shape of packaging as well as weight, replacing a system that factored only weight.

For Internet retailing, the average postal rate increase comes to about 6%, says David Marinkovich, senior vice president of sales and marketing at DHL Global Mail. “The cost of fuel is having a big effect on retail shippers, but the Postal Service rate change that went into effect May 14 is the most dramatic postal rate change ever,” he says. “Some retail organizations that sell products like CDs, video games, books and apparel are looking at rate increases of about 54%.”

For example, apparel shipped in a box may be light in weight but now is subject to higher rates because of packaging dimensions.

The Postal Service contends the new system provides shippers more flexibility in shipping costs because it enables them to incur lower rates by simply shipping with different types of packaging, such as soft pouches instead of rigid boxes. The Postal Service has been conducting workshops, such as at this year’s eBay Live conference for eBay sellers, to help retailers take advantage of the new system.

Market pressures also are opening up more delivery options, as companies like DHL, NVC Logistics Group, FedEx Corp. and Yellow Transportation Inc. expand their services to the retail industry for delivery as well as return services. In addition to basic delivery, shippers now provide retailers with more options for specific delivery times that accommodate a customer’s personal schedule and “white glove” treatment that includes set-up and assembly of products like desktop computers and furniture as well as the removal of all packaging.

Consumer expectations

“What really affects our business is the growing expectations of consumers and the demand they place on specific delivery windows,” says the president of NVC Logistics Group, a company that emphasizes service to manufacturers and large retailers in the movement of large, high-ticket items like plasma TVs and household appliances.

The demand for a broader range of delivery services for direct-to-consumer retailers is causing some vendors to step up their focus on the retail industry. “We’ve seen a real shift toward more b2c business,” says Rick Mathews, vice president of corporate sales and premium services at Yellow Transportation, which offers a range of delivery services for shipping to homes as well as distribution centers and stores. “We’ve had double-digit growth over the last two years with dot-com retailers.” Yellow’s clients include the online operations of several major retail chains as well as large web-only merchants.

Yellow divides its delivery services into three areas: Exact Express, which guarantees delivery to a retail customer’s home or other destination during a specific time period, such as between noon and 1 p.m.; Definite Delivery, which guarantees delivery by a particular date; and Residential Connect, which includes product assembly and set-up services.

FedEx, which has been reporting increases in its home-delivery service, also offers a range of services that guarantee delivery at a specified time of day as well as during evening hours or within a certain number of days.

NVC Logistics operates nationwide as a freight management company, operating under the name NVC Direct and partnering with more than 300 delivery services companies. It also offers delivery services with its own truck fleets in the New York City metropolitan area.

NVC also offers white-glove delivery services and recently upgraded its NVC Direct web portal to provide retail shippers as well as their suppliers more information on shipments. “We’re providing more depth of information on each shipment—exactly where it’s at, when it was picked up and when it’s expected to be delivered,” NVC president says.

Standard procedure

Indeed, online access to shipping status is ­becoming a standard procedure in most retailer/delivery service relationships. While such information helps manufacturers meet the demands of retailers, it also helps retailers satisfy their customers. “Providing the ability to calculate shipping charges and delivery date will help set the right expectations with consumers,” AMR’s Garf says.

Newgistics Inc., which specializes in providing a returns service in conjunction with the Postal Service, is launching a new service this year that also handles local delivery to consumers’ homes. In the returns service, consumers can return an item through the Postal Service; Newgistics then picks up the items from a Postal Service bulk mail facility for delivery back to the merchant or manufacturer.

By acquiring transportation broker Logistics Management earlier this year, Newgistics gained the ability to provide additional delivery services that will deliver retailers’ packages to the Postal Service, which will complete the local delivery to consumers.

As online retailers look outside the U.S. to expand their markets, they’re also seeking more flexibility in shipping to overseas buyers. FedEx, for example, is working with the U.S. Department of Commerce to help retailers like golf equipment and apparel merchant RockBottomGolf.com sell overseas to markets ­including Australia.

DHL has been expanding delivery options in a way that eliminates steps in shipping among international markets. “Managing costs for retailers is not only in the shipping rate card,” Marinkovich says. “We’ll figure out how to skip supply chain points.”

DHL also is extending its DHL@Home service—which delivers packages from shippers to the U.S. Postal Service for the last leg of local delivery—to provide similar connections with foreign postal companies.

For retailers competing in today’s market, the flexibility in providing delivery to homes throughout the world as well as in the U.S. is becoming more crucial to delivering success.

Enhanced Web Design Reflects NVC Growth

May 1, 2007

NVC Direct, a division of NVC Logistics Group, has experienced continued growth from both new as well as current clients. With increases in white glove delivery services, coupled with their expansion in product returns and installation/de-installation service, NVC is poised to grow even faster than the double-digit increase of previous fiscal years.

This dynamic growth has required NVC to totally redesign and enhance their web portal site (nvcdirect.com) to accommodate Client and Partner needs.

"We've revamped and updated the entire site, providing clients, partners and prospects with more functionality, easier navigation, and added depth regarding NVC Direct and the services we offer" said the President, NVC Logistics Group. "But more importantly, the site still provides the same reliability, 24/7 access and control needed to effectively and efficiently manage and track client shipments", he said.

With expanded services (nationwide installation/de-installation, appliances, return services, etc.), improved nationwide coverage and ongoing technology upgrades, Henrici said the next step in the process will be new marketing materials, an increase in media spending and greater visibility at key industry trade shows. All will highlight the new NVC logo and service motto "When delivery is more than a destination', which embodies NVC's corporate goal of delivering more - more service options, more quality, more technology, more personal care - on every delivery.

About NVC Logistics Group

NVC Logistics Group, through its divisions NVC Direct and NVC Express, provides specialized delivery of oversized, high-value items to homes and businesses nationwide, including consumer electronics, medical equipment, specialty furniture and appliances (i.e. home theater seating, luxury massage chairs), and more. They provide specialized handling and value-added services - unpacking, assembly, debris removal, installation/de-installation - that traditional transportation companies do not. In addition, NVC Logistics Group offers an extensive range of high quality services including Reverse Logistics, Installation Logistics, Warehousing and Distribution.

For more information about NVC's services, call 800 526-3393 or click at: www.nvclogistics.com.

NVC Direct Grows Installation and De-installation Capabilities

April 1, 2007

NVC Direct, a national leader in the delivery of large, high-value items requiring specialized handling, today announced the expansion of its installation and de-installation service capabilities.

As sales of large, high-end appliances and big screen televisions have soared over the past two years, NVC Direct has seen a dramatic increase in requests by manufacturers and shippers for installation services. And as specialists in product returns, field replacement and exchanges, NVC has experienced an even greater growth in de-installation of products. NVC will not only set-up or remove plasma and LCD televisions, they also provide installation and de-installation of all major household appliances.

"We listened to our clients and have expanded our support nationwide so that we now can better service their total delivery needs and manage the entire process" said the President of NVC Logistics Group, parent of NVC Direct. "Installation logistics is a natural outgrowth of our concentration in this specialized marketplace, especially the de-installation component which correlates directly with our expertise in product returns and exchanges" he said.

NVC will finish this quarter with a 62% increase over previous year shipments, closing their fiscal year with a best-ever 53% increase. Net income figures were not disclosed.

About NVC Logistics Group

NVC Logistics Group, through its divisions NVC Direct and NVC Express, provides specialized delivery of oversized, high-value items to homes and businesses nationwide, including consumer electronics, medical equipment, specialty furniture and appliances (i.e. home theater seating, luxury massage chairs), and more. They provide specialized handling and value-added services - unpacking, assembly, debris removal - that traditional transportation companies do not. In addition, NVC Logistics Group offers an extensive range of high quality services including Reverse Logistics, Installation Logistics, Warehousing and Distribution.

For more information about NVC's services, call 800.526.0207 or click www.nvclogistics.com.

Celebrating 30 years of Delivery Excellence

March 1, 2007

NVC Logistics Group, a transportation management company specializing in the residential delivery of large, high-value items, is celebrating its 30th Anniversary in 2007.

Founded as a courier service in 1977 by Don Powers in a small, cramped two person office in Closter, New Jersey, NVC Logistics has grown into a major player in the home delivery arena. Still the company's CEO and owner, it was Don's flexibility and dedication to excellence that paved the road to success.

"My philosophy was always to be flexible and provide great service and quality, for every customer on every delivery", Don said. Having worked in the delivery industry as a salesman, driver and business owner, he understood "how important each delivery is for both the customer and the consignee". As the owner, he was able to customize services based on the needs of his customers, whether it was an envelope, package or parcel.

NVC Logistics continued to grow as a courier service into the early 80s. However, Mr. Powers noted that advancing technology would soon diminish the need for local couriers. He used this foresight to seamlessly transition the company into the freight delivery and freight management arena, targeting the large, high-value product marketplace, using his sales background to generate new clients.

Fueled by its reputation for excellence and its evolution into a freight management company, NVC grew exponentially, concentrating on the home delivery of high-value items. Building partner relationships one-by-one, the company expanded beyond the tri-sate area to become nationwide in scope. NVC now manages a nationwide network of delivery partners with access to a fleet of 1200 trucks and over 2 million square feet of warehousing and distribution space. Today, NVC's local delivery operation, along with its technology department (with state-of-the-art shipping software), logistics operations, corporate marketing and executive offices occupy over 75,000 sq. ft. in Rockleigh, NJ, home to its 80 employees.

NVC's revenue has also accelerated at a rapid pace. Over the past ten years, revenue growth has averaged more than 35% each year. And NVC will finish this quarter with a 62% increase over previous year shipments, closing their fiscal year with a best-ever 53% gain over fiscal 05. Net income figures were not disclosed.

"Home delivery of high-value items comes with high expectations. Don's emphasis on a 'quality delivery, every time' allows us to continue to meet these expectations today," said the President of NVC Logistics Group. Plus our specialty in home delivery and reverse logistics positions us to add-value to our customers and grow as they grow", he added.

The emphasis placed on exceeding the expectations of customers on every delivery, started thirty years ago by Mr. Powers, is now the DNA that continues to drive NVC Logistics Group today.

About NVC Logistics Group

NVC Logistics Group, through its divisions NVC Direct and NVC Express, provides specialized delivery of oversized, high-value items to homes and businesses nationwide. NVC handles a variety of product deliveries, including high-end consumer electronics, medical equipment, specialty furniture and appliances. They provide specialized handling and value-added services - unpacking, assembly, debris removal, exchanges and returns - that traditional transportation companies do not. In addition, NVC Logistics Group offers an extensive range of high quality services including Reverse Logistics, Installation Logistics, Warehousing and Distribution.

For more information about NVC's services, call or click at: 800 526-0207 or www.nvclogistics.com.

NVC Logistics Group Continues to Grow and Expand Operations & Marketing Capabilities

September 29, 2006

NVC Logistics Group, a national leader in the delivery of large, high-value items requiring specialized care, today announced the addition of a new marketing and National Accounts & Operations team, as the company continues to enhance it's marketing capabilities and operating strength.

The new marketing team will develop, direct and manage all strategic and executional marketing efforts for NVC Logistics Group. This includes advertising, direct marketing, promotion, public relations, web site, agency and staff activities. 

"We are excited about our new brand image and our new Web site design ties it all together." said the president of NVC Logistics Group, parent company of NVC Direct. "Our new Web site demonstrates our continued effort to leverage our technology and provide our customers with better service through enhanced tools."

The team handling the National Accounts & Logistics Operations, will provide services for account management, process and operational enhancements, vendor support and compliance, and issue resolution. 

About NVC Direct

NVC Logistics Group, through its divisions NVCdirect and NVCexpress, provides specialized delivery of over-sized, high-value items to homes and businesses nationwide. With a broad customer base, NVC handles a variety of product deliveries, including high-end consumer electronics, medical equipment, specialty furniture and appliances (i.e. home theater seating, luxury massage chairs), and more. They provide specialized handling and value-added services - unpacking, assembly, debris removal - that traditional transportation companies do not. In addition, NVC Logistics Group offers an extensive range of high quality services including reverse Logistics, Installation Logistics, Warehousing and Distribution.

For more information about NVC's services, call or click at: 800 526-0207 or www.nvclogistics.com

NVC Logistics Group Increases Investment in Technology

September 28, 2006

NVC Logistics Group, a national leader in the delivery of large, high-value items requiring specialized care, today announced the addition of Software Developers Phil Brainerd and Geetha Kanagasabai as the company continues to strengthen its proprietary, innovative nDX™ (NVC Data Xchange) suite of customer-centric technology tools.

As Software Developer for NVC Logistics, Kanagasabai brings a Master's Degree in Computer Science and strong IT expertise gained from nearly ten years of working with clients such as Ford Motor Company and the American Academy of Ophthalmology. Her Full Lifecycle Software Development experience spans a variety of web development, client/server and relational database technologies as well as content management applications. She also brings excellent business analysis and project management skills to the company.

Since his entry into the computer field more than ten years ago, Brainerd has worked on a number of diverse computer projects ranging from single-user utilities to enterprise systems used by hundreds of people. He brings to NVC Logistics extensive experience in web, client/server and relational database technologies, gleaned from previous positions including Systems Software Developer at WIN Healthcare and Software Consultant at First Consulting Group in Philadelphia. As Software Developer, he will be involved in a variety of software development endeavors, including enhancements to the proprietary nDX™ delivery system.

About NVC Direct

NVC Logistics Group, through its divisions NVCdirect and NVCexpress, provides specialized delivery of over-sized, high-value items to homes and businesses nationwide. With a broad customer base, NVC handles a variety of product deliveries, including high-end consumer electronics, medical equipment, specialty furniture and appliances (i.e. home theater seating, luxury massage chairs), and more. They provide specialized handling and value-added services - unpacking, assembly, debris removal - that traditional transportation companies do not. In addition, NVC Logistics Group offers an extensive range of high quality services including reverse Logistics, Installation Logistics, Warehousing and Distribution.

For more information about NVC's services, call or click at: 800 526-0207 or www.nvclogistics.com

NVC Direct Launches New Technology Via Its Web Site

January 27, 2005

NVC Eases Tracking with Shipment Management Tool nDX

NVC Direct, a leader in the premium nationwide home delivery of large, high-value products, announced the launch of its new proprietary technology, nDX (NVC Data Xchange) accessible via its redesigned Web site, MyNVC.com.

Powered by nDX's innovative features, MyNVC.com streamlines the shipping and tracking process for all customers. This online shipment management tool is designed to provide NVC customers with the detailed tracking information they need, whenever they need it. MyNVC.com gives customers the ability to provide their consumers with the most reliable, up-to-date information possible. Among several interactive features, customers can view the status and exact location of each of their consumers' orders and create their own personal "Watch List" of shipments. The Watch List, which is proactively updated with new real-time information, allows customers to focus on specific shipments or VIP orders so they don't get overlooked.

"As specialists in the home delivery industry, we understand what our customers need to create and maintain an effective and successful delivery cycle," said president & CEO of NVC Direct. "MyNVC.com demonstrates our commitment to provide our customers with the cutting-edge technology and services that enhance their direct-to-consumer business."

MyNVC.com delivers real-time tracking information in a user-friendly format designed to optimize customers' time. Complete with reporting capabilities, it gives each customer added control and visibility of their shipments. In addition, MyNVC.com identifies and organizes in simple lists any shipments that are delayed or missing pertinent information required to complete the delivery. This enables customers to react to any potential issues before they become problems. Customers also have access to daily, weekly or monthly transit reports specifically designed to meet their needs.

"We invested a great amount of time and attention to deliver a product that enhances the exchange of data and facilitates communication," said divisional vice president of NVC and head of the nDX/MyNVC.com development team. "We are proud to have succeeded in developing a tool from which all parties involved in the delivery process can benefit."

MyNVC.com is a valuable addition to NVC's pool of customized solutions, which are as diverse as its clientele. Each manufacturer, wholesaler and retailer that partners with NVC can now experience the advantages MyNVC.com has to offer.

About NVC Direct

NVC Direct, a division of NVC Logistics Group, Inc., specializes in the nationwide premium home delivery of large, high value products, such as consumer electronics, exercise equipment, medical devices, furniture, home theater seating and much more. For more than 25 years, NVC has been providing customized solutions to Fortune 500 companies including manufacturers, wholesalers and both traditional and Internet retailers. NVC Direct delivers products direct-to-consumer and small businesses throughout the continental United States. NVC offers an extensive range of quality value-added services, including reverse logistics, installation logistics, warehousing and distribution.

For more information about NVC's services, please call (800) 526-0207 or visit www.mynvc.com.