Blue Yonder to Acquire First- and Last-Mile Logistics Company Doddle
Blue Yonder, the Arizona-based supply chain management company acquired by Panasonic in 2021, announced it signed an acquisition agreement with Doddle, the London-based first and last-mile logistics company, on Oct. 11.
The acquisition will allow Blue Yonder to offer an end-to-end supply chain management and logistics suite to over 3,000 customers, which include brands, manufacturers and logistics companies.
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Doddle allows its customers to offer omnichannel returns and access to self-service return kiosks for consumers. It also gives clients access to a built-out pick-up, drop-off — or PUDO — network. Its current customers include Amazon, FedEx, the United States Postal Service, and Australia Post, per the company’s site.
Erin Halka, Blue Yonder’s vice president product management strategic initiatives, said these capabilities gave the company reason to believe Doddle would make a strong impact on its customers.
“[What] was really unique about their capabilities is that it wasn’t just about the traditional approach to return — they really see the opportunity to create a new customer experience in the first and last mile, [with] things like their…return kiosk. That’s amazing — it does not exist in a lot of places. Today, a lot of companies are focused on pickup kiosks, so to be able to have a new customer experience [is exciting],” Halka told Sourcing Journal.
Halka explained that Doddle will also allow Blue Yonder customers that have their own logistics operations in place to join a network of logistics partners. This could give companies the opportunity to monetize their logistics by charging other businesses for use.
Halka said its clients have been eager to add stronger first and last-mile capabilities to their supply chain management matrices.
“[Companies] are offering fast, free delivery, and that was getting goods to the hands of the consumer. Then [companies] started having more convenience options, where they were offering free returns. That opened up a market where the consumers were like, ‘Great, if I can return it for free, let me just buy as much as I can,’” she said. “What [our customers] realized is that — especially with the cost of fuel going up, and the cost of materials on goods — there was a real margin hit that they were taking on the return factor. We’ve learned from them that they needed a technology not just to create convenience [for the] customer, but they needed a technology that could help them pull that additional cost out of returns.”
According to an Optoro report, an estimated 9.5 million pounds of returned items ended up in landfills in 2022. Even beyond the logistics capabilities, Halka said, Blue Yonder also chose to acquire Doddle because it can reduce waste associated with returns, by increasing the speed with which they’re processed.
“[Doddle helps] get companies to where they can still create great customer experiences on the front end, but then be able to help optimize [the returns] workflow once the customer return is initiated to create a more circular society, to be able to get those goods faster back into the hands of future customers,” Halka said.
Gap Japan worked with Doddle partner Yamato Holdings to get 90 percent returns via the digital returns service after just three weeks of implementation, Kazutoshi Mochizuki, logistics director for the fashion brand, wrote in a Doddle case study.
“I realised that customers had been waiting for it. The fact that it can be done on a smartphone or PC, and that there are more options for pick-up methods, makes it possible to make returns that suit your lifestyle, and eliminates the need for time consuming procedures, is a big change,“ Mochizuki added.
Blue Yonder expects to close the deal in the 2023 fourth quarter, but Halka declined to disclose how much the company will pay for the acquisition. Blue Yonder acquired Yantriks, a SaaS company, in July of 2020. Halka said that deal set the wheels in motion for other acquisitions.
When the integration between the two companies begins, Blue Yonder will welcome Doddle’s talent.
“We are planning for this to be not just a technology asset, but a people asset. We see a lot of wealth in the experience and the knowledge of the Doddle team, and they are joining us as part of our Blue Yonder team,” Halka said.
