Customer Story

Challenges

The brand faced increasing operational challenges as its logistics network expanded across multiple GCC markets:

Rising delays during peak order periods: Major sale events—White Friday, Ramadan, Eid—strained logistics capacity, leading to missed SLAs and customer dissatisfaction.

High pick-and-pack inaccuracies in fulfillment centers: With order volume spikes, error rates increased, resulting in costly returns and delays in replenishment cycles.

Limited motivation among partners to prioritize the brand: Delivery partners worked with multiple retailers, and without differentiated incentives, the brand struggled to secure priority service.

Inefficient returns processing: Reverse logistics suffered from slow check-ins, delayed restocking, and inconsistent communication, impacting customer satisfaction.

No framework for recognizing sustainable logistics practices: ESG-aligned partners using eco-friendly routes or reduced packaging had no structured way of being acknowledged or rewarded.

Long-term logistics partners lacked recognition: Reliable partners were not differentiated or rewarded for continued performance, impacting retention and service commitment.

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Personas involved

• Delivery Partners: Regional couriers, last-mile riders, cross-border operators

• Fulfillment Staff: Pickers, packers, inventory handlers

• Warehouse Managers: Operations supervisors, accuracy controllers

• Reverse Logistics Teams: Return centers, refurbishing partners

• Logistics Account Managers: Third-party partner managers, SLA monitors

• ESG & Sustainability Teams: Compliance teams tracking packaging & emissions

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Solution

The company launched a structured Fulfillment & Logistics Performance Program using Xoxoday Loyalife, that offer a rule-driven loyalty engine tailored for the GCC region. The program introduced transparent, automated incentive tracks designed to strengthen delivery excellence, warehouse accuracy, sustainability compliance, and long-term logistics partnerships.

On-time Delivery Bonuses: Partners maintaining exceptional on-time delivery performance across city clusters and cross-border routes earned performance bonuses aligned with SLA targets. Time-based accuracy was validated via automated data inputs from logistics systems.

Order Accuracy Incentives: Fulfillment centers received precision-based incentives for achieving high pick-and-pack accuracy thresholds. Multi-attribute rules allowed rewards for zero-error batches, category-specific accuracy, and compliance-driven packing.

Peak Season Performance Rewards: To ensure capacity during high-demand periods such as Ramadan, White Friday, and Eid, partners maintaining service levels received surge bonuses. Seasonal rule groups were configured to auto-trigger incentives for high-order days.

Returns Processing Efficiency: Incentives were awarded for quick returns processing, clean restocking, and timely customer updates—helping streamline reverse logistics and maintain customer satisfaction.

Sustainability Compliance Awards: Partners were recognized for using eco-friendly packaging, route-optimized delivery paths, and reduced vehicle emissions. ESG attributes were added as custom parameters to reward sustainable logistics behavior.

Long-term Partnership Recognition: Partners demonstrating consistent reliability, SLA adherence, and multi-year engagement were advanced into higher partnership tiers, unlocking preferential benefits, bonus multipliers, and exclusive privileges.

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Impact

The program delivered measurable improvements across the brand’s fulfillment and logistics operations:

• 41% improvement in on-time delivery performance across GCC regions
• 33% reduction in pick-and-pack errors at fulfillment centers
• 2.7× increase in partner participation during peak sale seasons
• 29% faster returns processing, accelerating restocking and resale cycles
• 22% rise in partners adopting sustainable logistics practices
• 3× growth in long-term partners enrolled in higher-performing tiers

Conclusion

With a structured, automated incentive and loyalty framework for logistics, the retailer transformed its multi-country partner ecosystem into a more reliable, accurate, and performance-driven network.  

The program strengthened SLA adherence, enhanced customer experience, and built long-term operational resilience while encouraging sustainability practices across GCC markets. This performance-led approach allowed the brand to scale seamlessly during peak seasons and maintain competitive delivery standards year-round.