Mo: Hey everyone! Welcome to the second episode of 1 on 1 with Mo. For those who don’t know me, I’m Mohommad, and I’ve recently joined the MXC family as the voice of the community. Today we will be having our head of logistics department, Kirill, on a very hot grill. Let’s get into it.
Mo: Welcome Kirill. It’s a pleasure to have you here.
Kirill: Thank you Mohommad, thank you for having me today.
Mo: So let’s start by understanding how this whole logistics works for us.
Kirill: First of all the M2 Pro is a very complex device and we need to secure all chips all around the world. Only this year we bought out around 95% of all LPWAN chips. As you all might have heard, there is a massive chip shortage. This affected our production significantly. That is why we extended our delivery rate, which compared to last year where it was 5 days, it is roughly now 6 to 8 weeks due to the worldwide situation. Once all the chips are secured they are delivered to our production facilities in China. Both of them are located in Shenzhen, China. From the moment everything has been delivered to our production site, it takes about 1 month to produce 5,000 pieces (M2 pros).
Mo: How long does it take to get a produced miner to Germany?
Kirill: Once miners are producing, we deliver them using free courier services. One is UPS, TNT, and FedEx. We never put all the eggs in one basket to make sure if there are some delays with one delivery then other deliveries will for sure deliver to our warehouse in Germany. Usually it takes around 2 weeks, if there are no customs delays. Sometimes, it takes a lot of time to fill out the documents and application forms. At this stage we may face some delays.
Mo: Once we have the miners here, what is the next step?
Kirill: Once the miners are delivered to Germany, it takes around 1 to 2 weeks to inspect all of them, unpack, and repack again with the extra merchandise that we are delivering to our supporters.
Mo: Ahhh, so we do the final packaging here before shipping them out?
Kirill: That’s correct. We do the warehouse in Germany where we do the packaging ourselves. We also have warehouses in the USA, in Korea, in Asia, and opening soon in Australia. In those warehouses, we usually have a professional logistics partner who is taking care of all those necessary things.
Mo: So how long does it take to ship out?
Kirill: If we have others in stock we usually have an output like 500 units being shipped per day; however, to my understanding, if we don't have this amount of miners in stock we deliver around 100-200 miners per day. So, since we are going to open another production facility and increase our output I expect we will reach 1000 miners being delivered per day.
Mo: So which months orders are we filling in right now?
Kirill: It’s a very good question and it depends on the region and the location. For example, right now we are delivering orders from the middle of may to Europe, UK, and the Middle East. We just started delivering orders from the beginning of May to the US, and I think we are closing the May orders and starting June for orders to Asia and Australia and New Zealand and really all countries within this region.
Mo: Once orders are shipped out, how long does it take to reach our community members.
Kirill: In our logistic process, we use different couriers in the different regions. For example, in Germany we stick to DHL, but we also offer to our supporters UPS which might be a little bit costly. Although, from my own experience it delivers way faster than DHL. DHL also have very strict rules on how many pickups they can do per day. Even when the customer see their tracking number, it can take additional days to have their package be picked up by DHL. We are working on this issue and in the future we are trying to integrate a new logistic partner which will improve our handling and delivery time.
Mo: Is there any way to check the order status of my delivery once it ships out? Can you walk us through the process of tracking my order? Kirill: Sure, absolutely! I would love to show you how to track the status of your order using DHL, FedEx, or UPS.
Kirill: So, a lot of customers are asking, “When will I receive my tracking number?” So, the question is very simple. You will see the tracking number once your order is actually shipped out from our warehouse. It means it literally leaves our warehouse and is tracked on the way to you. So, once it is done, you will submit your tracking number and link into your Shopify profile account and you will receive an email notification to your inbox. With this email, you can easily open and you can see the link and your tracking number. What do you need to do? You just need to press these numbers and it will direct you to our shipping partners; which are FedEx, DHL and in some cases TNT or UPS. In this screen we can see when your order has actually been shipped and how many days it takes until it arrives at your doorstep. In the next month or weeks we are going to improve this process and you will be able to track your order directly on our website without redirecting to the third party website. I think it will make life easier and you will have all the information about the status of your order, about when it was picked up, and when it will be delivered all in one place. So, there is no hassle with using many websites and you can be sure the tracking you received is the correct one. You won’t have to do any copy and pasting, and everything will be on our website. There will also be many many different stages like from when your miner is produced until the moment it leaves our warehouse and reaches your home.
Mo: So I understand different regions have different delivery times. What is the delivery time for Europe?
Kirill: So, when the order is placed and if we do have miners in stock then it usually takes less than 2 weeks to be delivered to the customers. If we don’t have miners in stock it takes around 6 weeks to get them shipped from China to our warehouses in Germany. From there it might take an additional two weeks until it arrives to the customer. So I would say it is like 8 weeks, in that case.
Mo: What about the USA or Canada?
Kirill: To the USA or Canada I would say it follows the same handling and delivery time. However, it is getting better and better since we are constantly increasing our stock in the US warehouse in Texas. So, right now if the miner is in stock it would take less than 5 days to get your order delivery.
Mo: What about Asian countries? Kirill: For most Asian countries, except the Philippines and some other countries that use the 868 mhz frequency, the delivery time is about two weeks. For those countries that need 806 mhz frequency it will be about 4 weeks.
Mo: What about Australia?
Kirill: For Australia it also takes about 2 weeks from the moment the order was placed to the time it is delivered.
Mo: What is Australia so fast? Kirill: It’s a good question. Since we just started expanding in this market we didn’t get the influx of orders compared to Europe and the US.
Mo: It’s nice you have all of these answers. Now, let’s go to some of the questions from the community.
Question: How is the progress on the 3rd manufacturing plant going?
Kirill: Currently we are in talks with a 3rd manufacturing facility just to step up our production output and reach the level of 15,000 miners a month which will significantly reduce delivery time and is the most anticipated question and the most questions I’m receiving on a daily basis. So, we are looking forward to the sign-up and partnership with the 3rd facility, but to just give you some more understanding on why it takes so long to find another production facility is that we are always committed to the best quality. We are trying to aim for 0 defect traits with all of our miners. That is why we just need to be sure that the 3rd production facility will comply with all of our requirements that we have for our production.
Question: Is there a plan to create a system that gives more updates on the website for miner orders?
Kirill: Yes, the tech team is already working on it and you will see the process from the beginning which means like even before you will see where your miner will be produced, when it leaves the warehouse from Asia, when it reaches the warehouse in your region… I would say like 10-15 stages of the delivery process of your miner.
Question: I would like to know more information about the payments and refunds.
Kirill: First of all, we don’t accept refund requests via Telegram or Discord. So if you wish to request a refund you have to write an email where you specify your order number. It takes 10-14 days, and it also may take some additional time before it appears in your bank account. I would like to highlight this point. Sometimes it may take 2-3 weeks, but it is not on our side rather it is on your bank’s side. We can guarantee you that you will receive your refund in 2-3 days. Also, when it comes to crypto payments there are also some issues related to the nature of Coinbase Commerce. We are limited in the amount of transactions we can make per day. So, that is why if we receive I don’t know, let’s say, 5 requests we cannot request all 5 requests in one day. That is why we receive all your requests and we see them, but it takes time to honor them. Currently, we signed a partnership with our new payment provider which is called Mollie. It gives us more flexibility than our previous payment provider. Right now we have on board SEPA bank transfers, we have Klarna, we have credit card payments. We also do have some local payment providers (unsure what is said), Ideal - which is a Polish payment provider. We are just make the payment process as simple and convenient for the customers as possible with less transaction fees. I believe there are no transaction fees for most of the payments we currently have on our website. If you just think of all of this as everything will be carried out by our payment provider Klarna. Basically, you are going to work with them and they will negotiate with you how you will split your payments over a certain period of time. I think it will help us to extend our network and potentially won’t put people in a situation where they have to pay everything at once. I think for most of our customers it is a very convenient way to do it this way rather than everything at once.
Kirill: Let’s talk about bank transfers since in recent days I’ve received a lot of inquiries from our customers that have said their orders have been cancelled and they didn’t request the cancellation process… So why does this happen? When you do your order on our website and you choose the bank transfer as the method of payment you are given a window of 14 days. In this 14 days you have to commit your payment. If it doesn’t get done then your order gets cancelled and you lose your place in que. So, I would recommend you to always be mindful when it comes to bank transfers and also don’t forget to put your reference so in that case we can easily track your order and match it with your name. I think this is in general bank transfers work. Maybe it isn’t clear when you receive the notification from our payment provider Mollie. If so, please just let us know in the comments below and we will take action on it.
Mo: Derek also wants to know what went wrong and how can it be rectified.
Kirill: Yeah, I just want to address this particular question to this particular support, Derek. I think in your case what we can do is we can send you a link for the new bank transfer and we will just save your place in the que from where you tried to commit your first transaction. In that case, it will be a win-win for both parties.
Mo: So Kirill, would you like to add something as a final remark regarding shipping times?
Kirill: Yes, I’m receiving a lot of private messages on all social media platforms. I’m receiving messages regarding, “Where is my order?” and, “When will it be sent?” What I am usually doing is that I am giving my best estimate that I have at the moment. Anything can happen with delays or shipping. So, if I’m expecting to receive 500 M2 Pro miners in Germany next week according to the tracking number received from the production facility and realize that sometimes this doesn’t happen. Sometimes this comes late. At the same time we are trying to give updates on a daily basis to everyone based off of projections. Please try to understand there are many different companies involved in this logistics process, and we can’t hold the responsibility of all of them. We simply hold the responsibility that our product comes to you in a good condition to you secure and unopened, and it works to you as described. When it comes to shipping, we are doing our best to work with our shipping partners, but delays can happen. No one is protected from this.
Mo: Thank you Kirill for taking your time. It was a pleasure to have you here.
Kirill: Thank you for having me today. It was my pleasure to talk about the logistic process. I hope I was able to give you a broader overview of how it works, and how we are trying to improve these processes in the near future.
Mo: That will be all for the second episode of 1 on 1 with Mo. Thank you for watching and don’t forget to like and subscribe to our channel. Take care and see you next time.
(Some behind the scenes footage plays of Kirill packaging M2 Pros and adding in MXC merch/stickers).