Archive for January, 2018

Customers today are more demanding than ever before. Their expectations have dramatically increased, where they now want products not only delivered to their doorstep, but delivered in record time. No wonder then that logistics providers are scrambling to ensure same-day or next-day deliveries.

However, in the attempt to ensure such rapid fulfillment, there is a risk of increased management costs, especially in warehousing. The global warehouse management system was a $1.2 billion market in 2015, according to data published by Statista, a figure that is predicted to cross the $4 billion mark by 2024.

Logistics providers are today looking for effective ways to reduce turnaround time from the time a customer places an order to last-mile delivery in a cost efficient manner. These businesses are, therefore, increasingly resorting to comprehensive courier dispatch software that is able to take care of all phases of the business, including on-demand, routed and scheduled work, distribution and cross docking operations, warehousing and LTL, to be able to achieve same-day and next-day distribution, says an expert at Key Software Systems.

Warehousing plays a vital role in the supply chain process, and to be able to gain a competitive advantage, one should stay updated with warehousing trends.

4 WAREHOUSING TRENDS TO LOOK FOR IN 2018

1. Regional Warehouse Construction: Instead of having fewer major warehousing hubs, companies will focus on building regional warehouses throughout the country in 2018. Although this will require initial investment, gaining customer’s confidence by bringing the product closer to the buyer will reduce turnaround time and time to last mile delivery, which in turn will ensure increased profits in future.
2. Need for More Space: Due to greater diversity of products being handled and the need to have them immediately accessible, 2018 will see high demand, of up to three times, for more space than traditional warehouse users, says an article by Material Handling & Logistics (MH&L).
3. Warehouse Safety will be the Priority: Warehousing is one industry that is highly prone to accidents due to the mishandling of packages and other technical issues, which can lead to serious production and monetary losses. It is for this reason that companies will invest in the health and safety of their workers by carrying out risk assessments and accomplishing safe working systems in 2018.
4. Implementation of Robotics: Just like every other industry in the world, automation is the buzz word in the warehouse storage industry as well. In 2018, companies will take advantage of robotics solutions that will incorporate automation into warehousing operations, without the need for major structural changes.

Companies that will be unable to afford highly-sophisticated, automated systems this year will take a step ahead with semi-automated operations. Optimizing existing operations to achieve fastest delivery will remain the warehousing industry’s ultimate goal in 2018.

Transporting packages efficiently from manufacturers to customers has always been a challenge, but changing demands for route optimization are putting more pressure on companies to enhance delivery. How can we keep customers happy as e-commerce giants continue to adopt cheaper and faster shipping options? Last mile delivery software can help us overcome some of the biggest obstacles faced by the courier industry today.

HIGH COSTS

Responding to customers’ demands for speedy shipping puts a higher cost burden on B2B companies. Last-mile delivery already accounts for 28% of total delivery costs in the e-commerce industry, and seasonal fluctuations in demand can eat into profits. Reducing spending requires a strong focus on improving efficiency in every step of the delivery process.

PRICING MODELS

Although faster shipping costs companies more, customers want to pay less. This is why programs like Amazon Prime work so well. Customers are willing to invest in a premium option designed to save them money over time. Not every e-commerce model supports such programs, however, so it’s our job to identify areas throughout the supply chain and in distribution channels where spending can be minimized and translated into lower shipping costs for customers.

DISTRIBUTION CENTER LOCATION

Positioning distribution centers close to where the largest number of deliveries are made in an area reduces driving time, fuel costs, and empty miles. Spotty coverage means lost productivity and a greater chance of delays. Using dispatch software to identify locations with high concentrations of customers helps companies plan better distribution networks and increase productivity across the board.

DELAYS

Rush hour traffic, road work, construction, and special events can all cause drivers to lose time on delivery routes. Dispatch software takes these conditions into account and identifies the fastest alternative methods of getting packages to their destinations. It also anticipates potential problems with weather conditions and simplifies the process of choosing the best distribution location from which to send drivers.

REAL-TIME UPDATES

Tracking codes provide very little detail regarding the whereabouts of impending deliveries. Our customers expect more than a status update declaring a package will arrive sometime “before the end of the day.” They want to be able to follow their orders through the full journey from warehouse to doorstep so that they can plan for the exact time of delivery.

PERSONALIZING THE CUSTOMER EXPERIENCE

Today’s courier software solutions solve the tracking problem and resolve issues with where and how packages are delivered to specific locations.This is done by providing customers with a portal through which they can manage their orders, communicate with delivery drivers, and make specific requests. Putting control in our customers’ hands reduces time spent on service phone calls and makes it easy to respond to demands in real time.

With the help of a comprehensive courier management system, we can be the first to overcome the challenges of last-mile delivery. Maximizing the efficiency of every route while keeping costs under control enables any company to meet the needs of its customers and provide the best possible experience with every delivery.