Archive for October, 2021

The logistics industry has been witnessing a constantly growing demand over the years. It has given rise to technological advancements and automation to keep up with the demand. However, one of the main areas of interest for the logistics companies in this industry has been last-mile delivery optimization. A recent report indicates that this last stage of the delivery process accounts for almost 53% of the total delivery costs. So, the technologies and process innovations related to the last-mile delivery stage demand special attention in the coming years.

One such interesting development in this field has been the growing use of critical algorithms and analytics based on the data gathered from the last-mile delivery platforms. Most logistics companies are relying on data analytics to improve their services and address the rising customer expectations.

HOW DATA ANALYTICS IS TRANSFORMING LAST-MILE DELIVERY

Automation

If you are in the logistics business, you can no longer rely on waybills and hand-written receipts or notes without barcodes. It is not only time-consuming but also runs the risk of human errors. And, if you are using last-mile delivery software for dispatching orders and effectively tracking them, then you need to make use of the huge volumes of collected data to maximize benefits.

You can trust analytics to quickly come up with the best solutions to optimize the delivery process. For instance, you can use the delivery management platform to auto-select the best fleet option and route for each shipment while ensuring efficient load-planning and enabling real-time tracking of shipment.

Route Optimization

Being in the logistics industry, you need to always stay updated on the traffic and weather conditions to ensure timely deliveries. This is where data analytics can help. With access to real-time data, you can utilize your delivery software to quickly adapt to changes in delivery requirements and traffic information. If any upcoming traffic jams or bad weather is anticipated based on the data, you can take the benefit of dynamic routing to come up with an alternative and more efficient route.

Warehouse Management

Data analytics can help with the inventory management at the warehouses as well so that you can minimize the time required to make same-day and instant deliveries. With abundant real-time data at hand, your delivery managers get access to accurate information regarding product availability and expected delivery time to your customers. You can also keep your customers apprised of their order status at all times and alert them of any potential delays. They can easily access all information related to their order including when their order has been shipped, the expected delivery date and time, and whether a customer signature is required. It will ensure better expectation management and trust among your customers.

Rating System

Another benefit of data analytics is that you can encourage customers to provide feedback regarding their overall experience with the delivery process. This rating system allows new customers to trust your delivery company and maintain the loyalty of existing customers. If any customer faces any issues such as lateness or damaged/missing items, you can use this data to identify the weaknesses in your delivery chain and improve your services.

The last-mile delivery industry is constantly going through changes in recent years. Automation and delivery optimization are becoming crucial for the success of every business in this industry. Data analytics is one promising tool that can allow you to boost your logistics business and enhance customer satisfaction.

Automation is rapidly transforming almost every aspect of the entire parcel delivery chain. You will find businesses of all shapes and sizes implementing Internet of Things (IoT) devices such as RFID chips for automated transportation tracking, delicate warehouse management systems, etc. They are constantly investing in new technology to automate the last-mile delivery process so that they can reduce costs and increase efficiency. A crucial aspect of automation is the use of last-mile delivery platforms that seamlessly integrates various parts of this delivery stage to optimize operations.

IMPORTANCE OF LAST-MILE DELIVERY PLATFORMS IN AUTOMATION

An efficient delivery management platform provides automation and tracking visibility to the logistics businesses so that they can effectively close last-mile delivery gaps. The fewer tasks that are handled manually, the more efficiency you will find in the entire process.

One big advantage of using such a platform is that it unifies delivery and fulfillment models onto a single platform that allows you to grow, respond to market demands, and leverage data insights. For instance, you can use it along with an automated dispatch software. It will help you automate the flow of valuable, customizable, and time-sensitive information to ensure accuracy, accountability, and greater profits.

You also get access to Big Data from these platforms with which you can create personalized customer journeys, learn consumer behaviors, and accommodate customers’ purchasing habits. It can significantly boost your revenue and ensure customer satisfaction.

PRIMARY AREAS FOR AUTOMATION

If you are looking to introduce technology to automate the last-mile delivery stage, you should focus on these three core areas for optimal benefits:

Routing and Dispatching

The primary goal of automation in the last-mile delivery process is almost the same as the goal in the rest of the delivery chain – to reduce costs, minimize human error, and promote efficiency. When you automate, you can quickly calculate efficient routes and automatically dispatch drivers for those routes and handle all orders, especially same-day deliveries. It is estimated that the demand for same-day and instant deliveries may reach a combined share of 20%-25% of the entire last-mile delivery market by 2025. So, it becomes extremely important to be able to handle such deliveries and maximize your revenue from this growing market.

Customer Communications

A recent report revealed that 73% of customers would like to receive their parcels in a convenient time slot rather than receiving them quickly. So, simply prompt deliveries won’t be sufficient to keep them happy. This is where automation of the process becomes important. If you can plan the deliveries effectively with automated dispatch software and keep your customers apprised of their order status at all times, you can rest assured that they will choose your services the next time as well.

Invoicing

It is hard to ignore the truth that labor is expensive, and you can’t depend on manual processes if you want to save money. Automating the pick-up process from the warehouse and invoicing at the time of delivery will ensure nothing but better cash flow, fewer errors, and significantly reduced labor time spent on these processes.

The recent wave of technological advancements across the world of parcel delivery offers a wide range of benefits. If you want to make the most of these benefits, then you should encourage automation and technological adoption at almost every step of the delivery process.

Courier companies are under constant pressure to improve the order fulfillment experience of their customers. While the value of same-day delivery sales has grown exponentially from practically zero in 2013 to over $4 billion in 2018, nearly 65% of companies have been pushed to offer same-day delivery to their customers. This has encouraged them to turn to innovative solutions for reducing delivery times while optimizing delivery operations.

Here are six tips that you can bring into practice to streamline your delivery process:

1. OPTIMIZE DELIVERY ROUTES

There have been continuous efforts to optimize the delivery routes to prevent any unnecessary delays since the delivery costs are directly related to the distance between the pick-up and drop points. So, you need to invest in the latest technologies to be aware of real-time scenarios such as traffic, weather, construction, etc. For instance, with the help of GPS tracking software, you can ensure route optimization and bring down the shipping costs.

2. FOCUS MORE ON AUTOMATION

Being in this industry, you can never underestimate the importance of automation in the delivery process. With the help of advanced innovations like autonomous vehicles or delivery drones, you can improve your delivery time and accuracy. Although these radical solutions are slowly being adapted into the delivery process, you can always use other efficient technologies like augmented reality solutions to offer your drivers more information about their environment and the packages still on board.

3. IMPROVE COMMUNICATION WITH YOUR WAREHOUSE

Warehouse communication is often neglected by logistics companies. Quick communication is a crucial part of maintaining prompt deliveries. It will help you not only manage stock but also ensure the influx of orders doesn’t come at you unexpectedly. You can even arrange for additional members of staff to be on hand to ensure all your parcels are sent accordingly.

4. USE SCANNING DEVICES TO LOCATE YOUR ITEMS

For smoother deliveries, you should be able to identify the exact location of each item in your warehouse. Otherwise, it will be like trying to find a needle in a haystack. This is why it’s ideal to deploy scanning devices wherever possible. They will help you locate items quickly and let you know how much stock you have. These devices are great time savers and reduce the risk of human error. Plus, you can save hours of labor and money.

5. USE ELECTRONIC DATA INTERCHANGE

Electronic Data Interchange (EDI) is ideal for businesses that have a lot of paperwork to process. This technique will replace paperwork with more efficient electronic data. It will help you make the entire shipping process quicker as well as convenient since your delivery agents will not have to carry around countless pieces of loose paper. Another advantage of using EDI is that it boosts productivity while minimizing errors.

6. ENSURE REVERSE LOGISTICS

You should have a proper reverse logistics plan in place to minimize the costs of product returns. This way you can reduce the capital tied into inventory and enhance the overall transparency of the supply chain.

Maintaining your dominance in this market can be challenging. That is why you should constantly upgrade your delivery process with the advancement in technologies. These smart tips will help you bring down the costs and improve the overall delivery process.

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