Archive for November, 2021

November 17, 2021

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The increasing demand for e-commerce and steadily rising consumer expectations have put more pressure on retailers to improve the delivery process while keeping a check on the costs. It is estimated that customers spent nearly $791.70 billion online with US merchants in 2020, up a striking incredible 32.4% year over year. This has turned up renewed attention to order fulfillment, especially last-mile delivery.

Here are some of the top trends that retailers can expect in the coming years:

1. SMART TRACKING

Logistics companies have been increasingly investing in technology to enable better real-time tracking and enhanced visibility. For surviving in this competitive industry, it is a must to utilize features like route optimization and deliver packages quickly in condition. For instance, some companies rely on GPS tracking systems for monitoring the performance of drivers and guiding them on better routes to make efficient deliveries. It helps them in enhancing productivity by up to 20% and reducing fuel costs by almost 15%.

2. ROBOTIC DELIVERY

Labor accounts for more than half of the expenses associated with last-mile delivery. And with labor, there are many issues that the logistics companies have to manage, such as rising costs, availability, and scheduling. That is why some of them are shifting their focus to robotic delivery in the form of self-driving vehicles, drones, and autonomous delivery bots.

3. INCREASE IN URBAN WAREHOUSES

Logistics companies have been witnessing rapid growth in same-day deliveries over recent years. It is expected that their market share will reach a combined share of 20%-25% of the entire last-mile delivery market by 2025. To catch up with this trend, they are increasingly building warehouses in metropolitan cities for the immediate delivery of products. They are hoping to significantly reduce their delivery time while simplifying the work of delivery executives.

4. IMPORTANCE OF BIG DATA

Another trend that has gained importance is the increasing use of big data by companies for predictive analytics to optimize the delivery process. It is indeed the next big thing for the industry. It’s being used in almost every aspect of last-mile delivery including planning, rerouting, and even inventory management. Companies are hoping to boost their revenue by making well-informed decisions based on the huge volumes of data accessible to them.

5. DRIVERS BECOME MERCHANTS

As customer demand is rising, logistics companies are looking for more innovative solutions to gain a competitive edge in the market. They have begun using delivery agents to increase sales. While Big Data has been helping them predict the customers’ behavior towards their products, their agents are engaged in word-of-mouth publicity for your brand.

Exciting things have been happening in last-mile logistics. However, the level of technology being used to push the frontiers of this market and same-day delivery is getting more complex while enhancing the scope of the market. That’s why it’s vital for logistics companies to take note of these trends in last-mile logistics today, so they may be able to maintain their competitive advantage.

There was a strong trend in growth in last-mile delivery pre-pandemic, which was proving challenging for businesses but also driving innovations. Then came 2020, and the demand for delivery services exploded. If you were a small e-commerce business owner with your own delivery system during last year, you were at an advantage. But think of the neighborhood grocery store, which had to provide increased slots for home deliveries or risk going out of business. At the peak of the pandemic, online grocery spending in the US surged to about 15% from the previous 3 to 4% levels. These businesses had to resort to gig economy services as the last resort, escalating costs and strains on the system never seen before.

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Image Source: https://unctad.org/news/covid-19-has-changed-online-shopping-forever-survey-shows

While lockdowns have eased, consumer preferences for online shopping aren’t expected to decline. For instance, in furnishings and appliances, while 46% of consumers using online channels for purchase pre-pandemic, now 60% will do so in the post-Covid-19 world. As a business owner, you now need to have a sound approach to meet the surging demand for home deliveries. Whether you are a retail store or a logistics company, you need a robust courier software to meet customer expectations and drive true differentiation.

PICKING THE RIGHT COURIER SOFTWARE

Dynamic Route Optimization Feature

With soaring petrol and diesel prices globally, it is more important than ever to reduce your vehicle operating costs and increase dispatcher productivity. Not to mention, that customers demand same-day deliveries. In the pre-pandemic era, a quarter of customers would pay a premium for that. A route optimization feature will help you reduce fuel costs, overall maintenance costs, and the risk of exposure for delivery partners. They can complete their jobs in the shortest possible time.

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Easy API Integrations

If the software has standardized integration functionalities, it can improve your prospects to capture new business. Suppose a low-volume local shipper would like to collaborate with you and reduce your burden of increased door-to-door delivery demands. They can simply connect to the system through API integration, dynamically create orders, get quotes, and track shipments. This can enable them to grow their business too, creating a win-win partnership.

Dashboard Reporting in Detail

You might want to get detailed dashboard reports on your device, with real-time and historic data on a user-friendly interface. The managers will be able to focus on various KPIs to drive efficiency, by visualizing and analyzing data. They will have increased access to time-sensitive information.

Automation and Contactless Technologies

Contactless technologies not only enhance dispatcher productivity but also are crucial to surviving in the post-pandemic world. Dispatchers should be able to find the best driver for delivery based on pre-defined rules and real-time conditions. Geofence automation can further elevate driver accountability and compliance through arrival and departure timestamps. Further, if a package is left without a signature a visual proof of delivery (VPOD), can help you assure customers.

With customer expectations changing dramatically post-pandemic, the right courier software can help you drive loyalty, accountability, and growth in the bottom lines.

The supply chain proved to be a critical lifeline during the pandemic-induced restrictions. As the holidays are coming around the corner, we know it will reach its peak for the year. However, disrupted supply chains have caused major issues for companies and economies around the world. As many as 94% of the Fortune 1000 companies are suffering due to supply chain disruptions caused by the pandemic. More than half of these companies have downgraded or are contemplating reducing their growth outlooks.

During these trying times and the holiday season, it has become even more vital for companies to manage their logistics more efficiently. So, here are some common mistakes to avoid when making deliveries to customers during the holiday season.

NOT LEVERAGING ADVANCED TECHNOLOGY

The covid-19 pandemic highlighted the need for digitalization. Cutting-edge technology saved the day, providing solutions for smooth communication, collaboration, and coordination.

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Statista: Adoption of Cutting-Edge Technologies by Supply Chain Companies in 2020

Advanced technology solutions help manage deliveries efficiently, lowering costs, minimizing errors, and enhancing customer satisfaction. Advanced logistics software provides real-time data to improve decision-making.

By increasing transparency through the complete process, from order creation to product delivery, such solutions are helping the logistics sector to:

  • Ensure route optimization to prevent wastage of manhours and fuel
  • Ensure same-day, scheduled, and on-demand deliveries
  • Respond to order status inquiries quickly and effectively
  • Identify urgent orders and process them accordingly
  • Generate comprehensive reports for informed decision-making

With these in place, logistics companies have been able to:

  • Reduce instances of failed deliveries
  • Reduce vehicle operation cost
  • Increase dispatcher productivity
  • Improve customer service
  • Enhance branding

IMPROPER PACKAGING

Storms are the only natural cause of the top ten reasons for damage to delivery parcels. Non-natural events account for as much as 87% of the total value of claims and as high as 95% of the number of claims. The probability of damage to parcels during shipping can be prevented by using proper packaging. Improving packaging material and technique may increase the cost of delivery, but this is minuscule compared to the costs associated with customers receiving damaged goods.

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INACCURATE DATA ENTERED

The culprit of inaccurate data is human error. While human errors may seem natural and small, inaccuracies in data caused by such lapses are resulting in businesses losing millions of dollars every year.

The most common human errors include:

  • Incorrect freight weighted recorded
  • Inaccurate shipment class selected
  • Incorrect or incomplete addresses entered
  • Miss in recording all relevant data (like availability of the recipient at the time of delivery)

On the other hand, simply by automating storage and retrieval at warehouses, companies have increased their order accuracy levels to more than 99%.

NOT TREATING THE CUSTOMER AS KING

Many logistics companies lose business by not offering sufficient shipping options to customers, like same-day and scheduled deliveries. With effective tracking tools in place, logistics companies can offer various shipping options as well as provide customers regular updates of their packages in transit. Tracking of returns and replacements also becomes easier and removes uncertainties for customers.

Customers becoming increasingly discerning and the business landscape growing more competitive has made it even more critical for logistics companies to use the right software solutions and avoid mistakes. This not only improves the bottom line but also protects and increases the company’s brand equity over time.

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Key Software Systems LLC IconKey Software Systems LLC

5100 Belmar Boulevard, Farmingdale

4.8 20 reviews

  • Avatar Excel Group ★★★★★ 8 months ago
    Key Software has been our vendor since 2009. We've been able to evolve the solutions we can provide to our courier clients because of the constant developments they make to their product. They have proven time and time again to be … More easy to work with. We truly value this partnership!
  • Avatar Soniq Transportation & Warehouse ★★★★★ 8 months ago
    Soniq has utilized Key Software's Xcelerator system for over a decade now. We are very happy with the system capabilities, ongoing improvement updates, and the support team!
  • Avatar Kyle Stewart ★★★★★ 8 months ago
    Outstanding courier and delivery software. Always on the cutting edge of the industry and open to customer feedback and ideas. The Key Software team is the best!!
  • Avatar Adam Autera ★★★★★ 8 months ago
    Key has developed a truly amazing system. In the 15 years that I have been a user, the system has improved and expanded in many useful ways. It is an integral part of my company's growth, and is a selling point with new clients, both … More local, as well as international.
  • Avatar Harold Boyett ★★★★★ 3 years ago
    We have been using Key Software's flagship products, Xcelerator and MobilTek since 2009. We are highly satisfied as it meets our needs and exceeds our expectations. The company provides a steady cadence of cutting-edge enhancements … More with each subsequent release. The software helps us to be a leader in our industry. All aspects of the delivery cycle are taken care of with ease and precision: from online customer access, order entry, dispatch, integration, tracking, gps, mobile workforce, commissions, invoicing, and all back-office functions.
  • Avatar Mahir Butt ★★★★ 6 months ago
    Great company to work with have been a customer for a long time and I can honestly say that our experience has been great with this company thus far !
  • Avatar Zip Logistics Dispatch ★★★★★ 9 months ago
    Excellent product, Awesome Support and open to hearing new ideas.

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