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Todays’ consumer is more discerning than ever before. They are not ready to compromise on delayed shipments or bad quality products. This has put a lot of pressure on courier companies to maintain their dispatch processes to match to the expectations of their customers. For growth, it is immensely important that these companies continue to improve on their business processes, complying with customer requests, while also cutting costs and enhancing customer service.

However, if we look closely, a courier company cannot run without an efficient warehouse system. The warehouse and distribution centers are at the very heart of the supply chain network. Warehouses perform a wide range of services that add value, such as labeling, assembly, packaging, branding, kitting and reverse logistics. Warehouses also need to be efficient in accommodating any spike in demand during the festive season, says an article published by MACH 1 Global Services.

To achieve an efficient warehouse, courier management software can be the key. Let’s see how.

ENCOURAGES MORE REGIONAL LOCATION

Earlier, when courier companies used to operate manually, they preferred their warehouses to be restricted to one geographical location to easily manage pickups. However, an efficient courier management system, which can easily take care of several warehousing hubs simultaneously, is encouraging the building of more regional locations, bringing products even closer to the customer. This will help courier companies reduce transportation costs and ensure last mile delivery, says an expert at Key Software Systems.

ALLOWS EXPANSION OF SPACE

Technology continues to change the way consumers shop and how businesses fulfill orders. As 2018 unfolds, we need to watch these six trends in B2B e-commerce and develop dynamic models to meet the expectations of customers.

MORE CONSUMER-BASED TECHNOLOGY

B2C companies have set the stage for the way people shop, and these habits are creeping into businesses as millennials take over top positions. These executives grew up with technology and are used to fast, smooth purchasing experiences. An estimated 53 percent of B2B customers now make at least half of their work purchases online, and handling this increase requires an e-commerce platform tailored to meet their needs

B2B GOES MOBILE

Upgrading B2B e-commerce software is also necessary to accommodate the high percentage of customers who consider mobile devices a “vital” part of doing business. About 84 percent of millennials and 76 percent of people in Generation X rely on mobile devices in both their personal and professional lives, and B2B companies need to respond accordingly. Providing a mobile-friendly platform allows these customers to make purchases and manage orders any time, instead of waiting for a B2B representative.

THE OMNIPRESENCE OF OMNICHANNEL

Sixty percent of B2B sellers report an increase in sales after adding online channels to their marketing strategies. Making the most of this shift requires the adoption of software designed to cover all customer touchpoints and optimize the buying process across diverse channels and platforms

REFINEMENT OF PERSONALIZATION

Personalized shopping experiences are deeply entrenched in the B2C realm, and B2B customers will expect the same in 2018. With the advent of machine learning and the growing use of AI technologies, it’s possible to process, analyze, and understand more behavioral data than ever before. Improved ERP platforms can take this data and use it to tailor shopping experiences to individual customers.

FULFILLMENT AUTOMATION

Integrating purchasing and fulfillment with ERP and delivery management software reduces the errors B2B companies experience when relying on the manual transfer of order information. Instead of risking a bottleneck between processes, integrating systems creates an efficient flow of data to speed up fulfillment and improve the customer experience. When we can remove barriers to purchasing, customer satisfaction and repeat orders increase.

BETTER TRACKING AND DELIVERY OPTIONS

Thanks to the availability of up-to-date weather and traffic data, it’s now possible to use route optimization software to get orders to customers faster and provide them with more detailed tracking information. This allows us to meet the increasing demand for services like same-day and weekend delivery driven by trends in B2C markets. In B2B e-commerce, being able to offer more shipping options prevents customers from going to competitors better equipped to meet their needs.

The way we respond to customers in the changing landscape of B2B sales and fulfillment should be focused on creating better purchasing experiences and using new technologies to meet expectations. With a wider reach through omnichannel marketing and increased delivery options, we can reach more customers and build stronger relationships throughout 2018.

For a business, it is crucial that performance is assessed at multiple levels to evaluate their success in reaching targets. According to Business Gateway, knowing how various areas of the business are performing helps owners and managers to assess their business’ strengths and weaknesses. Such assessment exposes business owners to the factors that they need to work upon or change completely to help the company succeed.

It is for this reason that businesses across the world use KPIs to manage their performance effectively and proactively. Also known as Key Performance Indicators, KPIs are measurable values that demonstrate how effectively a company is achieving key business objectives. However, KPIs can vary according to the industry and which part of the business the managers are looking to track.

Here is a list of 3 top KPIs that courier services should track.

3 KPIS FOR COURIER SERVICES

1. On Time, Full Delivery: If you are running a courier service, this KPI is highly important. It is the basic measure of timely delivery in its complete condition. The service needs to be extra stringent and consider a delivery late if they are unable to deliver the entire order on time, in the full quantity, and in its original condition. It is also important to take into account the rate of returns due to shipment damage or shipment error, added an expert at Key Software Systems.
2. Average Late Deliveries: Every business has certain areas that are a leading cause of delays in the delivery of products to the customer. Tracking late orders helps the organization understand the potential negative effects that late deliveries can have on the business, taking into account various types of orders. Take advantage of a dispatch software that gives deep insight into every step of the delivery process. This will help a courier service understand the causes of delay, so that they can take measures to mitigate the risk of losing customers.
3. Accurate Order Picking: This KPI is related to tracking warehouse operations, which are as crucial as the delivery process. A customer will only be frustrated with your services if they end up with the wrong parcel at their doorstep. This is often the result of order picking errors, caused by inefficient warehousing operations, says an article by Adaptalift Hyster. A lot of time and effort is wasted in tracking the correct product and re-sending it to the customer, after they have placed a complaint.

Manually tracking the KPIs at different levels of the business is nearly impossible. Therefore, utilizing a courier and dispatch software that digitally records and analyzes data to spot errors and fix problems proactively is the best course of action.

Customers in today’s fast-paced e-commerce landscape are demanding optimized delivery experiences. B2C companies are rising to the challenge with solutions for faster delivery and more accurate tracking, so it’s time for B2B operations to adopt similar technologies.

Our customers have similar needs to those in B2C markets and expect rapid fulfillment/distribution of orders. With courier delivery software, we can follow best practices for improving delivery services, resulting in increased satisfaction.

TAKE ADVANTAGE OF THE BEST ROUTES

Faster delivery means happier customers, and last mile delivery software makes it possible to minimize delays on all routes. By incorporating current traffic data and anticipating bottlenecks, these programs send drivers on the most efficient course for every delivery. The information can also be used to reduce operating costs by matching the right kind of vehicle to the expected route.

OPTIMIZE FLEET ACTIVITIES

Planning routes with software improves dispatch management by cutting down on the number of empty miles driven by trucks in a fleet. With a clearer picture of package destinations and warehouse locations, companies can schedule pickups and drop-offs to ensure vehicles are full as often as possible and little to no idle time occurs between deliveries.

STAY CONNECTED TO CUSTOMERS

Delays are inevitable when dealing with last-mile delivery. However, the right courier delivery software keeps us in touch with our customers, allowing for instant notification when packages are running late. If customers need a delivery re-routed to a different location, the software handles the transfer and provides drivers with the new route so that they can change course without compromising their schedules.

IMPROVE DRIVER PERFORMANCE

Keeping up a fleet is expensive, and money is lost when drivers travel inefficiently, spend too long at delivery stops, or routinely hit congested areas on heavily traveled roads. Dispatching software provides tools to track drivers’ movements and find places where practices can be adjusted to increase productivity. This saves money on fuel, prevents problems associated with driver negligence, and streamlines fleet activities.

REDUCE LOSS

Packages delivered to destinations aren’t always picked up by the intended recipients, causing frustration for customers and loss for companies. We can deliver “smarter” by integrating GPS tracking devices into packages and using software to locate, retrieve and return misplaced deliveries to the right locations as soon as possible.

MANAGE INVENTORY MORE EFFICIENTLY

Bottlenecks in the supply chain slow down every other step of the fulfillment process. Using software to track the steps leading up to last-mile delivery identifies difficulties and helps us make smarter supply, manufacturing and distribution decisions. It also highlights the items customers order most often, showing which ones require the most stock to ensure consistency in fulfillment.

Implementing courier software solutions to streamline delivery operations and meet the growing need for faster distribution creates a better experience for every B2B customer. By choosing software designed to integrate with existing systems, it’s possible to track and manage inventory from the supply chain to the final destination and provide our customers with superior service.

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.

Software and hardware technologies have been evolving at a rapid rate for several decades, and recent advancements have revolutionized the way that couriers manage their operations. Courier software enables logistics businesses to make data-driven decisions with minimal effort, giving fleet managers more time to focus on important strategic decisions. The software brings all available data together in one platform so that fleet managers can quickly recognize problems and implement solutions. It is designed to give managers the best tools available to improve the efficiency of their operations.

ROUTE PLANNING

Advanced software is transforming how businesses conceptualize route planning to improve efficiency and reduce uncertainty. Modern route planning software integrates with the computer systems of suppliers, couriers, and e-commerce websites to calculate the best route using all available information. This software can connect businesses that need to send shipments with couriers to find mutually beneficial opportunities to reduce costs and save time. Xcelerator integrates with our Interconnect dispatch management software to help couriers capture new business from our partners instantly.

FLEET MANAGEMENT

Attempting to manage an entire fleet of trucks is an arduous challenge for couriers that run large-scale operations. In fact, one of the primary barriers to growth for many carriers is the challenge of coordinating the resources of their entire fleet with minimal overhead costs. Fleet management software uses real-time data about a courier’s fleet to ensure that resources are distributed with optimal efficiency. GPS data enables managers to track the progress of their drivers while planning ahead for future actions. The software also leverages a wide range of data, such as vehicle specification databases and historical information, to help decision makers apply the lessons of past experiences to improve the efficiency of their current operations.

INVENTORY MANAGEMENT

Customers in the modern world have no tolerance for errors because inventory management software has helped to nearly eliminate the possibility of mistakes. In former times, customers would be understanding when companies ran out of inventory or sent packages to the wrong location, but modern customers accept no excuses for inventory handling mistakes. Computer systems enable couriers to track shipments throughout the fulfillment process, and this information can be used to plan ahead for shortages and correct errors in a seamless process. Our software is integrated with inventory management systems so that dock workers can verify shipments to improve accuracy and accountability.

DELIVERY SOFTWARE

Keeping track of shipments is a critical aspect of managing a successful courier business. Fleet managers can utilize delivery software that helps to oversee shipments that arrive at a customer’s location. Modern courier software uses advanced data about deliveries to help companies learn from past experiences and provide more responsive services. Delivery management software also helps to reduce errors since fleet managers can confirm the arrival of shipments. If a shipment does not arrive at the proper time, fleet managers can take immediate action to implement a solution. Software that helps logistics companies track deliveries is, therefore, critical for success in today’s business world.

Change is the only constant of every growing business today. The ability of a business to adapt to these changes determines its success. One of the major changes we have witnessed recently is the evolution of the e-commerce industry. Retail e-commerce sales worldwide amounted to $1.86 trillion in 2016, alone. This figure is estimated to reach $4.48 trillion by 2021.

The boom in e-commerce has also brought new developments for the distribution management system. The flow of products from manufacturers to consumers has been altered significantly, owing to new technological advancements and business processes. Modern distribution systems, which can easily transport goods to the consumer’s doorstep, are increasingly becoming more popular.

ENTERPRISE APPLICATIONS FOR DISTRIBUTORS

Until quite recently, distributors had been reluctant to invest in IT. Of course, there was much less to buy, and vendors mostly relied on proprietary technologies. But now, defending their traditional roles and to create new sources of value, distributors are starting to apply enterprise applications in supply chain management to gain a competitive advantage, according to a report titled The e-Changing Face of Wholesale Distribution.

Today, there are courier dispatch management software solutions, designed for same-day, next-day distribution for the e-commerce and warehousing industries. One such application is Xcelarator, Windows-based software that can be operated on Safari, Internet Explorer, Firefox, and Chrome on workstations, laptops, mobiles, or tablets. This courier dispatch application includes management and real-time data generation for distribution and cross docking operations, warehousing, on-demand, routed and scheduled work; basically all aspects of the dispatch system, in a nutshell.

Such enterprise applications are helping vendors to control costs, reduce inventory, grow revenue, and improve customer service, in their attempt to defend and expand profit margins.

LOGISTICS AND WAREHOUSING

Technology may provide the virtual platform for e-commerce growth, but logistics and warehousing provide the vital physical platform.

Reports suggest that parcel and express delivery has surpassed railroads, making it the second largest logistic option after motor freight. In 2016, spending on package delivery services jumped 10%. The report also stated that cutting-edge technologies have brought new advancements in sectors such as warehousing and parcel delivery. The parcel carriers and warehouses have taken advantage of the ever increasing e-commerce volumes to raise their rates and, hence, have continuously reconfigured their networks to provide faster delivery to consumers.

Warehouses are also being built in proximity to large, dense population centers, to facilitate quick delivery. Earlier, companies used to build these in remote locations to save on rent, but now the next-day delivery criterion is being replaced with a same-day and one-hour delivery, making it imperative for companies to store their products in areas close to the target population.

We can see that while the whole distribution system might be more complex in the future, it sure will be more efficient, benefitting the consumer. Developments in infrastructure and technology, such as solar power, autonomous driving, and energy storage, might even make it cheaper.

With the increasing demands of today’s consumer, the courier industry has become more complex and diverse than ever before. Service providers today are expected to have all the tools and abilities to meet the time critical demands of clients, covering areas like inventory management, vehicle tracking, scheduling, customer portals, and more. To get better insight, companies are investing in highly scalable centralized systems for the management of field services, especially those that offer real-time collaboration. As a result, logistics businesses are benefiting from reduced operational costs and improved enterprise efficiencies.

It is for this reason that the Field Service Management (FSM) market is estimated to grow from $1.78 billion in 2016 to $3.61 billion by 2021, at a CAGR of 15.1%, according to the report, Field Service Management Market by Solution (Schedule & Dispatch, Work Order Management, Mobile Field Execution), Service (Implementation, Training, Consulting), Deployment Type, User Type, Industry Vertical, and Region – Global Forecast to 2021, published by Markets and Markets.

Courier management software is one of the best tools a business can use to manage field service personnel and fleets. The software automates the scheduling process of both the fleet and drivers, while making the entire process smooth and seamless. But, most importantly, it helps companies reduce their operational costs. Let us take a look at how such software helps.

3 WAYS COURIER SOFTWARE CAN REDUCE COST

1. Effective Delivery Management: With courier management software, courier services can anticipate, identify and address issues related to delivery management in real-time, which not only makes the process much easier but also avoids delays and errors in delivery. With the feature of color-coding, communication also gets simplified, with ease of prioritizing and customizing events. Integrated mapping and GPS helps dispatch personnel easily identify pick-ups that might be in queue, while gaining knowledge of the cargo, location, speed and tracking history of every driver in the field at that point in time, says an expert at Key Software Systems.
2. Improved Communication: Such software also helps by offering a unified database that helps with effective communication, while minimizing chances of misunderstandings and miscommunications. This, in turn, reduces errors, while allowing the administrative personnel to notify field personnel quickly regarding any changes in itinerary or any other aspect of the delivery process, according to an October 2017 article by BCW.
3. Streamlining Processes: Such software solutions offer courier companies the right tools to maximize resources through the streamlining of operations, as well as to attract new business. With courier software enabling businesses to automate the flow of valuable, time-sensitive and customizable information, what the company gains is greater accuracy, accountability and, therefore, profits.

All these go a long way in helping courier companies save a fortune on operational costs, while also increasing efficiency and their reputation.