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In the current era of rapid business growth, expectations of customers from delivery services have risen exponentially. This has led businesses to adopt various strategies to streamline their courier management operations to achieve customer satisfaction. The best way to achieve such streamlined, efficient operations is through the use of courier management software solutions.

WHAT ARE THE CHALLENGES FACED BY THE COURIER INDUSTRY TODAY?

Inefficient Data Collection Rising Overhead Costs Administrative Issues
Poor Inventory Management Low Information Visibility

 

The most common challenges faced by courier companies include:

All these challenges lead to an inability to maximize delivery efficiency, which in turn leads to increased costs and loss of customers.

HOW DOES POOR RECORD MANAGEMENT AFFECT COURIER COMPANIES?

Many delivery companies maintain their records in paper-based files or delivery books. This manual system of recording information often leads to various difficulties, such as:

  • Poor coordination in collections and deliveries.
  • Senders and recipients don’t get notified about the status of the transit and delivery of orders in a timely fashion.
  • Creates weak trails for auditing delivery performance. There are uncertainties associated with whether the product is delivered or collected on a timely basis.
  • Customer queries cannot be answered promptly and accurately.

WHAT ARE THE OVERHEAD COSTS INVOLVED IN DELIVERING ORDERS?

There are two types of overhead costs associated with collection and delivery, direct and indirect costs. Some examples of overhead costs are:

  • Transport costs for motor vehicles, such as fuel, maintenance and repair, and insurance.
  • Salaries for drivers and messengers used for deliveries and collection.
  • Cost for messengers that perform personal errands for employees.
  • Time costs for messengers who wait at government offices or embassies to submit documents.
  • Overtime costs for deliveries made after office hours.

WHAT ARE THE ADMINISTRATIVE HURDLES FACED BY DELIVERY OPERATIONS?

Some of the major administrative problems faced in courier delivery operations are:

  • Inability to monitor activities of drivers and other delivery personnel. This is due to factors such as vehicle breakdown, traffic congestion, parking issues, etc.
  • Finding replacements in case drivers are on leave or are absent due to illness.
  • Maintaining personnel records of drivers, such as pay, overtime, leave and other details.

HOW DOES POOR INVENTORY MANAGEMENT AFFECT WORKPLACE EFFICIENCY?

Errors that occur while entering details related to booking and inventory can be devastating. It can lead to wasting of time and general confusion in analyzing data. Apart from this, duplication of records is also an issue in a manual or excel sheet-based approach.

HOW DOES LOW INFORMATION VISIBILITY AFFECT COURIER BUSINESSES?

Most courier companies work in a distributed environment. Data is generated from several systems and departments. There is always a need to make quick, informed decisions. If there is a time lag between the need for a report and its availability, it can lead to missed opportunities and affect growth.

WHAT ARE THE WAYS TO IMPROVE COURIER MANAGEMENT?

A key means of improving courier management is to transition to an effective courier management software solution that is compatible across devices and offers rich features and functionalities. Some ways to improve courier management are:

Switch to Paperless Solutions
Keep Customers in the Loop Efficient Courier Management Use Data Analytics
Improve Real Time Reporting

 

WHAT ARE THE BENEFITS OF GOING PAPERLESS FOR COURIER COMPANIES?

Switching from a manual or a paper-based method to a digital one has its own benefits, such as:

  • Say goodbye to large stacks of paperwork.
  • Enhance verification through e-signs and electronic proof of delivery.
  • Reduce invoicing time through automated accounting.
  • Greater control over daily tasks.

HOW DOES REAL TIME REPORTING SOFTWARE HELP COURIER BUSINESSES?

With the help of specialized reporting software, you can reap a number of benefits, such as:

  • Improve real time visibility and track status of goods, even in last mile delivery.
  • Help customers receive emails and notifications related to the status of their order.
  • Improve the process of fixing inefficient methods on the fly.
  • Enhance transparency of operations for customers.

HOW TO KEEP CUSTOMERS IN THE LOOP?

Courier management software that offers both mobile and desktop versions can help to increase the reach considerably.

  • Software that is available as an Android, iOS or Windows app can cater to most customers.
  • Helps with real time tracking of packages for early troubleshooting, before delays occur.
  • Helps to give tracking control to customers.
  • Improves two-way communication and timely resolution of disputes.
  • Gives the opportunity to receive feedback on delivery performance.

WHAT ARE THE COMMON USES OF DATA ANALYTICS IN THE COURIER INDUSTRY?

A common dashboard that allows you to access all the data at one place proves to be very helpful.

  • You can generate reports on the basis of specific filters and parameters.
  • You can access the real time location of vehicles and drivers through GPS.
  • You can ensure that areas of improvement can be detected efficiently.

Smartphones and other portable devices have changed the way we communicate with our friends, family, and business contacts. Most of us send messages or make calls from our smartphones without giving it much thought, taking our technology for granted.

Many of the things we do today were not possible in the past, and it’s now time for us to explore the ways mobile devices have improved our communication. The goal is for you to gain a new appreciation for the things made possible by mobile technology. In fact, many of us depend on our devices so much that we could no longer operate if they were taken away.

ENHANCED SPEED

Increased communication speed is one of the benefits we get from mobile technology. Before the first phones and radios were operational, people could only communicate through the mail. If someone lived hundreds of miles away from you, it would have taken weeks or even longer to send and receive a single message.

Phones have changed the game by letting us speak with anyone in the world in an instant, but we had to be near our phones to do it. With mobile devices, we can make calls, send messages, and write emails from almost any location on the planet. In the business world, this enhanced speed improves profit and boosts productivity.

ENHANCED COLLABORATION

Increasing the speed of our communications enhances the quality of our collaborations. For example, you can upload documents and let your team work on them from remote locations. Using the internet, you can connect and manage many parts of your business from the comfort of home.

For example, you could use our courier management service to track your drivers and detect problems before they progress. You and the members of your team can work together to solve any issue that you face, which keeps your business moving in the right direction. The advances in mobile devices let us achieve things we once thought were impossible.

ENHANCED LOCATION SHARING AND NAVIGATION

Navigation systems were once only available to the military and corporate clients, but that has changed thanks to mobile devices. We can use applications on our smartphones to find any location on the planet and we can even share our locations with our friends and family. For example, family members who go to a theme park could use this technology to keep track of each other. You can implement last mile delivery and logistics solutions to see where your drivers are at all times. These advantages change the way we operate in a positive way!

FINAL THOUGHTS

Whether you are staying in touch with your friends and family or working to grow your business, never underestimate the power of mobile technology. Other companies are taking advantage of the latest trends and the benefits that come with them, so you have to do the same if you don’t want to fall behind. Reach out to our team to learn about our courier software management and what it can do for your business.

It’s projected that the local courier delivery market will reach nearly $107 billion in 2019. Much of this will be for “last mile” deliveries. Major delivery trends for 2019 will include making all deliveries, but particularly last-mile deliveries, greener, faster, and more mechanical for any type of product (prepared food, groceries, clothing, etc.).

Delivery Trends for 2019 Infographics

Delivery Trends for 2019 Infographics

Delivery Trends for 2019 Infographics

Delivery Trends for 2019 Infographics

Delivery Trends for 2019 Infographics

Delivery Trends for 2019 Infographics

INCREASED USE OF COURIER MANAGEMENT SOFTWARE

Courier Management Software is a way for businesses to operate and manage their delivery services more efficiently. This type of software helps with day to day operations including customer and company details, hub rates, and pickup centers.

  • This software is highly customizable to fit any business model.
  • 54% of millennials will pay more for same day delivery.
  • Expected growth rate of the global courier management software market is 11%.

DELIVERIES WILL BE GREENER

Many companies are beginning to go green and consumers want to be more associated with eco friendly options. Businesses are introducing more ways to reduce their carbon footprint by recycling and reducing their waste. It is no surprise that one of the best ways to go green is deliveries, where much energy is spent.

  • One courier driving a standard gasoline vehicle releases 33 tons of carbon emissions per year.
  • 77% of consumers are concerned with having eco-conscious options for their deliveries.
  • Trials of electric freight vehicles to combat pollution in urban areas are in testing.

THE FUTURE OF “LAST MILE” DELIVERIES IS ROBOTIC

The future for deliveries is changing as technology is becoming more advanced. Self-driving vehicles and other robots are already becoming more prominent in today’s society. As time goes by, more robots will be developed and introduced.

  • Around 60% of people have food delivered at least once a week.
  • Bots get up to 30 miles per charge, making them cheaper and more eco-friendly.
  • It’s estimated by 2025, over 80% of deliveries will be made by self-driving vehicles, including food delivery robots.

Today, customers have never had so many options for delivery. Courier Management Software is becoming increasingly popular for businesses to operate and manage their delivery services effortlessly. There is a need for businesses and consumers to introduce improved green ways to transport goods that help sustain the environment. The future of “last mile” deliveries potentially brings the introduction of robots and self-driving vehicles to get deliveries done more efficiently and with less human efforts. These major delivery trends for 2019 will shape the future of deliveries for years to come.

According to a survey published in a paper by Harvard Business School, 44% of people said that the most recent reason for cancelling a purchase midway was the high shipping fees. It was also found that this was the most common reason for a customer abandoning a cart. So, it becomes important for companies to ensure optimal shipping charges. This can help reduce cart abandonment, as well as customer dissatisfaction.

Here’s a look at the key factors that go into making up the total shipping costs for a business.

PACKAGING COSTS

Packaging can form a significant part of the total shipping costs for a company. You need to evaluate three factors for this:

  1. What: The item or product that has to be shipped to the customer.
  2. Weight: The total weight of the item plus packaging.
  3. Where: The delivery location where the package has to be sent.

Collectively, these are known as the three W’s of cost evaluation.

In case your company is selling and shipping lightweight products to nearby locations, it is better to use your own packaging. This is because flat rate shipping can cost you a lot even if the destination is close, since there are predetermined prices.

But make sure that you use an efficient courier tracking software that can help you provide the best last mile services to your customers. Such software can help you to track the movement of your package and even find the best route for your vehicles, helping your business cut costs. Efficient last mile delivery not only helps manage costs but could drive immense growth for businesses, says an article by Key Software Systems.

However, if you deal with heavy items or shipping to customers in distant locations, then flat rate shipping can be a good idea. You can get flat rate boxes completely free of cost and use them for sending goods at fixed prices. The only thing to consider here is that the items should fit in the box.

HANDLING COSTS

There are 4 main questions that need to be answered while estimating handling costs:

  1. Is there a need to pay a third party to pack your orders properly?
  2. If a third-party is involved in packaging, how much is it going to cost per unit time?
  3. How much time is the packaging company going to take to pack each item?
  4. Is there a warehouse where you can store the packed items?

Once these questions are answered, other factors can be taken into consideration as well.

POSTAGE COSTS

This depends on the postage service that you are using to deliver products. Most companies check the rate chart of various mailing services for a proper comparison of their cost effectiveness.

The main aim of the analysis of various factors is to calculate the average shipping charges per order. If it comes out to be more or less the same for most products, you can charge customers a fixed shipping rate.

The selection of a shipping structure includes a balancing act between consumer base growth and operational costs, says a research paper in the Journal of Retailing.

Ecommerce sales in the US are expected to grow from an estimated $504.6 billion in 2018, to more than $735 billion by 2023, according to figures published by Statista. With such a staggering growth outlook, managing products entering and exiting the warehouse has become a challenging task. Efficiently managing products that leave your warehouse can result in huge cost savings. So, here are some tips to improve the process.

DEFINE YOUR DISPATCH PROCESS

A well-defined dispatch process can help avoid a lot of confusion and reporting errors that can arise. Make sure everyone in the warehouse properly understands and follows the process. You should also provide adequate training to the staff to ensure that they are on the same page. Keep in mind, the workflow should be documented to spot any inconsistencies.

USE COURIER SOFTWARE

Back in the day, courier managers would follow up on deliveries on a white board, a process that was highly inefficient and time consuming. Nowadays, courier dispatch software has made everything streamlined. Such software provides customizable, real-time dashboards for complete visibility on all vehicles and their drivers. This ensures smooth operations, improved management, and on-time deliveries, says an article by Key Software Systems, a company reputed for its courier software solutions.

HAVE AN EFFICIENT PROCESS

Here’s how you can make the dispatch process more efficient:

1. KEEP PICKING LISTS READY

The picking lists should be ready and printed every day before the arrival of the picking team. This ensures that they can get to work as soon as they reach the warehouse and prevent unnecessary delays.

2. HAVE A PRACTICAL INVENTORY LAYOUT

A practical warehouse layout can save the staff a huge amount of time each day. There’s not a best way of laying out your inventory – the approach will vary from one retailer to another. However, a good practice in any warehouse layout plan is to store the hot selling products in areas that are easily accessible and near the packaging area. Another idea, would be to stock the items that are frequently purchases together in close proximity to one another.

3. USE HANDHELD BARCODE SCANNERS

Handheld scanners can significantly reduce human error that tends to come in with repetitive tasks. For instance, when a product of the wrong style or color has been placed in a bin, there are high chances of the wrong item being shipped too. This error can be prevented if a barcode scanner is used.

Warehousing and managing products on the go are two critical parts of a company’s cost structure. Performing these in a cost efficient way can improve the overall financial competitiveness of the company, says a report by Research Gate.

Today’s consumers have the ability to instantly transfer money, watch any show they want, and access music with the tap or swipe of a finger. When those consumers order a product, they want to get it quickly! A recent survey of consumers found that speed trumps loyalty when it comes to which company a person will choose for making an order. With our dispatch software, your business will be able to improve your courier management system and get deliveries to customers as quickly as possible.

CONSUMERS PAY MORE FOR FASTER SERVICE

In a poll of 995 American consumers, 47 percent of them said they spent more in order to get faster service when placing an online order. Of those surveyed, members of the Millennial generation are the most likely to spend more for faster service. More than 54 percent of Millennials say they will pay more to get their item delivered on the same day. Luxury shoppers also want their goods delivered quickly. People buying high-end items will also pay more to get their things faster. If a company does not offer same-day delivery service, it could be leaving a lot of money on the table. Our courier tracking software makes it possible for a company to offer same-day delivery service within a specific geographic area.

SAME-DAY DELIVERY INCREASES ONLINE SHOPPING

When a person can get their order on the same day that they place it, they will shop more frequently. In that survey of consumers, 50 percent said that they would shop more frequently when they can get their orders on the same day. Past research has shown that the more often a consumer shops, the more money they spend. For retailers, this could be a big boon to the bottom line. With our courier tracking software enabling your company to offer same-day deliveries, it can also grow your online sales.

LOYALTY INCREASES WITH SAME-DAY SHIPPING

Our courier management system also has the potential to boost customer loyalty. A whopping 74 percent of American consumers say that they are more likely to shop again with a business that offers same-day deliveries. Once a company has managed to attract a customer, it is important to maintain their loyalty. Fast shipping times are as important as the quality and price of the product to today’s savvy consumers. Our software also reduces late and lost deliveries, helping you keep your customers happy and satisfied.

SMALL BUSINESSES GAIN A COMPETITIVE EDGE

Over the past few years, delivery software has only been available to retail leaders such as Amazon. Today, the affordability of our dispatch software means that smaller businesses can take advantage of the ability to get their goods to their customers on the same day as the order is placed. Instead of choosing the big retailer with the faster shipping option, a consumer might be more likely to choose the smaller local business if they can get the item within the same frame of time. With our delivery software, small businesses gain a competitive edge.

February 12, 2019

keysoftwaresystems

AllNewsletter

Global e-commerce sales is expected to reach $3.3 trillion in 2019, rising to a whopping $4.5 trillion by 2021, says an article on Shopify Plus. This increase in online sales has also led to an accompanying increase in demand for high-end last mile delivery software.

There are some excellent comprehensive delivery management solutions to choose from today, which provide dynamic route optimization for effective and timely last mile delivery.

WHAT IS LAST MILE DELIVERY?

Last mile delivery is the movement of goods from a transportation hub to the final destination. It is the last step in the process of delivery. An ideal last mile delivery model will ensure that the order is delivered to the consumer on time. It is also greatly desired that the entire delivery process remains transparent, finite and centrally controlled.

For instance, if the delivery person is an hour late in delivering a package, without any prior notice, it might ruin the customer’s entire plan for the day. Moreover, it would have a domino effect on all the other deliveries planned for the day by that delivery person. This is only one reason why efficient last mile delivery can prove to be a great boon for ecommerce businesses.

CHALLENGES FACED IN LAST MILE DELIVERY

The last mile condition can get out of hand and lead to delayed delivery schedules, higher fuel expenses or even incorrect deliveries. The challenges that might occur during this stage are usually due to weather-related issues, lower predictability of road conditions in rural or unorganized areas, lack of route optimization and poor communication within the delivery chain, says an article in Business Insider. Also, since same-day or next-day delivery options are becoming increasingly popular, customers are demanding transparent ways to track their package.

SOLUTIONS TO IMPROVE THE LAST MILE DELIVERY PROCESS

Last mile delivery software is built to tackle the most significant hurdles in the delivery process. It increases visibility, improves customer engagement, optimizes delivery routes and provides driver tracking and advanced payment modes. Some of the best software, such as Xcelerator and MobileTek, are designed to increase the speed and accuracy of the delivery process. They work great with all major platforms, such as Android, iOS and Windows.

Using the best software not only increases the geographical reach of the ecommerce of courier company but also helps your brand develop long-lasting relationships with your local and global customers.

Holidays and the ensuing winter months are tough times for courier and delivery services. Increased parcel volumes on account of the holiday season shopping binges or heightened purchases from businesses before the advent of the tax season provide significant challenges for these companies, who often have to bear extreme weather conditions, such as snow and hail, on their routes.

The National Highway Traffic Safety Administration cites winter as one of the most difficult seasons for driving in the country, during which vehicular accidents are rampant, owing to slippery road conditions, poor visibility and increased unpredictability of other drivers during the holiday season.

Here are some tips that smart drivers use to stay safe in such conditions.

DRIVING AT LOW SPEEDS

Better late than never is a proverb especially applicable to the winter season. We know that you have to meet delivery deadlines, but icy roads can sometimes overwhelm even the most robust anti-skid controls. Stay within the recommended speed limits, so that you have adequate “stop-time” in case of sudden halts. This is especially important for heavy-load vehicles.

KNOW YOUR VEHICLE INSIDE OUT

Before venturing onto snow-bound roads and extreme weather conditions, check features like forward sensors, headlights, vehicle batteries, back-up camera and tail lights to see if they are functioning optimally. Check other features like electronic stability control and antilock brakes and familiarize yourself with their applications beforehand, according to instructions given by the US National Highway Traffic Safety Administration for winter driving.

KEEP A SAFE DISTANCE FROM VEHICLES IN FRONT

When visibility is low or it is snowing heavily, following the tail lights of vehicles ahead of you is not advisable. Aim to keep a safe driving distance from the vehicles ahead. Since fleet vehicles tend to be larger and carry heavy cargo, their drivers need more space and time to bring their vehicle to a complete stop, according to an article on Wex.

STOCK YOUR VEHICLES WITH ESSENTIAL SUPPLIES

Accidents and breakdowns do occur, and it is a good idea to stay prepared. The battery could run out or drivers could get stranded due to heavy snowfall. Keep contact numbers of towing services and other emergency respondents handy. Carry things like a snow-shovel, broom and ice-scrapers to handle common tasks. Jumper cables, flashlights, hot water bottles, extra blankets, first-aid kits, phone chargers, flares and emergency markers are some other useful tools to keep in the truck.

Drivers should plan their routes using GPS systems to get an idea of the weather and traffic conditions, while courier and delivery companies can use dispatch software to monitor vehicles and send help as quickly as possible during emergencies.

If you run an e-commerce shop and want to stay relevant throughout 2019, it’s vital you learn what your customers want and give it to them. Failing to meet their expectations can cause them to leave you and go straight to your competition. When you don’t fulfill the hopes of your clients, your business will suffer more than you might think. The good news is that you can defeat that problem by learning exactly what your customers want in 2019. The information below will let you stay relevant and move in the right direction.

FAST DELIVERY TIMES

Over the past few years, many delivery companies have implemented software for the fastest possible delivery times. Some companies try offering two-day shipping at a low rate, so more and more customers expect prompt service. People want instant gratification when they place an order online, and you have to keep up to avoid falling behind and losing customers. Even if you have trouble offering next- or two-day shipping, you can take steps to improve your delivery times, and every bit helps. Your customers will notice the effort and be much more likely to shop with you again in the future.

STATUS UPDATES

Almost every delivery company now offers status updates on the orders it ships, allowing customers to get real-time updates on package locations. This lets them know the day on which they will receive their order, and many of them plan their schedules around this information.

Find a way to let your customers know where their packages are at all times, or at least provide location updates each day. Customers are quick to abandon companies that don’t offer updates in favor of ones that do, and you can’t afford to fall into that trap. Delivery software lets you track that information and pass it on to those who need it most.

CARING SUPPORT

In addition to fast delivery times and status updates, customers are going to expect support in 2019 and the years that follow. If packages are delayed or other issues come up, customers want to know you will give them helpful support. They won’t want to shop with you anymore if your team does not answer their questions or offer the solutions they need. Since your customers are the life of your business, go out of your way to keep them happy and treat them well. You will be pleased with the result when you see how much of a difference a courier management system with a helpful support team can make in your customer service effort.

HOW COURIER TRACKING SOFTWARE HELPS

The competitiveness in the delivery industry has caused customers to raise their expectations. Staying ahead of the pack and maintaining the loyalty of your customers requires you to understand and meet their expectations at each turn. Dispatch software can let you reach that goal without much effort. With the right software, you can track each shipment and find the best possible routes.

Key Software Systems offers a complete courier management system on which you can depend. When you use our courier tracking software, you can keep track of your vehicles and spot problems you would have otherwise missed. These and other features let you optimize the speed at which you get your deliveries to your customers, and you can enjoy the rewards for years to come.

December 15, 2018

keysoftwaresystems

AllNewsletter

Did you know that the United States has more than 1 million registered drones? This is what data published by the US Department of Transportation has revealed. While a large number of these drones are being used by residents for fun, a significant number is being tested by companies like Amazon, Google, UPS and DHL to explore ways for drones to become an alternative for trucks to deliver packages. However, there are hurdles that need to be overcome to allow the safe testing and integration of drone technology in the US airspace. And, once achieved, the benefits can be huge.

Drones are electric powered. They reduce the need for fleets of vehicles to navigate traffic to deliver packages. This will become a major contributor to a reduction in greenhouse gas emissions, while helping courier dispatch companies save significantly on fuel and maintenance costs for their fleets, says an expert at Key Software Systems.

COMMERCIAL USE OF DRONES

Talking of Amazon, the fact that the US e-commerce giant has been testing customer drone deliveries in the UK since 2016 hasn’t been hidden from anyone. The multi-billion-dollar company made a record by delivering its first ever Amazon Prime package by air in Cambridgeshire. The time duration between ordering the package and its delivery was a mere 13 seconds, according to an article published by Standard.

Drones are completely automated. They are able monitor themselves, while determining what is safe and which route to take. In case they sense any problem, they are programmed to execute safe contingency actions, much before a human can react. This will prove to be a major advantage, allowing drones to make quicker deliveries, in just minutes after a customer has placed an order.

DRONES OVERCOME BARRIERS

Since the Amazon trial, certain barriers have come to the fore, such as control traffic rules, which restrict the widespread use of drones by the courier industry. Earlier, these conventional aircraft were required to be within the sight of their human operators, which restricted the area that drone deliveries could cover. However, the National Air Traffic Control Service (NATS) has now allowed out-of-sight drone operations, as announced by NATS head Andy Sage to The Times. Moreover, no fly rules prevented drones approaching within 150 metres of buildings that were densely packed.

In 2019, don’t be surprised if you see these unmanned aircraft flying alongside manned ones. The tracking technology in drones is expected to soon be integrated with the air traffic control systems.

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