Using Logistics Automation To Balance Cost and Customer Experience

Soham Chokshi, CEO and co-founder of Shipsy, stressed that automating logistics processes contributes to achieving the optimal balance between operational costs and providing the best customer experience, noting that companies in the UAE are moving more towards adopting smart solutions in logistics management.

Chokshi said in statements to Al-Bayan: We live today in an era of speed, where everyone wants to get their order as quickly as possible, so most companies in the business sector seek to deliver their products with a simple and uncomplicated work mechanism and in a record time that does not exceed 45 minutes.

According to surveys conducted by “Oracle”, it was found that 49% of residents in the UAE rely on the estimated delivery time as a key factor in making the decision regarding where they will order from. And 48% of respondents in the same survey said that a late delivery date would spoil their day. Based on the above, delivery service companies are seeking to adopt smart logistics management tools supported by advanced automation and artificial intelligence to ensure that they keep pace with the aspirations of their customers.

Optimal Layout

Chokshi pointed out that the administrative bodies operating in the retail, logistics and e-commerce sectors seek to benefit as much as possible from the automation of advanced logistics management solutions, such as route planning solutions, order allocation, capacity planning, and driver path management. He said that good route planning is one of the most important logistics strategies, as it yields a great benefit in terms of reducing costs on the one hand and ensuring an ideal customer experience on the other.

He added, “Modern logistics management solutions today rely heavily on automating route planning based on multiple criteria such as distance, driver proximity, order type, vehicle capacity, weight, cost and others. The importance of automating the route planning process is to enhance driver productivity and reduce delivery costs by analyzing and aggregating pickup loading and delivery operations. These tools ensure businesses save 18%, reduce last-mile costs by 14%, and enhance customer experience by 28%.

Capacity Regulation

“Capacity planning automation is also an important strategy for improving delivery performance, as smart logistics management tools ensure optimum utilization of trolley capacity, by resorting to smart algorithms that seamlessly integrate shipment and vehicle data,” he said.

Through a comprehensive study of the data, such as the delivery location, weight, size, type of service, delivery dates, type of storage, and others, work is done on optimal capacity planning. All of these factors help companies reduce fuel costs and increase vehicle capacity, and the intelligent logistics management platform increases vehicle capacity utilization by 31%.

Programs

Soham Chokshi said that a large percentage of delivery people use fake locator software to carry out deliveries, which can expose both companies and customers to many problems with the delivery of orders.

He added: “Modern logistics management tools help to automatically detect cases where fake or fake websites are used and to identify the driver directly responsible for this order.”

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