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Orchestrate logistics operations with multiple 3rd party carriers
Achieve cost effective, scalable, sustainable, and customer centric deliveries
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Improve address accuracy, ensure first-attempt delivery success, reduce costs and boost customer experience
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Grow business in a dynamic world and manage operations across First, Middle & Last mile
Delight customers by seamlessly managing store and online orders across own fleet and 3rd party
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The growing B2C e-commerce industry, premiumization of goods and merchandise, and rising delivery demands are driving massive growth in the last mile segment of the US. Recent research projects the last mile delivery market to grow at a CAGR of 14.85% and increase by USD 62.71 million in 2027. As the market grows, operational challenges also surface in the form of rapidly rising delivery costs, evolving customer preferences for delivery experiences, and the need for intelligent logistics management technology.
On one hand, businesses are competing to deliver extremely delightful, flexible, and convenience-oriented delivery experiences, and on the other, they are grappling with labor shortages, rising per-mile delivery costs, increased fuel costs, and new operational costs. All this is driving them toward technology-powered operations management, creating a huge need for last mile logistics software in the USA.
Below, we discuss the key market drivers for last mile logistics software in USA, and the business benefits they offer. We also discuss how businesses can make the right choice in terms of product offerings and technological capabilities, and more.
Advanced last mile logistics software automates all the last mile operations, helps businesses manage all the processes in a unified manner, and offers real-time visibility. Businesses can optimize routing, order allocation, fulfillment, and vehicle capacity utilization, which significantly reduces last mile delivery costs. They can overcome challenges such as workforce management, scarcity of delivery executives or trained labor, and operational inefficiencies.
As B2C eCommerce gains momentum, businesses struggle with orchestrating different types of deliveries with the existing resources efficiently. Businesses using AI-powered last mile logistics software in US can easily accomplish this by leveraging the in-built smart algorithms that facilitate multiple order clubbing, delivery scheduling, automated order allocation, and right vehicle-driver pairings. They can maximize resource utilization and reduce their reliance on expensive freelance drivers to accommodate order spikes.
Also, these solutions offer integrated management capabilities and diverse functionalities, such as setting specific routing constraints and vendor selection rules, that help businesses improve their logistics operations and unlock better returns.
Recent stats reveal that the Q4 e-commerce sales in the US hit a record high of $299.12 billion, and the trends are expected to stay strong in near future as well. Apart from a significant rise in B2C commerce, the pandemic-fueled changes in customer purchase behavior also fuel the trends. As businesses struggle to tackle the increased delivery volumes with the existing resources, they find intelligent technology-based logistics more and more helpful.
As the delivery volumes rise, so does the need for fulfillment. Throw in the quick delivery demands and rapid fulfillment with flexible delivery conditions becomes a complex puzzle for businesses, as qualified drivers and workforce are scarce. However, businesses using last mile logistics software in USA can leverage smart capabilities to maximize workforce utilization, increase the number of orders delivered per trip and overcome the need for incessant hiring of new resources.
Fuel prices are soaring. Further, customers are increasingly demanding flexible deliveries for ultimate convenience. This directly impacts the overall cost of basic delivery operations. Apart from delivery flexibility, customers are increasingly demanding advanced communication facilities, such as real-time tracking, proactive alerts and updates, and the ability to add instructions for deliveries. This requires intelligent technological support, which also adds to the operational costs.
Retailers and manufacturers are experiencing jolts from volatile customer preferences, who switch brands after one negative experience or leave the carts abandoned if the same-day delivery is not available. This has created a huge sink for faster and more reliable delivery operations that are neither violating the delivery SLAs nor burning the resources. Thus, businesses are increasingly looking for advanced software for last mile logistics in USA and around the globe.
Intelligent last mile solutions come with AI/ML algorithms that help businesses optimize their delivery and logistics operations in multiple ways. They can generate highly efficient routes keeping multiple constraints in mind, such as vehicle capacity, vehicle make, consignment characteristics, delivery SLAs, area restrictions, and more. They can leverage dynamic capabilities such as en route order clubbing for increased driver utilization, real-time re-routing for road & traffic conditions, and more.
All this helps reduce the critical cost-related metrics, such as – miles traveled, deliveries per driver, deliveries per trip, etc. and reduces the overall operational costs.
Another critical business benefit offered by the last mile logistics software is real-time tracking for orders and geo-fence etc., for assets. This helps businesses gain granular visibility into the logistics movements and make strategic business decisions for swift and more reliable fulfillment. Real-time tracking capabilities also enable them to share reliable delivery SLAs with their end customers and shoot proactive status updates to all the relevant stakeholders for better experiences.
In the retail and eCommerce industries, ensuring driver engagement and satisfaction is paramount. This can be achieved through digitized driver onboarding, document verification, and performance management with user-friendly rider applications. Incorporating gamification features in the app enables businesses to provide fair driver payouts and recognize exceptional work with awards and incentives. This helps drive a positive driver experience, improved productivity, and increased workforce retention.
The inability to track, monitor, manage, and control multiple logistics components in a unified manner is a critical challenge faced by businesses. Multiple moving parts and this lack of visibility make last mile operations account for 53% of total logistics costs, which comes at the expense of the retailers/manufacturers.
On the other hand, with smart last mile logistics software in USA, businesses can overcome this barrier via a centralized management dashboard. The dashboard unifies the data from all the disparate components, such as hubs, drivers, vendors, customers, orders, warehouses, and more, to facilitate integrated management. They can see which shipments are in transit and which ones are delivered, which ones got delayed, which hubs are experiencing staff shortages, and more. This helps make strategic business decisions based on comprehensive understanding rather than hunches.
Last mile logistics solutions come with in-built data analytics and reporting capabilities that allow businesses to make the most of their data from multiple sources. They can generate daily, weekly, and monthly reports and get highly consumable data insights for management tasks. They can visualize their data without having to rely on expensive third-party resources and can make reliable and informed decisions.
The rising need for smart last mile logistics management has spurred the creation of multiple software solutions, and the market is teeming with multiple credible options to choose from. However, the majority of these solutions have a one-size-fits-all approach toward logistics management, which makes it hard for businesses to make the right choice.
This is why we are sharing some of the key considerations every business owner must keep in mind while investing in a last mile logistics software solution in USA:
Every business and every delivery model comes with different logistics management and operational orchestration requirements. Hence, it is important to opt for solutions that align well with evolving business needs and come with highly configurable modular structures for flexibility and smart scalability. This is where Shipsy comes into the picture.
Shipsy offers a unique mix of diverse last mile management capabilities and comes with highly configurable functionalities, which makes it relevant to multiple industries. The platform comes with an integrated dashboard which makes it easier for businesses to manage all the operations, assets, and people in a unified manner.
Other perks include an in-built routing engine for route planning and optimization that allows users to set custom constraints for logistical routing. Thus, businesses can set specific rules for specific carriers, consignments, routes, and more to ensure a firm grip over logistical transportation as well. The same custom constraint-based allocation is available for carrier partners, which allows businesses to work with multiple 3PLs and automate the management without compromising efficiency or costs to unlock:
For more information and to get started with Shipsy’s smart last mile logistics software, please get in touch with our experts and schedule a personalized demo today!
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