Five Ways Retailers can Leverage Technology for Last Mile Orchestration


Five Ways Retailers can Leverage Technology for Last Mile Orchestration

As per an online research, 55% of consumers would shop from a retailer that provides faster delivery service. Another report by Statista highlighted that 41.6% of consumers wish to have more clarity on the exact delivery time. These statistics are proof that consumers’ delivery expectations have totally changed over the past few years. They now expect retailers to offer fast and free deliveries with real-time visibility. And to make this possible and ensure efficient last mile orchestrations, retailers are implementing tech-powered last mile solutions. These solutions empower retailers to meet customer expectations and mitigate profitability risks. Read on to learn how:

1. Smart Order Allocation

Intelligent order allocation ensures auto assigning of orders between own fleet and third-party logistics provider based on parameters such as delivery time, rider proximity, quality and nature of consignment, customer SLA, etc. With the smart order allocation engine, retailers can unlock benefits such as:

  • 12% reduction in order-to-ship time
  • 28% increase in on-time dispatch
  • Auto-assigning orders to the closest riders considering capacity, TAT, and other constraints.
  • Reduced person-hours spent on manual order allocation 

2. Improved Consumer Engagement

The modern customer wants to stay connected through the entire journey of their order. They want to know where their order is, its estimated time of arrival, if it is delayed, then what’s the reason, etc. By integrating intelligent logistics management solutions, retailers can provide real-time visibility by sending them tracking links via SMS/Email/WhatsApp. Consumers can use these links to track the order status and check dynamic ETAs. It improves consumer engagement and increases the chances of first-attempt delivery. Enhanced consumer engagement contributes to the following:

  • Increasing net promoter score by 26%
  • Shrinking customer complaints by 28%
  • Minimizing return to origin (RTO) instances by 18%

3. Geocoding-powered Route Planning

Smart logistics management solutions are equipped with geocoding-enabled route planning that converts text-based area names into precise lat-long coordinates to make the address easy to locate. The route optimizer then places the coordinates within the particular block or polygon set and allocates riders to these zones considering parameters such as dispatch location, working hours, delivery time window, etc. The automated logistics management solution also ensures optimal disbursal of orders among fixed and freelance riders. With geocoding-powered route planning, retailers can ensure advantages like:

  • Minimized logistics costs by 28% by optimally using self-fleet and 3PLs
  • Increased vehicle capacity utilization by 31% 
  • Reduced distance traveled by optimally sequencing trips

4. Multi-lingual Driver Application

Intelligent logistics management platforms also have an intuitive and user-friendly driver application to allow riders to keep a tab on their tasks and KPIs, such as the number of delayed deliveries, the number of on-time deliveries, pending tasks, and more. Riders can choose to use the app in English, Arabic, or Hindi as per their convenience.

They can check tasks assigned and get immediate notifications for tasks that are accommodated at the last minute (for example, a return pickup request). Furthermore, they can also access customers’ details to improve communication. The application also helps retailers to improve rider engagement and productivity through gamification and incentivization.

5. Data Analytics for Making Well-informed Decisions

AI-powered logistics management platforms empower retailers to improve delivery planning through data visualization. They can track critical logistics metrics that show delivery success, 3PL productivity, and more. With data analytics, retailers can check the percentage of load being allocated to different 3PLs, percentage of on-time deliveries, the number of delivery re-attempts per order, and the number of pickups done within 24 hours.

Some other critical metrics include fuel consumption rate and total mileage, average service times, order dispatch times, capacity utilization, most frequently cited non-delivery reasons (NDR) in a specific region, at a particular hub or by a 3PL, and the percentage of RTO (return to origin). Data analytics help retailers delight end-customers and improve business profitability.

To meet rapidly evolving consumer demands and ensure a healthy bottom line, it is imperative for retailers to implement advanced last mile orchestration solutions. Such solutions automate end-to-end logistics operations, which minimizes the involvement of human resources, shrinks the overall delivery costs, ensures greener deliveries, and boosts the overall customer experience. From order dispatch, order tracking, and route planning to customer feedback collection, smart logistics management solutions automate almost each delivery operation to improve delivery efficiency and reduce the chances of costly errors. The solution also facilitates seamless returns management to ensure faster pickups and improved customer experience. 


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