Plan, procure, execute, & track transportation for every shipment across your supply chain & logistics operations
A SaaS solution to help grow your business by achieving 100% perfect order execution at high volumes
Increase vehicle capacity utilization and customer promise adherence
Grow your business with omnichannel presence and automated pickups
Consolidate shipments for hub to hub movement across land and air
Real-time customer communications and collect accurate PODs
Orchestrate logistics operations with multiple 3rd party carriers
Achieve cost effective, scalable, sustainable, and customer centric deliveries
Orchestrate all your cross-border logistics operations with ease
Improve address accuracy, ensure first-attempt delivery success, reduce costs and boost customer experience
Gain end-to-end shipment visibility, get proactive alerts, and send customers live tracking links
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
Reduce freight costs & get end to end visibility across shipments
With customers seeking fast and free deliveries and delightful delivery experiences, businesses are partnering with third-party logistics providers for their last mile management. However, 3PLs relying on traditional delivery management platforms struggle to meet these expectations and face many challenges that can be successfully overcome by implementing smart automation. Read on to know how:
Delivery failures contribute to increasing logistics costs due to the number of re-attempts. It happens if a customer is unavailable at the address, if the delivery address is incomplete/incorrect, or when the customer reschedules delivery at the last moment. Apart from increasing costs, a delivery failure also impacts the reputation of a logistics service company. Online research highlights approximately 8% of first-time domestic delivery fail, costing retailers an average of $17.20 per order and $197,730 per year.
How logistics automation helps
Logistics automation establishes real-time communication by sending delivery alerts/notifications through WhatsApp/Email/SMS on the completion of each milestone, such as “order is shipped,” order is out for delivery,” etc. Moreover, it also automatically shares the rider’s contact details (masked for privacy) with the customer and vice-versa to allow them to connect to help locate the delivery address, confirm customer availability, reschedule order, and more.
Inefficient order allocation, manual routing, and increased involvement of human elements are some of the major contributors to last mile delivery costs, which is 53% of the entire shipping costs. Courier service providers that follow traditional delivery management practices find it challenging to measure and control last mile delivery costs.
Last mile logistics software ensures optimal resource utilization by automatically allocating orders to the suitable vehicle and rider based on the type of vehicle, type of goods, size of the vehicle, delivery location, delivery time window, and other parameters. It also automates dispatch management, AWB generation, label printing, route optimization, and other last mile processes to eliminate the chances of errors and save time and delivery costs.
As much as 99% of third-party logistics providers believe that analytics is an essential part of 3PL expertise. However, only 27% of them are satisfied with their existing analytics capabilities. Lack of data analytics and useful insights directly impact SLA adherence and logistics planning. It also makes it difficult to spot cost leakages, analyze the reasons for delivery failures, measure critical rider KPIs, and more.
Last mile delivery management solutions leverage artificial intelligence and machine learning to offer data analytics and allow businesses to make informed decisions. With the data insights provided by the software, courier providers can measure critical metrics such as the number of failed/successful/missed deliveries, the number of trips taken, etc. It also empowers logistics managers to measure KPIs associated with riders, vehicles, and more.
Delayed deliveries, unavailability of same-day or next-day delivery service, and inability to look into customer feedback are among the top causes of customer dissatisfaction and a negative net promoter score. With conventional delivery management approaches, it is difficult for third-party logistics service providers to combat these challenges.
Intelligent last mile delivery management platform automates order dispatch and order allocation process to accelerate deliveries and ensure each order is delivered on time. Moreover, it offers real-time tracking to allow stakeholders to check the updated status of their order and get alerts if the order is delayed. They can check the reasons for delayed delivery along with the new estimated time of arrival (ETA). The last mile software also allows customers to submit their delivery feedback, which the courier company as well as the e-commerce company/retailer can look into.
Incomplete or incorrect customer addresses make it difficult for a rider to locate delivery addresses. This, in turn, leads to delivery failures and poor customer experience. It is one of the top last mile logistics challenges, especially in countries that don’t have a universal address system. As per the online report, incorrect addresses could affect more than $7.42 billion in eCommerce revenue.
Text-based addresses are not readable by routing platforms or solutions. Smart last mile delivery management solutions have geocoding capabilities that convert such addresses into precise longitude and latitude, which overcomes the challenge of inaccurate delivery addresses. The geocoding engine also fixes spelling errors and structures in the address to improve delivery accuracy.
Static route planning doesn’t consider real-time factors, such as road closures, traffic and weather conditions, and more. Therefore, it becomes difficult to get accurate delivery ETAs. Besides, having a fixed route for each rider makes it challenging to increase or decrease the utilization of freelance riders, which leads to an increase in last mile delivery costs.
Logistics automation enables automated route planning and optimization, which leverages AI and ML-based algorithms to analyze and allocate consignments to vehicles, design the loading and unloading sequence, and find the most efficient delivery routes based on consignment mapping with vehicles. Its territory optimization feature also ensures optimal disbursal of consignments to fixed and freelance drivers based on costs and various other factors. It also identifies the best static routes to improve deliveries per rider and assign a particular zone to a specific rider.
Intelligent last mile delivery management solutions are the most effective tools that empower courier providers to combat delivery-related challenges and leverage business intelligence to make data-driven decisions. These solutions can be a game-changer for the 3PL providers looking to improve their business profitability and customer experience.
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