How Can Businesses Benefit by Using Last Mile Delivery Solution in Singapore?

Being a major transshipment hub in the world and witnessing a 106% Y-O-Y growth (2021 e-Conomy Southeast Asia report) in the eCommerce sector, Singapore’s logistics scene is thriving and evolving. Statista revealed that Singapore’s eCommerce penetration stands at 56%, and the transportation and storage industry in Singapore generated a GDP of USD 22.7 bn in 2021. 

Despite the rapid rise of eCommerce, growth in cross-border commerce, and the emergence of on-demand deliveries, the last mile segment continues to be a challenge. Businesses are grappling with increasing delivery costs, package loss, wrong deliveries, poor logistical visibility, and special customer requests for deliveries.

These factors, along with market disruptions, competition, and the need for digitization, are driving the growth of logistics automation in Singapore. Smart last mile delivery solutions can not only help overcome the challenges mentioned above, but they can also help reduce operational costs, maximize resource utilization, and unlock improved efficiency. 

Here, we discuss how businesses can transform themselves with the help of last mile delivery solution in Singapore, the benefits offered by intelligent solutions, and the key considerations for making the right choice.

Last Mile Delivery Solution in Singapore – How Can Automation Help?

#1 – Reduced Delivery Costs

Last mile involves multiple parties and different assets, such as riders, vehicles, different 3PLs, sellers, and end customers. Absence of reliable and robust ways to manage, monitor, track, and control these assets in real-time leads to severe problems, such as package loss/damage/theft, delivery fraud, vehicle/rider idling, and sub-optimal or inefficient vehicle use.

Businesses have no way to find which carrier or 3PL partner is offering the most profitable services and how to prioritize order allocation to the most affordable fleet. Manual or static routing leads to longer delivery routes, which also increases fuel consumption and causes delivery delays.

On the other hand, businesses using automated last mile delivery solution in Singapore get an integrated dashboard for centralized management, monitoring, and tracking of all business activities and components. 

Thus, businesses can unlock various benefits, such as: 

• Reduce last-mile delivery costs by 12%
• Increase deliveries per rider by 12%
• Boost on-time deliveries by 24%

#2 – Intelligent Route Planning and Optimization

As discussed above, both manual and static routing are inefficient, tedious and impractical, especially for businesses with high consignment volumes. Hence, investing in a last mile delivery solution with automated route planning and optimization features becomes a must. 

These solutions come with in-built AI/ML algorithms that consider hundreds of parameters in one go and generate highly efficient and optimal delivery routes. The users can also set multiple constraints for optimizing delivery routes, such as vehicle make, capacity, consignment traits (weight, volume, height), routes, rider type, etc.

Intelligent route planning can help businesses unlock cost savings and efficiencies in multiple forms, such as:

• 31% Increase in vehicle capacity utilization
• 25% More deliveries per vehicle
• 12% Reduction in total transportation cost 
• Up to 13% enhancement in delivery schedule adherence

#3 – Unified Management Dashboard

Another crucial business benefit of using an integrated last mile delivery solution in Singapore is a centralized management dashboard. Businesses can have a bird’s eye view of every process, asset, order, and stakeholder in one place. They can check which order is being delivered by which rider, which hub is processing which orders, and gain actionable insights in the form of exact data points. 

A smart solution for last mile delivery in Singapore, such as Shipsy, offers seamless capabilities via smart integrations with OMS/WMS/ERP/CMS and more such infrastructure for comprehensive management. Businesses can capture order, hub, employee, and shipment data in one place and can control the last mile ecosystem in a unified manner.

#4 – Real-Time Tracking 

Currently, logistics visibility is a challenge for businesses, which leads to poor management and monitoring of logistics processes and assets. Businesses struggle to offer credible shipment status to end customers owing to the lack of centralized tracking functionalities and automated status updates for key milestone events.

Advanced last mile delivery solutions in Singapore offer real-time shipment tracking via a single dashboard which allows businesses to share the updates with end customers and all the other stakeholders. The advanced logistics solutions can be configured to send automated updates/trigger messages to every stakeholder in an automated manner, thereby taking away the manual involvement in the process. This helps reduce the number of customer query calls and boosts logistics visibility.

#5 – Automated Order Allocation

Last mile in on-demand and quick commerce industries is particularly challenging as shorter delivery SLAs lead to overhiring of dedicated resources, which is both expensive and inefficient. Advanced last mile delivery solutions in Singapore can help businesses automate this process and allocate orders in a highly efficient manner.

All the orders are allocated keeping the available riders, delivery types, rider types and order types in mind. The users can set these allocation parameters on their own and ensure highly profitable operations. 

#6 – COD Cash Reconciliation

Ensuring the safety of cash collected in COD deliveries is a must. However, when the rider has to come back to the hub/store for reconciliation, this leads to empty miles and resource wastage. Smart last mile solutions offer effortless integrations with multiple payment processors and cash reconciliation vendors that allows users to settle rider payouts and incentives against the cash collected or deposit the cash at the nearest financial institution.

Businesses can also configure the software to send online payment nudges to the customers who have placed COD orders to complete the payment online once the delivery is done.

#7 – Vehicle Capacity Optimization

Domestic and urban logistics in Singapore are mostly done via motorcycles, bikes, cars, vans, etc. Thus, the carbon cost of last mile deliveries is skyrocketing. Further, the inability to optimize the vehicle capacity for completing more deliveries per trip leads to higher vehicle leasing and fuel costs. 

Businesses can tackle these costs with AI-powered last mile delivery software solution in Singapore that offers smart resource optimization routines to deliver more number of orders per trip. These software solutions also come with dynamic optimization functionalities, such as re-routing, dynamic allocation, en route order clubbing, delivery scheduling, etc.

#8 – Data Analytics and Reporting

Data analytics and reporting are crucial to making sense of the hoards of data organizations generate, such as rider data, order and vehicle data, and customer experience data. Smart solutions for last mile delivery in Singapore come with smart data analytics and reporting features to offer actionable data insights to the users. This is an obvious advantage because data research and visualization is an expensive and time-consuming ordeal when done via external agencies. 

Businesses can set, track and measure individual performance via performance benchmarking and KPI metrics. Hence, incentivization and payout management become easier, more transparent, and instill healthy competition among the workforce. 

Key Considerations for Choosing a Last Mile Delivery Solution in Singapore

While the market is teeming with options, not every automation offers the same level of optimization and digitization. Hence, it becomes hard for businesses to choose the right solution for last mile delivery. Below, we share some key considerations that every business owner should keep in mind while investing in automation:

• Real-time tracking
• Multiple 3PL management
• Dispatch management
• Integrated capabilities
• Digital customer experience
• Digital driver experience 
• Rider management app
• Real-time data analytics with visualization
• Automated order allocation engine 
• Resource optimization
• Automated route planning and optimization
• Rider and customer chat with prompts
• Rider and customer call functionality

Shipsy – Leading Last Mile Delivery Solution in Singapore

Shipsy is a leading last-mile logistics solution provider in Singapore, and delivers a wide range of solutions for various delivery types, including last mile, mid-mile, on-demand, and q-commerce. Our platform streamlines diverse logistics operations and processes across numerous industries and presents a comprehensive suite of features, all available through a single dashboard.

We enable businesses to leverage advanced functionalities, such as optimized asset and vehicle utilization and efficient order allocation. This helps reduce transportation costs significantly, boosting overall profitability. Additionally, we offer an intuitive and comprehensive data analytics and visualization platform, empowering businesses with data-driven insights, and facilitating informed decision-making to unlock:

• 14% decrease in last mile delivery costs
• 28% reduction in customer complaints
• 26% increase in delivery NPS

For more detailed information or to get started with Shipsy’s last mile solution in Singapore, please get in touch with our experts and schedule a customized demo today!