Last Mile Logistics Software in UAE: How To Select The Best One

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Last Mile Logistics Software in UAE: How To Select The Best One

According to an Abu Dhabi-based investment and holding company, ADQ, the UAE logistics market is expected to grow by a CAGR of 8.41% to reach $31.4 billion by 2026. Driven by the acceleration of e-commerce and the pharmaceutical industry, intensifying global trade activities, and several other factors, the UAE’s logistics sector growth demands logistics companies to implement automation to prioritize optimal distribution. That’s one of the significant reasons why courier companies are increasingly investing in last mile logistics software in the UAE.

A last mile logistics solution automates delivery operations to minimize dependency on human elements and bring accuracy to the tasks performed. It streamlines the entire delivery process to offer real-time shipment visibility, decrease delivery costs, boost customer experience, and provide various other benefits. 

But how exactly does the last mile software do all this? What features should a logistics provider, retailer, or eCommerce company focus on to find a good last mile delivery management software? Before we move on to that, let’s find out what’s last mile logistics software and what challenges the last mile involves. 

Last Mile Logistics Software in UAE: Definition

A last mile logistics solution helps businesses automate end-to-end delivery processes and ensure effortless delivery orchestration. The software streamlines everything from dispatch management, order allocation, order clubbing, order tracking, route planning, customer feedback collection, and NDR management. With optimal utilization of resources, the last mile logistics solution eliminates the need for investing in more resources, thereby saving overall delivery costs.   

5 Major Last Mile Logistics Challenges in The UAE

1. Traffic Congestion

Road transportation is the most used mode of transportation in the region. Various reasons, such as the increasing number of expats and the rising population, are causing an increase in traffic. It is one of the biggest challenges impacting delivery time, increasing CO2 emissions, and increasing fuel consumption and overall delivery costs.

2. Not Being Able to Achieve Logistics Sustainability

Approximately 22 percent of the UAE’s total CO2 emissions come from the logistics and transportation industry. Most logistics service providers still rely on conventional delivery management practices that lack providing means to measure carbon footprints and optimize resource utilization, thus, achieving logistics sustainability.

3. Truck Drivers Shortage

As much as 80% of all the freight transported across the United Arab Emirates is via trucks. And truck driver shortage is causing logistics service disruptions and poor logistics efficiency in the region.

4. Inability To Locate Delivery Addresses

The UAE doesn’t have a universal address system, making locating delivery addresses challenging for logistics service providers. It leads to delivery failures and also impacts the time of delivery as well as customer experience.   

5. COD Culture

Most consumers in the UAE still prefer to pay “cash on delivery” rather than making an online payment. The primary reason behind this is the lack of trust in online payment modes. However, this is one of the last mile challenges as it makes the payment process longer and requires additional effort to manage cash.

A last mile delivery management software can help eCommerce companies, retailers, and courier service providers overcome these challenges by streamlining the entire delivery process. But the first step is to get customizable and scalable last mile software that fulfills your particular business needs. The next key step is to ensure that it offers seamless integration with existing ERP/WMS/OMS. Once you determine these two, look for the features that have been mentioned in the next section.

9 Features To Look For In A Last Mile Logistics Software

1. Auto Order Allocation and Order Clubbing

The last mile software automates the order allocation process and selects suitable delivery vehicles and drivers considering multiple constraints like delivery time, and type and nature of goods, type and capacity of the vehicle, etc. It ensures optimal utilization of resources, which helps a business deliver more using fewer resources. The software also facilitates automated order clubbing to club new orders or accommodate return pickups with already planned orders to save time, delivery costs, and resources.

2. Route Optimization

Automated route optimization can save significant time and delivery costs while ensuring on-time deliveries and improving customer experience. Moreover, it considers factors such as historical data of routes, delivery location, delivery time window, and more to optimize delivery routes and provides accurate delivery ETAs to all stakeholders. Besides route optimization, the last mile logistics solution also offers dynamic and multi-stop route planning, accommodating any last-minute changes and providing new routes immediately.

3. Advanced Geocoding

The advanced geocoding feature helps to overcome one of the key last mile challenges, i.e., vague delivery addresses. It converts text-based addresses into exact longitude and latitude, which makes it easy for the driver to locate the address.

4. Real-Time Consignment Tracking

The last mile delivery management platform allows real-time tracking to keep stakeholders updated with the exact status of the consignment. Along with the tracking, the software also sends instant alerts via SMS/Email/WhatsApp on each delivery milestone. Sending delivery-related alerts also helps a business to reduce WISMO (where is my order) calls.

last mile logistics software features

5. Online Payment Facility For COD Consignments

An advanced last mile management solution also offers an online payment facility for COD consignments. It means customers who have selected COD as the mode of payment during the purchase can pay online at the time of delivery. This increases the chances of first-attempt delivery and also prevents the business from the inconvenience of COD management.

6. Hub Operations Management

The last mile software offers a unified dashboard to manage and monitor hub operations such as dispatch management, label printing, and more. Logistics managers can even check last-mile delivery performances and generate various delivery-related reports.

7. NDR Management

An advanced last mile logistics management solution offers NDR management to allow businesses to check reasons for delivery failure and take corrective action based on insights. Moreover, they can also arrest fake delivery attempts by validating the delivery failure reasons with the end customers.

8. Returns Management

Inefficient returns management can bleed a business dry. The last mile delivery management solution automates the process and also accommodates return pickups with the already-planned deliveries to save time and costs.

9. Data Analytics

An AI-powered last mile delivery solution empowers businesses to improve delivery processes and enhance customer satisfaction by making data-driven decisions. Businesses can check various insights, including on-time delivery rates, failed/successful deliveries, resource utilization, drivers’ performance, and more.

Shipsy: AI-Powered Last Mile Logistics Software In UAE

Shipsy’s last mile logistics software facilitates seamless delivery management by automating dispatch management, order allocation, order clubbing, NDR management, and other delivery-related operations. It also allows stakeholders to track consignments in real time, which minimizes delivery delays, delivery failures, and other potential issues.

Our last mile logistics management software leverages the capabilities of artificial intelligence, machine learning, and other top technologies to allow businesses to make data-based decisions. It also enables businesses to measure their carbon footprint and revamp their last mile strategies to achieve logistics sustainability.

The last mile solution empowers eCommerce companies, logistics service providers, retailers, and other businesses to unlock:

  • 14% reduction in the last mile delivery costs
  • 26% increase in delivery NPS
  • 28% decrease in customer complaints
  • 64% increase in customer experience

To know other benefits of Shipsy’s last mile delivery management platform or understand its features or functionality in detail, request a custom demo with our experts today.

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