Top 3 Strategies to Solve Last Mile Gridlocks in Multiple Courier Ecosystems

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Top 3 Strategies to Solve Last Mile Gridlocks in Multiple Courier Ecosystems

The global CEP space is teeming with opportunities and disruptions and is headed toward excellent growth in all segments – B2B, B2C, and C2C. While the continual rise in eCommerce and cross-border commerce is fuelling this growth at an unprecedented rate, a revolution in the Last Mile delivery space also has a substantial say. 

Despite aggressive technological adoption and fierce competition in the market, the Last Mile continues to be an operational complexity amounting to 53% of total costs. The ever-increasing customer expectations, such as free and lightning-fast deliveries are making its complexity even more daunting. Businesses are keen to diversify their serviceability and make the most of the eCommerce pie while they can. They are grappling with multiple delivery SLAs – same-day, next-day, 10-minute, 30-minute, and slotted deliveries to maximize their reach and amplify their revenue. However, multiple courier partners being managed with multiple software solutions band-aided together make the entire Last Mile ecosystem challenging and complex.

What Makes Last Mile Complex in Multiple Courier Ecosystem

Several Channels to Manage Multiple 3PLs

Multiple 3PL partner management entails juggling multiple management platforms, software, dashboards, etc. Apart from being an operational overhead, such underlying infrastructure also affects overall productivity and efficiency. Further, businesses can never have a unified view of all their operations, spending, and results, and find it extremely hard to leverage advanced analytics because of data silos. 

Lack of Standardization

As all the 3PLs are being managed separately, there is zero standardization in terms of processes, shipment statuses, management parameters, and optimization variables. 

The Shipment pickup status can be reported in multiple ways, such as “Pickup Done, Pickup Completed, Shipment Picked Up by Rider, Shipment Pickup Completed”, and so on. This lack of standardization makes it impossible to have centralized control and visibility over shipment movements. Likewise, the lack of standardization for NDRs (non-delivery reasons) makes it impossible to trap fake delivery attempts and identify the exact reason for failed deliveries.

Poor SLA Adherence

In a multiple 3PL Last Mile ecosystem, businesses suffer from the inability to track 3PLs’ performance and SLA adherence. They cannot set KPIs for performance benchmarking and evaluating the business value delivered by every 3PL partner in a robust manner. 

In the absence of data-driven comparative insights into the numbers, such as the percentage of on-time deliveries, numbers of delivery re-attempts per shipment, NDRs, etc, the businesses cannot take strategic decisions such as the most profitable or the best performing carrier partner.

Lack of Visibility Into Multi-Carrier Logistics

The Last Mile ecosystem with multiple 3PLs can become a daunting puzzle with exponentially evolving complexities. The businesses lack a unified view of asset movement, investments, resource consumption, delivery costs, RTO costs, overall quality of deliveries, etc. 

They cannot compare one provider to another as there are no specific KPIs and the majority of contracts are drawn on the basis of costs, volume commitments, and area serviceability. Merging RTOs with deliveries, clubbing multiple order-related tasks, and optimizing delivery operations is not possible. This poor visibility can spur cost bleeds across the entire value chain.

Strategies to Overcome Last Mile Gridlocks in Multi-3PL CEP Model 

1. Target the Entire Ecosystem

Invest in a smart platform for end-to-end delivery management and orchestration that allows full control over the entire delivery ecosystem. A platform that offers fleet management, out-of-home capacity management, customer engagement, and order management allows businesses to have granular control over every operation and process set stemming from every stakeholder. 

Multi 3PL CEP model

2. Integrated Management 

Integrated management of the entire logistics ecosystem will allow businesses to collaborate, communicate, and plan with multiple stakeholders and service providers in one go. They can create strategic logistics plans based on a complex set of parameters, like which carrier should be chosen for hyperlocal deliveries with less than a 30-minute delivery window. Or, which 3PL service provider has performed the best over the last quarter for same-day deliveries in a specific city? 

3. Custom Automation for Unique Business Use Cases

Every CEP business model varies in terms of core offerings, competencies, delivery SLAs and more. Hence, the one-size-fits-all approach no longer works.

Only custom SaaS offerings that evolve with the business needs and scale up and down as and when required can be the perfect fit. Custom automation empowers businesses via advanced functionalities such as status standardization across multiple parties and service providers, get exhaustive visibility across multiple carriers, and analytics & reporting capabilities for comprehensive business intelligence. 

Shipsy – Unified Platform for Seamless Delivery Orchestration 

Shipsy’s intelligent delivery orchestration solution offers end-to-end delivery management and orchestration, advanced custom analytics, real-time visibility, and much more. From 100% visibility into all the 3PL operations across multiple regions to advanced 3PL management technologies – it helps businesses manage their own resources as well as all their carrier partners effortlessly. 

With its smart functionalities, retailers and D2C brands can ensure up to an 18% reduction in RTOs (return to origin), provide unified customer experiences, boost customer experience by 28%, and shrink last and middle mile costs by 14% and 12% resp. 

To understand how Shipsy can empower you to achieve these efficiencies and more, simply book a customized demo.

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