How To Integrate Last Mile Delivery Software With Your Existing Systems
We live in what is commonly referred to as the "Delivery Economy!" From groceries to prescriptions to clothing to televisions...the list of products we now get at our door is seemingly unlimited!
Nevertheless, this presents issues for all stakeholders: the dependable driver working strange hours and severe weather, the brand selling you its product, the Logistics Company that must run a successful business while attaining Customer Satisfaction...
This article will emphasize the need for Logistics Companies effortlessly integrate their last-mile delivery software with their existing systems as well as those of their supply chain partners to accomplish effective operations.
1) First, what exactly is "last-mile delivery"?
Last-mile delivery, as the name implies, is the completion of order delivery across the final step. It usually starts in the ultimate warehouse, distribution center, restaurant, or store and concludes at the final destination, which is usually the customer's front door.
Transportation modes include vans, bikes, cycles, and even walking. Regardless of mode, the final leg of the delivery trip is the most complex, expensive, and difficult aspect of the whole supply chain.
Last-mile delivery costs can account for 30%-50% of a company's overall shipping costs. This high cost is due to the "efficiency problem," or making many stops with small drop sizes. Delivery is often impeded by additional considerations like distances, road conditions, parking, and traffic congestion. ~~
2) How will you integrate last-mile delivery with your current systems and supply-chain partners?
Conducting a last-mile operation is a large and difficult endeavor! It necessitates a connection with your existing systems as well as your distribution partners and platforms, such as marketplaces, warehouses, retailers, and carriers.
Outsourcing last-mile delivery: While major retail organizations often manage their last-mile operations to maintain control over the customer experience, this is impractical for most businesses. As a result, companies outsource their last-mile operations, frequently across several delivery channels.
The "Amazon-ization" of last-mile delivery, i.e. how Amazon has drastically reduced delivery times, forcing logistics companies to enhance their last-mile delivery. This cannot be accomplished without the use of modern technology and its smooth integration with internal processes.
Consider the following methods for optimizing last-mile delivery:
i) Thoroughly evaluate your existing operations:?The first step is to completely study your existing operations. Recognize your strengths and shortcomings, as well as how successfully - or badly - you now connect with your internal systems, supply-chain partners, and consumers (etc.). Identify gaps and opportunities for improvement.
ii) Choose the right partners:?Connecting your delivery software with your internal systems includes an "external component" because you are continuously collaborating with external partners, platforms, and distribution channels.
As a result, be certain that you only choose partners that complement you. Your products, business strategy and clients (among other factors) must lead your partner choices, which may include 3PLs, delivery platforms, marketplaces, or wholesalers. Create a detailed system for handling and dispatching orders, exchanges, returns, refunds, inventories, payments, and client information.
Top Benefits of Last-Mile Delivery Software
Because each market has its own set of issues, there is no one-size-fits-all answer for the numerous last-mile circumstances. As a result, the software must be adapted to the specific needs and stakeholders with whom it interacts.
Route Optimization:?Determines the most efficient driving routes. Cost, several stops, route possibilities, weather, traffic, distance, and delivery windows are all factors to consider. Modern solutions can alter scheduled timetables in real-time.
Clients and dispatchers may track fleet car movements in real-time using GPS technology on a driver's smartphone. There is no need for any additional gear.
Auto-dispatch: Saves time and money by matching deliveries with drivers based on pre-defined parameters.
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ETA:?Predicts when the driver will arrive at the customer's door using predictive analytics and machine learning. Status updates are delivered at appropriate intervals.
ePOD (electronic proof-of-delivery):?Allows clients to sign electronically on the smartphones/tablets of delivery agents.
Data dashboard:?Shows all metrics and key performance indicators (KPIs) to track and monitor activities.
iii) Choose your 3PL wisely:?Check for system compatibility while choosing your 3PL. Furthermore, the quantity and location of your 3PL fulfillment facilities are critical to success. Too many or too few will be inefficient.
iv) Stay focused on creating a best-in-class Customer Experience:?Ultimately, you're in business to service your customers and keep them happy. As a result, all of your systems and how they communicate with one another must be focused on a single shared aim.
i.e., deliver items to clients as soon (efficiently) and cost-effectively as feasible.
3) Integrating your delivery software with third parties:?As previously said, the integration of your delivery software with your internal systems includes a third - "external" - component, namely your third-party partners.
Collaborations with your 3PLs, supply-chain partners, suppliers (and so on) must be efficient and smooth.
For example, 3PLs frequently use sophisticated technology to improve operating efficiency. Check that their systems (for example, warehouse management and transportation management) can readily interact with your delivery (and other) systems.
Plan For Future Integrations For Novel Delivery Channels, Such As Crowdsourced Delivery?
The most significant advantage is the capacity to accept and fulfill orders more quickly. Reduces operational costs.
4) Future integrations with upcoming, game-changing technologies in last-mile logistics
You must plan when you combine your delivery software with your existing systems. Technological advances will soon alter the delivery process. Keep this in mind when you choose, integrate, and run your systems, logistics, and delivery partners. Future and emerging technologies include:
As previously said, not only is last-mile delivery software critical for success in today's "delivery-model economy," but it must also be smoothly connected across a company's internal systems as well as with third-party systems.
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Co-founder, Fleetroot | Last mile focused entrepreneur
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