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Revolutionizing Last-Mile Logistics: How Software is Changing the Game

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Revolutionizing Last-Mile Logistics: How Software is Changing the Game

The last-mile logistics will be transformed by cutting-edge vehicles, as well as by mobile apps that will make it easier for companies to manage their inventory.  Delivering client packages to the last mile is a priority for last-mile delivery. The development of the last-mile delivery option has altered how logistics companies convey products from demand management to customers’ homes. 

A last-mile delivery logistics software solution is the only one of its kind in the retail world.  The entire delivery process must be overseen by you until the gifts are delivered to their recipients. It may now take longer to deliver the last mile using the usual method.

It is possible to improve delivery experiences by using last-mile delivery software. Last-mile delivery software stacks must include more than delivery management and scheduling tools. The majority of delivery companies have difficulty satisfying their clients, even with same-day contactless delivery. We will now discuss last-mile delivery, its importance, and the software that is used to manage delivery. 

Table of Contents

Why is last-mile delivery software important for your businesses?

Last-mile delivery systems are intended for sharing real-time data. Moreover, both businesses and customers will benefit from it. It keeps the customers happy and satisfied when on time delivery. Streamlining corporate operations requires a last-mile delivery platform. Transparency with customers must be developed. It can improve revenue generation and customer experience by automating manual processes. A last-mile delivery system helps logistic businesses make better inventory decisions and improve their supply chain. 

What is the future scope for last-mile delivery software?

This system outperforms expectations due to its quick and low-cost deliveries. Every customer now prefers companies that provide quick turnaround.  Nowadays, everyone expects to receive their deliveries on time. When discussing the future of last-mile delivery management software, we notice that people anticipate using a wide range of services. Tech-friendly software is driving the world, and with this urbanization, it is becoming increasingly difficult for any business not to implement tech-friendly software.

The logistics industry’s future is bright, and the only way to get there is to develop last-mile delivery software. It will motivate the company to connect a large number of online sites and warehouse centers.

People prefer to place more online orders in this digital age. Last-mile delivery is likely to become popular because people rely on convenience and comfort. However, the benefits of this delivery system extend beyond the e-commerce system.

Why is last-mile delivery software beneficial to businesses?

Having this delivery solution available would be ideal. The package will be delivered smoothly to its desired location using this option, which is one of the most reasonable options available. On-time delivery of the product is ensured. Customers will receive notifications about orders and delivery information if they use the mobile application of this solution.

A software development solution like this can help a company maintain a route planning and delivery strategy. In order to avoid missing deliveries, companies can use this software. It includes last-minute features for orders that require special attention.

This app includes last-minute reminder features for orders that require special attention. It sends notifications to businesses based on bad weather and high-traffic areas. This importance is given to products such as edibles and products that require careful handling.

These types of software applications are attractive to businesses since they enable users to post comments and feedback that will help with marketing. By using this software, companies are able to customize products based on their priority and order date. You can then reschedule deliveries and save time.

How does logistics delivery management software for the last mile affect the future?

In the midst of the pandemic, logistics and transportation companies have become more critical of increasing last-mile delivery capacity. Technology solutions can assist the firm in achieving profitability and taking it to the next level.

Sensor application

Logistics companies will increasingly use sensors to track items’ temperatures in the future. Logistics organizations will be able to monitor humidity and temperature during delivery.

Drone delivery

Drone delivery of critical things is another potential development. Most logistics organizations are already taking measures toward autonomous cars in order to expand last-mile deliveries. Clearly, such a trend will reduce logistics firms’ labour costs if it becomes a reality.

Architectural Intelligence

Shipping’s bright future is dependent on technologies such as artificial intelligence. In the near future, last-mile delivery procedures will be radically transformed by the use of such technology. 

Strategies used for last-mile delivery

Here are a few suggestions for improving the client experience during last-mile delivery.

1. Offer omni channel fulfillment

Having a range of fulfillment options is increasingly essential. You can pick up your purchases curbside, order online, or in-store, have them shipped or enjoy endless aisles that combine the best of both worlds.

2. Make a flexible delivery date available

The delivery date of a purchase is something customers want to be able to control completely. Customers should be able to order certain things weeks in advance, such as furniture or home décor, as well as receive same-day delivery.

3. Allow for real-time transparency

Customer satisfaction is highly dependent on real-time openness and communication throughout the order fulfillment process. In addition, they want to know when their orders are being prepared for shipment, when they are shipped, and when their loads are expected to arrive.

4. Make certain that delivery is contactless

The delivery process must be digitized as much as possible by retailers. For example, a customer’s front door can be left with groceries and clothing.

5. Promote cross-functional intelligence

Real-time intelligence must be provided to associates. By knowing what their customer’s demand is, merchants and third-party logistics partners can create trust and loyalty with them.

Conclusion

Last-mile delivery services must be ramped up during a pandemic. This is where cutting-edge technological solutions can assist in growing the company and generating revenue. Take advantage of the newest innovations in last mile delivery management software for your logistics company’s increased growth. The significance of last-mile delivery solutions cannot be overlooked, notwithstanding the COVID challenges. The final mile delivery option is still a helmet-to-head solution due to the present trends and future potential.

One of the most important parts of the logistics business is the last-mile delivery by demand management. This innovative solution is sought after by all logistical companies to improve customer retention and delivery processes. Achieving the company’s goals and increasing profitability are facilitated by it. When it comes to improving your delivery procedures, it’s time to implement an automated system. Make sure you offer your clients the appropriate software system and the ideal services in accordance with their budget.

Technology helps us manage the last-mile delivery process efficiently from collection to delivery.  Through this, the company can expand and become more flexible.

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What Does the Future of Last-Mile Delivery Look Like?

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Last Mile Delivery

What Does the Future of Last-Mile Delivery Look Like?

According to Redseer, the GDP share of India’s global road logistics is about 8%, and by 2024, market analysts predict earnings to reach $6 billion.

But economical and environmentally friendly options must be developed, since “last mile” delivery – which accounts for 20 percent of the chain’s overall costs – is the most costly.

When you move closer to the final client, the unit transport expenses are frequently the highest, even if the initial few kilometers are properly regulated. Since the unit cost of transportation rises as the product approaches its destination, the last mile is when it reaches its highest level.

The harsh reality is that the last kilometer is the most expensive. It accounts for around 20% of the nation’s traffic, 30% of the road system, and 25% of greenhouse gas emissions.

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Quick and demanding E-commerce

Because delivery and online purchases, which currently account for 80% of the number of goods shipped, are synonymous with e-commerce. And for newcomers to the industry, this is one of the major problems. Particularly now that express (delivery in 24/48 hours) is solidifying its position as a genuine selling factor and is virtually a norm.

Many measures are now being implemented to reduce the detrimental effects of this last mile. Therefore, it is essential to implement efficient and innovative solutions.

Increase in the number of packages to be delivered

It is now a fact that consumer habits and purchasing patterns are evolving. Consumers are placing more low-volume orders due to the growth of online commerce and their desire for immediate gratification. With more and more packages needing to be delivered to end users, this new phenomenon is boosting the flow of commodities.

This is the first challenge of the last mile for logisticians! Food deliveries are no exception. Consumers avoid going to supermarkets on busy days and regularly order their groceries online. Orders are usually processed during the week for home delivery in a few days or even hours.

25% of the CO2 emissions in urban areas

The utilization of carriers’ information systems and the reception capabilities of relay stations resulted in an average delivery of ten tonnes of products and 100 packages per day, serving 80% of the population.

They are unquestionably advantageous economically since this approach restricts the number of stops that deliverers may make (15 stops on average) for pick according to Ifop, relay stations are the primary distribution method for 50% of Internet subscribers. The last mile has probably changed more over the past three years than it has over the preceding three decades put together.

At a time when reducing greenhouse gases is a topic of increasing discussion, freight transport accounts for 25% of CO2 emissions in the city, especially in urban areas will continue, along with the introduction of new models, in the years to come. Consumers are giving more and more weight to the ethical approach of retailers in the context of global warming. This is why retail businesses, who contribute significantly to harmful emissions in cities, are now focusing on improving their environmental footprint.

Freight pooling

In order to meet customer demand, market volatility will continue to be a concern for shippers and carriers. In order to secure speedier delivery of their goods, shippers with less-than-truckload-size cargoes pay for full truckload (FTL) service, which results in inefficient use of space and money. As a result, there are more delivery vehicles, their routes are longer, and more stops are made.

Shipping companies must prepare for lower volumes of orders that fall into the volume LTL range and assess pricing depending on the amount of truck capacity they require. Between these two factors, there is frequently a wide gap, which is where pooling comes into play.

This is especially true given that e-commerce expansion has led to an increase in delivery and a decrease in package size. For carriers with loads that fall between FTL and LTL, consolidating saves unused space in trucks by packing them with freight from other shippers. One of the greatest advantages of all is still unaddressed, and that is cost savings.

A promising development

The number of plots will keep growing at a pace of 20 percent yearly. It will be necessary to find solutions to stop the last mile from becoming a catastrophe for the environment. E-commerce will grow, but so will the fragmented in-store deliveries and hybrid forms of product flow brought about by omnichannel logic.

Flows will keep accelerating. Although currently small, the D-Day segment – order in the morning, delivery in the evening – will likely account for 20 to 25 percent of the market.

As just-in-time deliveries (ship-from-store) grow more common, stores will become the primary urban logistics network locations. Due to the fact that the last mile’s value is primarily commercial, its cost will keep decreasing.

The race only finishes on the road

To reduce air pollution, several programs during the previous years have tended to promote less polluting forms of transportation. However, trains, air, and rivers are manifestly useless for direct delivery to shops or individuals. As a result, home delivery has emerged as an extremely optimistic market for road transportation.

Electric & E-commerce

However, this pooling, which is based on standardized, open, and shared technologies has benefits: the fact that it also makes it conceivable to enhance cohabitation with neighbors by significantly lowering the number of deliveries and the ensuing issues.

These factors are growing urbanization, which will result in half of the world’s population living in cities by the end of the century, and the growth of e-commerce, which fragments deliveries.

And a different business model must prevail in order to minimize the additional cost by sharing its platforms and the usage of trucking services with others in order to reduce expenses.  In all instances, preference should be given to electric cars (or non-polluting vehicles), the pooling of delivery means, and the socio-economic expenses paid by cities (air pollution, noise, and congestion).

India's last-mile and e-commerce growth

India’s delivery environment has undergone a great deal of change during the last few decades. A new delivery industry, the last-mile delivery ecosystem, has emerged in response to the growing demand for local goods and an unanticipated increase in last-mile delivery.

The last-mile delivery industry in India is developing comparably to that in China and the United States, where coverage is now above 10%. By 2024, India is projected to reach a market size of $6-7 billion if its rapid expansion continues.

The difficulties that logistics providers need to stay on top of to prepare for the future of last-mile delivery include understanding industry trends, inefficiencies in your current operations, analyzing expenses, and being aware of what action items need to be handled in the future.

Companies need to plan and scale up how they will decarbonize their delivery fleets in a way that is “socially just” and compatible with environmental and climate responsibility and responsibilities, given that the Indian ecosystem is predicted to vastly expand in terms of business.

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6 Tips on Optimizing the Last-Mile Delivery with Software Solutions

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6 Tips on Optimizing the Last-Mile Delivery with Software Solutions

Last-mile delivery is a crucial procedure in the supply chain. Customers expect a memorable delivery experience, including where you’d drop their items, the waiting time, and the overall delivery costs. When done right, your last-mile delivery operations can scale your business. Otherwise, it would make customers shift to your competition.

According to a report by Yahoo Finance, the last-mile delivery market is expected to grow by over $146 billion from 2021 to 2025, with a CAGR of 15.06%. This means you need to optimize your last-mile delivery solutions to keep your business going. Now, what are the advantages of improving your last-mile delivery?  

Improving your last-mile processes in modern-day delivery operations can help reduce wastage and the cost of operations. It can also increase customer satisfaction and help generate more revenue. To overcome last-mile delivery challenges and bring the best services to your customers, follow the best practices below

Table of Contents

Centralize all your logistics data.

When getting a last-mile solution, make sure all your data is centralized. You should be able to see inventory availability and deadlines on a single dashboard. Other things that could be available on your software are safety concerns, cost overruns, and delays. Whatever insight you need to make your last-mile delivery process faster, it should be on your software.

It’s a bonus if you can see essential data analytics and metrics, such as the cost per case, customer preferences, and cost per delivery. Having all information in place will help you see last-mile delivery trends and opportunities and evaluate which areas of your service need improvement.

Control and automate your last-mile delivery process.

Automation is the key to fully optimizing your last-mile delivery process. It promotes efficiency, saves time, brings better customer service, and improves your overall performance. Some of the operations you can automate using your software include:

  • Planning routes and schedules
  • Dispatching drivers to deliveries
  • Managing and receiving orders
  • Collecting and storing data
  • Monitoring team performance
  • Tracking inventories and supplies
  • Analyzing data and other insights

Optimize and improve your customer management.

Excellent customer service should be the core of your last-mile delivery goals. After all, your customers determine your delivery success. To improve customer management, you can provide the following services:

  • Same-day delivery service (a survey from Statista revealed that 55% of US consumers prefer same-day delivery over any other waiting time)
  • Updating the consumers with the status of their delivery
  • Real-time driver tracking
  • Offering more choice and convenience in terms of delivery methods
  • Increasing the number of delivery locations and times

Empower your drivers.

Delivering an optimal customer experience starts with your team, including your drivers. For example, in the case of delivery route changes or potential delays, your drivers should always be kept in the loop. You should also monitor their performance or have a motor vehicle record background check to ensure that they can meet the turnaround time and deliver safely.  

The bottom line is your drivers shouldn’t get all the blame whenever there are lapses on your last-mile delivery. So, make sure you’re clearly communicating with them. Ask what are some of the challenges they’ve encountered during the delivery process and provide solutions when necessary. If your drivers become unhappy with their jobs, it might affect their retention and loyalty to your company.

Take advantage of the “locals.”

Have you ever thought of outsourcing your last-mile delivery process to local carriers or using local stores as distribution centers? For the best last-mile optimization, you should take advantage of the locals.

Most new businesses prefer outsourcing their delivery operations to local carriers because they’re more reliable and knowledgeable of the local area. Local carriers also work with lower delivery volumes; hence, a quicker and more efficient delivery.

On the other hand, using local stores as depot sites also helps you minimize the resource requirements for setting up supply chains. It also enables you to easily increase the number of depot sites in different destination zones, making it more convenient to plan pick-ups and drop-offs while keeping costs at a minimum.

Choose the right last-mile delivery software.

Of course, all the best practices above wouldn’t be possible if you don’t know how to choose the right software for your delivery operations. To select the best ERP software companies, determine what needs to be optimized in your last-mile delivery. List down all possible challenges and opportunities. The logic is that getting software should serve as a solution to your problems, not a new or added burden.

The Future of Last-Mile Delivery

The e-commerce landscape is continuously evolving, and customer expectations are also growing higher. Hence, it’s crucial to keep up with the competition, be prepared for the changing of the tides, and learn how to improve last-mile delivery. Why settle for less when you can go the extra mile in your services? Find the best last-mile solutions on the market to improve your delivery process and overall customer service.

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5 Key Optimization Areas In Last-Mile Delivery

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5 Key Optimization Areas In Last-Mile Delivery

Last-mile delivery has become the backbone of faster logistics. As the world continues to push for a more e-commerce enabled business ecosystem, delivery operations became the make-or-break aspect of any good online transaction.

Table of Contents

So, what is it?

Last-mile delivery has become the backbone of faster logistics. As the world continues to push for a more e-commerce enabled business ecosystem, delivery operations became the make-or-break aspect of any good online transaction. Last-mile delivery is the last stretch of a logistics workflow. It involves getting a package or parcel from a central warehouse to a customer’s door.

Today, logistics companies are turning to third-party drivers to offer this service, which dramatically empowered a whole new gig economy of riders who speed up delivery times in most cases. Last-mile delivery did more than just provide more jobs. It also gave consumers a more streamlined way of service when receiving deliveries. These benefits play into food deliveries, online order deliveries, and so on.

 

The last-mile delivery market grew to $18.7 billion in 2020. That number will only exponentially grow with time. But individual last-mile operations need to flourish to maximize this uptrend. So let’s look at some last-mile delivery challenges and the 5 critical areas that crucial stakeholders should optimize for growth and efficiency.

Route optimization and tracking

One of the biggest challenges in last-mile delivery is cost optimization. Petroleum and vehicle maintenance prices continue to rise.

One of the biggest challenges in last-mile delivery is cost optimization. Petroleum and vehicle maintenance prices continue to rise.

To curb the rising costs, logistics companies and riders should leverage technology by optimizing routes. Through artificial intelligence (AI) and advanced trackers, some last-mile software tools can help plan out shorter routes, determine high-traffic choke points and the best sequence of deliveries to help shorten travel times and lower costs involved.

 

With last-mile delivery tracking, customers also get a better sense of where their deliveries are. Grab has been a great example of this as it gives a real-time tracking system for people to know where their riders are and provide estimates on delivery times.

Task management

Another key to better optimization is better task management. For example, control centers need to assign deliveries better and track progress when handling supply chain operations. Task management software for last-mile delivery businesses provides better evaluation systems for their riders, giving a more concrete measurement of performance.

Some metrics to measure include delivery times per kilometer traveled, number of deliveries per period, complaints, unfulfilled delivery rates, and so on. 

 

Good task management can also improve delivery times. It allows riders to give and get real-time updates on relevant information like directions, customer contact details, and special requests

Driver incentives management

There’s a growing demand for last-mile delivery. But the challenge lies in finding the right riders. According to 37.8% of last-mile shipping companies, finding qualified drivers remains the most significant challenge. Meaning companies aren’t just finding it hard to find talent. It’s also hard to find and retain the best ones.

 

Given the current logistics careers salary rate, more people could shift towards third-party relationships soon. But since there are no fixed salaries, riders should stay motivated to perform. This issue can be challenging when depending on per output setups, but incentives and milestone systems can attract the best talent and help retain them over the long term.

Payment gateways and options

A key to last-mile delivery logistics solutions in this age of cash-on-delivery and e-wallet systems is a flawless payment gateway solution. In addition, more people are shifting towards digital payment setups for their purchases. With that, people will focus more on digital payments. 

 

The key is to provide as many payment channels as possible. The staples will be credit cards and e-wallets, but there is also a growing trend in cryptocurrency payments. 

Effective Ways to Improve Cash Collections and ensure timely Payment Settlements

  Selecting a payment gateway with minimal fees and fewer downtimes should be the non-negotiables for any

  last-mile delivery. These could present issues in day-to-day operations and add unwanted issues.

Customer service channels

Expecting that all things will go right in any business is wishful thinking. So the last part of last-mile delivery optimization is creating reliable customer service channels. Issues can happen at any point, from wrong parcel delivery, payment issues, or experiences with bad drivers. An effective last-mile delivery operation should have proper customer service channels for these instances. 

 

Deploy email and chat support at the very least for these types of concerns. In some cases, you can also outsource to a customer service BPO if you have a large operation. 

 

Providing phone support isn’t always easy. But 40% of customers would want to talk to someone on the phone for complicated disputes, it’s an excellent option to provide.

Last-mile Delivery an Enabler of Better Commerce

E-commerce introduced a new way of consuming and getting products. Without better deliveries, that wouldn’t have happened. Improved logistics through last-mile deliveries did a great deal to push the boundaries of commerce. It saved businesses when economies and public places closed and provided millions of jobs. 

 

It’s safe to say that last-mile delivery is a significant part of business operations today. And it will continue to grow in time as people adapt to digital commerce more and more.

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