Optimise Last-Mile Deliveries with Delivery Management Software

August 13, 2024

The customer is always right, regardless of his demands and expectations. Quick and free delivery- “It is what they want.” To meet customer demands and expectations, businesses must cope and find new technological innovations, like delivery management software.

Even though last-mile delivery might seem short, it might add to the delivery cost and time. A report by Accenture says that last-mile delivery accounts for 53% of the total cost of shipping and 41% of total supply chain costs. Businesses that aren’t able to optimize their last-mile deliveries won’t be able to survive much longer.

Optimizing last-mile deliveries is crucial for making the delivery process more time-efficient and cost-effective. The article will discuss steps to optimize last-mile deliveries with delivery management software.

What is delivery management software?

Delivery management software is a SaaS-based cloud platform that streamlines and simplifies deliveries. The software solution automates and optimizes delivery processes, starting from the order process and payment collection to route optimization and order fulfillment. The delivery software comprises three platforms the business dashboard, the customer interface, and the delivery driver app.

Business dashboard

An intuitive platform that gives a consolidated view of the entire process. The platform gives you complete visibility and control over your business operations. The features of the business dashboard are:

Order management
Payment management
Auto-generates stock reports
Delivery planning and route optimization
Real-time tracking
Auto-scheduling and assigning
Reporting and analytics
Promotional features

Customer interface

A user-friendly platform that allows end consumers to place and manage their orders. The customer interface can be a website, web app, or delivery app for customers (iOS or Android). The features of the customer interface are:

Order management (place, modify, or cancel order)
Invoice and order summary
Multiple payment options (payment gateways, cards, e-wallet, or in cash)
Notifications and reminders
Real-time order status updates
Refer and earn
GPS live tracking

The delivery driver app

An online mobile app for delivery drivers that ensures seamless and hassle-free order fulfillment. The features of the delivery driver app are:

Delivery task clarity
GPS navigation
E-proof of delivery and payment
Collect and record payments
Modify orders in the run time
Order creation for new customers
Manage buffer stock

What is last-mile delivery?

Last-mile delivery is the last leg in the supply chain when the product reaches the end consumer. It starts when the end consumer places an online order and finishes with the delivery at the consumer’s doorstep. The last stage is one of the crucial stages in the supply chain and it directly affects customer satisfaction and involves various logistical challenges.

Key aspects of last-mile delivery

Customer-centric – As this stage is directly associated with the customer, it directly impacts the customer experience and brand perception. It aims to deliver products accurately and quickly to consumers.
Complexities and challenges – This stage is considered the most complex and expensive. Delivering the order through cities, dealing with traffic, and locating each person’s address could be tedious. You can find it difficult to make timely deliveries, handle large volumes of orders, manage returns, and deal with varied delivery windows.
Technology – Last-mile deliveries rely on technology to streamline the process, lowering delivery costs and increasing efficiency. Software solutions and technologies like route optimization software, real-time tracking software, GPS, and telematics are used to optimize operations.
Customer convenience – Offering features like real-time tracking, delivery tracking, delivery schedules, and flexible delivery options enhances customer convenience and satisfaction.

6 popular ways to optimize last-mile delivery service with delivery management software

Collect data

Data is a treasure for businesses because it helps them study and analyze their existing customers, which has proven to enhance their delivery experience and cut off extra delivery costs. A study by Precedence Research states that the last-mile delivery market is growing at a CAGR of 10-20% and is likely to hit US$424.3 billion by 2030. Therefore, delivery businesses have to confront large groups of different customers. With enough data analytics and management, businesses can survive the competition in the market. Accurate data and proper analysis can help companies understand and fulfill customer needs.

Planning last-mile delivery

Inefficient last-mile delivery planning can increase delivery costs. Even failed deliveries can add up to delivery costs. Considering customer needs and planning accordingly results in on-time deliveries and enhances the customer experience. Businesses must sort customers’ preferred delivery slots and sought-after routes while optimizing last-mile delivery. To plan last-mile delivery effectively, you must have end-to-end visibility of orders.

Invest in the right technology

Unlike traditional last-mile delivery, technological implementation can improve last-mile capabilities to analyze real-time data and make better logistical decisions. With advancements in technology, customer expectations have increased. They want quick deliveries, which is a major challenge for most businesses. Efficient route optimization helps reduce turnaround time and cuts fuel costs. Route optimization increases sustainability while reducing the impact of carbon footprinting by minimizing carbon emissions. Using the right technology for last-mile deliveries enables driver tracking, helps businesses ‌boost their net profit, and saves operational costs.

Customer management

Communicating is the foundation for trust and loyalty regarding customer satisfaction. It is important to inform customers about their order status and any hindrances to making deliveries due to expected events like the weather. These are unavoidable events; however, updating customers about the deliveries can mitigate the impacts.

Manage delivery drivers

Delivery drivers are a crucial component of last-mile delivery. The right combination of delivery tracking, alerting, information about the route, and delivery alerts can enhance the drivers’ performance. Tracking delivery drivers can help measure their efficiency and ensure drivers’ safety. Businesses use real-time GPS to track their drivers. GPS tracking data also helps calculate fuel consumption and measure vehicle efficiency.

Centralized last-mile delivery

Using an integrated platform that automates and streamlines the ordering process, stock control, and payment, along with route optimization can be the icing on the cake. All the data flows through the centralized platform, which removes the chances of data discrepancies. All the delivery information passes through a single path and is saved at a single source.

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Planning and organising ‌last-mile delivery can be tricky. Nevertheless, following certain last-mile practices and using the right automated software can increase efficiency and productivity. A report by the World Economic Forum suggests a 25% rise in consumer e-commerce deliveries in 2020, with some of the increased demand expected to last well beyond the pandemic. This is why many businesses have started giving their businesses a technological edge. If you are struggling to find the right solution for your business, we might help. Schedule a call with our team and discuss your logistic touchpoints to see how we can help your business.

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Ravi Garg Founder & CEO

He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.