Best Last Mile Delivery Software : How To Deliver Your Product Easily And Quickly

I. Introduction: What is “last-mile delivery”?

The final stage of a product's trip from its maker (or point of origin) to its eventual destination, i.e., the address of its end-user, is known as "last-mile delivery." It's the last link in the supply chain and the last step in the delivery procedure.

Importantly, it is not only the most crucial factor in assuring the success of the delivery process, but it is also the most difficult, costly, and important difference for businesses looking to establish a loyal client base.

We live in the modern period, which is marked by global competitiveness, widespread use of revolutionary new technology, and ever-increasing consumer demands! Every day, we strive to make our lives better, faster, more convenient, and less expensive - the list goes on and on!

The supply chain is perhaps the eco-system that is most firmly integrated inside this "better, quicker, more" lifestyle. Consumers today expect their things to arrive swiftly, at their convenience, and at a low cost.

Businesses are racing to enhance their delivery process as consumer demand fuels the expanding e-commerce industry and the app-led lifestyle. A well-designed fulfillment process ensures satisfied consumers, recurring business, and the potential to scale effectively. It is critical that your last-mile delivery operation is set up for excellence, whether it ends at a customer's doorstep or at a commercial location; if it is not, your business will struggle to stay afloat in the face of competition.

What are the various steps involved in last-mile delivery?

After a customer confirms his order, whether through an online e-commerce website/App or in a physical store, a central server that houses the order processing system pings the order fulfillment center, where the inventory is held, and the warehouse staff begins the dispatch process. The last-mile delivery leg begins at this point.

The delivery agent loads the order into his car and drives away to make the delivery. Last-mile delivery software is used by the 3PL to optimize factors such as various routes, the number of stops per route, and synchronizing customer delivery windows (etc.). The process concludes with the delivery of the parcel to the customer's address.

While it may appear to be a straightforward procedure, it is not! There are many moving pieces, and each phase of the last-mile delivery process is subject to constantly changing dynamics such as bad weather, traffic, fleet and driver availability, and last-minute alterations.

As a result, clients prefer to work with 3PL logistics partners who are experts in this area to ensure that the last-mile delivery process runs well.

Finally, keep in mind that in the online commerce model, the delivery agent and the 3PL provider are the sole points of contact between the client company (you!) and its clients. As a result, it is a priceless opportunity to ensure a great customer experience. You won't get repeat business if you don't have it!

II. What are some problems that plague last-mile delivery?

The sheer nature of a supply-chain operation puts a lot of strain on it, especially when it comes to last-mile deliveries. Consumer demands such as same-day delivery, real-time updates, and ongoing cost constraints are just a few of the elements that pose significant difficulties.

The following are the top last-mile issues:

1. 24-hr delivery; Same-day delivery:

Amazon and other eCommerce behemoths have built devoted customer bases by offering unbelievable short delivery times like "same-day delivery." According to research, a stunning 80% of customers would gladly pay an extra cost to have their packages delivered faster.

While all of this "ease" keeps customers "delighted" and returning for more, it causes substantial hurdles for last-mile deliveries! Routing, coordination between 3PL logistics teams and consumers, inventory management, fleet vehicle, and driver availability—are just a few of the issues that make last-mile delivery a constant challenge.

Another stumbling block is that same-day delivery are typically minimal. This creates the issue of unused space in delivery vehicles, resulting in inefficient logistics. As a result, obtaining economies of scale would be impossible, and the 3PL's operating costs would rise. This would have an impact on the final price point supplied to customers.

2. Manual processes: 

Simply put, in today's complex global marketplaces, outdated manual methods that used pen-and-paper or "en-route" traditional telephone conversations to plan, get updates, and manage the supply-chain network are simply not good enough. Managing a complex supply-chain network is nearly impossible without today's contemporary, GPS-driven, cloud-server automated technologies.

The rigidity of legacy processes: has greatly contributed to supply-chain network inefficiencies. However, such rigidity has no place in today's swiftly changing global marketplaces. Customers today, for example, want companies to be flexible with delivery windows and to allow them to adjust delivery specifics (such as delivery windows and locations) on the fly if necessary. Companies are being forced to redesign their entire logistical process in order to stay up with customer demand.

3. Poor visibility:

The manual processes utilized resulted in poor visibility, numerous errors, and poor communication across teams, as a continuation of the point made above. As a result, the operation was time-consuming and stressful.

While this has been an area of major improvement for modern logistical operations, upgrading to current technologies by a single stakeholder (e.g., a 3PL) does not result in efficiency. This is accomplished when all stakeholders — clients, online portals and platforms, 3PLs, delivery teams, and fleet management systems – employ real-time and seamless communication systems. Without it, there would be deep-seated inefficiencies and their negative consequences, which would have a negative influence on the firm.

4. Dealing with COVID-19:

The pandemic's onslaught disturbed our entire lives; we stayed indoors and had everything brought to our door. The procedures for packing, packing, distributing, and receiving them changed as a result of social distance conventions. Zero-contact deliveries have become the norm, putting even more strain on the last-mile delivery process.

5. Demands of scale:

E-commerce is fueling a surge in online commerce demand and, as a result, an increase in order volume. Aside from dealing with scale, the supply chain must constantly satisfy the modern consumer, who expects his packages to arrive sooner, cheaper, and in better condition! This puts ongoing pressure on supply-chain organizations, particularly those involved in last-mile delivery.

6. Environmental sustainability:

Transportation and related activities account for 20% of world emissions. Consumers are looking for carbon-neutral brands as environmental sustainability gains traction and legal teeth. everything from production and packaging to delivery techniques (e.g. E-vehicles). This increases the burden on last-mile delivery providers, who must use best practices to assure carbon-neutral processes.

III. How does last-mile delivery software work?

Last-mile software includes solutions to address the challenges that plague last-mile delivery. Using it to its full potential will help you take your last-mile delivery operations to new heights. The following are some of the most important problem-solving features:

1. Route optimization: 

This is likely the most crucial element for Fleet Managers looking to improve their last-mile delivery operations.

You may reduce delivery times by focusing on the most effective route combination with route optimization. Remember that the "most efficient" route isn't necessarily the quickest or cheapest—rather, it's the one that considers all of the various factors that go into route planning. It comprises, among other things, traffic patterns, weather conditions, road quality, the number of stops along a route or in a location, the type of cargo, available vehicles, and drivers who are qualified for the journey.

It also enables management to make last-minute edits or adjustments while communicating with the driver in real-time.

2. Deploying automated dispatch:

This aids in matching the correct driver and the best delivery vehicle to the sort of delivery, such as the nature of the goods, the quality of the road to be taken, and the time constraints (etc.). This function is frequently utilized to service more essential deliveries (urgent, fragile, on-demand, rush orders, A-customers, etc.).

3. Providing real-time visibility:

Another significant benefit of employing last-mile delivery software is that it gives fleet managers complete real-time visibility. Once the driver and vehicle were on their way to deliver, the only method for fleet management to keep track of their progress was when they checked in en route during a pit stop or at pre-designated points along the route, such as warehouses.

Today's delivery management software, on the other hand, provides them with a real-time view of the fleet's cars, speeds, and driving behaviors (e.g. hard cornering, braking, rash driving, idling, etc.). This not only gives you more control, but it also helps to reduce theft, assure safety, and avoid pilferage.

4. Providing live updates:  

A last-mile software, as an extension of the previous point, allows you to give customers real-time updates on the delivery progress. This increases transparency and allows for last-minute alterations in the event of changes on either side, avoiding delays and failures. As a result, clients are constantly informed about the status of their packages.

Customers nowadays want to know the status of their packages in real-time, thus this goes a long way toward assuring customer happiness.

5. Measurement via KPIs (Key Performance Indicators):

The software gives critical data that you may use as performance indicators to measure and monitor your logistics operations' performance.

Important business measures like delivery-success percentages (e.g., failed deliveries, on-time deliveries, delayed deliveries), customer feedback, miles traveled, fuel efficiency, and so on give management the context they need to compare actual performance to what was expected. The data can be broken out by the hour, day, week, vehicle or group of cars, drivers, and so on.

6. Generating insightful reports:

Fleet Managers can acquire a plethora of information from the system's thorough reports, which are generated utilizing the considerable data that it can keep and mine for insight.

7. Convenience of ePOD (electronic-proof-of-delivery):

The last-mile software, which includes digital signatures, comments, barcodes, invoices, and customer feedback surveys, not only speeds up the completion of documentation and delivery formalities but also helps keep a permanent record of all documents.

Gaining a “holistic view”:

As should be obvious by now, last-mile software comes with a slew of powerful features that allow Fleet Managers to effectively monitor and oversee delivery operations.

The software's birds-eye perspective, i.e. from a larger, overall perspective down to the operational level, has been extremely beneficial to the Fleet Managers. As they move through their daily routines, managers may plan, execute, monitor, and constantly communicate and support their on-field staff – as well as customers.

IV. How does one choose the best last-mile delivery software?

Last-mile delivery software is an excellent tool for managing logistics, improving delivery efficiency, and lowering costs. It is, however, your responsibility to choose the software that best meets your needs. As a result, you must approach the selection with technique and intent. And, given the decision's intricacy, keep in mind that it may possibly overwhelm you!

Six crucial characteristics to consider before making that decision are listed below:

1. Route optimization: 

Perhaps the most crucial aspect to consider when performing your research. As the name implies, route optimization is the first stage in determining the best potential path for your delivery vehicles to take. Its goal is to reduce delivery times and expenses as much as possible.

While attempting optimization, there are multiple (ever-changing!) variables to balance towards a golden mean. These include, among other things, delivery addresses, weather, traffic patterns, fleet vehicles, driver availability, and road conditions. It finds the most "optimal" – or efficient – last-mile route by balancing all of these factors. It also allows fleet managers to adjust or re-optimize on the fly to accommodate last-minute changes.

2. Auto-dispatch: 

Automatic dispatch, as an extension of the previous point, is a non-negotiable aspect of a contemporary, last-mile delivery system. The system "automatically" finds the best match between the best driver, the type of (delivery)job at hand, and the best vehicle type depending on the route, cargo, and other factors (etc.).

This not only ensures the most efficient management of daily dispatches, but it also makes the most efficient use of available resources, resulting in 100% capacity utilization and ideal levels.

3. Real-time tracking: 

Customers have become more demanding in recent years! They expect to be kept up to date on the status of their packages at all times. The last-mile delivery management solution gives fleet managers complete visibility into the movement of their vehicles. As a result, they can keep track of progress and notify their customers in real-time. They can call their delivery agents/drivers at any moment after they are out for delivery. This provides customers a sense of security and trust in your business.

Because Logistics and Fleet Managers can track the entire process holistically, the last-mile solution helps you achieve efficient operations. A last-mile software would be worthless if it didn't include this feature!

4. Data & metrics:

A last-mile system records, analyses, and exposes your performance by comparing it to metrics for best practices, thanks to thorough data tracking and storage. Fleet managers may slice and dice the data any way they want, whether it's by time, business units, teams, or anything else. This aids in the evaluation of performance, the implementation of improvements, and the pursuit of new ideas.

Advanced analytics:

With the use of modern tech tools like artificial intelligence and machine learning, data analytics is a winning aspect that you should completely investigate. It can process large volumes of data in order to compare your results to industry best practices, pre-defined standards, and pertinent indicators (e.g. delivery performance, agent performance, resource utilization).

This clarifies performance, and firms can gain a proactive handle on managing critical aspects of the business thanks to its predictive methodology.

5. Feedback mechanism:

Customers today want to be heard and for their opinions to be taken into account; they have become accustomed to being treated as such! Choose software that provides enough (omnichannel) methods for customers to contact you – whether through customer reviews, feedback, ideas, or even in an emergency. This will encourage your customers to express their happiness with your performance, which will help you attract more clients.

6. Hand-held devices:

A "hand-held device," such as a tablet or a cellphone, has now evolved into an organic extension of the human body! We utilize it for everything, including our daily tasks.

As a result, make sure to test the software's robustness in its mobile version. You will struggle to extract the correct value from your last-mile software unless the mobile version is expertly built and smoothly linked with existing ERP, MIS, and other 3rd party suppliers that you need to use. Simply said, robust mobile app capability is an essential component!

But, why does last-mile delivery tend to be expensive?

Last-mile delivery is a difficult undertaking — delivering thousands of goods to several destinations on a daily basis while under constant pressure from a variety of internal and external sources isn't simple! As a result, cost constraints from a variety of sources exist.

 Other factors that contribute to the operating costs of last-mile delivery companies include staff turnover, overtime, high insurance costs, supply-chain challenges, and cross-border tax rules, in addition to the points mentioned above. As a result, make sure you choose a 3PL that runs a smooth business and can provide you with competitive rates.

V. Future trends in last-mile delivery

In an ever-evolving world, last-mile delivery is also progressing rapidly. Let’s look at some developing trends:

1. Shorter fulfillment times: Faster, less expensive, and more convenient! Consumers want this of their delivery companies all the time. We are becoming accustomed to the concept of "groceries in 20 minutes" after a period when "24-hour delivery" was unthinkable.

2. Micro fulfillment centers: A hub-and-spoke strategy, in which multiple small warehouses are positioned closer to clients, is a wonderful method to cut prices, delivery times, and inventory carrying costs.

3. In-house logistics: E-commerce companies that have grown to a certain size now have their own logistics system. This eliminates the need for third-party carriers, allows you to maintain control over the logistics process, and helps you save money. Amazon is a good illustration of this.

4. Improved order and vehicle tracking: In today's supply chain logistics, parcel traceability and monitoring are essential. All stakeholders, including the end consumer, expect real-time information on their products. We will be able to trace items' movement with greater detail and efficiency as technology grows faster and more agile.

5. Drone technology: Companies like pizza delivery services and pharmacies are experimenting with new technology such as self-driving cars and drone deliveries.

Conclusion: So, who needs this software?

This article should have made a compelling argument for employing last-mile delivery software to solve last-mile issues, reduce delivery delays, and deliver things securely and effectively.

Delivery-management software is becoming a more powerful instrument in the supply-chain ecosystem, and all businesses that transport goods and products as a crucial element of their business model must ensure that they are using reliable last-mile delivery software.

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