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Top Techniques to Reduce Last-Mile Delivery Costs!

Are your last-mile delivery costs on the rise all the time? Not surprising if you have scaled up in the past couple of years. While the eCommerce sector has grown substantially during the pandemic, the sudden rush of orders is not the only reason behind increasing last-mile delivery costs & Changing consumer behavior is another factor.

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Top Techniques to Reduce Last-Mile Delivery Costs!

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  1. TopTechniquesto ReduceLast-Mile DeliveryCosts!

  2. Last-MileDelivery Areyourlast-miledeliverycostsontheriseallthetime? Notsurprisingifyouhavescaledupinthepast coupleofyears. WhiletheeCommercesectorhasgrownsubstantiallyduringthepandemic, thesudden rushofordersisnottheonlyreasonbehindincreasinglast-miledeliverycosts. Changingconsumerbehaviorisanotherfactorbehindtheincreasingcostsandthepressureof deliveringdelightfulcustomerexperiencesistakingatollonbusinessesallaroundtheworld. Therehasbeena33% increaseinB2Blast-miledeliverydemandanda67% increaseinB2Cbusinesses overthelasttwoyears. Totopitalloff, majordeliverycompaniesofferconvenientdeliveriesandenableeasydelivery reschedulingorlocationchange, makingitdifficulttomanagelast-minutedeliveriesandkeepingcosts undercontrol. Risingcostsaffecttheefficiencyofdeliveriesandthatisthereasonwhy25% ofthecompanieshave labeleddeliveryefficiencyastheirgreatestchallengeduringthelastmiledeliveries.

  3. MajorFactorsAffectingtheLastMileDeliveryCosts Beforewediveintothedetailsofmitigatingthelast-miledeliverycosts, itisessentialtounderstandthe factorsthatactuallydrivethecostshigher. ShippingCosts: Inordertocatertoconsumerdemandsforflexibledelivery, companieshavetoworkconstantlytoadapt totheirsurroundingsandcompetitors. Accordingtoasurveyconductedamong323logisticscompanies, nearly57% ofthemsharedthattheir customersdemandsame-daydelivery. Itputsanenormousamountofpressureonthedeliveryfleetsand withouttherighttoolsoroptimizedroutes, itbecomesdifficulttokeepthecostsundercontrol. Itdoesn’tendthere. There’smorethancontributestotherisingcosts. Nearly61% customersarelikelytocanceltheirorderiftheydon’thavetheoptionforfreeshipping 93% ofoverallconsumersprefertoshopfromaplacethatoffersfreedelivery Andifonelogisticscompanydoesn’ttaketheordersfromthesestores, thensomeoneelsedefinitelywill, forcingthelogisticscompaniestooperateatreducedoperatingmargins.

  4. MajorFactorsAffectingtheLastMileDeliveryCosts ComplexitiesinLast-MileDelivery: Notallplacescangetaccesstosame-daydelivery. Infact, packageschangehandsatmultiplelocations beforetheyreachthefinaldeliverypoint. Andthoughurbanfacilitiesarelocatedclosetoeachother, thefasterdeliverytimescanbeaffecteddue totrafficcongestionandotherunseenfactors. So, whilethedemandforquickdeliveriesisincreasingatarapidpace, thesheerrushandconfusioncan addtothecomplexitiesoflast-miledeliveryandincreasetheamountofmoneyspentonfuelalone. DeliveryFailure: Withoutadeliverymanagementsystemonboard, manylogisticscompaniesfailtocommunicatewiththeir customersontime. Thereareinstanceswhereacustomerhasnowayofknowingwhenapackagewillbe delivered. Suchinstancesfallunderfaileddeliveriesanditprovestobeadisasterforthelogisticscompany. They spendmanyhours, fuel, andresourcestoattemptdeliveriesonlytoreturnitbacktobaseandspendmore resourcesonre-attemptingthesamedeliverythenextday.

  5. Nowthatyouhaveaclearunderstandingofthe reasonsthatincreasethelast-miledeliverycosts, it’stimetolookatthesolutions. Top Techniquesto ReduceLast MileDelivery Costs Adeliverymanagementsystemwithadvanced featuresisthekeytosolvingthisproblem. You canstreamlineyourentiredeliveryprocessusing arobustdeliverymanagementsolutionlike NetworkON. Hereareafewwaysinwhichsuchasolutioncan optimizeyourlast-miledeliveryandmakeitmore cost-efficient.

  6. Truthbetold, notallcustomerslookforsame- daydelivery. Nearly73% ofthecustomerssaid thattheypreferapackagetobedeliveredata timeoftheirconvenience. Offeringmultipledeliveryoptionshelpsyoucut downlast-miledeliverycosts. How? Let’s understand. 1.Create Multiple Delivery Optionsforthe Customer: Ifacustomerorderssomethingandtheironly optionissame-daydelivery, buttheycannotstay athomethewholeday, thenyourdelivery attemptisgoingtofailforsure. Insteadofrushingtheorder, youcanaskthe customerthekindofdeliverytheywouldliketo optfor. Youcanplanitaccordingtotheir availabilityandsavemoneyspentonrepeat attempts.

  7. World’slargesttaxi-hailingserviceUberoperates inmanycountriesandisknownforprovidingtaxi servicesinamatterofminutes. Ofcourse, they useacomplexsetofalgorithmstoassigntheride requestsautomaticallybutnow, youcandoittoo. Youcanautomateyourdeliveryjobassignment processusingadeliverymanagementsystem. You canusethetechnologytoassignorders automaticallybasedonthedeliveryexecutive’s availabilityinaspecificgeographicalarea. 2.Automatic Order Assignment: Automateddeliverydispatchingsavesalotoftime thatwouldbespentonmanuallydispatchingeach order. Deliverytaskscanbeassigned automaticallyandbothadministratoranddelivery teamsreceivepushnotificationsaboutthesame instantly.

  8. Longerdistancesbetweenthepointoforiginand destinationtranslateintohigherdeliverycosts. Asalogisticscompany, youcannotaffordtohave ascattergunapproachtoyourdeliveries. You mustconstantlyoptimizeyourroutesandmake theentireprocessastightaspossible. 3.Continuous Route Optimization: Itisnoteasytocreatemulti-stoproutesmanually. Butifyouhaveadeliverymanagementsystem withAI-poweredrouteoptimizationcapabilities, youcanuseavarietyofdatapointsliketraffic, drivercapacity, distance, location, andtimeto createoptimizedroutes. Also, youcanassignnewdeliveryjobstodrivers inspecificgeolocationandnotifytheminreal- timeaboutthenewassignment.

  9. Gonearethedayswhenonehadtocarryalonglistof ordersintheirbag. Thesesetsofpaperswereclunky andalsopronetodamagefromrain, theft, and displacement. Ifyouwanttosavetimeandmoney, then switchingtoadigitalproofofdeliveryisthenextstep. 4.UseDigital Proofingto Verify Deliveries First, itcutsdownonthecostofpaperrequiredto manageallthedeliveries, andbelieveitornot, itisone ofthemajorexpendituresforalogisticscompany. Second, allthepartiesinvolvedinthedeliverygetfactual informationabouteachdeliverycompleted. Italso eliminatesanyinconsistenciesthatcanarisewhen dealingwithtraditionaldeliveryproofs. Customerscannotdenyreceivingapackageonceitis scannedintothesystemandthedeliveryexecutivescan takesignaturesandphoto-proofsontheirsmartdevices withoutwastingtimeonpaperwork.

  10. Customersalwaysliketoknowwhat’sgoingonwiththeir deliveries. Traditionallogisticsbusinessesjustinform customersthattheirorderwillbedeliveredonaspecific dateandleavethecustomerhangingafterthat. Intheageofinformation, youcannotexpectthe customertojustwaitaroundthewholedaywaitingfora packageandtheninmanyinstances, eventhatdelivery isrescheduledforthefollowingday. 5.Keepthe Customers InformedatAll Times: Usedeliverymanagementsoftwaretogivecustomers real-timeinformationabouttheirdelivery. Notonlydoes ithelpthembeavailableataspecifictime, butitalso addstheoverallcustomerexperience. Youcanalsoenabledirectcommunicationbetweenthe customerandthedeliverypersonnelviacallsordirect messaging. Howisallthisprofitableforthebusiness?

  11. Howdoyoufindoutaboutthestatusofyourlast-mile deliveries? Youanalyzedataandevaluateyourfleet’s performanceondifferentmetrics. Theseinclude: Numberoftasks/jobscompleted Timeconsumedforeachtask Idletimebetweendeliveries Totaldistancetraveled Numberoffailedtasks NetworkON’sanalyticsdashboardallowsyoutoview dataforeveryindividualorforthewholeteam. Italso generatesperformancereportsforaspecifictime period. Howdoanalyticsandreportingreducelast-miledelivery costs? Theyidentifywhichdriversareperformingthebestand allowsyoutofindoutwhichroutescanbeusedfor fasterdeliveries. Youcanalsoidentifythepotential trafficpointsandmakebetterstrategiestogetoptimum performanceoutofyourdeliveryfleet. 6.UseReal- TimeDataand Analyticsto MakeInformed Decisions:

  12. Withtheaforementionedtipsinmind, youcannowworkon improvingthelastmiledeliveryarmofyourlogistics business. However, onethingisforcertain, youcannotdoit withoutarobustdeliverymanagementsystem. 55% ofcustomersareafterfasterdeliveryserviceandifyou failtodeliverintime, theywillswitchtoanotherbrand. NetworkONisanall-roundfleetmanagementsystemthat allowsyoutooptimizeyourlast-miledeliveryandimprove yourservicesby: NextPlanofAction Improvingcommunicationwithcustomers Optimizingroutesfordeliveryfleets Reducingdeliverycosts Trackingdriveractivity Deliveringreal-timeanalytics StartwithNetworkONforfreetodayandgetaheadofthe competitionbeforetheydo. Formoreinformationandto setupaconsultation, emailusatinfo@networkon.ioorvisit ourwebsitetoday!

  13. ContactUs 4253896118 info@networkon.io https://networkon.io/

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