Paul Kirikov
Head of Business Development at Modsen
Sorry for opening on a sour note but for how much time your business has been struggling in vain with last mile delivery optimization? And how many resources slipped through the cracks already? It seems like it’s high time we dotted the i's and crossed the t’s on the matter and prevented any more of your budget from being wasted when it could be multiplied.
Last mile delivery accounts for 53% of total shipping costs.
Negative delivery experience directly influences the choice of a retailer for 84% of consumers.
Speed, convenience, and friendly delivery service are the key characteristics of high-quality delivery for 70% of consumers.
5 out of 9 factors that drive customer value are related to logistics.
Free and fast shipment – that’s all your customers need to keep choosing you over your competitors. But if you’ve been trying to live up to these seemingly simple characteristics for some time now, you know that there’s an unfortunate last-mile delivery problem you have to overcome.
The thing is that this last phase of the delivery process is the most expensive one and yet, you have to make it free and lightning-fast for consumers to stay happy with your goods and services. But how? The answer to it is right below.
Endpoint logistics challenges have been on our radar for quite some time now, which means that virtually for any obstacle your business is struggling to overcome there is a widely researched, tested, and successfully implemented technological solution devised by Modsen logistics team.
Let’s have a closer look at the main challenges in last mile delivery you’re most certainly familiar with from your own business experience.
Key last-mile delivery problems
Source: TheLastMileLogisticsWhitePaper
Having helped over a dozen logistics, ecommerce, and retail business owners cut last mile delivery costs, we’ve got straightforward technological answers to any end-point logistics obstacles that hold you back.
Challenge #1. High fuel costs and inefficiencies caused by poorly planned delivery routes
Our solution: Last mile delivery route optimization software
No last mile delivery management strategy is complete without taking routes under control. Carrying out endpoint logistics in cities is inherently connected to variables such as traffic patterns, weather conditions, delivery time windows, and vehicle capacity. Route optimization software helps calculate the most time- and cost-efficient delivery routes, ensuring drivers make more deliveries in less time.
The key route optimization software features we help businesses to implement include:
Dynamic route adjustment
Multi-stop route planning
Integration with GPS
Complex route optimization for businesses of any size
Route optimization according to working hours and customer time windows
Challenge #2. Lack of visibility into delivery progress and driver accountability
Our solution: Last mile delivery tracking and telematics software
Full delivery process visibility ranks first among the key customer demands for final mile logistics. But apart from meeting consumer expectations and ensuring timely deliveries, last mile delivery tracking software also provides real-time visibility into vehicle locations, while telematics collects data on driver behavior, fuel consumption, and vehicle health.
Effective tracking and telematics software should incorporate the following core functionality:
Real-time vehicle tracking
Route history
Driver performance reports generation
Fuel usage monitoring
Route efficiency improvement
Your last-mile delivery management needs a quality revamp?
Our logistics engineering experts will get in touch to delve into your business challenge and suggest proven endpoint delivery optimization tactics.
Paul Kirikov
Head of Business Development
Challenge #3. Inefficient manual workflows and lack of delivery tracking
Our solution: Delivery Management System development
Last mile delivery process flow only becomes effective when looked at in a holistic way. The development of a custom DMS for your business will help you automate and manage the entire delivery lifecycle, from order allocation and route assignment to proof of delivery.
When our partners turn to us for last mile delivery management system development, we go for:
Logistics task automation
Driver communication features
Real-time delivery status updates
Route optimization
Proof of delivery
AI-powered delivery scheduling and tracking
Challenge #4. Missed deliveries and lack of communication about delivery status
Our solution: Real-time customer communication tools
How to improve last mile delivery transparency for end users? Create customer-friendly tools to keep them informed about their delivery status through live tracking, SMS, or email notifications. Real-time updates reduce customer uncertainty, building up brand loyalty.
Among the key features we develop for real-time customer communication tools are:
Live tracking links
Estimated delivery time notifications
Automated delivery updates
Branded tracking pages
Challenge #5. Labor shortages and delivery inefficiencies in high-traffic areas
Our solution: Autonomous last mile delivery solutions
Drones, robots, and autonomous vehicles hold the future of last mile delivery for large-scale businesses. Shipping robots are already racing across neighbourhoods helping businesses transform endpoint logistics as we know it and slash the cost of last mile delivery as it is the human labour that makes it so expensive.
Building software for autonomous delivery vehicles we implement the best and most advanced AI and ML solutions to allow for seamless:
Autonomous navigation
Obstacle avoidance
Payload management
Challenge #6. Failed delivery attempts and customer unavailability
Our solution: Smart lockers and pickup points software
Missed deliveries come 7th among the top 10 key closing mile logistics challenges and this time speed of shipment and fleet capacity don’t really matter – the ball is in customer’s court. To bridge this failed delivery gap, more and more businesses opt for smart lockers that provide secure, centralized locations where clients can pick up their deliveries at their convenience.
The features we build for self-service lockers software include:
PIN or QR code access
24/7 availability
Integration with your delivery system
Challenge #7. Lack of real-time insights into package location or condition
Our solution: IoT-based software
Today’s last-mile delivery deals with a variety of goods, including perishable foods and pharmaceutical produce that are highly susceptible to shipment conditions like temperature and humidity. To take those factors under control and ensure timely and high-quality delivery of easily spoiled goods, business owners opt for built-in IoT devices that enable real-time tracking and monitoring of packages, vehicles, and in-truck environmental conditions.
The key IoT software features we help businesses implement encompass:
Connected IoT temperature sensors
Real-time alerts
Data logging
Real-time freight visibility
Challenge #8. Dependency on paper-based processes and lack of flexible data access
Our solution: Mobile and cloud-based applications
If you plan on business scaling, it’s wise to upgrade logistics data management tools first. Cloud-based last mile delivery platforms and mobile apps give drivers, managers, customers, and business owners access to complete delivery information from anywhere and significantly increase overall operational efficiency.
Our experience in building logistics data management tools includes:
Custom driver apps with route navigation and proof of delivery
Cloud dashboards
Cloud-based fleet management tools
Challenge #9. Limited delivery capacity during peak periods and high operating costs
Our solution: Crowdsourced delivery platforms
Since human labour is the main reason why last mile delivery is so expensive, hiring on-demand independent contractors, or gig economy personnel is a viable option to cut endpoint logistics costs. For businesses looking to embrace this opportunity, we develop crowdsourced delivery platforms that help find workers to handle last-mile deliveries and benefit from:
Flexible workforce
On-demand scalability
App-based management
Don’t let last mile delivery challenges hinder your business growth. Allow our team to step in and transform your endpoint logistics into a competitive advantage.
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