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4 Ways Better Technology Will Make Any Delivery Company More Profitable

4 Ways Better Technology Will Make Any Delivery Company More Profitable

13 February, 2020 | By Eric Donaldson

The logistics of an efficient delivery operation are complex — courier, parcel, and last-mile delivery companies all understand that. Each wants to be better and more profitable than their competition. But for the majority, these goals remain elusive due to a lack of modern delivery technology.

And, let’s be honest, competition today is not some mom-and-pop courier company across town. It’s no stretch to say that for many delivery companies this is about survival (you included) and taking on bigger and slicker competition. Your delivery company can’t afford to be passive these days, or you’ll become the next casualty of today’s fast-changing market.

The best delivery management technology done right enables companies to be innovative without sacrificing margin. Technology is not just a box you can check and think everything will automatically improve. From route planning, to dispatching, to billing, better technology will make you better than you are today.

Here are four ways better automation will help optimize your delivery operations.

  1. Your routing inefficiency is slowly killing you… move to Integrated Route Optimization

While everyone understands that fewer miles driven is a good thing, how sure are you that your company is really creating the most cost-effective routes for your drivers? This is what makes or breaks profitability. The variables that go into creating the optimal plan need to account for more than just miles which is where most delivery software functionality ends. Due times, delivery density, consignee rules, product types, and countless other variables matter too, and they impact how efficiently your drivers progress through their routes. Best-in-class systems account for all variables and algorithmically generate the best plan every time.

 

  1. Your dispatching relies too much on guesswork… implement Automated-Dispatch

Similarly, delivery companies can leverage basic technology to automate many of their day-to-day dispatching tasks. While some paperwork and a few manual steps can usually be eliminated with the basics, that’s not enough anymore. Modern delivery software should use the power of algorithms to digitize order assignment and free up time for dispatchers to focus on other tasks in addition to eliminating human errors.

 

  1. Your problem management strategy is “hoping they don’t notice”… deploy tracking with ETA’s

The ability to reliably track deliveries in real-time is not present in most current delivery technology. Waiting and reacting to a phone call from an angry customer after the fact isn’t good enough anymore. Customers now expect you to provide end-to-end tracking, so you can anticipate issues before they become a problem. Delivery problems inevitably happen, but you should be the one proactively dealing with issues before the customer has to call you. Real-time tracking and alerts will enable you to offer exceptional customer service that will set you apart from the competition.

 

  1. You’re still proud of digital POD and email delivery advice… send SMS, push notifications and alerts

The new standard for customer satisfaction demands that people’s expectations are met at all times. This means proactive shipment tracking via notifications and alerts. The traditional delivery system that performs simple tasks like printing a bill of lading or sending an email can hardly be considered new technology anymore. You need modern technology to provide real data analytics and enable insights that are actionable for your business to remain competitive. The value of performance metrics, such as order completion, SLA adherence, and driver performance, is self-evident.

 

Conclusion

Adopting modern technology gives companies an edge over the competition in any industry. This is especially true for delivery companies and the platforms they use to run their business. There are few markets dealing with more disruption than couriers and other final-mile delivery companies, which makes staying on the leading edge of technology crucial to the success and survival of your company.

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