1) Scalability puts tremendous pressure on delivery operations:
While all businesses strive to reach their optimum size, there are numerous challenges with this growth. Every aspect of your business is under immense pressure as your operations expand. Perhaps the most prominent function is that of logistics and sales.
As a result, growing businesses often find themselves caught up in a messy web of complex operations made up of an inefficient mix of internal fleets, external carriers like a 3PL, and ambiguous lines of responsibility. Each has its own cost, skill, and resource limitations.
As you can imagine, managing all of this is becoming an extremely difficult task. And if you're still using traditional legacy systems, you're going to fail.
Therefore, by using last-mile delivery software as the cornerstone of the right infrastructure you need to manage such complex delivery networks through a real-time, centralized process, you get Life -Visibility. and control over your logistics and delivery process.
2) Scale and Complexity: The Twins of the Last Mile:
When you scale, your Business processes are more complex and challenging. And the supply management aspect of your business is always a leading area for developing complexity - that's the nature of the beast!
Par solutions involve using a judicious mix of your internal fleet(s) and 3PLs and segregating your deliveries between them. For example, your internal fleet could be used for smaller deliveries or closer to your distribution centers. Larger deliveries and long-distance deliveries could be handled by 3PLs. 3PLs have also committed to green logistics by offering electric vehicles, two-wheelers, etc. These choices help reduce costs.
As you scale, the cost of investing in and maintaining your delivery fleet becomes prohibitive on multiple metrics, including capital expenditures and resource management. Not everyone is like Amazon, which decided to buy 100,000 electric vehicles in the next ten years!
It goes without saying that as you grow, you need to rapidly accelerate and expand your delivery management.
While you may still prefer to remain in full control of your supply management and invest in a larger fleet to keep up with your growing scale, the truth is that it is an extremely expensive and unaffordable option is. . For starters, the cost of the vehicles alone would add up to a huge CapEx and make it financially unfeasible.
Also, we must not lose sight of the fact that the last mile accounts for more than 50% of the total shipping cost. Therefore, all measures to reduce these costs are the most important.
Using a combination of 3PLs is the right choice. He not only transfers his enormous investment costs to them but also benefits from their know-how. Remember that 3PLs are often large global behemoths with extensive resources, operations, and networks.
The most important advantages of 3PL include:
- significantly improved service
- lower fixed costs
- Greater site coverage
- Supply consolidation (helps reduce costs and delivery times)
- Benefits of flexible capacity usage
- Access to green options such as electric vehicles
- Access to specialized services such as bulk delivery by trained teams
4) 3PLs operate without the limitations of traditional legacy systems:
Consider this: Here are two scenarios :
- An urgent delivery was delayed because the size of the van made it difficult to find a parking space.
- Many small, light packages were shipped and loaded onto a van that was much larger than necessary. As a result, an efficiency study found that the cost of fuel consumption would make it prohibitive to deliver such small packages (at a reasonable price) in a van of this size
In the first scenario, they would have used a smaller van (or two-wheeler) to solve the problem.
Secondly, an electric two-wheeler could have made deliveries with lower running costs and negligible CO2 emissions.
By optimizing your deliveries to achieve this level of CO2 emissions Achieving efficiency and accuracy is no easy task! Numerous variables need to be weighed including vehicles, drivers, road conditions, weather, package size, selling price, etc. to arrive at the optimal solution.
Not surprisingly, a legacy system using traditional methods based on spreadsheets and manual calculations does not meet such requirements.
As a result, these limitations will become even more apparent as the company embarks on a journey of rapid scaling.
Additionally, modern consumers have higher expectations for their deliveries. Items like "24-hour delivery", "free shipping" and "choose your delivery time" are benefits that are now expected to be "standard"!
And last but not least: The end consumer does not distinguish between brand and delivery service. For him, it's a perfect device.
Therefore, as the custodian of the brand, it is all the more your responsibility to ensure that the paying consumer has a smooth and pleasant shopping experience through the delivery. After all, a positive touchpoint in the last mile creates value for the customer and encourages repeat business.
Legacy systems cannot create such experiences. Connecting to a modern 3PL through proper delivery partnerships is the only solution.
3 Key Benefits of Using Last-Mile Delivery Software
1. Integrate with your 3PL systems and platforms
2. Efficient distribution of delivery across multiple carriers of size and capacity
3. Centralized administration with transparent delegation as needed
5) Implementation of data analysis and algorithms:
You already guessed that the work and calculations unravel the delivery complexities as business scales are diverse. Needless to say, it is the automated and data-driven systems of today's 3PLs that make this seemingly impossible task possible, day in, and day out.
Modern supply chains implement complex software and algorithms that balance numerous variables, such as E.g. multiple fulfillment centers, carriers, equipment, customers, and suppliers - the list is endless. And also the complexity of massive operations that come with it!
Intelligent SaaS cloud-based last-mile delivery software optimizes the movement of large fleets and devices to efficiently manage all delivery operations via centralized dashboards without disruptions. worldwide access in real-time.
Read More about How To Untangle Delivery Network Complexities
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