Every company has a concept of supply chain and logistics, but the priority is different for each organization based on business type. Some companies need to prioritize supply chain and logistics due to the nature of their business. E-commerce, 3PL, CEP, Retail—all such industries must prioritize logistics when delivering the goods to the end customers.
The supply chain and logistics processes of many organizations are burdened with challenges such as lack of resources, delay in delivery, inadequate fleet management, driver attrition, insufficient data and more. These are only growing along with the demand and expectations from customers, and a robust logistics solution is the only way forward.
There are three stages in the delivery mile once the product is ready to leave the brand factory. These are categorized in the order of delivery: the first, second/mid, and the last mile. The first and mid miles have specific challenges but are not as daunting as the last mile. According to research by SOTI inc, more than 61% of logistics companies agree that last mile delivery is the most inefficient process in the supply chain.
The last mile deals with direct delivery to the end customer. Goods reach the fulfillment centers, which are then checked, packed, sorted, and sent out to delivery. This may sound like a simple affair, but is not one. 3PL or e-commerce companies with their logistics have their work cut out for them, as there are thousands of packages that need to be checked, sorted and assembled according to the type of goods, delivery time, size, etc., which, by no means, is an easy task.
Now that we know that the last mile is where companies need to focus to improve their overall supply chain efficiency, let's get down to the actual challenges faced in the last mile.
The biggest challenges in the last mile:
- ● Managing a colossal volume of orders: Holiday season is almost upon us, and the orders for e-commerce companies will skyrocket. Order management executives will be over burdened with assigning and processing those orders without the implementation of appropriate automation programs.
- ● Time-sensitive deliveries: It is said that the customer is king. Well, the king wants what he wants and when he wants it. There is no right time or time frame in which these demands must be met. Retail chains and e-commerce companies are under immense pressure to deliver goods in increasingly short time frames and provide slots that benefit the customer.
- ● Sorting nightmares: Most retail and third-party logistics companies manually sort packages by size, address, type of content, etc. This process not only consumes more time but also increases the chances of transporting goods with an incompatible fleet, thus increasing the chances of delayed delivery or damaged goods.
- ● Routing roadblocks: One of the most challenging aspects of last-mile logistics is the various roadblocks (quite literally) that the on-ground teams face, which could range from traffic congestion to fuzzy customer addresses.
- ● Lack of transparency for end customers: Today's e-commerce customers are digitally savvy. They need all the updates at their fingertips. Not sharing regular status updates on their packages makes them feel they're not being cared for, hence their loyalty shifts, hurting the company's bottom line.
- ● Cumbersome contracts: Managing orders and delivery is itself a herculean task, but when you outsource logistics or transportation to third parties, you need to keep track of the contracts. 3PLs or CEPs have to keep track of contracts with various transport companies they have partnered with to deliver the packages and, these being large numbers, could be difficult to manage.
Technology to the rescue: Locus' last-mile solution
- ● Order management infused with automation: Managing a large number of orders without the right automation solution is a lost cause. Locus' automation engine can help companies manage multi-channel fulfillment across different vehicle types and select the right fulfillment channel for every order, even during the holiday season.
- ● Efficient slot management: Today's consumers are leaning towards speedy and even same-day delivery. With this mindset, e-commerce companies must double down on their logistics efforts, starting with slot management. Locus's order management software provides warehouse/logistics managers visibility into fleet and driver availability for future dates to ensure efficiency. Also, users of the tool have complete control over the different slot options, which reduces the unnecessary burden on delivery fleets and may even open up opportunities to accommodate ad hoc bookings.
- ● AI-driven parcel sorting: With the right dispatch management software, e-commerce companies or their logistics partners can leverage automation to sort goods and assign them to the appropriate vehicle to save time. Locus' AI-driven order management system helps do just that. Its sorting engine groups, sorts, and automatically assigns goods to the vehicles that best fits the criteria—type of goods, size of goods, and customer address—making the delivery faster.
- ● Intelligent route management: Locus helps supply chain managers plan optimal routes for their delivery team by considering 180-degree real-world constraints to avoid any roadblocks.
- ● Advanced track and trace: With Locus' Dispatch Management Software, delivery teams can share order tracking links and live ETAs with the end customer to provide them complete visibility into the delivery journey of their goods.
- ● Contract management: With Locus' last-mile delivery solution, third-party logistics or retailers can manage, renew and cancel their fleet contracts based on data provided by our system after each delivery to identify gaps in performance.
So, Yea or Nay on a Dispatch Management Software?
A dispatch management software for the last mile is essential in the smooth functioning of supply chain and logistics.
At Locus, help the clients reduce operational costs and increase deliveries, revenue, and overall end-customer satisfaction with real-world ready dispatch management software, designed to deal with every and all last-mile logistics challenges for e-commerce, 3PLs, retail and more.
Sorting Time Reduced
Vehicle Utilization Increased
This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Release ID: 456037