August 3, 2022 Anna

4 Tips to Save More Money on Your Next Shipping

One of the biggest problems of last mile delivery mechanisms is their inefficiency. But why does this happen so often? 

Last mile delivery is the final, most crucial part of a typical delivery fulfilment chain. It deals with a number of uncertain factors like fulfilment urgency, different delivery routes and the availability of the delivery fleet. Any attempts at solving these problems should focus on making the delivery mechanisms more efficient by making the best use of all available resources. 

Further solutions can then explore acquiring resources like delivery vehicles and drivers in order to meet customer demands. Here are 4 tips/solutions that can help you save both time and money on your last mile deliveries : 

1. Charging according to delivery urgency

Urgent/special deliveries inevitably end up disrupting your last mile delivery chains. These orders need to be moved to the top of the priority list no matter when they are received and often contain fragile and/or edible material that needs to be delivered as quickly and safely as possible. This requires a dedicated fleet which ends up costing you more. A good way to make up for this expenditure is to charge an extra, fully visible fee to the customers for express deliveries. 

E-commerce sites like Amazon already offer express shipping in exchange for paid membership of their Amazon Prime program, which entitles subscribers to a number of benefits. Customers are usually willing to pay an extra fee for a premium service they can rely on. This can be done by adding an extra convenience fee at customer checkout or offering special subscription-based express delivery.

2. Efficient route planning

Inefficient routes can have your delivery agents going around in circles, burning through valuable time and fuel. This ends up putting a strain on your last mile delivery chains, which can then disrupt other deliveries. The key to avoiding this is planning the order in which each delivery agent completes their deliveries and the routes they take to do this. Both these parameters are adjusted to ensure that the maximum number of deliveries are made in the minimum amount of time via the shortest routes.

Automated route planning modules can help you automate the entire process. These programs require detailed delivery information (including urgency) to prepare a short and efficient route that will get the job done in the least amount of time.

3. Managing fleets better

Inefficient fleet management is another major reason for the failure of last mile delivery systems. Any full-scale e-commerce business (which can also be an SMB) is expected to handle many different types of deliveries at the same time. Using the same fleet for all of these might not be the wisest thing to do. 

It is more efficient to allocate delivery fleets dynamically based on estimated customer inflow and order urgency. For instance, if a restaurant sees the most delivery orders late at night, they should resize their fleets to ensure that the most delivery partners are available at night to meet the high customer demand.

4. Enabling fleet tracking

Fleet visibility is a characteristic that helps build inherent customer trust by allowing your customers to track all of their orders closely. The customers should be allowed to check the delivery status of their order, the estimated delivery date and time, and, if possible, the contact details of the delivery partner assigned for their order. This also helps reduce failed deliveries by allowing customers and the business to closely monitor the delivery process and identify any gaps.

At Drive Yello, we employ best-in-class automation systems to help you track and analyse your fleets for better performance. Our dynamic route management and fleet allocation systems ensure that all your resources are utilised aptly in order to provide your customers with the best delivery experience at the lowest possible costs.

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