Transport planning and management software is essential for modern logistics teams; the complexity of last mile deliveries makes it almost impossible to design and execute routes efficiently without it. The cost of technology has reduced greatly as more providers have entered the market and it’s now easier than ever to find the right tool for your business.
Some companies might consider the stages of their delivery supply chain separately when choosing their tools. They aim for the ‘best-in-class’ technology for each one with the view that specialized expertise leads to better outcomes. Others might look to save money by buying focusing only on one area of their operations. However, investing in a unified last mile delivery platform – one that incorporates planning, optimization, real-time visibility and operations management in one place – brings benefits that will lead to greater efficiencies and cost-savings over time than separate tools can.
Here are some of the key benefits of a unified last mile delivery platform.
Losing on last-mile?
How this guide helps transport & logistics managers in last-mile optimization:
- Why last-mile delivery is expensive: key cost drivers
- 3 focus areas to reduce last-mile costs
- Quick wins to lower expenses
- Essential last-mile tech stack
Greater operational efficiency
One of the main advantages of a unified last mile delivery platform is improvement in operational efficiency.
- Centralized information. By collecting data – delivery paperwork, customer details, traffic information, KPIs etc. – in one place, you create a single source of truth. This makes data access quicker and reduces the chances of people working with different metrics from different tools. Team members using different numbers when talking about the same thing leads to confusion and poor decision making. A centralized database also supports easier auditing and better compliance with regulations.
- End-to-end visibility. Making important decisions quickly relies on having access to all the relevant information. A unified platform offers end-to-end visibility of the whole delivery supply chain. If disruptions occur in one part, you can quickly understand the effect on other areas and make decisions to minimize its impact.
- Process automation. Automation is key to increasing efficiency. It reduces the amount of manual work and frees up planners and logistics managers to focus on more strategic tasks. This requires accurate data about orders, resource availability, historical delivery data and more, which can be more easily gathered through a unified last mile delivery platform than through individual tools.
Improved cost management
Every business wants to save money. And whilst investing in a unified last mile delivery platform might have a greater upfront cost, over time the ROI is greater than spending less on separate tools.
- Greater efficiency = lower costs. Doing more with less – more routes with fewer trucks, more deliveries with less fuel – allows you to operate at a lower cost without impact service quality. You’ll also be able to free up capacity to increase deliveries, growing long-term revenue at no extra cost.
- Lower maintenance costs. Multiple tools mean higher customer support costs and more time for set up and maintenance. It requires your staff to learn multiple systems, instead of one. More tools also mean more things can go wrong. If an error happens with one tool that has a knock-on effect on others, it can be harder to spot and slower to fix. And a unified system is easier to scale as your business grows
- Continuous cost savings. A unified last mile delivery platform allows for dynamic problem solving. If a delay happens on a delivery, the route can automatically be replanned, minimizing delays and keeping costs low. With several tools, the response is slower as data is manually transferred between different systems. In many cases, delays can’t be avoided so costs go up.
Data driven decision making
Long-term decisions that support sustainable growth of your last mile operations need to be taken with all information available. A unified platform can help in the following ways:
- A holistic view of your operations. Centralizing your delivery data in one place makes it easier to see the full picture and understand the implications of any decisions you make. It also allows you to work with consistent data in the same format which avoids misinterpretation. This will give you extra confidence in whatever decision you make.
- Easier simulation of future changes. Testing changes before committing to them is important. Given the complexity of last mile planning and execution, a small adjustment can have a big impact. Having quick access to data about current operations through a centralized platform makes simulation easier and more accurate.
- Predictive analytics. With a unified last mile delivery system, the data you collect from deliveries can be used to support future planning. This will result in more efficient routes and a better chance of meeting your performance targets. In a unified platform, data doesn’t need to be manually exported and processed before being input into a route planning tool, speeding up the whole process.
A better customer experience
What sets companies apart in an increasingly crowded last mile logistics space, is an incredible customer experience. A unified last mile delivery platform makes this much easier to achieve.
- Better communication. Good route planning and more efficient operations reduces the number of delays and disruptions, ensuring customers receive their parcels on time. Centralized systems also improve communication as it’s easier to share accurate status updates at each stage of the delivery.
- Increased flexibility. The best experience is one that allows the customers to have more choice. This makes route planning more complex as multiple constraints must be factored in. Having all the data in one place, however, makes optimization quicker.
- Faster problem solving. Another benefit is a quicker resolution in case of complaints and returns as all the relevant documentation for each stage of the delivery is stored in the same place.
A unified platform for a better, faster service
If you’re looking to reduce costs in your last mile operations by increasing efficiency, it makes sense to consolidate your planning, optimization and transport management tech into one, unified platform. It’s not only quicker to access important information for planning, decision-making and complaint resolution, but it also supports key functions like automation and predictive analytics better than individual tools. Next time you’re looking to upgrade any of your software, consider your operations as a whole and look for a single platform that supports all your needs.
