Top 5 Benefits of Last-Mile Delivery Software

Be it a 10-minute delivery model or a same-day delivery model, offering a seamless delivery experience is crucial for any online business. However, last-mile delivery operations are expensive. It accounts for 40 percent of your delivery costs. 

But using last-mile delivery software can help reduce your delivery costs. Apart from reducing operational costs, there are many benefits of investing in automated last-mile delivery management software. 

Let us learn the top 5 benefits of last-mile delivery software and why you should invest in it.

What Do Your Customers Expect From Your Business?

According to Forrester, nearly 95% of leaders say that providing a good customer experience is a top strategic priority, and 75% want to use customer experience as a competitive advantage.

1. Faster Delivery

Customers are ready to pay additional delivery charges for faster deliveries. According to Statista, Gen Z shoppers are willing to pay an average of five percent of the order value for two-hour delivery.

As a result, faster fulfillment has become one of the differentiating factors in explaining customers’ preference for a particular brand over others in the market. 

2. Customized Experience

Today’s consumers expect personalized shopping experiences. Personalization boosts customer satisfaction and, in turn, increases customer loyalty.  

McKinsey’s studies show that personalization results in 20 percent higher customer-satisfaction rates, a 10 to 15 percent boost in sales conversion rates, and a 20 to 30 percent increase in employee engagement. 

For example, offering customers to choose pick-up and delivery slots increases first-time delivery rates and improves customer experiences. 

3. Enhanced Transparency

In this customer-centric era, ensuring on-time delivery with visibility is key to enhanced customer experiences. For example, 97% of customers want to track orders and receive communication throughout shipping. 

Real-time tracking increases agents’ productivity and accountability and improves customer satisfaction. 

How Does Last-Mile Delivery Software Help Modern Delivery Models?

Last-mile delivery operations account for over 40 percent of the supply chain costs. And, here’s why.

• The average cost per failed delivery incurred to retail stood at about 17.2 U.S. dollars. 
• The average wage of delivery truck drivers is $15.12 per hour in the U.S.  
• Fuel costs account for 15-20 percent of the last-mile costs.

Leveraging a last-mile delivery software will reduce operational costs, optimize delivery operations and enhance customer expectations. 

Take a look at how last-mile delivery software scales delivery businesses and boosts the bottom-line. 

1. End-to-End Visibility of Operations on a Centralized Dashboard

Real-time visibility of delivery operations is crucial to ensure on-time deliveries. A centralized dashboard can help you keep track of all stakeholders – delivery teams and customers. As a result, it increases transparency and productivity. In addition, transparency in operations throughout the process helps reduce the idle time of the resources on the ground.

2. Reduced Operational Costs with Route Optimization

A last-mile delivery software with route optimization will significantly reduce operational costs and ensure on-time deliveries. Route optimization factors in driver’s schedules, pick up and delivery slots, and traffic delays. It automatically plans and updates routes. With optimized routes, your delivery teams can easily manage their tasks. In turn, it increases their productivity and reduces idle time.  

3. Increased Transparency with Real-Time Tracking and Updates 

Customers track orders from the minute they place the order till they are delivered. And, they expect online businesses to notify them in case of delays or know if they have missed their delivery window. 

Offering real-time tracking links ensures seamless communication. Also, send personalized updates in case of deliveries or even expedited deliveries. In addition, it reduces customers. 

This increases customer satisfaction and keeps your customers coming back to you. 

4. Increased Agent Productivity with Digital Proof of Delivery and Checklists 

An increase in porch pirates has resulted in poor customer experience and has forced companies to issue refunds or replacements. So, how can you ensure on-time and safe deliveries?

Leveraging an agent app with proof of delivery capability increases agent productivity and reduces the risk of customers losing orders. 

You can customize the type of proof of delivery as per your business requirement. Some common types of proof of delivery are barcode scanning, OTP, signatures, or photos. 

5. Efficient Delivery Operations with Advanced Analytics 

How do you measure the efficiency of your delivery operations? What is the corrective plan of action to manage operational costs? For example, are you able to reduce driver idle time?

As a business owner, you need to be on top of all KPIs that will help you optimize your delivery operations. But with many KPIs to track, you may experience analysis paralysis.  

Customize your analytics dashboard to measure KPIs best suited to your business needs. For example, some of the top KPIs to track are drivers’ performance, successful deliveries, fuel costs, drivers’ idle time, and delivery time.

Wrapping Up

Optimizing your last-mile delivery is key to running a successful delivery business. Using an end-to-end automated last-mile delivery software boosts your bottom line and increases customer delight. 

NetworkON, a last-mile delivery software, is easy to deploy and provides exceptional customer experience and operational efficiency.

Talk to our product specialists or start your free trial to optimize delivery operations.  

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