Delivery costs are one of the most crucial financial burdens for logistics companies and the entire supply chain. One of the most popular ways to deal with them is to have a last-mile delivery solution in your technology stack, as these deliveries constitute over 40% of the entire supply chain expense.
Ever since the COVID-19 pandemic hit the world, the eCommerce industry has experienced unprecedented growth, with more people moving towards online shopping. Consequently, online brands have had to pay keen attention to new and improved delivery options.
On top of that, customers are becoming more demanding and impatient and expect to receive their orders the next or even on the same day, and they don’t even mind paying extra for that. So, if you are a business owner and want to stay on top of the delivery mechanics, you need to cut down on delivery costs that might plague your business.
This article will look at the top five ways to reduce delivery costs. Let’s begin.
1. Utilize your resources efficiently
To execute the perfect cost-saving strategy, you must create a master plan. Time is money, and you need to capitalize on every second if you wish to reduce the delivery costs for your business.
To manage delivery costs, you must ensure that the right number of products are placed in the suitable transport vehicle at the right time and are delivered using a seamless delivery process. It all comes down to keeping all the stakeholders connected, as it reduces the friction in the process and results in the orders reaching their destination much faster.
2. Leverage AI-Powered Route Optimization and Geofencing
Not knowing what’s happening to the orders you dispatch is stressful not just for the business owners but also for the customers. Therefore, you need to deploy robust delivery management software with AI-powered route optimization capabilities.
The orders will quickly reach customers when the delivery teams travel on a predefined route free of congestion. On top of that, it will also create a geographical area of operation for the delivery partners so that they don’t spend time and resources juggling their existing delivery jobs and incoming deliveries.
Failure to implement a technological solution will lead to a high risk of shelling out extra money on fuel and workforce, along with more incomplete deliveries. However, if you can get over these hurdles, you can steer clear of clashes with customers and increase the efficiency of your logistics operations manifolds.
3. Automate Your Dispatch Process
If you still rely on dispatching every order manually, then there is a good chance that your delivery teams will be overwhelmed every time a new order enters the system. If you want to scale up your delivery operations, then you must install an automated dispatch process.
A delivery management system like NetworkON automatically assigns new orders to your delivery partners, and they can accommodate the same in their schedule without any manual intervention.
4. Offer Live Tracking Options to Your Customers
Today, customers are hooked to their smartphones and get instant updates about just anything through direct messages. Top brands offer them instant gratification during their journey with the brand, and there is no reason you shouldn’t be able to do the same.
NetworkON enables your customers to get real-time information about their order in transit, which significantly adds to their experience with the brand. Every time they receive an update about their order, whether it is about the shipping or ETA, they are delighted. Moreover, getting access to a delivery partner’s real-time location when the order is out for delivery and the ability to connect with them directly increases order accuracy and first-time delivery rate.
This feature is a must-have for every logistics business as it eliminates the dubious claims that some notorious customers often make, like not receiving the package. In addition, with digital proof of delivery, delivery partners can execute e-signatures, barcode scans, photo-proofs and contactless deliveries without hassle.
Next Step
Logistics business operates on tight margins and deadlines, and often you might have to deal with some last-mile contingencies. But if you have a robust delivery management system in your technology stack, you can optimize every aspect of your logistics business and reduce the constantly rising costs.
NetworkON is a state-of-the-art delivery management software that can be tailored to your business needs from the get-go. Some of the most notable features of this platform include the following:
- AI-powered route optimization and geofencing
- An instant digital proof of delivery
- Accessible fleet and vehicle management
- Automated dispatch capabilities
- Easy white glove delivery execution
- Special features for bulky and large goods delivery
- Seamless communication between all stakeholders
- Easy integration with third-party apps using the NetworkON marketplace
- Live to track orders
- Push notifications
So, do not be afraid of the uncertainties anymore and ensure the success of your logistics business with NetworkON.
Get a free demo today and see what your business will look like with a NetworkON integration. To know more about it, email us at info@networkon.io.
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