ROI for last mile delivery management

Last mile delivery is by far the most expensive leg of the entire supply chain. This is also where your service levels, delivery miles and product meet the customer at his door.

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Investing in the right LMD solution can greatly improve your bottom line and bring with it many other benefits. Companies that use a winning Last Mile Delivery Management solution report ROI from many different metrics.

Metrics Improvement
Miles driven 15-30% improvement
Resource requirement 10-15% reduction in number of routes
Dispatcher hours reduction 30% - 75%
Billing Cycle 20%-40% reduction in Billing Cycle (2-3 weeks)
Paperwork (BOL, Manifest, POD) 100% reduction in handling Paper
Customer Service calls 30%-70% reduction in Customer service calls
Delivery Accuracy 30%-50% improvement in delivery accuracy (99% accuracy)
Shrinkage 80% improvement from lost inventory
Dispatcher Efficiency 50%-75% reduction in dispatcher time communication
Delivery ETA 100% improvement in reporting delivery ETA
Customer Portal 85% improvement in Order capture time
Self Service Delivery Scheduling 90% reduction in Call center

How to improve last mile delivery management

Self service customer order entry

90% Lower Customer Service Calls Digital Experience Immediate Increase In Adoption

Automation of delivery scheduling when products arrive at the DC/Hub or at Point of Sale allows customers to see their own schedule with respect to available slots. Every phone call for B2B delivery or B2C delivery can be a 15 minute conversation. Call center operations can be eliminated with automation of this process – reducing friction and costly activity. Customers report 95% satisfactory experience with automated delivery scheduling process.

Self service delivery scheduling

Dispatcher time utilization First attempt deliveries Customer Satisfaction

Route optimization is a core function of dispatch operations and ubiquitous. Applicable to both B2B and B2C scenarios, the dispatcher efficiency is greatly improved with a robust Route Optimization solution . Customers report 30%+ improvement in miles driven and efficiency gain with route optimization. Matching vehicle capacity with customer orders and managing time bound deliveries is a challenge. Customers report a 40%-75% reduction in dispatcher time for planning and dispatching deliveries. Combining Pickups with delivery runs can improve back haul and asset utilization. Return on assets can improve 15%-35%.

Route optimization

Dispatcher Efficiency Return on Assets Time constraints

Automation of delivery scheduling when products arrive at the DC/Hub or at Point of Sale allows customers to see their own schedule with respect to available slots. Every phone call for B2B delivery or B2C delivery can be a 15 minute conversation. Call center operations can be eliminated with automation of this process – reducing friction and costly activity. Customers report 95% satisfactory experience with automated delivery scheduling process.

Mileage reduction

Fuel Savings Co2 emissions Empty Runs

Route optimization can stitch together locations with close proximity and sequence orders to improve on mileage and reduce empty runs and retracing paths. Allocating the orders to the correct delivery routes improves driver retention, customer satisfaction and bottom-line.

Delivery scanning

Delivery accuracy Efficient shipment custody Reduction in shrinkage

Scanning at the pickup/delivery can reduce incorrect loading of product at the warehouse onto the vehicle and delivery of an incorrect box. Either process can cause re-deliveries and costly mistakes to report to shippers. Delivery accuracy improves customer service and lost inventory due to transportation shrinkage.

Accurate ETA

70% reduction in Call Center volume Real Time Alerts Customer delivery experience

Customer expectations on ETA has increased with the expansive adoption of e-commerce deliveries. Customers today demand a better delivery experience with timely ETA on deliveries with more precise windows. Delivery management systems that proactively communicate ETA to the customer throughout the day have reported up to 70% reduction in call center volume. A less apprehensive customer is a happier customer.

Electronic proof of delivery

Time reduction in Billing Cycle Increased Transparency & Accountability Reduction in administrative work

Paper documents with customer delivery signatures are notorious for mis-placements by driver or dispatcher. These systems today occupy many man-hours of labor and many boxes to manage, scan and email for billing. Electronic POD can eliminate paper work, retention and the pain it takes to resolve billing enquiries.

Billing cycle reduction

Reduced paperwork & documentation Customer Satisfaction Improved cash flow

Invoices are auto-calculated and presented for review at the end of each day. It is not a chore any more that takes dedicated time and energy to complete. Digital capture of ePOD and signed documents means you are not looking for lost paperwork and chasing drivers for their completion of delivery. This can improve weeks of lost cash flow.

Reduce customer service call

Reduction of Call Center workload Visibility to customer Reduction of administrative overheads

Digitizing your last mile delivery does make your call center workload very light indeed. With automated order entry and every part that is involved in delivering value to your customer and shipper, there is a win-win.

Unit economics of last mile delivery

Reduction of vehicles / miles Reduction of customer inquiries / billing cycle Increase in dispatcher productivity

Improving unit economics for your Last Mile operations really drives your overall ROI. A few hundred miles a day, 5 less vehicles, 50 more orders, 80% reduction in calls, Improving billing cycle by 2 weeks… All of this can contribute a heathy business. Go Further…Grow Faster in today’s economy and tomorrows business.

Every business is a delivery business

Return on Investment Net promoter score Customer delivery experience

Today, every business is in the delivery business. Whether you use some of these delivery solution nuggets or all of it, or perhaps outsource this to your transportation network, there are tangible and real benefits for every stake holder – Shipper, carrier, 3PL delivery, courier etc

Blogs

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Last Mile Delivery Route Optimization: Food...

The Food and Beverage Industry faces particular hurdles in achieving business expectations for timely and effective deliveries in today’s fast-paced environment. Last Mile Delivery Route...

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Last Mile Delivery: The Impact On...

Last mile delivery, the final step of the delivery process from a distribution center or facility to the end user’s location, is a critical component...

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