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.
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
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
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
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
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
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
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
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
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
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
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
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
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