The final mile is the most expensive aspect of a delivery process. It accounts for 53% of the total cost of shipping (Dolan). Due to the major cost of final mile delivery, it is imperative that companies take advantage of every opportunity that will benefit them in the last mile. Advanced dispatching software is a powerful tool for companies to incorporate into their final mile delivery strategy. The dispatching software provides businesses with numerous benefits, such as increased communication, time and cost savings, and improved customer satisfaction.
Increased Communication
A major feature of advanced dispatching software is the incorporated line of communication between managers and drivers. This manifests itself in multiple ways. Managers can broadcast messages to all drivers, or send individual messages directly through the app. This would be useful during final mile deliveries if a customer rescheduled their delivery last minute, or a reroute was necessary. Drivers can also message their manager, making them aware of delays in their deliveries, whether it be due to construction, traffic, or otherwise. This will help all parts of the business stay informed on the activities of the delivery. Dispatch software also continuously tracks the drivers’ location and progress of deliveries. Managers can be aware of where the drivers are at all times, which can help cut down on information delay.
Saving Time and Money
We’ve already seen how final mile delivery is expensive, but advanced dispatch software can help reduce those costs. These costs are not only the visible ones on the income statement, but also take the shape of wasted and lost time. Dispatch software optimizes delivery routes so that packages are delivered in the shortest, quickest, and most efficient routes. This presents monetary benefits since drivers will be driving shorter distances. While each individual route may only experience a small decrease in miles driven, these accumulate quickly. The business will see major savings in fuel usage. The less time that the vehicles spend on the road during their final mile deliveries, the longer they can last before needing routine maintenance. Extending these periods of usage between maintenance breaks helps keep more trucks on the road, and maintenance costs down. Having an efficient route also saves drivers time. They can now deliver more packages each day than before, which benefits the business and customers.
Customer Satisfaction
Advanced dispatch software impacts customer satisfaction both directly and inadvertently. The dispatch software provides ETA, or estimated time of arrival alerts to customers so that customers stay informed about the whereabouts of their package in the final mile, and can be prepared to receive it. If customers wish to have proof of delivery as an additional safeguard, the dispatch software can easily provide that, either through signature capture or photo capture. Inadvertently, nearly every benefit mentioned in the previous sections will benefit customers. The increased manager-driver communication allows for updates to be sent to the customer. If a truck is delayed during its final mile deliveries, the manager can alert the customer. The time savings that the business experiences help customers receive their packages quicker than they would without optimized delivery routes. The cost savings from fuel usage and maintenance cost decreases can be passed on to the customer through lower shipping rates.
Overall, advanced dispatch software benefits every aspect of final mile deliveries. With all these benefits, it is easy to see why dispatch software services have become essential to any company that participates in final mile delivery.
Sources:
Dolan, Shelagh. “The Challenges of Last Mile Delivery Logistics and the Tech Solutions Cutting Costs in the Final Mile.” Business Insider, Business Insider, 21 Jan. 2021, www.businessinsider.com/last-mile-delivery-shipping-explained.
