Businesses today are constantly looking for ways to reduce delivery turn around time, shrink operational expenses and boost productivity. But leveraging traditional means and tools for achieving these supply chain and logistics milestones are not cutting it anymore. The modern-day disruption in e-Commerce is happening at such a rapid pace that offsets the conventional model in so many ways. On one end, customer expectations are hitting new highs while conventional SLAs are hitting new levels. We have no idea what is happening to cost and efficiency. But the need to optimize supply chain and logistics operations have never been this acute, thanks to the likes of Amazon and Alibaba.
A key area where enterprises can focus on is improving delivery operations. Deliveries have become extremely complex with the rapid evolution of customer expectations. Things like same-day deliveries, free of cost delivery and flexible deliveries are having a significant impact on how enterprises plan delivery operations. A smart way to ensure this is by deploying a delivery management software. Here are 21 FAQs that every logistics stakeholder should know before delivery management software (DMS).
So, what exactly is a delivery management software?
A delivery management software can be defined as a platform that digitalizes core logistics operations like dispatching, task allocation, vehicle tracking, route planning and more. The software’s ability to track delivery fleet in real-time ensures high levels of logistics visibility, reduces cost per mile, generates accurate ETAs, curbs delays and enhances customer experience.
What are the primary objectives of delivery management software?
The objectives of a delivery management software can be varied, it mostly depends on the problems an enterprise wants to solve. In a more general sense, below are some of the primary objectives that a delivery management software empowers enterprises to achieve.
Is delivery management software mandatory?
Some ten years back, we would have said it’s a ‘good to have’. But with increasing delivery complexities and customers becoming more demanding it’s a ‘must-have’ now. Imagine manually planning multiple delivery routes for 1000s of delivery tasks every minute. It’s impossible. A delivery management software empowers enterprises to rapidly scale operations during peak business days by leveraging crowdsourcing capabilities. To satisfy customer expectations and boost profitability there is no iota of doubt that enterprises dependent on supply chain and logistics need delivery management software.
What are the types of delivery management software tools available?
Today there are a plethora of delivery management software tools available in the market. Each tool might be unique but not all of them can address a customer’s unique challenges. Enterprises must be extremely cautious while choosing a delivery management software, as a delivery management software’s ability of customization is key. FarEye, for instance, empowers enterprises to provide customers with a self-service type delivery model where delivery location and time can be changed on the fly. It boosts customer experience by ensuring highly accurate ETAs and shrinks delivery turn-around-time by empowering delivery executives with highly efficient routes.
How to choose the right delivery management software?
Choosing a delivery management software can become a daunting task, especially when there are so many options available in the market. But not all delivery management software provides the necessary tools needed to optimize delivery operations. Here is a check-list of tools that should be there in your delivery management software.
Tools that Enhance Visibility
Gartner cites ‘visibility’ as one the biggest challenge in supply chain management. Businesses need tools that empower them to track a vehicle’s location in real-time, reduce theft and pilferage, monitor productivity of drivers and optimize delivery routes.
Tools that Use Machine Learning
Machine Learning capabilities can help transportation stakeholders drastically reduce the chances of theft. By analyzing historical data, a machine learning-powered delivery management software can trigger alerts in case of unnecessary delays in delivery.
Tools that Accurately Benchmark KPIs
By crawling through past data of fleet productivity and route efficiency, ML tools can accurately benchmark KPIs of upcoming deliveries and hence, help businesses generate better SLAs.
Tools that Boost Productivity
Fleet productivity is of great importance when it comes to long-haul deliveries. To ensure high levels of productivity, it’s necessary to have tools that report real-time location of delivery, help optimize delivery routes, automate job allocation and ensure greater control over third-party logistics.
Tools that Enhance Collaboration
Since the fragmentation of stakeholders is a major challenge in the logistics industry, tools that increase collaboration is of immense significance. Modern delivery management software enhances communication between all stakeholders.
What are the key concerns with implementing delivery management software?
A major problem businesses face with regards to delivery processes is the lack of interoperability between disparate logistics systems. So, while implementing a delivery management software it should not be a case of another IT-system working in a silo. Enterprises also shy away from implementing a delivery management software thinking that they would need to replace existing IT architecture.
Advanced delivery management software can seamlessly integrate with existing systems like WMS, TMS, IMS, 3PL platforms, GPS solutions, and more. This eliminates the need to rip and replace legacy IT infrastructure. Cost of implementing a delivery management software can be a challenge, but today delivery management software providers offer flexible pricing where enterprises need to pay only for what they use and scale accordingly.
What are the top benefits of delivery management software to customers?
Implementing a delivery management software is absolutely imperative when it comes to generating delightful delivery experiences, especially at a time when the Amazon effect is transforming the way people want to get things delivered. An advanced delivery management software allows customers to change time and location according to their convenience. delivery management software accurately predicts ETAs so that customers can keep themselves available for deliveries.
What are the top benefits of delivery management software to logistics managers?
A delivery management software makes it extremely easy for logistics managers to supervise delivery operations. Modern delivery management software is powered by digital control towers (DCT). These DCTs enable logistics managers to gain real-time and end-to-end visibility of ground-level operations, manage KPIs, efficiently handle exceptions, get quick insights on delays, manage customer feedback and do much more.
What are the top benefits of delivery management software to the C-suite?
A delivery management software makes deliveries profitable by efficiently planning multiple deliveries, reducing cost per miles, mitigating risks and losses and dependency on manual intervention. It also improves customer experience, a key competitive differentiator.
Is delivery management software the same as Route Planning?
No. Routing is a key feature of a modern delivery management software. This feature empowers businesses to plan and generate the most efficient route when executing a delivery. Route efficiency reduces fuel costs, improves driver productivity, minimizes risks, cuts delays, boosts customer experience and makes every delivery profitable. It helps enterprises optimize routes in real-time and ensure better adherence to SLAs and on-time in-full (OTIF) compliance.
Should you go for an on-prem or cloud-based delivery management software?
It’s always smart to go for cloud-based delivery management software. Businesses can quickly scale operations, ensure high levels of security, can make changes on the fly and it’s cost-effective as well.
Is chatbot-based delivery management software a hype or really useful?
Delivery management software powered by intelligent chatbot is a reality now. These bots make managing ‘customer support’ simpler. Fuelled by AI and natural language processing (NLP) technologies, these chatbots can quickly understand what is it that a customer is asking and give an appropriate reply. Chatbots also reduces the dependency on manual labor, hence make delivery operations profitable. These bots also make managing damages and returns simpler.
How can delivery management software boost productivity?
A delivery management software empowers delivery managers to accurately benchmark KPIs and eliminate unnecessary delays. It optimizes routes in real-time and ensures shorter delivery turn-around-time. It also helps delivery stakeholders seamlessly plan multiple deliveries. Leveraging crowdsourcing capabilities, delivery management software quickly outsources delivery tasks to third-party logistics providers based on costs, vicinity, and type of delivery. All these results in achieving high levels of delivery productivity.
What industries need delivery management software?
To reduce operational costs and boost customer experience it’s necessary for eCommerce businesses, retailers, food chains, post and parcel companies, grocery chains among others to implement advanced delivery management software.
What are the key KPIs that a delivery management software will help you track?
Accurately benchmarking and measuring KPIs are important to ensure highly efficient delivery operations. A delivery management software helps enterprises track the following KIPs:
What if my delivery management software goes down and how will it impact my delivery SLAs?
If your delivery management software goes down chances are that it might negatively impact SLAs. Hence, while partnering with a delivery management software provider, businesses must ensure that they receive robust 24X7 support that guarantees minimal downtime. A delivery management software provider’s ability to quickly respond to system failure and ensure rapid recovery and backup is key.
What is the difference between a delivery management software, WMS & Inventory Management Software?
A delivery management software, WMS, and IMS are important elements of a supply chain. Even though cumulatively these platforms optimize logistics operations, individually they do serve different objectives.
Delivery Management System (delivery management software)
As explained earlier, a delivery management software can be defined as a platform that digitalizes core logistics operations like dispatching, task allocation, vehicle tracking, route planning and more. The software’s ability to track delivery fleet in real-time ensures high levels of logistics visibility, reduces cost per mile, generates accurate ETAs, curbs delays and enhances customer experience.
Warehouse Management System (WMS)
A warehouse management system (WMS) is a software platform that empowers logistics stakeholders to gain greater control and visibility of day-to-day warehouse operations. A WMS helps businesses manage inventory better by optimizing the picking and shipping of orders.
Inventory Management System (IMS)
An inventory management system helps enterprises track goods or inventory across a supply chain. It optimizes a product journey right from when an order is placed with a vendor until it reaches a customer.
What are the pitfalls of using a delivery management software?
There are no pitfalls of using robust delivery management software. From scaling delivery operations, improving fleet productivity, reducing cost per delivery to ensuring delightful customer experiences, delivery management software can completely transform the way enterprises execute delivery.
How to make your delivery management software flexible and agile?
Not all delivery management software can adapt to changing business and customer needs. Modern delivery management software is powered by disruptive technologies like machine learning, IoT, predictive intelligence, big data analytics, and automation that empowers enterprises to quickly respond to changing market demands and stay highly competitive.
How does delivery management software improve last-mile delivery?
Increase visibility, boost customer experience and engagement, optimize delivery routes and customize delivery locations are some of the major challenges delivery management software can address.
Optimizing Delivery Routes
To ensure on-time delivery and increase fleet productivity it’s crucial for businesses to constantly intimate drivers with the shortest and most convenient route to a customer’s location.
Increasing Fleet Visibility
A delivery management software can give businesses real-time visibility into where their vehicles are and how much time is being spent idling. This not only gives supply chain and logistics executives better control over their fleet but also helps to minimize spoilage.
Enhancing Customer Experience and Engagement
Advanced delivery management software empowers businesses to be completely transparent with delivery processes. Customers waiting for deliveries can easily know where their parcels are, who is going to deliver, when will it arrive, if there are any delays and more. Customers can also chat with service agents to escalate queries.
Customizing Delivery Location and Time
Modern customers are mostly on the go. delivery management software allows customers to change delivery location as and when they want. This makes the delivery process flexible and increases customer loyalty.
How delivery management software helps monitor last-mile delivery?
Savvy organizations, that are inclined towards delivering seamless customer experience, are leveraging delivery management software to increase visibility into logistics processes by multifold. delivery management software makes reporting easier and core delivery processes transparent. Things like monitoring fleet or driver activity, predicting delays, planning efficient routes, quick allocation of tasks, real-time billing, quick customer feedback and much more makes monitoring last-mile delivery simpler, faster and organized.
FarEye’s data-driven delivery management software has empowered 100s of businesses from across disparate industries to reduce logistics costs, improve logistics visibility, and deliver delightful customer experiences. To know more you can sign-up for a quick demo here.