How Route Optimization Enhances Last Mile Delivery Operations

“For retailers, ensuring a smooth and satisfactory last-mile delivery – the final leg of the journey where a product lands in a consumer’s hands – is now more significant than ever,” says a report published by Capgemini Research in 2017. It goes on to add that a superior last-mile experience improves customer engagement and retention, and up to 75% of customers are willing to spend more for better delivery services.

Route Planning Software

Yes, great delivery service can give you an edge over the competition by enabling you to build a loyal customer base effortlessly. According to the above-mentioned report, up to three-fourth of your customers who are satisfied with the delivery experience will increase their purchase level by 12%. Besides, 53% of happy customers are willing to purchase a paid membership for delivery services. On the other hand, 48% of customers who have a bad delivery experience will stop buying from you or decrease their spend.

Turn Around Your Business With Fast and Accurate Deliveries

When you are at the last- mile of a transaction, you want to ensure it passes on without a glitch. Especially in times of increasing competition, it is most important to pay attention to the last-mile of your deliveries as customers have no-patience for poor service. 

In a survey, 50% of customers reported they would stop using a retailer after two or three late deliveries, and 59% said they would not use a retailer after two or three incorrect deliveries. In addition to speed and accuracy, customers also expect a high level of professionalism from your last-mile delivery partners. 

So, how do you achieve fast and accurate deliveries in the face of rising delivery volumes?

The answer is simple – it is time to ditch the traditional methods of last-mile delivery planning. Instead, you must invest in an enterprise-grade delivery route planning software to ensure faster and accurate deliveries at a lower cost.

Here are a few ways in which a route planning software can optimize your deliveries, ensuring happy customers and an efficient fleet:

Automated Route Planning

Traffic, no-entry windows, and tonnage are only a few of the factors that impact the speed of your deliveries. Consequently, the shortest route between your warehouse and the recipient’s place may not be the best, as it could be riddled with traffic or other conditions that impact the movement of your vehicles.

A route mapping software is powered by machine learning algorithms that sift through historical data to suggest the most efficient routes for delivery as opposed to the shortest ones – saving time, as well as fuel costs in most cases.

Real-Time Tracking

The average American driver spends over 16 minutes a day idling their vehicle. Not only does this cost your business gas but also slows down your delivery schedule. A route optimization software overcomes this hurdle by giving you real-time updates regarding your vehicle’s position. You also have the option to contact the driver directly and ensure they do not take any unnecessary breaks on the way.

Dynamic Re-Routing

A delivery route planning software considers various parameters such as customer location, resource capacity, customer preferences, and traffic and weather conditions to suggest the most efficient routes for completing your deliveries in real-time. 

Intelligent Allocation

A route optimization software is capable of smart allocation, which saves precious time for your fleet. As the system is automated, there is no scope for mistakes. Shipments are allocated to agents in a logical order to ensure maximum work in minimal time. Such planning also reduces the burden on your last-mile delivery partners, leading to happier employees.

Electronic Proof of Delivery

Modern route planning software equips your delivery partners to collect electronic proof of delivery as an image, signature, or timestamp while also providing an easy way to collect feedback for your business.

As you can see, route planning software can significantly contribute to your company’s bottom-line by enabling faster and accurate deliveries. As most customers are likely to share a positive delivery experience with their family and friends, optimizing your shipments also improves your market presence through word of mouth marketing.

At FarEye, we have transformed hundreds of businesses across the globe with our intelligent route optimization software that promised improved efficiency and increased customer satisfaction levels. Signup for a demo to know how we can transform the way you execute your last-mile operations.