PANDEMIC LOGISTICS WEB VERSION: Click Here
Optimise last mile costs by using multiple carrier partners The other strategy helping some retailers reduce last mile costs is optimising carrier charges by creating a network of multiple transportation partners - and using carrier management software to select the most cost effective one for each delivery. The software automatically selects the partner and route that provides the best rate for each parcel according to predetermined business rules.
Due to the pandemic, having a bigger pool of carriers from which to choose is very helpful, as individual carriers are struggling with delivery volumes – a dynamic which will only get worse given predictions Christmas shopping is likely to be done largely online. Retailers are even experimenting with using motorcycle and bicycle couriers to pick up parcels from their stores and deliver them to local customers. And with some major carriers adding surcharges to their delivery rates, rate shopping is even more important.
Managing multiple carriers is complex and you need to have the right software in place to seamlessly integrate and communicate with the IT systems of individual transportation
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partners, each with different labelling standards and pricing. Get it wrong and there’s a risk of delivery delays, lost packages or unexpected carrier surcharges and fees. And if you are using multiple partners, you also want your software to provide tracking for individual deliveries and data to analyse carrier performance, allowing you to ensure each partner is sticking to its delivery promises.
Taking the lead in the last mile Last mile delivery can make or break the way customers experience a brand. No matter how great the product or price, a poor delivery experience can put customers off making repeat purchases.
Retailers need to take the lead in optimising the last mile, especially during the pandemic, when they are under increasing pressure. Two important approaches can make a difference: make the delivery journey shorter and optimise costs by using omnichannel to bring inventory closer to customers; and expand the pool of carrier partners and choose the most efficient and cost effective partner for each order. Both rely heavily on having the right technology in place.
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