Many businesses today require proof of delivery before they release payment to a supplier, and this is where electronic proof of delivery software applications come in handy. In this blog post, we will discuss what PoD is and why your business needs it.

What Is Proof of Delivery (PoD)?

Proof of Delivery is a delivery receipt you will receive once the package has been delivered to its destination. It is also commonly referred to as PoD or an e-PoD for those delivered digitally.

Logistically, businesses use them to monitor their shipments and confirm timely delivery. They can improve shipping efficiency and performance with picture proof of delivery.

Check out our top 10 tips for efficient delivery management!

Top 4 Reasons Why Your Business Needs Proof of Delivery

No business is complete without some form of proof of shipment. This not only gives customers peace of mind that they received what they paid for, but it also protects your business from any potential claims that the customer did not receive their purchase.

Why is it crucial to have proof of delivery for your business? Let’s find out.

1. Improves the Customer Experience

With proof of shipment, you’ll be able to track your customers’ orders more efficiently and prevent any mix-ups.

2. Improves Order Accuracy and Lowers Costs

By requiring a PoD for both product and service-based companies, you can confirm that customers have received their orders and are happy with the work. This will save you time, money, and resources by preventing the need for refunds or replacement orders.

3. Accelerates Back-Office Operations

Our proof of delivery feature ensures your office receives an automated confirmation whenever a product or service is completed. This improves back-office efficiency by reducing paperwork and manual tasks.

Other benefits related to back-end operations:

• Automates sending customers notifications before their product arrives.
• Improves driver efficiency by reducing the amount of time spent at each site.

4. Protects Your Business and Your Customers

According to sources, the average eCommerce return rate is 18.1%.

Proof of delivery is the most foolproof way to protect your business against false customer reviews. Too often, buyers leave fake reviews on eCommerce sites, claiming that their orders were never delivered.

With a picture or video showing the order has been received, you can quash these activities and protect your brand.

Top 3 Reasons Why Your Customers Need Proof of Delivery

Here are three reasons we recommend offering proof of delivery to your customers.

1. Gives Customers More Control

Customers who purchase items online have less control over when they receive their orders than those who buy in person. A study by Verte showed that 91% of customers actively track their packages, with 39% checking the status daily.

In addition, a report found that efficient tracking helps shoppers feel more in control and less anxious.

Along with a packing slip, proof of delivery assures customers that they will receive their order on time and as expected.

2. Prevents Items from Being Stolen

Once customers have received their proof of delivery, they can rest assured that their items are either with them or a trusted neighbor.

3. Keeps Customers Updated

With contactless deliveries being in high demand and inside delivery less common, electronic Proof of Delivery (PoD) is the best way to keep your customers updated on the status of their service and any next steps.

The Different Types of Proof of Delivery

There are three types of Proof of Delivery:

• Paper Proof of Delivery (traditional method)
• Electronic Proof of Delivery (e-PoD)
• Photo Proof of Delivery

1. Paper Proof of Delivery

The most common type of PoD is paper. The driver has a physical paper that the recipient has to sign when they receive the package.

Paper PoD is time-consuming for drivers and can only be manually entered into a database. Overall, it lacks sender transparency. That’s why many carriers are moving to electronic PoD.

2. Electronic Proof of Delivery

Many people are familiar with UPS or FedEx proof of delivery in electronic form. Instead of having the recipient sign a paper document, the driver hands them a digital device to sign electronically. This is much quicker than gathering a physical signature.

The recipient signs the e-PoD, then a copy is either emailed to the recipient or available for download through the original tracking link. The completed transaction is now visible to everyone.

Speaking of visibility, here’s everything you need to know about supply chain visibility.

3. Photo Proof of Delivery

Photo PoD is a service used by Amazon and other companies that delivers a package and takes a photo to document its arrival. The image then attaches to the customer’s delivery confirmation email or SMS.

If you’re unavailable to retrieve your package, share the PoD photo with someone you trust and ask them to pick it up.

Why You Should Automate Your Proof of Delivery System

Many industries have increased productivity, improved communication, and reduced time and cost by automating business processes. Technological advancements allow employees to focus more on the business than administrative tasks.

Automating proof of shipment is one good example.

Here’s why you should automate your proof of delivery system.

1. Minimises Risk While Maximising Profit

Automating PoD virtually eliminates the need for companies to keep track of physical documents such as notes, receipts, purchase details, and signatures.

Precise record-keeping is not the only advantage of automating PoD. With each delivery comes more risk to drivers contracting COVID-19, so using an automated PoD process helps prevent this. Automated PoD uses digital capture to replace physical signatures with photos, timestamps, and geocapture to prove delivery instead of paper records.

The use of photographs gets rid of the contamination danger posed by physical signatures on deliveries. This gives drivers extra protection while making their rounds.

When your business communicates delivery expectations to customers, you’re giving them a sense of security and peace of mind to those self-isolating.

Here’s a quick 9-minute read on how to organize delivery scheduling for your business.

2. Makes Administration More Efficient

Automating the PoD process does not only streamlines the administrative side of your business. It also helps employees adhere to social distancing measures. Moving towards electronic record-keeping cuts down on double handling and makes documentation more efficient.

Instead of requiring heaps of paperwork, all information is digital and collected from drivers as they deliver. This way, drivers complete deliveries quickly and safely while providing accurate customer records.

Automation gives your administrative staff the opportunity to work remotely. It protects them from possible infection and the hassle of handling documents in person. Furthermore, electronic storage allows easy access and portability for customer inquiries.

The Role of Electronic Proof of Delivery in Delivery Logistics

E-PoD has two roles in delivery logistics.

First, it validates the delivery of your product.

Electronic proof of delivery software collects confirmation of packages delivered.

The software does this by:

• Electronic signatures (e-signatures)
• Electronic delivery forms (e-forms)
• Electronic delivery notes (e-notes)
• Barcodes
• QR codes
• Unique alphanumeric codes
• Unique order identification numbers
• Photographs
• Timestamps
• Geo-stamps

Electronic delivery confirmation allows drivers to wait less at the customer’s doorstep. This improves driver performance and reduces wasted time, resulting in better customer service.

Secondly, most companies use e-PoDs for reporting purposes.

Once a PoD is collected, it’s automatically uploaded to the central system, where dispatchers and logistics managers can review it. This allows office teams to track field team activities. They can check if drivers followed instructions for dropping off the package, order accuracy, missed deliveries, and more.

If someone requests a return after their purchase, your customer service team can use the data to take action and ensure both satisfaction and efficiency.

Find out why customers love door-to-door delivery so much!

How Does Electronic Proof of Delivery Work?

After downloading the digital proof of delivery software onto your phone or tablet, you can start collecting customer information. You can either have them fill out an e-form, take an electronic signature, or scan an order code after they approve the drop-off.

The drawback to this method is that it can be hard to get information from the PoDs once they’re collected. You would need to connect the e-PoD software with a stronger solution or export the data whenever you want to use it. A smarter approach would be using an all-in-one solution, such as a delivery management platform.

Software-as-a-service (SaaS) delivery systems have two components:

• A dashboard
• A mobile app

Delivery agents use the app with a mobile device to collect and upload the PoD, which becomes available online for dispatchers. The driver app marks each delivery as completed once the e-PoD is uploaded, and dispatchers can live-track drivers’ progress from stop to stop. The apps are compatible with iOS and Android devices, so you won’t need to purchase new hardware.

Are you considering to expand your logistics?

Learn more about 4PL logistics and why it’s good for your business.

Top 5 Proof of Delivery Applications and Software

In this section, we have gathered our top five picks for proof of delivery software.

1. Track-POD

The Track-POD driver app is part of a delivery system that allows contactless delivery. The software efficiently plans for multiple deliveries in real-time, dispatches field service jobs, and provides SMS and email notifications to track your delivery status.

Designed for teamwork, the software’s route planner has user roles, including dispatchers, managers, and drivers. This way, you can add all the relevant people to the software and give them the necessary access levels.

The web planner optimizes routes and plans loads, and the driver mobile app also offers delivery confirmation with a free barcode scanner.

2. Routific

Routific is a delivery software company that helps businesses manage their daily deliveries and track their drivers.

Delivery notifications and live tracking provided by Routific allow businesses to improve their Delivery in Full & On Time (DIFOT) rate by ensuring customers know when to expect their product.

Routific provides two mobile apps for couriers, which enable Proof of Delivery. When delivery confirmation has been collected, dispatchers can see it immediately. With Routific Driver, dispatchers can view both e-signatures and photo proof. With Routific Driver Lite, however, the electronic signature is the only thing visible to them.

3. Onfleet

Onfleet is a delivery management system that not only streamlines route planning and multi-drop optimization but also offers customer notifications with an estimated time of arrival and live tracking. Plus, there’s even Proof of Delivery, complete with feedback collection!

While other software systems only offer partial integrations, Onfleet delivers a complete solution by integrating with third-party solutions via API. This ensures smooth data transfer in real time.

The Onfleet driver app supports features like photo capture, electronic signature capture, age verification where necessary, and barcode scanning.

4. OptimoRoute

OptimoRoute is a two-part software solution that offers route planning and Proof of Delivery management for multi-drop delivery operations. The web app is designed for the back office, while the mobile app is meant for drivers.

Proof of Delivery with OptimoRoute consists of 3 components.

1. Electronic notes.
2. E-signatures.
3. Photos (multiple photos are allowed within one order).

OptimoRoute’s features, such as customer notifications and live tracking, help businesses provide an excellent delivery experience. Part of that delivery experience includes electronic Proof of Delivery.

5. Route4Me

Route4Me is the only paperless delivery system that covers all the steps of an efficient workflow, from instant multi-drop routes to delivery notifications and driver tracking. Plus, with our logistics KPIs, organizations can make the most of their transportation resources while keeping customers happy.

How Dropoff’s Proof of Delivery System Works

What sets Dropoff apart is our innovative technology. We want customers to get clear oversight into all their deliveries at all times. This is a core focus for our team and why we are a leader in the last-mile industry. Our proof of delivery system was designed to give customers transparency and security in the delivery process. The system allows them to track their deliveries in real-time and receive confirmation once the delivery is complete. With features that include signature capture, age verification, photo verification, and more, customers can’t help but experience that added layer of assurance.

Neil Seth, Chief Technology Officer at Dropoff

Our electronic Proof of Delivery system gives customers instant delivery confirmations based on their needs.

When a driver arrives at a delivery location, they will use a handheld device to scan the barcode on the shipment. This will automatically fill the Proof of Delivery form with the relevant information, including the customer’s name, address, and phone number.

Our experienced couriers will verify package delivery via photo, signature, email, text, or any courier action you prefer. Once the form is complete, it will be emailed to the customer in real time.

Want to learn more about the capabilities of our proof of delivery system?

Talk with a Dropoff expert and watch your business transform.

FAQs on Proof of Delivery

The post What Is Proof of Delivery (PoD) and Why Your Business Needs It appeared first on Dropoff.

An Overview of the Last-Mile Delivery Market

As of last year, the global last-mile delivery market was valued at USD 40.5 billion and is expected to rake in USD 123.7 billion by 2030.

This growth is driven by a few things, like the rise of online shopping, the growing popularity of same-day and next-day delivery services, and the use of technology to improve last-mile logistics.

Knowing the Worth of Your Courier Business Is Vital

It’s essential to know the value of your business. Many things affect this value, including the company’s size, profitability, and growth potential. By knowing all this information, you’ll be in a better position to negotiate a fair price when the time comes to sell.

5 Things You Need to Consider During a Small Courier Business Valuation

Here are five things to keep in mind when estimating the value of your courier business.

1. Additional Supply Chain Services

Logistics companies are always coming up with new services to help their customers manage their supply chains. These services make them more valuable to customers and buyers. Companies that offer a complete package of services get paid more than companies that don’t offer these things.

2. Technology and Equipment

Your courier business should have up-to-date systems and software. Nowadays, customers expect the royal treatment when it comes to deliveries. Offering additional features like real-time tracking, helps your business receive higher valuations.

3. Improvements

Regular analysis of strong and weak points helps a logistics company stay profitable. Companies that show effective improvement cycles will look more valuable to buyers.

4. Management Team

When a company heavily relies on its owner, it shows. For instance, the company doesn’t have set standards or training procedures, or it doesn’t even have a management team.

Another example is if the owner is very involved in key customer relationships. This will be an issue when the owner leaves because the rest of the company team isn’t sure how to run the business in their absence.

Plus, a lack of management, in general, creates a lot of potential risks in the business.

5. Customer Concentration

Having only a few key customers lowers any company’s value. Because if those customers leave, the company might go out of business. If a key customer makes up 10 to 30 percent of sales, a buyer will see a lot of potential risks.

A diversified customer portfolio means your business is healthy & shows little risk to a buyer.

NEWS: Dropoff ranks no. 2607 on the 2022 Inc. 5000 List.

The Valuation Process

There are eight essential steps to the small business valuation process.

1. Determine Why the Valuation Is Necessary

Every company is different, and so are its values. That’s why it’s good to have a business appraiser who knows about this stuff. They’ll help find a value that’s both accurate and fair.

2. Determine the Basis of Value

There are different types of values measured in a transaction. The value could be the price between the seller and buyer or the investment value to the current owner. The basis for this value is often set by regulation, law, or contract.

3. Determine the Premise of Value

In an M&A transaction, the buyer might see benefits that make the acquired business more valuable than the fair market value. This will make the premise of value higher.

4. Gather Relevant Information

You’ll need to look at your financial records, contracts, customer/supplier agreements, leases, loans, and all other obligations that affect the future profitability of your business.

5. Research the Company’s Past Performance

Learn about your company’s history, structure, and past financial performance. Then, compare it to other courier companies with similar size and maturity. Note the companies’ price-to-earnings ratios, price-to-book values, and price-to-free cash flow metrics.

6. Determine the Future Outlook for the Business

Buyers always look at how much money your business will make in the future. They look at how well the company is doing now and project how it will do in the future. After you figure out all the numbers, you’ll be able to put a price on your business.

7. Choose a Valuation Approach

There are three common ways to value a business: the market approach, the income approach, and the cost approach.

The market approach uses recent sales of similar businesses as a guide. The income approach looks at how much money the company will make in the future. The cost approach looks at how much it would cost to create a new business just like the one you want to value.

Often more than one approach is used to get an accurate value for a business. The values from each approach are averaged together to come up with a final value.

8. Determine What the Value Is

The final step is to reach a value. You can get an appraiser to do this, who will create a detailed report. Use this report to help defend the value of your courier business.

“I always recommend seeking more information on the valuation process from investment bankers and specialized transportation brokers. These highly technical experts can help you estimate the value of your logistics business.”

Jason Burns, Director of Corporate Development

What Are the Typical Valuation Multiples for the Logistics Industry?

There are two types of valuation multiples:

• Equity Multiples
• Enterprise Value Multiples

Today, we’re focusing on Enterprise Value Multiples.

Equity Multiples only tell you a little about a company’s value and what it’s worth in the future. Enterprise Value Multiples are more accurate and often used by companies that want to sell, merge, or be acquired. Why? Because Enterprise Value Multiples consider the effect of debt financing on the final calculation.

The four most common ways to calculate a company’s value are EV/Revenue, EV/EBITDAR, EV/EBITDA, and EV/Invested Capital. Let’s take a closer look at EV/EBITDA, also known as “earnings before interest, taxes, depreciation, and amortization.”

Remember the three different approaches to value a business we mentioned above? You can use EBITDA to value your company using those methods. Calculate each one and compare the results.

How to Calculate EBITDA

There are two ways to calculate EBITDA:

1. The first way is to add the income from operations, depreciation, and amortization.
2. The second way is to add the taxes, interest expense, depreciation, and amortization.

So what’s the main benefit of using this method to determine the business value of your logistics company?

Many business owners prefer this business valuation method because it helps them see how profitable their companies are.

How to Increase the Valuation of Your Logistics Business

Let’s look at how to increase the value of your logistics company.

1. Increase Your Company’s Cash Flow

A positive cash flow is one of the main things that’ll attract investors to your logistics company.

Here are a few ways to increase your company’s cash flow:

• Send invoices to customers quickly
• Increase your service prices
• Cut your business’s expenses

2. Improve Your Company’s Brand

Branding your logistics business is another way to increase its value. But don’t make the mistake of just coming up with a cool logo. Think about your tone and messaging. You need to know how your customers associate with your company and then push those feelings through all communications.

When people see that you’re a reliable brand, they know exactly what to expect from your courier business. You’re also more likely to be recognized as experts in your specific niche (leading to more sales opportunities).

How Dropoff Can Help Value Your Courier Business

Estimating the value of your small courier service business doesn’t have to be hard. Just keep these key factors in mind, and you’ll be on your way to getting the best possible price.

Here at Dropoff, we’re always looking for new opportunities to expand our business. One way we do this is by acquiring small local courier companies. Check out how we acquired Rightaway Delivery, Inc. after 23 years of success in Michigan.

If you’re a small logistics business owner, we encourage you to get in touch with Jason Burns, our Director of Corporate Development. He would be more than happy to discuss the possibility of acquiring your business.

FAQs on Small Courier Business Valuation

1. What makes a logistics company business worth more?

Some aspects that make your logistics company business worth more are the number of employees, long-distance jobs, and growth potential.

Here are some metrics that help improve the value of your business:

• Predictable key drivers of new sales
• Stable or growing traffic from different sources
• Established suppliers of inventory with backup suppliers
• Volume statistics
• A high percentage of repeat visitors and sales
• Clean legal record
• Brand with trademark
• Documented processes

2. What does the average logistics company business sell for?

Since 2005, 357 logistics companies have been bought in the United States. Most of these deals have been large ones. The total value of all these deals is almost $300 million. The average asking price is almost three times higher than the average gross income, and the average sales price is pretty high, too: $836k.

3. What do you need to consider during a small courier business valuation?

Five things to consider during the valuation process of your logistics company:

1. Additional supply chain services
2. Technology and equipment
3. Improvements
4. Management team
5. Customer concentration

4. How to valuate a small courier business?

There are eight essential steps on how to value a logistics company:

1. Determine why the valuation is necessary
2. Determine the basis of value
3. Determine the premise of value
4. Gather relevant information
5. Research the company’s past performance
6. Determine the future outlook for the business
7. Choose a valuation approach
8. Determine what the value is

5. How long will it take to sell your logistics business?

Selling a business isn’t an easy process. It takes months to find the right buyer. Most deals are closed within 9 to 12 months, but some are closed in as little as 3 to 6 months.

The post Ultimate Guide to Valuation of Logistics Companies appeared first on Dropoff.

The Growing Last-Mile Delivery Industry

The last-mile delivery market is a fast-growing industry that provides logistics solutions for businesses. It’s expected to increase by USD 143.75 billion from 2021 to 2026, according to a recent market study by Technavio. The competition is definitely fierce, but the market is still relatively young, and there is room for new players. 

Some current trends in the market include environmental sustainability and using innovative transportation methods such as electric vehicles.

The Challenges of a Highly Competitive Last-Mile Courier Market

It’s no surprise that the last-mile courier market is super competitive. Big players like UPS, FedEx, Amazon, and Walmart run their own delivery services, and they’re constantly trying to one-up each other on price and service.

This puts a lot of pressure on smaller companies to keep up. Why? Because bigger companies have the resources to react quickly to sudden shifts in customer demand — smaller companies don’t.

It’s a constant race to invest in the most-cutting technology and most can’t keep up with the leaders in the industry, why not consider selling the business?

8 Ways to Advertise Your Logistics Company for Sale

Most business owners probably don’t know that an acquisition can provide much-needed stability for a small company.

Here are eight ways to advertise your logistics company for sale:

1. Business for sale listings
2. Personal network
3. Logistics and courier associations
4. Mergers and acquisitions agencies
5. Industry-led events and conferences
6. Collaboration with industry-based media outlets
7. Venture capital funds
8. Directly reaching out to companies

Let’s dive deeper into these.

1. Business for Sale Listings

Online resources are a great way to reach potential buyers. When you list your logistics business for sale, include key information such as your company’s size, revenue, and growth potential. Don’t also forget to include your contact information!

Websites to list your logistics company for sale:

• GlobalBX
• BizQuest
• LoopNet
• BizBuySell

2. Personal Network in the Industry

Another way to advertise your logistics company for sale is by simply using your network. Let your connections know that you’re looking to sell and see if they are interested or know someone who is.

You can go through your contacts or post a notice on relevant online forums and message boards. Also, try reaching out to industry publications and list your company for sale in their classifieds section.

3. Logistics and Courier Associations

Have you heard of the Customized Logistics and Delivery Association (CLDA)? The CLDA is a non-profit trade association that promotes the growth of the logistics industry. It advocates for the industry, networks with businesses, and educates people about logistics. And it most certainly is an ideal way to find a potential buyer.

Needless to say, it’s the best platform for advertising your logistics business for sale. Plus, you’ll have access to their big network of logistics and courier companies. They also offer educational programs and events to help better prepare you for a successful sale.

Other logistics and courier associations:

• American Society of Transportation and Logistics – members include shippers, carriers, and third-party providers.
• Council of Logistics Management – CLM focuses on developing logistics knowledge.
• International Society of Logistics – SOLE is a non-profit society built to discuss logistics technology and education.

4. Mergers and Acquisitions Agencies

M&A (mergers and acquisitions) agencies and brokers are the experts in match-making between buyers and sellers. So they will definitely help you find a buyer who’s a good fit for your logistics company.

Not only will they get your company’s information to a larger audience, but they will help negotiate a better price for your company.

5. Industry-Led Events and Conferences

It’s possible to successfully advertise your third-party logistics company for sale at industry-led events. This goes without saying, but have a strong presence at the event. Set up your booth or table where anyone can stop by and learn more about your company.

Marketing materials also come in handy – like flyers and business cards! Also, if you don’t have a good network of people in the industry, there is no better place to start. Feel free to follow up with potential buyers after the event; email or call them to thank them for their interest and stay in touch.

Check out our top picks for last-mile delivery companies and startups.

6. Collaboration with Industry-Based Media Outlets

Another way is to collaborate with logistics industry-based media outlets so they can promote through their network. They’ll help by placing ads in relevant media, such as trade magazines or websites.

Plus, featuring your company in industry-based media will help to create a sense of trust and credibility around your business. Buyers are more likely to be interested in a company that’s been endorsed by a legitimate source.

7. Venture Capital Funds

Consider using venture capital funds that invest mainly in logistics businesses. It’s good to align yourself with these types of investors because you’ll be able to tap into their networks and resources.

Not to mention, these investors are familiar with the logistics industry and will provide valuable insight into how to position your company for sale. Put together a strong pitch deck that outlines your company’s unique value proposition and why it would be an attractive acquisition target.

8. Directly Reaching Out to Companies

Try reaching out directly to companies that might be interested in acquiring your business.

When it comes to large logistics companies for sale, your best bet is to contact the M&A department of potential buyers. For smaller logistics companies, reaching out to the management team is often more effective.

Be clear about your asking price and any terms or conditions attached to the sale. Don’t forget to provide detailed information about your business, including financials, customer list, and infrastructure.

Either way, do your research and make sure you’re contacting the right people within the company.

Successful Acquisitions: The Dropoff Way

“The biggest tip I’d give to small courier businesses looking to successfully advertise their company is to make sure the business is in order — corporate documents, accurate financials for the past 3 years, sales by customer, legal summary, etc. It would also be best to ensure the owner(s) are emotionally prepared to exit the business.”

Jason Burns, Director of Corporate Development at Dropoff & President of the CLDA

Dropoff has a proven track record of successfully acquiring smaller courier companies. And we have the infrastructure in place to support your business and ensure a smooth transition.

Our team will work closely with you to ensure that your customers continue to receive the high level of service they are accustomed to. In addition, we offer competitive rates and a variety of features that will benefit your business.

Read about how Dropoff acquired Rightaway Delivery after 23 years of success in Michigan.

The post 8 Ways to Advertise Your Logistics Company for Sale appeared first on Dropoff.

What Is Inventory Management in Logistics?

Inventory management is a system that companies use to keep track of the products they have. It is essential for companies that sell items online, through many different channels, and in physical stores.

The process includes ordering new products, storing products, adjusting how often new products are ordered, and predicting how much inventory will be sold.

4 Main Challenges of Inventory Management in Logistics

Unfortunately, sometimes things get tricky. The four main challenges in inventory management include:

1. Receiving accurate stock details
2. Outdated processes
3. Changing customer demand
4. Warehousing space

Let’s take a closer look at these drawbacks.

1. Receiving Accurate Stock Details

If you don’t have accurate stock details, you won’t know when to refill stock or which stock is moving well.

2. Outdated Processes

Old or manual processes often lead to mistakes and make work slower.

3. Changing Customer Demand

People’s needs change all the time. If your business can’t track how people’s needs change, you won’t know when or why their needs change.

Check out our article about on-demand logistics!

4. Poor Use of Warehousing Space

If products are hard to find, staff will only waste time. This happens when warehousing space isn’t being used effectively.

3 Main Benefits of Logistics and Inventory Management for Your Business

The three benefits of inventory management in logistics for your business:

1. More cost-efficient
2. Higher cash flow
3. Enhanced customer satisfaction

1. More Cost-Efficient

Understanding stock trends means you know how much and where you have something in stock. Keep less stock at each location (store, warehouse) because you can pull from any place to fill orders. It mainly decreases inventory costs.

Cheaper costs are also one of the benefits of pick and pack fulfillment and logistics.

2. Higher Cash Flow

Managing your inventory well means higher cash flow because you spend money on things that sell.

3. Enhanced Customer Satisfaction

Making sure customers get the items they want right away is great for your business. Improving customer experience is so important!

6 Inventory Management Best Practices

Some companies find it hard to understand all the details of logistics and inventory control procedures. If you’re one of these businesses, don’t worry.

The six best practices for logistics inventory management:

1. Plan first
2. Always have critical stock
3. Review all shipments carefully
4. Delegate the right inventory management team members
5. Find the balance between inventory costs and the benefits of having available stock
6. Prepare other high-level plans

1. Planning Comes First, Then Execution

Good managers monitor their inventory constantly. You should always be updating your plan and then putting it into practice. You should also track metrics and update your forecasts for the coming months every week.

2. Always Have Critical Stock

Always have critical stock so you never run out and lose sales. Start by having an inventory control process in place.

3. Review All Shipments Carefully

When you get a new product, it’s essential to check for any damage.

4. Delegate the Right Inventory Management Team Members

Having staff on board with the inventory control process would be best. But you have to pick the right people for the job. They should be good at math and have time to do it correctly.

Ideally, your inventory management team will include people from all parts of the process, from warehouse managers to procurement specialists to pickers on the floor. If you have a smaller company, consider including all managers and some front-line staff representation.

In addition, check out our guide on door-to-door delivery.

5. Find the Balance Between Inventory Costs and the Benefits of Having Available Stock

The single most effective inventory management strategy to control and reduce inventory costs is…
A strategy of discipline. Regardless of size, large or small, most companies work to achieve two primary objectives – grow the business by satisfying the customer and manage costs. Businesses seek big data to deliver strategic recommendations based on assessing the customer experience and measuring the cost of inventory. Working under a discipline strategy, companies can effectively mitigate two potential risks – dissatisfying customers by promising a product when there is none and increasing cost by losing tack of outdated stock in the warehouse.

Deborah Schroeder-Saulnier, Founder & CEO of Excel Leadership Solutions

Find a balance between how much it costs to make and store products and how likely you will run out of them. You must know your business well enough to choose the correct forecasting methods. Figure out how much your stock costs, including warehousing and perishables, and weigh that against how much demand there is for your products and how much it would cost to run out of them.

6. Prepare Other High-Level Plans

If you don’t have control over what you’re selling, you need to work on other parts of your business. Do you have a good quality management plan? Have you looked at your facility management plan recently?

Inventory Management Techniques

Some companies use formulas and analysis to plan how much stock to have. Others use procedures. All of these methods aim for accuracy. The techniques a company uses depend on the company’s needs and the stock it has.

Find out which inventory management techniques work best for your business.

1. ABC Analysis

The ABC analysis method shows the most and least popular types of stock.

2. Batch Tracking

The batch tracking method groups similar items to track when they expire.

3. Bulk Shipments

The bulk shipment method is when suppliers put materials in a ship or truck without packing them. You buy, store and then ship the materials all at once.

Did you know? Managing inventory levels is also needed for successful omnichannel third-party logistics.

4. Consignment

Consignment inventory management is when you pay your supplier only when the product has been sold. The supplier still owns the inventory until your company sells it.

5. Cross-Docking

This method is for moving packages from the supplier’s truck to the delivery truck. Basically, there’s no need to use a warehouse.

6. Demand Forecasting

This method helps predict customer demand.

7. Dropshipping

The supplier ships items directly from its warehouse to the customer with dropshipping.

8. Economic Order Quantity (EOQ)

The EOQ formula calculates how much inventory a company should order to reduce storage and other costs.

9. FIFO and LIFO

FIFO is when you move the oldest stock first. LIFO is when you think that prices always rise, so the most recently-purchased inventory is the most expensive and thus sold first.

10. Just-In-Time Inventory (JIT)

Some companies use the JIT method to keep their stock levels low before they refill.

11. Lean Manufacturing

This method gets rid of waste from the manufacturing system.

12. Materials Requirements Planning (MRP)

MRP helps with making plans, organizing, and controlling the inventory for manufacturing.

13. Minimum Order Quantity

A company will order small amounts of inventory from wholesalers each time to keep it cheap.

Interested in learning more about order delivery? Check out our article on delivery scheduling!

14. Reorder Point Formula

This formula calculates how much stock is needed.

15. Safety Stock

If the company can’t replace those items, make sure to have extra stock.

Top 5 Inventory Management Software

With inventory management, it’s essential to have the right software tool for it. Take a look at our top picks for inventory management software down below.

1. Cin7 Orderhive – Best in General

Cin7 Orderhive is an affordable solution with many features that can easily integrate into your inventory, order, and fulfillment process.

2. inFLOW – Best for B2B Companies

inFLOW‘s platform is easy to use and provides a central inventory database.

3. Lightspeed Retail – Best for Retail Stores

Lightspeed Retail‘s program will help you keep track of your stock and also help you manage your sales. It’s best for small retail shops. The program has tools to help you track inventory, and it also has excellent features for e-commerce.

4. Upserve – Best for Restaurants

According to Upserve, their automatic tools that track ingredients and costs help increase revenue by 30% and reduce the time it takes to get food to the table by 10%.

5. Megaventory – Best for Manufacturing

Megaventory is a program that will help you keep track of your inventory and manufacturing updates.

Inventory Management in Different Industries

Let’s take a closer look at inventory management in different industries.

Retail Industry

Retail inventory management is the process of ensuring you have the right stuff for people to buy. You don’t want too little or too much, so you must keep track of what people buy.

Good inventory management in retail helps keep costs low and makes it easier to understand sales patterns. Hence, retailers have access to more information, including:

• Product availability
• Product quantities
• Which stock sells well and which doesn’t
• Profit margin by product
• Discontinuing of product
• How different seasons affect sales

Healthcare Industry

Healthcare inventory management, also called supply chain management, is a process that keeps track of your health system’s inventory. Inventories include medical supplies, prescriptions, and other health products. 

Further, a good inventory management system is a must for healthcare organizations. It helps protect the organization from incorrect tracking of products and supplies.

Manufacturing Industry

Manufacturing inventory management is tracking the products and goods being made. It helps to reduce costs and makes the manufacturing process go smoother.

There are three inventories for manufacturing: raw materials, work-in-progress, and finished goods.

1. Raw Materials Inventory – The materials used in the first stage of production.
2. WIP Inventory – The raw materials used to make the finished product.
3. Finished Goods Inventory – Contains products that are almost done and ready to be shipped.

What’s Next for Inventory Management?

The future of inventory is full of new technology. Virtual reality, artificial intelligence, digital signage, and inventory-less stores are changing how businesses work, and customers buy things.

1. Cloud Technology

Cloud technology is not new. In fact, it has been around for a while, but it keeps getting better. More people are using it because it is easy to set up and use.

In 2017, the amount was $145 billion. By 2021, it had grown to $332 billion. It is expected to reach $397 billion by 2022.

2. Internet of Things

The Internet of Things (IoT) has been around for a while now. Businesses have been investing in this technology for a while. As we move into 2022, the IoT investment will keep increasing.

3. More Widespread Use of 3PLs

Third-party logistics (3PL) is a cost-effective solution for smaller businesses that need to operate warehouses and own vehicles. Also, cloud software and IoT have made it easier for 3PL companies like Dropoff to offer their services.

Moreover, the 3PL industry is projected to grow 7.1% through 2027. The drive will keep growing, making it easier for businesses to work together without losing service quality or delivery times.

Bottom Line

At Dropoff, we understand the importance of managing your inventory efficiently. That’s why we offer services that help our customers keep track of their inventory and ensure that orders are fulfilled quickly and accurately.

We have experts ready to help you with product placement and stock rotation. They will make sure your inventory is always up-to-date. We also have tools that will help you deal with issues quickly.

By talking to a Dropoff expert, you will always have what you need on hand.

FAQs on Inventory Management

1. What is inventory management in logistics?

The role of inventory management in logistics is keeping track of what a company has in stock.

2. How can I improve my inventory management system?

You can improve your inventory management system by keeping correct data and taking regular physical stock counts. A transparent system can help everyone make intelligent business decisions.

3. What are the objectives of inventory management?

Inventory management has two main objectives: keeping enough stock to meet customer needs and spending as little money as possible on supply while still making a profit.

4. What is the importance of inventory management in logistics?

Inventory management is vital in the supply chain because it helps companies balance customer demand with their storage space and cash limitations.

The post Comprehensive Guide to Inventory Management in Logistics appeared first on Dropoff.

You may be overwhelmed and struggling to meet customer demand without a delivery schedule. This blog post will discuss what goes into creating a delivery schedule and how to organize it for your business!

What Is a Delivery Schedule?

The delivery schedule is an agreement between the buyer and seller on when and how often merchandise will be delivered. This can be a mutually agreed-upon schedule or one that the buyer sets.

The contract is often written so that it can be changed, but there are limits on how it can be changed and when it needs to be delivered. The buyer and the seller are interested in making sure this is clear.

Top 3 Challenges in Efficient Delivery Scheduling

Here are the main challenges in efficient delivery scheduling:

1. Lack of Standards

You should have a transparent system for picking and delivering orders in your company or online store. Many businesses do not have a set process or rules for delivering orders. They do this job based on their schedule, which can cause customer and business problems.

If a business does not have a transparent process for picking and delivering orders, it can delay deliveries or lead to no-show deliveries.

This approach can positively or negatively affect customers and brand reputation. On-demand delivery is gaining popularity these days, so it’s essential to have reasonable procedures to keep up with consumer demands.

2. Lack of Flexibility

Problems can always happen even if your delivery schedule is very well organized. For example, order cancellations, product recalls, or last-minute orders. Many online and offline stores offer same-day delivery.

This approach is common but can cause delivery scheduling process problems. A skilled manager should be able to adjust delivery schedules in these situations. It can be a challenge for those who spend less time and effort optimizing delivery processes.

3. Unforeseen Delays

Sometimes, issues arise that delay your package’s delivery time. This might include bad weather, road closures, or heavy traffic. These things are harder to predict and plan for than if someone changes their order. Delivery truck drivers should be prepared for any changes or delays along the way and take the most efficient route possible.

Sometimes it is necessary to revise an entire delivery schedule. This can be stressful and take up a lot of time. Delivery scheduling software and route optimization tools help update paths in real-time and manage difficult situations.

How Delivery Scheduling Works

The delivery schedule is when you plan how and when orders will be delivered. It would help if you had good inventory and order visibility, so you know what is coming in and going out and where each order is. Delivery schedules work together with order and inventory management to help everything run smoothly.

Next, you calculate the distance to each delivery destination. You want your drivers to take the smartest routes to reduce the distance traveled between delivery drops. The best route is the shortest, safest, and fastest one.

This requires a good plan. The plan should consider all the challenges and solve them. The plan should also ensure that the delivery schedule uses business resources well.

The final step in your scheduling is to arrange the delivery stops into a single-driver trip. Assign the orders to suitable vehicles, considering the package size, weight, and other dimensions. You should also allocate these trips to an appropriate driver you trust to make good deliveries.

This process for scheduling deliveries requires some flexibility. This is because the routes and circumstances can change at the last minute. But if you have a scheduling plan, you can respond better to unexpected challenges. This can lead to more efficient scheduled deliveries and satisfied customers. It can also help your bottom line.

7 Steps to Organize an Efficient Delivery Scheduling System

Here are seven crucial steps to take when organizing an efficient delivery scheduling system:

1. Identify the time available to complete each task

The time it takes to deliver something can vary a lot depending on what industry you’re in. For example, the time it takes to provide food differs from when you’re delivering medical equipment. The demand for services can vary a lot depending on the time of the week, month, or year. For example, demand might be higher around Christmas and lower during the summer holiday season.

To make a good schedule, you must consider people’s work breaks, shifts, time off, and absences. You also need to have the correct number of key staff so your delivery service can run smoothly. It would help if you found the right balance so that the quality of your service does not go down during peak times and that payroll does not hinder the business during slower times.

Additionally, think about how much time it takes to complete a delivery. This number varies, but if you calculate the average time per delivery, you can have a rough estimate of how many deliveries your drivers can do in one route. Now that you have this information, you can start scheduling the deliveries.

2. Arrange the tasks based on the priority level

No order is the same because no customer is the same. You need to prioritize every order to create the best delivery schedule. If you want to plan your schedules better, you can use a priority list. In most cases, the type of delivery will tell you which one to schedule first.

Here is an example of a priority list based on the type of delivery:

1. Same-day delivery (because it is the quickest)

2. International delivery (because it takes the longest time)

3. Standard delivery

4. 7-day free delivery (because you can schedule them once per week)

3. Use the right delivery scheduling software

You should use multi-stop route planners if you are an organization that delivers regularly. This is the best way to make sure that everything is managed efficiently. The software will do all the complicated work for you, so you don’t have to worry about it.

If any last-minute delays or surprises arise, the software will be able to reschedule the route for you. This means that drivers always have the most up-to-date delivery routes, and managers won’t have to rush to create alternative routes last minute.

Route planning software will also help improve communication between dispatchers and drivers. The routes automatically update if you add or remove any new stops in real-time.

Check out how it works

4. Optimize your routes

Logistics managers can create efficient and effective delivery schedules with the correct route optimization tool. This route optimization tool can assign the most suitable orders to the right vehicles and plan a delivery schedule that maximizes time.

Optimization should also go beyond route planning; learn more about how to optimize your logistics operations as a whole.

5. Track your vehicles

Keeping track of your vehicles is vital for improving your delivery schedule. You need to know where they are before you plan the delivery trips.

It’s also essential to track their progress while on the road. This will help you change your routes and understand how your scheduled deliveries will perform. Tracking your vehicles is also an excellent way to improve communication with your drivers and customers.

Overall, last-mile delivery tracking is a necessary part of your delivery process.

6. Improve customer communication

It’s essential to communicate with customers when it comes to scheduling deliveries. This way, they feel more involved in the process and know what is going on. Sending order and delivery notifications keeps customers in the loop about their orders’ date and expected time of arrival (ETA).

However, there is more to it than just making the schedule. You also need to make sure that people know about the schedule and understand it. For example, you can send customers tracking links that will tell them when the delivery will happen. This way, they will know precisely when the delivery will occur and are less likely to miss it. This will lead to shorter delivery windows, less wait time, and fewer returns.

7. Analyze performance and results using metrics

If a driver regularly misses their delivery windows, then there is a problem with the schedule. The schedule might not give them enough time to do their job, or it might not be allocating enough time for them to be late. That is why creating schedules one day at a time is the only way to overcome some of the biggest delivery challenges.

To calculate key performance indicators accurately, you need to have complete visibility over the entire operation. This way, you can track and monitor performance and record results. There are many KPIs to consider when tracking last-mile delivery.

Why Delivery Scheduling Works Best If You Work with a 3PL

If you’re like most businesses, you’ve probably struggled at some point with a delivery schedule. However, it doesn’t have to be complicated. Involving a third-party logistics (3PL) partner can make the process simpler and more efficient.

3PLs like Dropoff have the experience and expertise to create an effective delivery schedule. We know how to account for delivery times, traffic patterns, and weather conditions. As a result, we create schedules that minimize delays and maximize efficiency.

3PLs can also help you coordinate with multiple parties. If you’re trying to schedule delivery on your own, you may need to coordinate with various suppliers, manufacturers, and carriers. This can be daunting, but a 3PL partner can help streamline the process and ensure everyone is on the same page. 

3PLs can provide valuable insights into your delivery process with delivery scheduling software. They can even help you identify areas where your process is inefficient and make recommendations for improvement.

Are you interested in partnering with a 3PL?

Check out our guide on how to choose a third-party logistics provider.

Bottom Line

A delivery schedule can be a great way to organize your business and ensure everything runs smoothly. But it can also be tricky to get right, mainly if you’re not used to planning shipments. That’s why we’re here to help.

Talk with a Dropoff expert today about setting up a delivery schedule that works for your business.

FAQ – Delivery Scheduling

1. What is the purpose of a delivery schedule?

A delivery schedule decides which orders get delivered on which routes and in what order. This process may also include optimization, which means that the best way to deliver the orders is planned out.

2. How do I organize my delivery routes?

Here are different ways to organize routes for deliveries:

1. Use delivery management software
2. Optimize routes for route scheduling
3. Assign tasks to the drivers
4. Provide customer ETAs
5. Share the route plan with the driver

3. Why do we need to schedule deliveries?

Below are a few reasons why you need to schedule your deliveries:

1. Quicker dispatch of products
2. Easier management of fleets and drivers
3. Allows sharing of route plans with delivery drivers
4. Better customer experience

The post What Is Delivery Scheduling and How to Organize It for Your Business appeared first on Dropoff.

Now is the time to start if you’re not yet implementing omnichannel third-party logistics. In this blog post, we will discuss what omnichannel 3PL is and how to launch it in your business. Keep reading to learn more!

What Is Omnichannel Third Party Logistics?

Omnichannel third-party logistics (3PL) involves the coordination of multiple channels to provide a seamless customer experience. This could include anything from managing inventory levels across different channels to ensuring that orders are fulfilled on time, regardless of the channel they were placed on.

Benefits of Omnichannel Third Party Logistics for Retail Businesses

Omnichannel retailing improves the customer experience by providing multiple ways for customers to purchase your product. Customers can buy products through mobile, web, or in stores. This increased availability of purchasing channels leads to increased sales and traffic.

Just like omnichannel logistics, the retail industry also takes advantage of on-demand logistics to increase sales revenue.

Here are some of the benefits of implementing omnichannel third-party logistics in your retail business:

1. Reduce last-mile delivery times and costs

Making your delivery faster and more affordable is essential. This is what is called last-mile logistics. It is the part of the supply chain that is the closest to the end consumer. This part of the chain needs to be optimized so that you can offer more competitive delivery promises and omnichannel distribution options.

Speaking of delivery, check out our guide on the difference between shipping and delivery!

2. Increase profit margins

Almost one-quarter (23%) of people are willing to spend an extra $20 or more to get free delivery. When there are minimum spending costs, retailers don’t have to pay the shipping cost, but customers don’t either through higher prices.

3. Reduce the impact of disruptions

Omnichannel allows for more choice when something bad happens. Centralized logistics networks are more vulnerable to disruptions. That’s because they have fewer places where things can go wrong. But distributed networks are more shock-resistant.

They also let companies deliver on their promises faster and more cheaply – which can help keep customers from leaving during tough times.

Interested in learning more about retail logistics in general? Check out our guide on things you need to know about logistics in the retail business.

The Ultimate Guide to Implementing Omnichannel Third-Party Logistics in Your Business

There is no one perfect way to do omnichannel logistics. You must consider what each brand and channel needs when implementing omnichannel third-party logistics in your business.

In addition, plenty of the strategies below are also worth considering when optimizing logistics operations as a whole.

1. Ensure your 3PL has B2C expertise

If your company sells products to other businesses, you might also sell products to consumers online. This is a different process than selling to businesses. When you are working with an omnichannel logistics provider to help with picking and packing products for eCommerce, keep this in mind:

B2C has a different system to B2B

With B2C/eCommerce logistics, orders are processed through a selling platform like Shopify. This system must be integrated with your warehouse management system (WMS). This would allow the WMS to create orders, modify inventory, print labels, and drive efficient packing and shipping.

2. Have your 3PL system fulfill B2B and B2C orders from the same inventory

Your omnichannel 3PL company’s WMS system helps you manage your warehouse. It tracks inventory, orders, and how well your workers are doing.

A WMS system from your 3PL can help you manage inventory for omnichannel distribution. This means that all orders are fulfilled from the same inventory pool. This will help you reduce your warehouse footprint and storage costs.

In addition, your 3PL’s WMS can also give you access to information and key performance indicators that are important to your business. Many WMS systems allow for a lot of customization, so you can choose the metrics most important to you across multiple customers.

3. Most 3PLs provide warehousing space – take advantage of this!

The pandemic-related surge in eCommerce sales has companies looking for more warehouse space to store and ship products. All sizes of companies are competing for this space, so the competition is fierce, and space is becoming scarcer.

There are two types of warehousing: shared and dedicated. With shared warehousing, you simply pay for the space you need as you use it. With dedicated warehousing, a 3PL provider will run your entire warehousing operation from a facility only used by your company.

4. Let your 3PL take care of hiring the talent

It can be hard to find and keep logistics employees. If you decide that it is not worth your time and resources to do this, you can partner with a 3PL provider who will take care of omnichannel logistics for you. This includes managing the labor involved in this process.

3PLs can adjust their staffing to meet the demand that is higher and lower than usual. Your business likely has times when it is busier and slower. If you are managing your logistics workforce yourself, you may find that you need to hire new talent when it is busy and let go of talent when it is slow.

This can be a costly mistake because there is no guarantee that the well-trained person who just left will be replaced with someone just as good.

5. Have your 3PL scale operations based on order volume

In logistics, scalability means being able to support a wide range of operations. This can include a low number of orders or a high number of orders. It also has everything in between. This is what mainly goes on in on-demand logistics.

You can build a large operation that anticipates thousands of weekly orders. Still, if those orders don’t come as forecasted, you’ll be wasting a lot of money on space, labor, and equipment.

Outsourcing can help you use a 3PL’s fulfillment infrastructure. This will help you only use the space and services you need today. But if your business grows, the 3PL can help you expand using space, labor, and automation.

6. Most 3PLs provide value-added services

Some of the most common value-added services offered by third-party logistics include the following:

• Inventory postponement
• Labeling and packaging
• Repackaging and damage handling
• Storing items

Businesses with Successful Implementation of Omnichannel Third-Party Logistics

1. The Caker with ShipBob

The Caker is a bakery founded in 2010 by Jordan Rondel. ShipBob has allowed this business plenty of flexibility when fulfilling orders from both online and offline channels, providing a consistent customer experience.

2. Oatly with Red Stag Fulfillment

Oatly is the world’s original and largest oat drink company. Red Stag’s mission has always been to support Oatly’s growth by offering an expanding roster of carrier options and multiple distribution locations.

3. KUSSHI with MasonHub

MasonHub overtook all fulfilment operations at KUSSHI, allowing their team to focus on other initiatives in marketing, hiring, and product development.

4. Upper Limits with Magestore

Upper Limits uses Magestore to centralize all operations in one place and offer an omnichannel shopping experience for customers.

Overall, there are lots of necessary factors to consider when choosing a 3PL provider to partner with for your business.

How Dropoff Can Assist with Omnichannel Logistics

To omnichannel fulfill orders, businesses must have a robust system in place for tracking inventory levels and incoming orders. They must also seamlessly connect their various sales channels so customers can order products from any medium and deliver them through a single distribution process.

Dropoff can help your business with omnichannel logistics by providing a comprehensive online platform that connects all your sales channels and provides real-time visibility into the status of your deliveries. We offer a range of services, including same-day delivery with advanced last-mile delivery tracking technology.

We understand the challenges of omnichannel logistics and are committed to helping our customers succeed. This is why we continuously invest in cutting-edge technology to keep up with current logistics innovations and trends.

Talk with a Dropoff expert today about how we can help you launch or improve your own omnichannel strategy.

FAQ

1. Why is omnichannel logistics necessary?

Distributing products through many different channels makes it easier for more people to buy them. This makes it easier to fulfill orders and results in increased productivity, accuracy, and a smoother shipping system.

2. How can 3PLs assist businesses in omnichannel logistics?

Third-party logistics providers can be a valuable asset for businesses looking to implement omnichannel logistics. An omnichannel logistics strategy requires a high level of coordination between various channels, including brick-and-mortar stores, eCommerce platforms, and mobile apps.

A 3PL can help streamline the process and ensure that orders are fulfilled accurately and on time. In addition, a 3PL can provide transportation services, as well as order tracking and management tools.

3. How can you handle inventory across an omnichannel?

An omnichannel inventory management system helps you keep track of your inventory on different platforms. This gives you a better idea of how many lists you have and helps you predict demand so that you don’t run out of stock.

4. Why is omnichannel retail essential?

Omnichannel retail lets you reach new audiences and sell more. Offering a unified, seamless experience across your customers’ preferred channels enhances their experience and builds brand loyalty.

The post Omnichannel Third Party Logistics: How to Launch in Your Business appeared first on Dropoff.

Whatever the reason, door-to-door delivery is a service that consumers love! In this blog post, we’ll look at some of the benefits of door-to-door shipping and why it’s such a popular choice among consumers.

What Is Door-to-Door Delivery?

Everyone’s heard of door-to-door sales, which refers to individuals who knock on our doors trying to sell something. But not everyone is familiar with door-to-door delivery.

Door-to-door delivery service is when a company delivers products from the seller’s warehouse to the customer’s location. The shipping company will pick up the item from the warehouse and give it to the customer.

Before diving deeper into door-to-door delivery, consider familiarizing yourself with the difference between shipping and delivery.

How Door-to-Door Delivery Works

If you want to send goods, door-to-door shipping is the best way. A great way to start is by doing your own research and comparing local courier rates and transit times. It is also recommended that you keep an eye out for additional charges and any applicable discounts.

The carrier will manage the entire transport process. This includes collecting your goods from the warehouse, transporting them, getting all the necessary paperwork ready, and delivering them to the customer’s doorstep.

A third-party logistics company can help you save money on shipping costs. This will allow you to expand your business into the global market and deliver products to customers worldwide.

Check out our top picks of the best last-mile delivery companies and startups in the US!

Put simply, the door-to-door delivery process can be summed into 4 stages:

1. Pick up from origin point
2. Complete all the necessary paperwork
3. Transporting the product(s)
4. Delivery to the customer’s location

9 Benefits of Door-to-Door Delivery: Why Customers Love It

1. A Single Point of Contact

One of the reasons why many customers prefer door-to-door delivery services is because it is a single point of contact. This means they only need to contact one person – the account manager or by tracking it online.

With door-to-door delivery, customers do not have to go to a store or another location to pick up their items. Instead, the items are delivered right to their doorsteps.

2. Insurance Coverage

Most shipping companies offer insurance for lost or damaged goods in transit. This is an added advantage for any business. You should talk to your courier service in advance to ensure you have insurance on your items, especially if they are expensive.

By insuring your shipment, you can rest assured that your products will be protected in case of any problems.

3. Lower Costs

Door-to-door delivery gives customers more flexibility because they do not need to consolidate shipments to save money. This service usually has separate costs for the people involved in product shipping, which means it reduces transit time significantly.

Usually, vendors have to combine orders to save on shipping costs. The costs could go up if they’re also selling their products on a third-party shipping platform. They must shoulder expenses for warehousing, order fulfillment, and transport.

Basically, door-to-door service can help avoid many costs that make shipping more expensive. Vendors don’t have to worry about shipping many items at once to get them to the final destination. Items can be packed and shipped as they are ordered, and they will be delivered by the courier service.

The courier will ship the package as soon as possible to make customers happy.

While we’re on the topic of low shipping costs, economy shipping is another cost-effective way of shipping to customers.

3. Higher Operational Efficiency

Having a courier company take care of the logistics will help your business be more efficient. You will not need to use any of your resources or energy on the fulfillment process, which can save you time and money. You can spend your time on marketing strategies, business development, product development, and more.

4. Simpler Management

The best part about using a 3PL company like Dropoff is that you can easily manage and track the entire process from time to time. If you don’t use a 3PL provider, you will have to take care of different stages of fulfillment which can be more tedious.

5. Time-Saving

You don’t have to go to the post office anymore to get your packages! This makes it more comfortable for the customers. Furthermore, it gives you time to handle your activities during the day without worrying about the cargo and the delivery time. Why? Because companies use GPS fleet tracking as a better solution for customers.

6. Less Paperwork

A lot of paperwork needs to be filed when you use traditional methods to deliver something. This is because of all the regulations that are in place. This makes the process less practical and ineffective because it has to go through many hoops.

This is why sellers, suppliers, and vendors turn to door-to-door services. There are fewer requirements that need to be completed. The process is straightforward.

The courier service will deliver the packages directly to the customer. The only documentation that is filed will be by the seller.

7. Streamlined Communication

Door-to-door delivery services help communicate between the seller and the buyer. Both parties are told when the customer will receive the product. They will also be given information about where the product is and its stage.

8. High Versatility

Door-to-door services are very versatile. This means they can ship almost any type of package, regardless of size, weight, or volume. Companies that offer this service are reliable and can handle any transportation needs that you may have.

For example, if you need to send groceries or food items, a courier company can help. They have the materials to store your items and keep them in good condition during transport.

On the customer’s side, they will be encouraged to buy other things online, like electronics or luxury items. They won’t have to worry about any missing items or package problems.

How to Launch Door-to-Door Delivery in Your Business

You need to consider a few things when implementing door-to-door delivery in your business. Simply put, these are the 3 most significant factors to consider when implementing door-to-door delivery in your business:

• Insurance coverage
• Route planning
• Package tracking

1. Have Proper Permits and Insurance

Check with your local government to see if you need any permits for door-to-door delivery. Depending on where you live, there may be regulations in place that you need to follow. Next, make sure that you have the proper insurance in place. This will protect you in case of any accidents or damages during the delivery process.

2. Enable Smart Route Planning Features

You need to map out your routes and determine how many deliveries can realistically be made in a day. This will help you ensure that you can meet customer demand and avoid over-extending your resources.

Use route planning software to plan the most efficient way to navigate from one address to the next. Remember that traffic, weather, and other factors can impact any schedule, so building some flexibility is essential.

Moreover, implementing cutting-edge technology in logistics operations is more crucial now than ever, such as intelligent route planning. This feature is also essential in on-demand logistics.

3. Enable Package Tracking Features

When a package is delivered door to door, the customer should be able to track the package and know when it will be delivered. This way, the customer can be available to receive the package and not have to worry about it being lost or stolen.

In addition, this feature is particularly vital in retail logistics. Learn more through our guide on things you need to know about logistics in the retail business.

How Dropoff Can Help

While traditional carriers like UPS can provide door-to-door delivery service, it is more cost-effective to use a third-party logistics (3PL) provider like Dropoff.

3PLs manage door-to-door delivery services and can provide several benefits, including reduced shipping costs, flexible delivery options, and increased efficiency.

If you’re looking for an effective door-to-door delivery solution for your business, we can help. With our advanced tracking system and fleet management software, our couriers can help you enhance the customer experience by having their packages delivered right to their doorstep.

Additionally, third-party delivery providers excel at last-mile deliveries. Whether you’re looking for same-day or next-day delivery, we have a solution that will work for you. 

Talk with a Dropoff expert today to get started.

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This guide will discuss all you need to know about first-mile tracking in 2023. We will cover everything from the history of first-mile tracking to the latest technological advances that make it possible. By the end of this guide, you will be an expert on first-mile tracking!

What Is First-Mile Delivery?

First-mile delivery is when you transport goods from the merchant’s place or warehouse to the next stop. This is where the goods head to other sites.

For example, for retailers, first-mile shipping means shipping goods from local distribution centers to stores. For manufacturers, it means transporting finished goods from a plant or a factory to a distribution center.

To learn more about the most common eCommerce logistics, check out our guide on the top things you need to know about logistics in the retail business.

What Is First-Mile Tracking?

First-mile tracking is the process of tracing goods along the first leg of the supply chain. This means managing multiple locations for loading and unloading deliveries, scheduling different drivers, and integrating several order ID numbers.

Sometimes goods are brought to a warehouse and then delivered to the customer. Other times, the customer asks for same-day delivery, and the goods are delivered directly to them.

The Difference Between First-Mile and Last-Mile Tracking

Today’s customers expect to be able to see where their package is at all times. This includes tracking it from the moment they order it until they receive it.

According to a recent report by Quince Market Insights, the global first and last-mile delivery market is predicted to grow at a rate of 13.8 percent from 2021 to 2030.

The last mile of the delivery process is called “last-mile delivery.” This is when goods are transferred from a transportation hub, depot, or store room to the customer’s doorstep. It’s the most critical part of the delivery process because it interacts with customers directly.

First-Mile Delivery Tracking

First-mile tracking is the process of tracking the status and location of orders from when they are received by the retailer or manufacturer to when they are delivered to a customer. Logistics providers transfer products from a retailer’s distribution center to the provider’s warehouse. This happens before the products are delivered to the final customer.

This is how first-mile delivery tracking works: when an order is ready to ship, the item begins tracking, and vehicles pick it up. The order heads to the warehouse, where it is ready for shipping.

A lot of the tracking work is manual in the first mile of the delivery process. This includes making phone calls and packing everything correctly. Physical documentation and signatures are also necessary.

Last-Mile Delivery Tracking

Last-mile delivery tracking is the technology businesses use to understand their supply chain and the delivery process for the last leg of a shipment’s journey. It is the system that lets customers know where their order is. This way, customers can see where their package is in real-time.

While we’re on the topic of distinguishing between first-mile and last-mile delivery tracking, here’s a guide on the difference between shipping and delivery.

Challenges in First-Mile Tracking

1. Lack of Visibility in Delivery Status

One of the main challenges in first-mile delivery tracking is the lack of visibility into the status of deliveries. This is because first-mile carriers often do not provide tracking information to shippers until after the delivery is complete.

As a result, shippers often have to rely on manual processes, such as callbacks and email updates, to get information about the status of their deliveries. This can create a significant burden on shipping operations, as well as lead to delays and missed deadlines.

2. Unintegrated Software

First-mile delivery tracking requires a high level of coordination between the sender, the carrier, and the recipient. Each party must be using the same software and systems for tracking to be effective. 

3. Lack of Standardization Among Carriers

Another challenge in first-mile delivery tracking is the lack of standardization among carriers. Each carrier uses different methods and systems for tracking deliveries, making it difficult to compare data and identify trends.

4. Poor Data Quality

Finally, first-mile delivery tracking often hampers poor data quality. This is because data is usually collected manually, using paper forms or Excel spreadsheets. As a result, ensuring that information is accurate and up-to-date can be challenging.

5. Natural Disruptions

Weather conditions, traffic delays, and even human error often disrupt the first-mile tracking system.

How to Optimize First-Mile Tracking for B2B

Any business that wants to succeed in the B2B space must establish an exemplary first-mile tracking process. This process is essential because it helps companies keep track of their products and ensure they are right on schedule.

As you optimize your first-mile tracking system, don’t forget to optimize your overall logistics processes.

1. Choose the Right Software

Businesses need to choose the right software. There are many different tracking software programs on the market, so it is essential to choose one that will meet the business’s specific needs.

2. Identify the Touchpoints

Identifying all of the touchpoints where your product or service comes into contact with the customer is essential. This could include anything from manufacturing and shipping to customer service and support.

Once you’ve identified all of the touchpoints, you’ll need to put together a plan for tracking each one. This plan should include qualitative and quantitative data points and a system for monitoring results over time.

3. Establish Clear Communication Protocols

Businesses need to establish clear communication protocols. Everyone in the tracking process needs to be on the same page regarding what information is on the tracking system.

4. Set Transparent Goals

First-mile tracking can be complex, so it is essential to set realistic expectations for what the process can achieve.

Overall, logistics in the B2B space come with plenty of challenges. Therefore, knowing how to manage B2B logistics is crucial.

Practical Tools for Efficient First Mile Tracking in 2023

There are many processes that you can automate today. Automating the tracking, communication, notification, and care procedures can help speed up transitions. Additionally, you can automate the loading and staging processes to make things move more quickly.

This will help providers deliver more with the same resources or free up space to take on more customers – when there is a shortage of delivery capacity.

Many technologies that optimize last-mile delivery – such as dispatch and routing software, automated customer notifications, and real-time tracking – can boost efficiency around the first mile in logistics. This can make your business a more attractive option for potential shippers.

1. Smart Routing and Dispatch

This tool can help a logistics provider save time and money by reducing the time spent in the warehouse. This will allow the provider to offer premium service plans to their customers.

This is one of the top logistics KPIs being used by 3PL providers when tracking same-day delivery.

2. Mobile Inventory Visibility

This tool helps you be flexible and have convenience. The sooner you know what is on the truck, the sooner you can optimize the routes and plan when the car should leave.

3. Real-Time Tracking

Retailers want to be able to track their shipments at all times. They are cautious regarding expensive or fragile items or white glove deliveries. This is because they don’t want to lose track of the items or damage them.

Most transportation providers do not provide the same level of customer service to merchants as they do to consignees.

How Dropoff Can Help

While establishing a process for first-mile tracking can be difficult, it is essential to remember that the benefits of doing so are worth the effort. By working with a company like Dropoff, businesses can enjoy all the advantages of having visibility into their products’ statuses along the entire supply chain.

If you’re looking for a way to improve your business’ delivery times and customer satisfaction, talk to a Dropoff expert today about implementing a first-mile tracking solution.

FAQs on First-Mile Tracking

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It can be a great way to attract new customers and keep existing customers happy.

What Is Economy Shipping?

In its simplest form, economy shipping is a method of transportation that is less expensive than other methods. It is often used for large or heavy items that are not time-sensitive.

This shipping typically takes longer than other methods, such as express shipping. Still, it is a cost-effective way to send items. Several different economy shipping options are available, including ground shipping, the most common type.

Economy Vs. Standard Shipping

Standard and economy domestic shipping are tracked and delivered within 3-5 days to most US states.

There is a difference between standard and economy shipping when it comes to international shipping. Economy shipping is usually a slower delivery service, while standard shipping is faster.

Economy Vs. Ground Shipping

Ground shipping is when a package is sent through land transportation. This means it goes by trains and trucks. Economy services are the cheapest for delivering packages through trains and trucks.

The main difference between economy services and ground shipping is that economy services refer to the cheapest rates. At the same time, prices are similar between the two types of shipping.

How Long Does Economy Shipping Take?

The expected economy shipping time within the United States is 1-5 business days, depending on the package’s destination. Suppose you are sending a package within the same state. In that case, it will likely be delivered more quickly than if sent to a different state or a more remote area.

If you’re shipping something to an international destination, it will take much longer, depending on where you’re sending it. Make sure you take this into account before you ship anything.

Last-Mile Delivery and Tracking for Economy Shipping 

The tracking system for economy services is not as detailed as the tracking system for expedited or standard shipping. Some services track your package.

The service scans the package when it is collected, received, and sorted. The service also scans the box when it is delivered. There are also economy shipping services for bulk packages to lower the shipping cost. For instance, USPS allows tracking of lightweight packages to select countries only.

One area where these services could certainly improve is in the area of tracking. Currently, most services only provide basic tracking information, such as the location of the package and its current status. 

If these services were to also provide information on the estimated time of arrival and delivery confirmations, it would make them much more helpful for customers. The tracking system should also be updated in real-time so that customers can always ensure they have the most accurate information.

In addition, by gathering this data, economy shipping services could better assess their performance and make necessary improvements. 

Dropoff offers a last-mile delivery tracking system that is simple and easy to use.

Our tracking system monitors the location of your deliveries in real-time. This way, you can see where your package is at all times. The system also captures a signature and/or other delivery confirmations. With this information, you can rest assured that your package was delivered safely and has accurate compliance documentation.

We can send you delivery confirmations based on what you want. Our couriers will take a picture or get a signature to verify that the package was delivered. We can also send you confirmations via email, text, or any other way you want.

Overall, our reliable last-mile delivery services support the argument that 3PL companies do last-mile delivery best. 

Benefits of Economy Shipping from a Customer’s Perspective

Providing an excellent overall delivery experience for customers is great for business. Business owners should consider learning how to manage B2B logistics successfully.

Moreover, here are some of the benefits of economy shipping for customers.

1. It is inexpensive.

Our customers benefit significantly from comparing domestic and international rates on economy services. The price can range from as cheap as $7.70 and include a variety of collection, drop-off, and transit-covered options. For instance, the starting cost for shipping with FedEx is $9.25.

If you’re a business owner on a budget, this shipping option can help you save money while providing excellent service.

2. It is typically just as quick as standard domestic shipping.

For domestic shipments, economy shipping is often just as fast as standard shipping. In fact, it can sometimes be even faster than standard shipping since it usually uses lower-cost ground transportation options.

As a result, this service can be an excellent option for those looking to save money.

3. It is ideal for bulk shipping.

Economy shipping is not as fast as standard or express shipping, but your package will arrive within 15 days. There might be a delay of up to 15 days, but that can also happen with any faster shipping options. 

4. It uses less fuel than other shipping methods.

Another benefit of economy shipping is that it often uses less fuel than other shipping methods. This can be good for the environment and help reduce your carbon footprint. Additionally, economy shipping can help to reduce traffic congestion and pollution.

Economy Shipping by Major Industry Names

You can be sure that all significant courier companies offer economy shipping. These services use ground shipping and are suitable for large or heavy items. Further, you should probably also consider familiarizing yourself with the difference between shipping and delivery.

Many types of economy shipping services are offered by big and small courier companies in the US. Here is a breakdown of the different services.

1. USPS Economy: Priority Domestic

USPS economy shipping is a service that the USPS offers for mailing packages that weigh 70 pounds or less within the US.

• Delivery time: 1 to 3 business days
• Starting cost: $7.70
• Tracking details: Includes USPS tracking services

2. FedEx Economy: FedEx Ground

You can ship small items quickly and cheaply through FedEx economy shipping. All you need is an item that weighs less than 70 pounds.

• Delivery time: 2 to 7 business days
• Starting cost: $9.25 (for a 3-pound package)
• Tracking details: Includes FedEx tracking services

3. UPS Economy: UPS Ground

UPS economy shipping is a good option if your package is less than 150 pounds. This shipping method is available through UPS Ground and is a good choice for small businesses.

• Delivery time: 1 to 5 business days
• Starting cost: $19.02 (for a 3-pound package from NY to Miami)
• Tracking details: Includes UPS tracking services

4. DHL Economy: DHL Economy Select

DHL offers an Economy Select service. As long as your package is not heavier than 150 pounds, you can start shipping it immediately.

• Delivery time: 2 to 5 business days
• Starting cost: N/A
• Tracking details: Includes DHL tracking services

5. Dropoff

At Dropoff, we offer premium shipping services. With no weight limits, your item(s) can be delivered as quickly as 90-minutes or scheduled to be delivered at a specific date & time.

• Delivery time: 90-Minutes to Next-Day
• Starting cost: Get a Quote
• Tracking details: Premium tracking services included, advanced multi-delivery tracking and a real-time delivery map.

Our ability to streamline delivery processes has led us to the forefront of the last-mile delivery market.

How Dropoff Can Help Businesses Provide a Better Delivery Service for Customers

As a leading last-mile delivery company, we continually keep up with current logistics innovations and industry trends.

In today’s economy, businesses continually look for ways to save money. One area where companies can save money is shipping. Dropoff offers economy shipping services that can save businesses up to 50% on shipping costs.

We pick up orders from businesses and deliver them directly to customers’ doorsteps, ensuring that each order is handled with care. 

Additionally, Dropoff offers tracking services for all economy shipments. This ensures that businesses can track their packages and know that their shipments are insured against loss or damage.

Further, we can help businesses provide a better delivery service for customers by implementing must-have features in our last-mile delivery solution.

FAQ

1. How does economy shipping work?

A courier will pick up your product from the assigned warehouse and move it like any other product. The post office handles the final delivery of products you order from online stores. It is more affordable because the post office delivers it to your house.

2. Can you save money using economy shipping?

Yes! This type of shipping does not require speedy delivery. In addition, the post office is often the cheaper option for shipping.

3. Is economy shipping safe?

Economy shipping is a more reliable and safe option when shipping heavy products or products in bulk. Standard or express deliveries are much quicker, but the quality of service is often not as good.

The items are not packed well and break easily in transportation. This is why economy shipping is safer. The items are well packed, so they can be delivered without breaking.

The economy delivery option makes it easy to track your order and ensure it is delivered properly.

4. How long does economy shipping take?

It takes a longer time than other types of shipping. Delivering the package inside the United States can take 1-8 business days. The time it takes to deliver also depends on the destination.

Generally, international economy shipping takes between 15 and 20 business days. This type of shipping is best for sending a large item or multiple items that don’t need to get to their destination quickly.

You can make your delivery faster by using economical shipping, but it will cost you more money.

Bottom Line

If you’re a business owner looking for ways to save on delivery costs, or if you’re a customer interested in finding the best deal on your order, economy shipping is definitely worth considering.

Talk with an expert at Dropoff today about how we can help you take advantage of this cost-effective shipping option.

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The on-demand logistics market is becoming more popular because it is more efficient, convenient, and cost-effective to transport products by truck, and you can track the products in real time. The market is expected to be worth $75 billion by 2030.

What Is On-Demand Logistics?

On-demand logistics enables brands to expand their customer reach and fulfill orders as soon as they are placed. It is changing the face of freight delivery, with businesses preferring on-demand services for convenience and ease.

A significant shift in expectations from users has caused investors interested in these new technologies to invest massively in the last-mile industry. And of course, third-party logistics services are embracing the gig economy to deliver high-quality logistics on-demand with a mobile-first approach.

Challenges of On-Demand Logistics & How to Overcome Them

Before going through the challenges present in the on-demand logistics industry, you should consider optimizing your logistics processes.

1. Rise in Transportation Costs

Cutting transportation costs can help you reduce expenses and become more profitable. You can reduce costs and increase profits by running an optimized system with a structured approach and machine learning.

Here are a few ways to optimize your transportation costs:

• Implement multiple transportation modes: A more flexible transportation infrastructure may help offset expenditures.
• Use shipping consolidation opportunities: You can save money on shipping by combining different products into a single shipment. This is called “full load shipping” or FTL.

2. Limited Warehouse Space

Having enough space in your warehouse can help you move and store products more efficiently. If you don’t have enough space, your warehouse might get too full, making it hard to move products around and bring new products in.

Here are a few ways to maximize your warehouse space:

• Utilize your vertical space: Ensure you’re taking full advantage of the vertical space available.
• Store excess items in an off-site location: Consider using off-site storage for the extra stock to free up space in the fulfillment area.

3. Inefficient Warehouse Management System

The supply chain market is constantly changing. You have probably been affected by these changes in one way or another if you run a retail chain, an e-commerce website, or are a distributor or manufacturer. Suppose your business is growing and you are outgrowing the capabilities of your warehouse management system. In that case, it might be time to upgrade.

4. Inability to Fix Inaccurate Orders

A logistics company needs to ensure its brand is not stained by misdelivered freight shipments. This may happen during peak seasons when there is an increase in orders. Sometimes, this happens because of incorrect address details or because orders are mixed up.

Moreover, if you think an order might be wrong, check to see if there was a delay in shipping or if there was some mistake in the tracking information. If you use an outsourced delivery system and you discover a mistake was not made from your end, you can start a process to get your money back.

5. Outdated Workforce Management

What you don’t want to happen is employees resigning during peak seasons due to being overworked. So what can you do? Here are a few tips:

• Maintain employee engagement: Data shows that companies with a high level of employee engagement earn an average annual increase of 21% in profits.
• Implement schedule flexibility: Use tools to help you create schedules for your employees that will allow them to take breaks even during busy seasons.
• Improve communication: Create an environment where employees feel comfortable speaking up about any issues they face.

6. Poor Live Delivery Tracking

Without systems that allow for automated tracking and notification of the shipment status, keeping track of where your packages are or when they will arrive becomes challenging. This can be very damaging for a company’s logistics division.

Real-time tracking is now a feature that customers expect when they order something to be delivered. With this system, you can tell the customer the driver’s location and when they will arrive. Additionally, some tracking systems allow customers to communicate with drivers, dispatchers, or company call centers.

Further, it is safe to say that different types of logistics share common challenges like the ones we have listed above. To learn more, check out our blog on the most common problems in the logistics industry and how to overcome them.

On-Demand Logistics in Different Industries 

Retail Industry

Retailers are under immense pressure to provide fast and efficient delivery services while managing their brick-and-mortar locations. As a result, many retailers are turning to on-demand logistics companies to help them meet these challenges.

On-demand logistics companies offer a range of services, from last-mile delivery to same-day delivery. These services allow retailers to get products to customers quickly and efficiently without investing in their own delivery infrastructure.

On-demand logistics companies can help retailers manage spikes in demand by providing additional resources on an as-needed basis. As the retail industry continues to evolve, on-demand logistics will likely play an increasingly important role.

In addition, on-demand logistics can also help with multichannel retailing. This means the fulfillment process will be faster for orders that come in through multiple sales channels.

Multichannel retailing is selling products through more than one sales channel. This can include e-commerce websites, retail stores, online marketplaces, comparison shopping engines, social media platforms, and other offline and online channels.

Healthcare Industry

Recently, there has been an increasing demand for on-demand logistics services in healthcare. On-demand logistics can benefit healthcare organizations because it allows them to be more flexible and responsive to their patients’ needs. It can also help to improve patient satisfaction by ensuring that medications and other supplies are delivered promptly.

With the rising cost of healthcare and the increasing supply chain complexity, on-demand logistics are likely to become even more critical in the healthcare industry.

Is Your Vendor Handling On-Demand Logistics Successfully?

When you’re running a business, many moving parts need to come together seamlessly for things to run smoothly. That’s why it’s essential to partner with a logistics vendor who can successfully handle on-demand logistics.

But how can you be sure that your vendor is up to the task? Here are a few things to look for:

1. A Robust Network of Warehouses

First, ensure they have a robust network of warehouses and distribution centers. This will ensure they can get your products where they need to go quickly and efficiently.

2. Proper Live Tracking

Check to see if they offer real-time tracking. This way, you’ll always know where your products are and when they’ll arrive at their destination.

3. Customer Service Policies in Place

You want to be sure that you’re working with a company that will be responsive to your needs and able to resolve any issues that may come up.

Furthermore, the factors above are common when determining if a logistics provider is successfully handling processes. Check out our guide on how to manage B2B logistics successfully.

The Assistance of Technology in On-Demand Logistics

You will notice the rise of digitalization in the logistics industry, which is generally driven by continuous technological advancements. The list below is discussed more in-depth in our article about current logistics innovations and industry trends.

1. Driver Dispatch Efficiency

A logistics app can help dispatch drivers as soon as a new request comes through.

2. Better Inventory Management

Logistics app development is essential because it helps stock keep and manage inventory. This way, you can ensure that the right things are being sent out and that there is not too much inventory at the warehouse.

3. All Things Digital

An on-demand logistics management software can help you do all the paperwork electronically. This will help with efficient management, fast processing, and secure access.

4. Better Vehicle & Fleet Management

A real-time tracking app can help you manage your vehicles and fleet efficiently. It can help you understand how much fuel they need and how far each car travels.

The app can also help keep track of your car’s engine, battery, network status, and tire health. Predictive signals from data collected by the app can help you maintain your vehicle proactively instead of reactively.

5. Route Optimization

You can improve supply chain management efficiency by getting insights into delivery schedules and transportation routes. A good on-demand app can help create new opportunities to establish a good partnership between the customer and the logistics company, which also helps improve customer loyalty.

Moreover, this is one of the top must-have features in a last-mile delivery solution.

6. Data Security

Make sure the application protects information well. If there are any problems with this section, it could cause you to lose an employee, or even worse, it could cause problems for your customers.

Further, ensure you partner with on-demand logistics companies that can run operations smoothly. Here are the top last-mile delivery companies and startups in the US.

On-Demand Logistics Vs. Scheduled Delivery 

On-Demand Delivery

On-demand delivery logistics is a type of delivery that allows customers to choose when they want their items delivered. More urgent items, such as food or medical supplies, are daily.

• Pros: More flexible
• Cons: More costly

Scheduled Delivery

Scheduled delivery involves choosing a specific day or time window for your delivery. This is common for non-urgent items, such as clothing or furniture.

• Pros: Less costly
• Cons: Requires more planning

While discussing different delivery timeframes, have you ever wondered what the differences were between shipping and delivery?

FAQ

1. How should I prepare my business for an on-demand delivery order?

Answer:

• If you need your items delivered, ensure everything is ready to go. If there are any delays, the delivery might be late.
• Designate an area where the service provider can easily find your order. This will help reduce disruption to your business.
• Make sure you label all orders and the courier picks up the correct one.
• Please include pickup and dropoff instructions.

2. What should I do if a courier cancels an order?

Answer: Sometimes, if there are too many deliveries for the current courier, we will dispatch a new courier.

3. How fast is on-demand delivery?

Answer: An on-demand delivery service can deliver an order to a customer within hours or even minutes.

Bottom Line

Moreover, the on-demand logistics industry is snowballing as more businesses see this innovative service’s benefits. Dropoff has been at the forefront of this movement, offering an unbeatable combination of cost-effectiveness and sustainability.

If you’re looking for a reliable on-demand logistics provider, talk with one of our experts today.

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