For retailers and shippers relying on partners to fulfill their logistics and delivery needs, effective management requires next-gen software. Soaring consumer expectations, driver shortages and rising prices are a direct threat not just to your profitability, but also to your brand reputation. Managing contractors to efficiently meet rising volumes and shorter delivery times is beyond the capability of manual processes and most traditional routing software. To reach high levels of customer satisfaction without breaking the bank, you need the power of an AI-powered, cloud-based solution.
Without it, you’re likely sending trucks out half-full to meet customer windows, inundated by WISMO (where is my order) calls and blind to what’s actually happening to your deliveries in the field.
With it, you have complete visibility into every order from entry in your ERP right through post-delivery satisfaction surveys.
Working with a third party logistics partner can help a business increase its delivery volumes and expand geographic reach, but training external drivers and contractors is time-consuming. If that contractor still relies on manual dispatching, planning, and operational oversight, it can cripple your ability to grow and thrive. In last mile delivery (see our post explaining what is last mile delivery), sharing information is essential. Contractors may offer updates hourly or several times an hour, and some organizations may ask 3PL/logistics partners to input operational data manually.
None of those solutions are fast enough or accurate enough.
Only a last mile delivery logistics system with a high degree of automation — and the ability to integrate with other layers of your tech stack — can satisfy the need for visibility, speed and information sharing you require.
The benefits of last mile delivery software for logistics providers or 3PLs can never be underscored. But companies must realize that not all solutions are created equal. Businesses should ensure that the 3PL management software they choose can address the following points.
Evaluating the 3rd party logistics software against these parameters will help companies choose a solution that automates processes and drives better efficiency for both logistics providers and shippers.
Automating driver management allows businesses to make the most out of their contractor fleets. Here are the benefits of driver automation via 3PL software.
Efficient delivery services begin at the warehouse. Operators need to sync the staging, delivery preparations, and other loading processes to reduce loading and unloading times. Drivers must be synchronized with the warehouse to eliminate waiting time for an available loading dock.
Doing so will let drivers deliver more in the same amount of time. Leveraging 3PL freight software’s automated tools for scanning of various orders will also make the loading processes much quicker.
Automating driver scheduling, planning, and dispatch software lets businesses plan and dispatch orders to drivers strategically. Any driver management solution must factor in regulatory requirements and offer ELD to ensure compliance with driver HOS.
Automation also helps 3PLs manage their fleets effectively. Solutions that offer greater visibility into the fleets’ performance help logistics providers manage the allocation of drivers and driver shifts better.
Driver retention is a major problem for the delivery industry. An automated driver and logistics solution supports the customer service, drivers, and dispatch teams and helps them do their jobs more efficiently, which in turn aids in driver retention.
Logistics providers must always ask themselves if they are providing the operational flexibility needed by their customers. Is there a seamless integration of systems with the shippers? Are you offering them synced information in real-time? Are you meeting delivery ETAs and offering narrower delivery windows? Logistics providers who adopt next-gen delivery management software can support their clients and the end customer while improving their own operations and profitability.