www.truckandtrack.com Winter 21/22 Truck and Track 21 DESCARTES In order to withstand the pressure and stay in the game, logistics providers’ first port of call must be to prioritise efficiency and improve the overall productivity of drivers by optimising delivery routes. By using the latest optimisation software, all delivery options can be evaluated instantaneously, ultimately selecting the right combination of routes and stops to maximise delivery capacity and increase efficiency. By implementing automated route planning, delivery capacity can be increased by up to 35% and offer vast improvements to delivery services, alleviating the pressure on providers to keep up with the demand which may have once seemed impossible. Soaring Standards Despite the challenges facing the UK supply chain, e-commerce consumers still consider delivery service excellence as paramount. Expectations are still evolving, and receiving packages at a time and place that is convenient for them is considered a key factor within a positive delivery experience. If e-commerce businesses wish to grow within a highly competitive market, it is essential that they meet these needs. However, studies suggest that delivery experiences across the country are slipping, with just 16% of UK consumers completely satisfied - according to Descartes’ recent consumer research. Retailers – and by default their logistics providers - that fail to implement the necessary infrastructure ultimately risk their customers having a negative experience as a result of poor logistics planning. In order to meet the needs of the customer and ensure a good reputation for the brand, it is crucial that logistics are as efficient and streamlined as possible. Whilst convenient and timely deliveries should remain a top priority, there are other factors to consider. For instance, parcels being left in unsecure locations being damaged in transit, or a sub-optimal returns process are also common issues experienced by customers when ordering online. These are issues that must be mitigated with streamlined and efficient logistical operations. In short, consumers want a simple and convenient service with zero hassle. With GPS-based real-time vehicle tracking, logistics providers can improve their delivery execution and gain trust from their customers. Customer service can also be enhanced with mobile electronic proof of delivery / proof of collection, as well as automated notifications and delivery status alerts, providing the thoughtful communication that today’s customers are looking for. Eco Expectations Convenience is a key motivator for 70% of consumers, with studies showing that almost half of shoppers are unlikely to repeat order from retailers that do not deliver their packages within the promised timeframe. However, for many consumers, interest in the sustainability credentials and environmental impact of those they are ordering from is growing. As we reach another year closer to the net-zero deadline and discussions following the COP26 summit continue, the pressure on businesses to consider their emissions is rising. It is vital that retailers and logistics providers act now to retain customers, reduce their environmental impact and make better, more responsible decisions to gain a competitive edge. According to Descartes’ research conducted in Autumn 2021, 23% of UK consumers would think twice about ordering groceries online due to the environmental impact, and this grows to a staggering 60% in relation to online orders across all categories. In light of this, retailers must consider transforming their delivery experience to aid retention of current customers and the acquisition of new customers. With the ban on new petrol and diesel vehicles a key priority in the UK Government’s green plan, the presence of electric vehicles (EVs) on the road is increasing. Many delivery companies are starting to make the move to EVs as a way to address the costs associated with the UK’s Clear Air Zones and improve environmental credentials, but is that a problem solved? Retailers and logistics companies must go one step further from just buying these vehicles - they must be used in the most effective way to really impact the delivery experience. By using dynamic delivery appointment scheduling fleet operators can further improve productivity by increasing delivery density. Customers can be offered delivery appointment options at the point of purchase and given incentives to select delivery slots that are closer to existing booked deliveries. With the growing interest on the environment, allowing the customer to pick an ‘eco-friendly’ delivery option that uses less CO2 is a benefit to both customers and the business and is likely to increase customer satisfaction with the delivery company and retailer. Finally, the ability to dynamically schedule appointments and optimise routes with sustainability in mind applies equally to the returns process, with fleet operators able to coordinate in real-time, deliveries to and collections from the same locations. Invaluable Innovation Digital transformation is fundamental to survival both during and following the peak trading season. With an influx of packages heading to and from warehouses and consumer patience wearing thin, logistics providers can expect to be overstretched this quarter and must aim to optimise their end-to-end operations and improve their delivery service offerings. Innovative software solutions could be game-changing investments for businesses currently trying to juggle the HGV driver shortage, supply chain disruption, increased demand and evolving customer expectations. Smooth logistics ultimately lead to happier customers and greener operations, as well as a multitude of benefits for the business. For retailers seeking the opportunity to meet customer experience objectives and sustainability goals simultaneously for competitive advantage, maximising their fleet’s potential and minimising their impact on the environment may be the answer. https://routinguk.descartes.com/
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