While most industries suffered due to Covid 19 pandemic, there were very few industries that actually thrived due to the global shutdowns. Both the e-commerce and the last mile delivery industries exhibited unprecedented economic growth. These industries managed to sweep the scene during the Corona pandemic, unlike most sectors, which witnessed economic collapse.
During the year 2020, the e-commerce market flourished and the number of last mile delivery companies doubled in all Arab countries, as Saudi Arabia and the UAE achieved record numbers that raised their rank on the global e-commerce index. The profits of the e-commerce market in Saudi Arabia reached the peak of 16 billion dollars after the pandemic, while the Emirate of Dubai recorded an increase of 355% in the number of licensed last mile delivery companies.
The race in the world of logistics has heated up, as last mile delivery companies are doing their best to gain and keep customers. Shortening the delivery cycle and decreasing last mile costs have proved to be the biggest challenges for last mile delivery companies, especially newly established ones. In this field, survival is for the fittest. Delivery companies which are unable to overcome last mile challenges and that don’t satisfy their customers are bound to fail.
Last mile delivery companies face numerous challenges, and it has become clear that only technology can solve these challenges. Suppliers of logistics technology have relied on artificial intelligence and computerized algorithms to build their systems, and have made the last mile process easier than before.
How can delivery technology help last mile delivery companies overcome challenges?
Parcel collection and delivery: When using a delivery management software drivers receive live notifications of parcel pickup/delivery requests from the delivery company containing all the information they need to complete the request. Requests will not get lost, delayed, or confused using such features. Drivers can accept or decline delivery requests through the app.
Accurately locate customers: Using geo-location maps, pin location, and similar features in delivery management software programs, drivers can reach addresses with ease and with minimal need for calls and messages.
Route Optimization: Most last mile delivery management software programs offer route optimization features which determine the most appropriate route for the driver, to make multiple deliveries in the shortest time span and the lowest cost. Such features are bound to increase the efficiency of the last mile delivery process.
Confirming customer’s ability to receive parcels: Upon delivery, drivers can send messages to customers to inform them of the expected delivery time, if the customer is unable to receive the delivery at that time, drivers can reschedule the delivery through their applications.
Financial visibility: When using a delivery management software drivers can electronically update the payment status for each delivery, thus notifying both the delivery company and its customers of the payment status for their deliveries.
Proof of delivery: Most delivery management software offer proof of delivery features which allow the drivers to either get an electronic signature from the customer or drivers can alternatively take a picture through their applications as proof of delivery.
End customer’s benefits:
Live tracking of parcels: If the delivery company is using a delivery management software then its customers will gain increased visibility through being able to track their parcels at every stage of the delivery.
Increased control: Certain features of delivery management software programs provide customers with more control over how, when and where they receive their orders.
Clear location: features such as pin location, and geo-maps allow drivers to reach customers without the need to call the customer multiple times, relieving the customer of the obligation of describing his exact location.
Electronic payment: If the customer chooses to pay on delivery and does not have the cash when the parcel arrives, he can pay electronically.
Service evaluation: The customer can evaluate the service and the driver and can submit feedback or complaints through the system.
These are just a few of the benefits of using a last mile delivery management software at your delivery company. The right last mile delivery software should increase the company’s returns, reduce expenses, increase transparency and efficiency, and increase customer satisfaction.
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