The global last mile delivery ecosystem is teeming with growth across industries and is expected to reach the USD 288.9 billion mark by 2031. The pace of technological evolution and rapid adoption across different segments are driving exponential growth. However, the legacy systems and siloed components are making it hard for businesses to manage the costs and inefficiencies while catering to the nuanced customer without breaking the bottom lines.
Statista reveals that the B2B parcel delivery costs in developed cities is 6.4 USD per cubic meter and the delivery time of a parcel during the day is 0.2 hours per cubic meter. Factor in challenges like fuel costs, fleet management costs, and ensuring transparency for multiple stakeholders, and the businesses have a complex puzzle in their hands.
Coupled with smart technology-powered solutions can not only help them turn this puzzle into a fantastic opportunity but can also pave the way for customer delight, loyalty, and business success.
In the following write-up, we take a deep dive into the last mile delivery software ecosystem and explore the top options to choose from. We also discuss how can businesses choose the best last mile delivery software based on some key considerations.
Last Mile Delivery – A Detailed Overview
What is Last Mile Delivery?
The final leg of any product’s journey, from the warehouse to your doorstep, is known as last-mile delivery. While seemingly simple, it represents a complex and crucial stage in the supply chain, often riddled with challenges and inefficiencies.
This phase holds immense significance as it directly impacts customer satisfaction and brand reputation. Companies worldwide are constantly innovating to enhance efficiency, reduce costs, and improve the overall delivery experience.
What Are the Activities Involved in Last Mile?
Last-mile delivery encompasses the movement of goods from a transportation hub or fulfillment center to the final recipient – typically a residence or retail store.
This involves various activities like route planning, package sorting, driver management, and final delivery execution, all of which can be categorized into pre-delivery, delivery execution, and post-delivery activities.
Pre-Delivery Activities
Order processing and fulfillment: Picking and packing items from inventory based on orders placed.
Inventory management: Ensuring accurate inventory levels and timely updates to avoid delays.
Route planning and optimization: Using software to map efficient routes based on factors like traffic, delivery density, and driver schedules.
Vehicle and equipment preparation: Ensuring delivery vehicles are properly maintained and equipped for safe and efficient delivery (e.g., cold chain management for perishable goods).
Driver briefing and communication: Providing drivers with detailed delivery instructions, customer information, and any special requirements.
Delivery Execution
Package loading and securement: Loading packages onto vehicles in a way that minimizes damage and maximizes space utilization.
Delivery route execution: Drivers navigate their assigned routes, making efficient stops and adhering to traffic regulations.
Proof of delivery: Capturing digital signatures or obtaining proof of delivery from recipients.
Real-time tracking and updates: Providing customers with real-time information on their delivery status.
Confronting delivery exceptions: Handling situations like wrong addresses, recipient unavailability, or damaged packages.
Post-Delivery Activities
Returns and exchange management: Processing returns and exchanges efficiently and smoothly.
Performance analysis and reporting: Analyzing delivery data to identify areas for improvement and optimize future operations.
Sustainability initiatives: Implementing measures to reduce carbon footprint and environmental impact (e.g., route optimization, electric vehicles).
Additional Considerations
Security and safety: Ensuring secure handling of goods and the safety of drivers and recipients.
Customer service and communication: Providing exceptional customer service throughout the delivery process.
Technology integration: Leveraging technology solutions like route optimization software, real-time tracking tools, and driver management platforms.
Why Is It Important?
Last-mile delivery has a significant impact on customer satisfaction, profitability, and brand perception.
Here’s why it matters:
Customer Experience: Fast, reliable, and convenient deliveries are crucial for customer satisfaction in today’s e-commerce era. Inefficiencies can lead to frustration and lost business.
Cost Efficiency: Optimizing routes, reducing fuel consumption, and minimizing failed deliveries are essential for controlling logistics costs.
Brand Image: A smooth and seamless delivery experience contributes positively to brand perception and customer loyalty.
Challenges in Last Mile Delivery Management: Balancing Speed, Cost, and Satisfaction
Traffic Congestion: Urban environments notorious for gridlock can significantly impact delivery times and fuel consumption. Finding alternative delivery methods or strategically scheduling deliveries becomes crucial.
Delivery Density: Densely populated areas pose challenges in route planning and accessing recipients. Finding creative solutions like designated delivery zones or partnerships with local businesses can be necessary.
Reverse Logistics: Managing returned items adds complexity and cost. Streamlining return processes and offering convenient return options are essential for customer satisfaction.
Cost Management: Balancing the desire for fast, convenient deliveries with maintaining profitability is a constant struggle. Optimizing routes, utilizing fuel-efficient vehicles, and exploring alternative delivery options help control costs.
Driver Management: Recruiting, training, and retaining reliable drivers who are skilled in navigating complex routes and interacting with customers is crucial. Ensuring their safety and well-being also plays a key role.
Customer Expectations: Evolving customer expectations demand faster deliveries, flexible time slots, and real-time tracking. Meeting these expectations while maintaining efficiency requires innovative solutions and clear communication.
Sustainability Concerns: Minimizing environmental impact through green initiatives like electric vehicles, route optimization, and packaging reduction is increasingly important.
Technological Integration: Embracing advanced technologies like route optimization software, real-time tracking systems, and analytics tools can significantly improve efficiency and transparency.
Last Mile Delivery Software – Overcoming Management Challenges
Route Optimization: Instead of relying on manual route planning, last-mile delivery software leverages AI-powered algorithms. These intelligent tools consider various factors like traffic congestion, delivery density, and driver schedules, crafting the most efficient routes possible.
This not only eliminates inefficient meandering but also minimizes fuel consumption and emissions, contributing to a greener delivery process. Additionally, real-time updates on traffic conditions and delivery status allow for on-the-go route adjustments, ensuring optimal efficiency even when faced with unexpected roadblocks.
Driver Management: Managing drivers effectively plays a crucial role in smooth last-mile operations. Last-mile delivery software helps tackle this challenge by automating driver scheduling based on workload, skills, and location, ensuring the right driver is assigned to the right task.
Through in-app communication features, drivers and dispatchers can stay connected in real-time, enabling faster issue resolution and improved collaboration. Moreover, performance insights gleaned from the software help identify areas for improvement and implement targeted training programs, empowering drivers to excel in their roles.
Customer Experience: In today’s digital age, customers expect transparency and control over their deliveries. Last-mile delivery software empowers businesses to meet these expectations by offering features like live tracking. This allows customers to follow their package’s journey in real-time, reducing delivery anxiety and enhancing overall satisfaction.
Additionally, the software facilitates flexible delivery options like choosing time slots or contactless deliveries, catering to individual preferences and fostering convenience. Proactive communication is another key ingredient in a positive customer experience.
The software enables businesses to send automated notifications and updates, keeping customers informed at every stage of the delivery process, from order confirmation to final delivery notification.
Cost Management: In the competitive world of last-mile delivery, keeping costs under control is essential. Last-mile delivery software tackles this challenge head-on by reducing fuel costs in two ways. Firstly, optimized routes through intelligent algorithms naturally cut down on travel distances, minimizing fuel consumption.
Secondly, efficient fuel management features can be implemented to monitor driver behavior and encourage fuel-saving practices. Furthermore, the software helps minimize failed deliveries, a significant source of wasted time and resources.
By improving route planning and providing real-time tracking, failed deliveries are significantly reduced, saving operational costs and ensuring packages reach their intended destinations efficiently. Finally, the software empowers data-driven decision-making. Valuable insights into delivery costs and trends are readily available, enabling businesses to make informed choices that optimize cost management and maximize profitability.
Operational Efficiency: Last-mile delivery operations involve numerous repetitive tasks like route planning, proof-of-delivery capture, and reporting. Last-mile delivery software automates these tasks, freeing up valuable time and resources for employees to focus on higher-level priorities. Centralized data management is another key benefit.
The software consolidates data from all aspects of the delivery operation into a single platform, offering a holistic view of performance and enabling informed decision-making. Additionally, seamless integration with existing warehouse management and ERP systems ensures smooth data flow and streamlined operations, eliminating data silos and bottlenecks.
Beyond these tangible benefits, last-mile delivery software empowers businesses with crucial capabilities:
Predictive Analytics: Forecast delivery times and resource needs, enabling proactive planning and improved decision-making.
Scalability: Adapt to fluctuating demand and expand operations seamlessly as your business grows.
Compliance Management: Ensure adherence to regulatory requirements and industry best practices.
Top 10 Last Mile Delivery Software Companies
Pidge: Pidge is an AI-powered eCommerce last mile delivery software that helps e-commerce businesses achieve smoother and more efficient last-mile deliveries, potentially leading to improved operational performance and enhanced customer satisfaction.
The company also offers highly tailored last mile delivery management for subscription-based businesses, thereby enabling them to unlock efficiencies with limited resources. Another powerful capability is the ability to work in a hybrid interoperable network of riders which facilitates real-time scalability as per order surges.
Key Challenges Addressed:
Manual processes: Pidge automates tasks like route planning and proof-of-delivery, reducing human error and streamlining operations.
Limited visibility: Real-time tracking of riders and vehicles provides insight into delivery progress and enables proactive communication with customers.
Data gaps: Advanced analytics and reporting tools offer data-driven insights to identify improvement opportunities and optimize overall delivery performance.
Friction in cash on delivery: Pidge facilitates digital payment options and touchless cash collection methods, improving convenience and security
Potential Benefits:
Cost savings: Automating tasks and optimizing routes can lead to reduced operational costs.
Improved control: Real-time visibility and data-driven insights enable informed decision-making and proactive issue resolution.
Enhanced customer satisfaction: Transparent communication, on-time deliveries, and convenient payment options contribute to a positive customer experience.
Key Features:
Unified Command Center: Aggregates orders from various platforms into a single hub for centralized management.
Dynamic Route Optimization: Leverages real-time data to adjust routes for optimal efficiency and avoid traffic delays.
Seamless Cash Management: Provides secure cash-on delivery options through digital payments or touchless cash collection.
Data-Driven Decision Engine: Delivers analytics and insights into rider performance, delivery trends, and potential bottlenecks.
OnFleet: Headquartered in San Francisco, OnFleet caters to Indian businesses seeking efficient last-mile delivery solutions. Their software features a centralized dashboard for managing routes, dispatches, and operations, simplifying task management and streamlining workflows.
Key Capabilities:
Consolidated Platform: Manage routes, assign drivers, and track deliveries through a single, intuitive dashboard.
Automated Tasks: Streamline operations with features like automated order allocation and proof-of-delivery management.
Data-Driven Insights: Gain valuable insights into delivery performance through comprehensive data analytics.
Enhanced Communication: Foster efficient communication with drivers through built-in chat functionalities.
Accurate Delivery Estimates: Get predictive ETAs for timely deliveries and improved customer satisfaction.
Real-time Visibility: Track deliveries in real-time, ensuring transparency and proactive issue resolution.
FarEye: FarEye is a provider of delivery logistics and orchestration software, that empowers businesses with advanced features to enhance visibility, control, and optimization across their last-mile operations.
Key Capabilities:
Comprehensive Visibility: Gain real-time insights into order statuses, delivery routes, vehicles, and drivers, ensuring transparency and informed decision-making.
Extensive Delivery Options: Cater to diverse customer needs with a wide range of delivery choices, including express, same-day, and scheduled deliveries.
Multicarrier Management: Simplify logistics by onboarding and managing multiple delivery carriers through a centralized platform, enhancing flexibility and cost-effectiveness.
Carrier Optimization: Leverage intelligent algorithms to match orders with the optimal carrier based on cost, speed, and service requirements.
Dynamic Order Allocation: Automate order assignments based on driver availability, location, and skillset, ensuring efficient resource utilization.
Shipsy: Shipsy is another last mile delivery software provider that helps businesses across diverse industries optimize their entire logistics and supply chain operations. By reducing inefficiencies, minimizing resource waste, and leveraging smart algorithms for intelligent asset allocation, Shipsy empowers businesses to achieve significant cost savings and operational improvements.
Key Functionalities:
Automated Label Generation: Streamline labeling processes and eliminate manual errors.
Seamless Integrations: Integrate seamlessly with your existing OMS, WMS, ERP, and CRM systems for centralized data management.
Intelligent 3PL Management: Streamline collaboration and manage third-party logistics effectively.
Automated Alerts and Notifications: Configure triggers to keep various stakeholders informed through multiple channels.
Comprehensive Transportation Management: Optimize transportation flows with built-in TMS features.
Real-time Tracking: Maintain complete visibility over your shipments throughout their journey.
Fleet and Driver Management: Enhance efficiency by managing your fleet, vehicles, and drivers effectively.
ClickPost: ClickPost, a distinguished logistics solutions provider, equips businesses with powerful tools for efficient last-mile management. Their platform caters to multi-carrier operations, offering advanced features for optimizing shipments and maintaining clear communication with all stakeholders.
Key Capabilities:
Multicarrier Management: Simplify logistics by managing and comparing rates from multiple carriers through a centralized platform.
Automated Carrier Allocation: Utilize intelligent algorithms to assign orders to the optimal carrier based on cost, speed, and service requirements.
Customized Labeling: Enhance brand identity and streamline processes with customized labeling options.
Effective Customer Communication: Proactively manage failed deliveries by sending automated notifications and facilitating communication with customers for quick resolution.
Locus : Locus empowers businesses to achieve efficient last-mile deliveries with its comprehensive software solution. Their platform offers diverse functionalities that go beyond basic tracking, providing holistic support for optimizing your entire delivery ecosystem.
Key Capabilities:
Intelligent Capacity Management: Ensure optimal resource utilization by accurately matching delivery needs with available drivers and vehicles.
Advanced Route Planning: Leverage data-driven algorithms to generate optimized routes, minimizing travel time and fuel consumption.
Centralized Control Tower: Gain real-time visibility into your entire delivery operation, enabling proactive issue resolution and informed decision-making.
Driver Companion App: Empower drivers with a dedicated app for route navigation, proof-of-delivery capture, and streamlined communication.
Track-POD: The software streamlines last-mile operations with its mobile-centric app available for both Android and iOS devices. Their platform emphasizes real-time tracking and efficient proof-of-delivery, empowering businesses to stay informed and improve delivery experiences.
Key Features:
Mobile-First Design: Manage your entire delivery operation conveniently through a user-friendly mobile app.
Fleet Optimization: Optimize resource allocation by utilizing data-driven tools for fleet management.
Real-time Tracking: Gain complete visibility over your deliveries with live tracking capabilities.
Efficient Proof-of-Delivery: Capture proof of delivery seamlessly through the app, eliminating manual processes and errors.
Actionable Insights: Gain valuable data and insights through comprehensive reporting and analytics.
Tookan: Tookan, a prominent last-mile delivery software India, helps businesses streamline operations and achieve higher efficiency through digitization. Their centralized dispatch dashboard offers advanced capabilities for managing both internal delivery teams and external carriers.
Key Functionalities:
Service App: Offer a dedicated mobile app for seamless delivery execution by drivers or agents, including order details, navigation, and proof-of-delivery features.
Agent Scheduling and Wallet: Manage agent availability, schedule deliveries efficiently, and facilitate secure cashless transactions with an integrated agent wallet.
Route Optimization: Leverage intelligent algorithms to design optimized routes, minimizing travel time and fuel costs.
Real-time Tracking: Maintain complete visibility over your deliveries with in-transit tracking, ensuring transparency and enabling proactive issue resolution.
LogiNext Mile: LogiNext Mile empowers businesses to achieve a smooth and efficient last-mile experience through intelligent automation. Their platform integrates smart process flows across various stages, including automated and optimized pickups, planning, delivery scheduling, and routing. Additionally, extensive integrations facilitate streamlined data management and a holistic view of your operations.
Key Capabilities:
Automated Optimization: Reduce manual intervention and eliminate inefficiencies with automated order allocation and routing.
Data-Driven Insights: Gain valuable insights through comprehensive analytics and reporting to identify improvement opportunities and optimize performance.
Real-time Communication: Enhance transparency and ensure proactive issue resolution with real-time notifications for all stakeholders.
Customer-Centric Delivery: Offer flexible delivery options and proactive communication, catering to individual customer preferences and fostering satisfaction.
Starship Technologies: Starship Technologies is another reliable last mile delivery software in the sustainable and contact-free delivery solutions category, offering autonomous robots for both hyperlocal and last-mile deliveries. Their innovative approach disrupts traditional methods, creating an entirely new delivery ecosystem.
Key Features:
Robotic Delivery Fleet: Leverage a network of autonomous robots for secure and efficient deliveries, eliminating human contact and reducing reliance on traditional vehicles.
App-Based Management: Conveniently manage your entire delivery operation through a user-friendly mobile app, including order tracking and robot monitoring.
Secure Order Access: Customers receive deliveries seamlessly through a secure app-based unlocking mechanism, ensuring package safety and privacy.
Eco-Friendly Operations: Contribute to a greener future with robots that generate zero emissions, promoting environmental sustainability.
Choosing the Best Last Mile Delivery Company for Your Business – Key Considerations
Automated Route Planning: Optimize routes considering order, vehicle, and time constraints. Shipsy’s AI algorithms can increase vehicle capacity utilization and delivery efficiency.
Smart Driver Management: Engage and motivate drivers with digital onboarding, performance management, and gamification. Shipsy’s system can reduce fake deliveries and increase success rates.
Excellent Digital Customer Experience: Offer real-time tracking, communication, and flexible delivery options. Shipsy’s AI can decrease customer service inquiries and boost delivery success rates.
Real-time Tracking: Gain complete visibility into deliveries with live tracking on maps and updates via SMS, email, and WhatsApp. This improves transparency, builds trust, and allows for proactive issue resolution.
Address Accuracy: Convert inaccurate addresses to precise locations using GIS data. Shipsy’s geocoding engine can reduce order allocation time significantly.
How Pidge Can Revolutionize Your Last-Mile Delivery Operations
Is last-mile delivery a bottleneck for your business? Are you struggling with inefficient routes, unhappy customers, and rising costs?
Pidge’s intelligent last-mile delivery software equips you with the tools and insights to transform your operations, unlock amazing results, and delight your customers.
With Pidge’s smart offerings and advanced capabilities, you can unlock amazing results including:
Increase Delivery Speed: Deliver orders faster and meet promised delivery times, leading to happier customers and higher satisfaction.
Reduce Delivery Costs: Cut down on wasted fuel, inefficient routes, and operational inefficiencies, boosting your bottom line.
Improve Customer Experience: Offer a seamless and transparent delivery experience, fostering trust and loyalty among your customers.
Scale with Confidence: Our flexible platform adapts to your growing needs, enabling you to effortlessly scale your operations.
Ready to experience the Pidge difference?
Contact us today for a free consultation and discover how our platform can transform your last-mile delivery operations and unlock amazing results for your business.
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