In an environment where competition is high and retaining market share is extremely challenging, 69% of users choose to abandon their online purchases. Of those, 48% are due to high delivery fees which are a result of high shipping costs. The tug-of-war between high shipping costs and high customer expectations has put enterprises in a challenging position.
The factors contributing to high shipping costs are expenses related to transportation, warehousing, and managing inventory to achieve faster delivery times. Businesses need to optimize their dispatch operations to improve the delivery experience and reduce shipping costs.
Multiple factors, such as the unpredictability of demand, labor shortage, high fuel costs, missed deliveries, and associated reattempts, are responsible for the high cost of deliveries. Among these, transportation charges account for 58% of the total shipping cost. About 41% of total supply chain expenses are in the last mile in the complete delivery cycle. Hence, a lot of focus is on streamlining last-mile operations. Certain breakthrough innovations have helped businesses optimize their dispatch operations, especially for the last mile, and raise the bar of their logistics efficiency.
Dispatch Management Software is one solution that enables businesses to scale their last-mile operations and maximize the optimal usage of on-ground resources. It empowers businesses to scale their dispatch capacity and leverage automation to orchestrate an end-to-end order fulfillment cycle.
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1. Dispatch Software: Brief Introduction 4. Impact of using Dispatch Software in Logistics Operations 5. Essential Features in Dispatch Software |
Dispatch Software is a logistics management solution offering quick automation to optimize dispatch operations. It provides multiple features and benefits that contribute to the effective and timely execution of dispatch operations.
The solution enables dispatchers to minimize manual interventions in planning and executing the dispatch operations. The enhanced efficiency obtained through intelligent and ideal allocation of resources and routes helps maximize the overall productivity of the on-ground resources. By optimizing routes and maximizing resource allocation, dispatchers and operations managers can make informed decisions on vehicle size requirements and delivery sequence and seamlessly coordinate with available on-ground resources.
It enhances operational efficiency and enables timely connections between dispatchers and drivers, ultimately improving delivery performance and reducing shipping costs.
Dispatchers spend significant time creating manual dispatch plans for orders due for delivery. This time-consuming process is not just bandwidth-heavy but also error-prone. Considering the impact of manual intervention on the overall efficiency of logistics, about 45.1% of companies are turning to automating their processes.
A shortened SLA has become one of the most important aspects of gaining customer loyalty. Dispatchers are continually driven to meet the promised timelines as customers have increasingly higher expectations for faster deliveries. It has pressured businesses to compete and optimize their operations to fulfill compressed delivery windows. Tight delivery windows and inadequate resource availability have created a two-way pressure on businesses looking to get a competitive edge in the market.
Road transportation rates in the United States have increased by 23% due to high expenses for logistics companies.Limited vehicle capacity, lengthy routes, and high fuel costs are key factors that impact transportation price increases. Optimizing transportation and logistics costs has always been a top priority for companies.
Many businesses continue to rely on manual tracking processes for their shipments. There are often several blind spots throughout the fulfillment cycle. These gaps in visibility can lead to delays, unnecessary expenses, and a loss of credibility.
The supply chain has become more complex than ever before. There are multiple stakeholders involved in the whole fulfillment process. In about half of the cases, the stakeholders need to learn about the activities and events at crucial integration points. This limited visibility directly impacts the outcomes and overall effectiveness of the logistics process.
The entire process of logistics operations begins with capturing an order and ends with delivering it to the end customer. Throughout this journey, instant information exchange between stakeholders, such as the dispatcher, driver, and customer, is often required. Any communication gaps can significantly impact the logistics process's delivery time and overall operational efficiency.
Delivery delays can lead to customer churn. When customers experience uninformed delays leads to dissatisfaction and increases the likelihood of losing their business. Several factors contribute to delivery delays, including on-ground exceptions, vehicle breakdowns, last-minute cancellations, and lengthy delivery routes. However, in many cases, these delays can be prevented by the proactive involvement of dispatchers.
Given the growing challenges, the logistics industry must make corrective additions to its operations. “Dispatch software” is one such addition that can help streamline and enhance the overall efficiency of the fulfillment process.
Dispatch Software helps streamline logistics operations and enhance overall efficiency. Some of the ways in which dispatch software can improve logistics operations are:
A dispatcher gets orders from different channels, such as manual orders, CSV files, and API integrations. Once all of the orders come in, the dispatcher has to make plans for the delivery manually. Dispatch software helps consolidate all orders in one place. The dispatcher can view the driver's availability status and vehicle size. Based on the predefined parameters, he can choose automated processes for planned deliveries and switch to manual dispatch for on-demand deliveries. Dispatchers can also generate the best delivery routes, reducing shipping costs and accelerating deliveries with the help of route optimization.
Hence, in the planning stage, a dispatcher can use the dispatch software to consolidate orders from multiple sources in one place and can switch between manual and automated dispatch planning modes based on specific requirements.
Drivers have hard timelines and delivery SLAs to meet. One of the blockers for them is not receiving timely information in real-time on orders and sequence.
Dispatch software provides drivers with a dedicated driver app, empowering them to understand tasks faster and with clarity. With the driver app, drivers can conveniently access all essential information regarding the orders they need to deliver. In addition, the app facilitates seamless communication between drivers, customers, and dispatchers, allowing drivers to provide timely updates on delivery progress or notify dispatchers about any potential delays. This streamlined communication enhances customer satisfaction and ensures a smooth delivery experience.
During the execution stage, a dispatcher can use dispatch software to communicate with the driver on duty and ensure optimal on-ground resource utilization.
Dispatch software helps make every delivery better than the previous one. Dispatchers may discover and correct blindspots immediately using a detailed analytics report and performance dashboard. The performance dashboard offers real-time visibility into operational performance, empowering dispatchers to monitor key performance indicators (KPIs) and track the progress of deliveries. By monitoring the dashboard, dispatchers can proactively identify bottlenecks, delays, or areas where improvements can be made. This early detection helps make informed decisions to optimize the delivery process in the future.
With the help of KPI dashboards and custom-generated reports, in-transit and post-delivery analysis can help identify and fix performance bottlenecks in deliveries.
Hence, dispatch software helps replace outdated, unoptimized delivery processes with innovative, result-driven delivery practices.
Adopting the right dispatch software for your logistics operations enhances the scope of automation, reduces errors, and fosters an expectational customer experience.
Dispatch software streamlines the end-to-end process, from order capture to customer delivery. The software offers a centralized dashboard that consolidates orders from multiple sources in one place. The single screen makes it easy to view, group, schedule, assign, and monitor shipments in batches.
Dispatch software lets stakeholders plan ideal routes to maximize deliveries per driver. Essential factors such as road traffic, peak hours, vehicle size, and driver availability are considered during planning an ideal route. This effective route planning helps maximize the on-ground resource utilization while adhering to promised SLAs.
83% of e-commerce executives consider delivery speed as a top customer priority. Customer service and experience also impact the bottom line of a business. Research has consistently shown that customers are willing to pay a premium for exceptional service and a personalized experience.
Dispatch software helps in offering regular real-time delivery updates to customers. By being proactive in notifying customers about delays, businesses can mitigate frustration and dissatisfaction that may arise from unexpected changes in delivery schedules.
Intelligent dispatch operations help businesses reduce overall costs. The end-to-end integration, coordination, and optimization of delivery operations at every stage help reduce errors, save time and achieve optimal resource efficiency.
Automated dispatch software helps skip the time-consuming task of manually planning dispatch schedules. It enables dispatchers to utilize their time for other productive tasks. Additionally, the route optimization feature directly impacts the number of deliveries a driver can complete within a given timeframe. The system maximizes drivers' time on the road by efficiently planning the delivery sequence and considering factors such as traffic conditions and package priority. As a result, each driver can make more deliveries, increasing productivity and adhering to promised SLAs. It helps in improving the first-attempt delivery rate and hence saves cost and time on re-attempts.
Implementing dispatch software can lead to significant improvements in the operational efficiency of your delivery operations. By automating daily tasks, dispatchers can save considerable time, which can be utilized to explore new strategies to scale existing delivery operations. By maximizing the optimal efficiency of on-ground resources, your businesses can minimize on-ground resources' idle time. This time can be used to deliver more and increase the overall productivity of your resources.
A dispatch software must have an interface where orders across multiple sources, including OMS, WMS, TMS, POS, etc., can be consolidated. Complete consolidation eases the management of dispatch operations and saves time and effort.
It empowers dispatchers with the ability to:
Route optimization is finding the ideal and most cost-effective route for drivers. The feature helps create optimized routes to accommodate scheduled or planned deliveries. The idea of creating a route plan is to deliver more on a single route while considering different variables such as traffic congestion, driver availability, delivery times, fuel consumption, vehicle capacity, etc.
Leverage the route optimization feature to:
The driver app is a dedicated app that digitally connects drivers with dispatchers and customers. It offers quick two-way communication to ensure all the required information is exchanged instantly. The app also enables the driver to get directions for delivery and capture proof of delivery to provide a smooth post-delivery experience.
The app enables efficient driver performance by:
The dispatcher can see all orders for delivery and monitor their status in real-time. End-to-end visibility enables dispatchers to respond to any delayed delivery proactively.
It empowers the dispatcher with:
This feature enables getting a documented acknowledgment from the customer once the order has been delivered. POD allows you to collect contactless signatures, photo proof of delivery, or OTP verification to ensure the order is delivered to the right customer.
The feature contributes to:
And many more.
The e-commerce industry is experiencing exponential growth in delivery volumes with frequent surges. On the other hand, customer expectations for shortened delivery times and end-to-end visibility have increased like never before.
To meet these dynamic requirements, businesses are looking to improve their efficiency while focusing on scaling their logistics operations.
Here is how dispatch software can enable growth for e-commerce businesses.
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Pain Points |
Solution Offered |
Impact Created |
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Tracking online orders |
Centralized Visibility |
Every stakeholder has 360 -degree visibility |
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Shipping Errors |
Vehicle right -sizing through centralized order |
Maximizing the number of successful deliveries |
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Keeping up with customer expectations |
Real- Time tracking updates |
Fostering healthy and long-lasting customer relationships |
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Scaling e-commerce logistics |
Delivery batch allocation, automated workflows and route optimization |
Unlocking new growth avenues |
Retailers need to embrace intelligence, visibility, and agility in their delivery operations while checking their delivery process's cost and operational efficiency.
Here is how dispatch software can enable growth for retailers.
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Pain Points |
Solution Offered |
Impact Created |
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Manual planning of multiple orders in a day |
Automated/ pre-defined configurable workflows |
Reduces the risk of manual errors with accelerated dispatch operations |
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Monitoring on-ground activities & responding to gaps in execution |
Centralized order management & dynamic route planning |
Quick response and adaptation to dynamic requirements & optimal fleet utilization |
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Reducing operational costs while adhering to shortened SLAs |
Dynamic Route Optimization, Intelligent Resource Allocation |
Expand delivery capacity,and reduce costs by making multiple deliveries on a single route |
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Omnichannel Integration of orders coming from different sources |
Consolidated order management dashboard |
Streamlined fulfillment process across all stages |
Manufacturers, distributors, logistics providers, and other parties face constant pressure to deliver their products to the market swiftly, securely, and in optimal condition.
Post-pandemic, consumers have shifted their preference towards on-demand delivery. It has increased the pressure on retail chains and direct-to-consumer food deliveries.
Here is how dispatch software helps in orchestrating the complete fulfillment process.
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Pain Points |
Solution Offered |
Impact Created |
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Lack of Traceability |
Real-time order visibility |
Strengthens brand integrity and customer loyalty |
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Inadequate communication between the involved stakeholders |
Driver App |
Transparent and instant communication |
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Shortened Delivery Windows |
Configurable Delivery Processes |
Accommodating specific requirements for certain time-sensitive delivery orders |
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Omnichannel Integration of orders coming from different sources |
Consolidated order management dashboard |
Streamlined fulfillment process across all stages |
The fast growth of international trade, e-commerce, and quick deliveries has made courier services improve and scale their existing operations to cater to exceeding expectations in the market.
Dispatch software for CEP services can enable the industry to efficiently handle the high volume of daily orders and ensure the timely delivery of multiple packages throughout the day.
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Pain Points |
Solution Offered |
Impact Created |
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High Delivery Cost |
Order Management, Route Optimization |
Efficiently route and allocate resources to delivery zones |
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Keeping Customers Updated |
Real-time delivery updates |
Mitigate the anticipation anxiety of customers |
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High SLAs |
Centralized and consolidated order management dashboard |
Automated workflows to batch, schedule ,and dispatch orders |
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Poor Visibility |
Real-time order visibility |
Transparent on-ground operations |
For a more detailed overview of features and benefits, click here.
The world of logistics is evolving. Businesses involved with the delivery process need to empower their operations with technology. Customer experience has become the front and center of any business's growth.
As the world advances and disruptions remain constant, continuous optimization is the key to scaling your business operations. With its robust features, dispatch software can fulfill your business's needs. Order consolidation, real-time tracking, route optimization, bird-eye visibility, and detailed analytic reports can support logistic operations at every possible stage.
Learn more about how dispatch software can help you achieve your business goals. Book your consultation with our experts today.