As businesses expand globally, there is an increasing dependence on third-party logistics (3PLs)...
Significance of Dispatch Management in the CEP Industry
According to a recent study by Verified Market Research, the Courier Express and Parcel (CEP) market is projected to reach USD 591.06 Billion by 2028.
To establish the capacity to address the ever-growing need, businesses must strategically pivot and handle their logistics operations. Dispatch management plays a significant role in orchestrating the delivery cycle and enhancing the overall efficiency of logistic functions.
What is Dispatch Management in the CEP Industry?
Dispatch management in the CEP industry covers the different stages of capturing and streamlining incoming orders, creating driver schedules with respect to delivery commitments, end-to-end route navigation in correspondence to on-ground conditions, and collecting electronic proof of delivery after successful package handling by the customer.
A dispatch management system empowers the whole process and enables businesses to optimize, scale, and increase their profit margins throughout the delivery cycle.
Before we delve into the role of dispatch management software in the CEP industry, here’s an overview of industry-level pain points.
Challenges in the CEP Industry
Delivering the right package on time alone is not enough to create a competitive advantage in the CEP industry. There is a constant pressure to drive a superior customer experience while unlocking new avenues of growth and revenue. Lack of insights and control over the delivery cycle can be debilitating to the success of the fulfillment ecosystem.
Prolonged Dispatch Planning Time
Too much time spent planning a shipment's dispatch can lead to potential delivery delays. When dispatching is manual, dispatchers spend excessive time processing, batching, and allocating orders. Furthermore, there's a risk that the dispatch plan may only accommodate some of the essential parameters, ultimately undermining the efficiency of the delivery process.
Shortened Delivery Windows
As package delivery volumes have increased, customer preferences for receiving the parcel have evolved too. Earlier, waiting 2-3 business days for a delivery was the accepted standard. However, today’s customers demand delivery options such as 2-hour or same-day delivery. This shift in customer expectations has significantly increased the pressure on dispatchers to ensure timely dispatches in order to meet promised service level agreements (SLAs).
High Shipment Cost
Shrinking delivery windows, customized delivery experiences, and high fuel consumption increase the shipping cost. Unplanned delivery routes leading to overlaps can further exacerbate the problem, causing drivers to cover extra and sometimes even double the miles. These factors collectively contribute to escalating shipping costs and squeezing profit margins.
Exceeding Customer Expectations
Customers have high expectations which are constantly evolving with time.Customers seek swift, transparent, and convenient parcel deliveries right at their doorstep. These demands pose a continuous challenge for dispatchers, requiring them to remain highly responsive to cater to each unique customer request.
Role of Dispatch Management in the CEP Industry
The delivery ecosystem needs to be enhanced with new technologies that can boost efficiency. Integrating Dispatch management software within the existing process can help businesses adopt new practices to pull ahead of the competition.
Dispatch management software empowers dispatchers to seamlessly capture, process, and sequence all incoming orders within a unified interface. This process is expedited through automated workflows, enabling dispatchers to effortlessly generate and release the upcoming dispatch plan with just a few clicks. This allows businesses to complete the planning phase in a significantly faster turnaround time with no scope for human-driven errors.
Ability to launch new services quickly
Dispatch management software empowers businesses with the ability to create highly configurable workflows. This custom-built approach facilitates the development of specific processes and the introduction of new services with reduced turnaround times. By considering delivery commitments and other predefined parameters, the software offers the flexibility to plan both static and dynamic routes. This adaptability enables businesses to provide quick deliveries, ultimately enhancing the overall customer experience
Dispatch management software is crucial at every stage of the order-to-delivery cycle. It offers strategic solutions for businesses to handle, optimize, and maintain control over their logistics processes. An optimal route plan, tailored to the specific needs of each delivery, significantly reduces the risk of service area overlaps among drivers. This helps with cost and time management and ensures seamless deliveries. Furthermore, the software provides end-to-end visibility into operations, fostering collaboration among the involved stakeholders. Dispatchers can leverage insights and performance reports from dispatch management solutions, which further helps optimize the whole cycle and make informed decisions.
Flexible payment options
Dispatch management software goes the extra mile in elevating the end-user experience by providing extended flexibility in payment options and simplifying return processes. Through seamless API integrations, businesses can effortlessly offer their customers a range of payment choices, adding an additional layer of convenience. Moreover, features like hassle-free returns and prompt payment reconciliation contribute significantly to creating an elevated user experience.
The CEP industry can leverage the potential benefits of dispatch management software and future-proof their business operations. Every order captured for delivery has its own set of requirements, delivery preferences, and many more. In the CEP industry, we are talking about more than hundreds of orders in a day. The strategic dispatch movement of these orders while accommodating the required parameters is beyond human control. Opting for dispatch management software to oversee operational outcomes is a wise decision for businesses dedicated to achieving growth and excellence.
DispatchOne powered by OS1 is an end-to-end dispatch solution designed to manage and empower dispatch operations at scale. The dispatch solution supports the idea of quickly identifying operational bottlenecks and proactively bringing the best-suited solutions. Leverage this comprehensive solution to power deliveries with multiple time windows without compromising operational outcomes and customer experiences. For more information, get in touch with our experts today!