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Retail Business Review | Thursday, March 03, 2022
World-class last-mile delivery operations contribute to competitive differentiation and revenue for their organizations by doing more than just delivering goods reliably.
FREMONT, CA: Organizations engaged in the last-mile delivery face an increasingly competitive market. Customer demands, driver shortages, and poor economic conditions are constant challenges. Therefore, each company should evaluate the many last-mile delivery best practices that have recently emerged to control distribution costs and effectively provide exceptional customer service. These best practices mentioned below are intended to simplify and improve delivery management and generate new and repeat business.
1. Put an Audacious Plan in Place
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An external assessment is the first step in developing an audacious plan. Three questions will get the plan off to a good start. First, what can delivery do to increase the customer's business value? Second, what is the competition doing to cause us problems with delivery? Third, how are other industries using last-mile delivery to gain a competitive advantage? Finally, more traditional operational plans for increased productivity and improved customer service can be interwoven with "game changing" initiatives to transform last-mile delivery operations.
2. Technology has a Significant Impact
Today's leading last-mile delivery strategies require advanced route planning and execution, mobile, telematics, and data analytics technologies. Advanced last-mile delivery solutions can change the customer experience, generate incremental revenue, and reduce delivery costs from the beginning of the buying process to the end of the delivery process.
3. Make Extensive Use of Analytics to Gain Deep Operational and Customer Insights
Last-mile delivery solutions generate a large amount of valuable information, which, when combined with advances in analytics technology, provides broader and deeper perspectives on the business. Analytics can assist today's operations in detecting trends so that adjustments can be made before problems occur or become severe.
4. Get the Right Metrics in Place
Leading last-mile delivery operations involve metrics beyond delivery operations, such as revenue contribution, customer voice, and competitive differentiation. These metrics accurately reflect the true value of superior delivery performance and capability.
5. Standardize and Automate
Planning must be standardized and automated for every planner to be competent as the best planner. The first step is to identify the procedures used by the best planners to process and optimize data. This is typically a multi-step procedure. Advanced planning solutions can automate the planning and optimization process using technologies such as robotic process automation, which can execute this multi-step process without human intervention by applying complex filters, transforming, and optimizing operations. As a result, the results from all planners become more consistent, of higher quality, and more reliable.
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