Last mile delivery providers have faced unique challenges in the past year, from rising shipping costs to changing customer expectations. On top of that, increased volumes have made it difficult to manage last mile costs.
Thankfully, there are a number of strategies you can use to minimize costs, adapt to changing consumer demands, and still maintain a healthy profit margin. Regardless of your business type, there are universal costs that impact all delivery providers.
Here are four ways to reduce last mile delivery costs:
1. Route Scheduling
It’s something that many dispatchers dread: Assigning the same routes out to the same drivers every week. A good dispatcher can save you hours of work each month, but a route scheduling tool can completely eliminate the time spent assigning recurring routes, allowing your dispatchers to focus on improving other areas of your business.
Modern dispatching tools automatically assign and send messages out to your drivers for recurring routes. OnTime can also make suggestions for on-demand orders, helping you to optimize delivery schedules quickly when new orders are flooding in.
2. Customer Updates
Customers want instant status updates on their deliveries, such as when an order is received, in-transit, and delivered.
With the right software, you can give consumers real-time information and improve their experience. Set up notifications ahead of time to alert customers to any changes to the status of a delivery, saving your dispatcher's time. It not only reduces the likelihood of failed deliveries, but best of all, it increases customer loyalty and satisfaction.
3. Route Optimization
Route optimization helps couriers to work more efficiently, resulting in savings on fuel, vehicle maintenance, and hours worked.
There is much more to route optimization than finding the shortest distance between two points. Smart route optimization takes into account a variety of additional factors, including up-to-date traffic data, time windows for collection and delivery, weather, and more. Some businesses have seen a 20% to 40% reduction in drive time and fuel costs.
4. Vehicle Maintenance
It’s been said that an ounce of prevention is better than a pound of cure. This is certainly true in the delivery industry.
Prevent major vehicle maintenance issues by allowing your delivery software to track your required maintenance items. That way when a scheduled mileage or date is reached, you are notified that a particular vehicle is in need of maintenance. Keeping this information in your delivery software saves your drivers’ time and your sanity. A proper maintenance schedule helps to save money, decrease risk, and reduce downtime.
How to Reduce Last Mile Delivery Costs
Finding the time to keep up with the newest innovations is a difficult ask for most businesses. That’s why it’s so important to find a last-mile delivery software solution that is updated regularly.
With an OnTime subscription, you gain access to our always up-to-date suite of delivery applications.
Ready to try it out? Contact us for more information.