Last Mile Automation: Intelligent Routing is Key to Success
Mar 28, 2023
5 mins read
Last-mile logistics is a pain point for both retailers and delivery partners, who are well-acquainted with the complexities that come with it. One of the biggest challenges is routing, which is a crucial aspect of last-mile logistics. The on-time delivery and estimated time of arrival (ETA) of orders rely heavily on optimized route management, which is a key ingredient in a fully automated last mile delivery.
A robust route optimization software needs to take into account on-ground constraints such as traffic, road closures, changes in delivery time, and the preferences of discerning customers.
Why Retailers and Delivery Partners Should Automate Last Mile Delivery Operations
Retailers and delivery partners bear the brunt of these routing complexities, as they are at the forefront of last-mile delivery. But what exactly are these challenges?
- Low SLA adherence: If a retailer or delivery partner can’t get their act together with a solid routing solution, they can forget about adhering to SLAs. And when customers don’t get their orders on time, you’re in trouble. They won’t just be unhappy, they’ll also move on to a different company faster than you can say “routing error.”
- Expensive reverse logistics: Let’s face it, returns are a part of life for retailers. But the cost of managing those returns can be sky-high if you don’t have your routing and capacity management in order. You can’t eliminate returns altogether, but you can at least reduce the costs associated with them. Rest assured it can translate into major savings over a long period of time.
- CO2 emissions: Sure, the US government has set a goal of going carbon-free by 2050, and a large number of your customers are equally aware, and care for sustainability. More and more shoppers are looking for retailers and delivery partners who prioritize sustainable packing and delivery. If you want to keep up, you’ll need to make sure your routing is carbon-neutral.
- Lack of on-demand routing: In today’s fast-paced world, customers expect flexibility. But if your routing system can’t accommodate changes in delivery time or address, you’re in trouble. Say goodbye to repeat business and hello to a whole lot of frustration.
- On-ground constraints: Traffic, road closures, and other on-ground exceptions can throw a wrench in even the best routing plans. But if your legacy system can’t work around these issues, you’re in for a world of delayed deliveries.
- Cost center: When your routing system is subpar, everyone suffers. Drivers spend more time on the road, fuel consumption goes up, and costs spiral out of control. It’s a lose-lose situation that will leave you scratching your head (and your budget).
These challenges are all too real for retailers and delivery partners using a legacy, unintelligent routing system. But fear not, there are solutions out there that can help you work around these obstacles and keep your customers happy (and loyal).
Automation in routing is key to success for last mile players
Integrating automation into last mile routing can be a game-changer for companies, and here’s why:
On-demand routing: By utilizing Locus’ last mile routing solution, companies can effortlessly accommodate on-demand orders, such as changes in delivery time or address, without the need for manual intervention.
Want to know how to eliminate human dependency for your retail business, download our case study
Dynamic routing: On-ground exceptions such as traffic, road closures, weather, and poor road conditions can cause significant delivery delays. Locus’ automated routing solution considers over 180+ real-world constraints to provide drivers with the optimal routes to ensure on-time deliveries and adherence to service level agreements (SLAs).
Returns management: Locus’ advanced routing system enables the combination of forward and reverse logistics in a single route, resulting in reduced costs and minimized carbon emissions. This leads to an overall improvement in the customer experience and revenue growth.
Sustainability: Implementing a smart routing solution enables companies to reduce the number of vehicles on the road, resulting in less time spent on the road and lower carbon emissions. Dynamic routing allows delivery teams to bypass most on-ground challenges, leading to a more optimized route and an even greater reduction in emissions.
Increased revenue: Automated route management solutions eliminate manual tasks, reducing costs and improving the customer experience, resulting in increased customer loyalty and revenue growth.
It’s evident that last mile automation through smart routing is a critical success factor for companies.
Why choose Locus?
Locus has helped companies such as PVH Corp, Lulu Group, Capitol Lighting, Tforce, and DHL automate their last mile routing, resulting in increased SLA adherence and an improved customer experience. This has transformed their last mile from a cost center to a revenue-generating machine.
If inefficient routing is a major cost center for your company, Locus may be able to help. Contact our team to schedule a call
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ABOUT THE AUTHOR
B2B content writer with a keen interest in educating industry leaders on how leveraging technology can solve many business problems.Read other blogs by this author
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Last Mile Automation: Intelligent Routing is Key to Success