7 Efficient Delivery Management Practices For Your Business

The boom of e-commerce and online selling is not at all surprising. Over the past few years, many brands have found retail success online. As more and more brick-and-mortar shops switch to online platforms to cope with the increasing demand, these companies also have to adjust and tweak some practices, especially when it comes to delivery management and logistics. 

Efficiency in delivery management is crucial for both online and offline businesses because this ensures customer satisfaction. Imagine getting your orders fast and on time—you’ll surely appreciate the brand’s efficient service and trust it even more, right? That’s why efficiency in delivery management is a very important aspect of the overall business process. 

Below are some of the best practices of an efficient delivery management system that you can apply in your business:

• Define Key Performance Indicators (KPIs) 

Standards and procedures must be met to achieve efficiency. It would be difficult to gauge the performance and efficiency of a delivery management system without KPIs in place. Companies can easily identify pain points and work on better solutions if KPIs can tell them that they’re not doing a good job.

Businesses that want to improve the efficiency of their delivery management system can set metrics or KPIs in the following aspects:

• Punctuality: Whether or not the delivery was completed within the Estimated Time of Arrival (ETA).

• Shipping Accuracy: This is concerned with the actual fulfillment of the order. Shipping accuracy means that the customers received the correct goods or products in the exact quantity that they ordered from the company.
• Shipping Cost Per Unit: This KPI is more concerned with the financial aspect of delivery management as it aims to lower overall shipping costs. In other words, it aims to maximize the weight or number of units shipped and delivered at the lowest cost possible.

 

• Maximize Routes And Fleets

Companies that implement best practices in delivery management utilize the most efficient and shortest routes. An efficient route delivers products in the fastest and most cost-effective way possible. However, it doesn’t have to be the shortest route available. Aside from the actual distance, companies can identify an efficient route by considering the traffic situation, availability of vehicles, and the safety risks or hazards of that route, if any.

In addition, businesses with efficient delivery management practices know how to maximize fleets and carriers and find ways to reduce windshield time. This includes assigning schedules and routes for each fleet and having multiple vehicles that can carry various sizes of products. For instance, some vehicles can only carry parcels. So, for companies that fulfill large orders and sell huge products, a truck is a better option.

• Fleet-Based KPIs

An efficient delivery management system should also have a fleet-based KPI system wherein carriers are divided into groups based on their area of service. Drivers are then assessed based on punctuality or timeliness of deliveries, vehicle maintenance and capacity, hourly schedules, road behavior, and overall performance and productivity. 

Drivers are basically the ones who are in charge of bringing products to the customer’s doorstep. The efficiency of the delivery management system is highly dependent on the performance and behavior of drivers. Therefore, it only makes sense that one of the best practices that a business should adopt is to maintain KPIs based on driver or fleet performance.

• Use Of Automated Systems

Without automation or the use of Artificial Intelligence (AI), it’s difficult to achieve efficiency—no matter what aspect of the business is concerned. Therefore, having an automated system is also a hallmark of efficient delivery management practices.

Primarily, automated systems can help delivery managers trace, track, and stay up-to-date with pending deliveries and orders. This information is also helpful for the customer service team who needs to communicate relevant information or updates to a waiting customer. Data stored from this system is also handy when it comes to reporting and assessing KPIs.

•  Identification Of Pain Points

It’s easy for companies that have KPIs and are using automated systems to track and trace shipments. Identifying the top reasons for delayed deliveries and pinpointing the source of bottlenecks can help businesses work towards a better solution and improved efficiency. 

For example, if deliveries are delayed due to poor traffic conditions, then it may be time to find a new route. If a certain area is consistently getting high volumes of orders, then it may be time to add more carriers or fleets in that locality. 

• Reduced Packing Time

Carriers cannot fulfill their jobs when the orders themselves aren’t prepared and packaged in due time. One of the best practices in an efficient delivery management system includes guaranteeing reduced packing time. 

This means that customers don’t have to wait another day or two before their orders are released from the warehouse. Some businesses may guarantee that shipments will be processed on the next business day, but this has many downsides especially if the customer placed the order on a weekend or holiday. 

The longer it takes for a product to be released from the warehouse, the longer the customer has to wait for its delivery. Therefore, packing or fulfilling orders must be done within the day so customers can rest easy, knowing that the products are already being attended to right after they place their order.

• Track And Handle Returns

Delivery management is more than just packing and delivering products, the system must also efficiently handle and track returns. Returned products may or may not have something to do with the delivery process. It could be because the customer has changed their mind about the product, or are just unsatisfied with it. 

However, in some instances, a customer may want to return the order due to a product defect that may have been caused by the packaging, handling, and shipping process. In either case, an efficient delivery management system must be able to handle these concerns well. 

Details about the return should be gathered and reviewed so it could also be used as a factor in the company’s KPI system. Businesses must watch out for defects or damages that are commonly caused in the handling and shipping process so the packaging of the product can be further improved.

Final Word

Businesses have the liberty to adopt their own best practices when it comes to their delivery management system. The ones mentioned above are just some of the most common practices that are adopted by the e-commerce industry. These practices usually have a lot to do with the streamlining and automation of orders, the packing process, and most of all, the quick and safe delivery of the items.