In a competitive economic environment where choice is greater than ever for businesses and customers alike, it’s crucial that companies have their logistics activities in order to meet the changing demands of the 21st century. Businesses now operate in an environment where expectations are so high that failing to deliver goods through an inconsistent supply chain is not an option. There are increasing pressures on companies to be able to make same day deliveries.
Furthermore, with consumer demands only likely to increase, businesses will have to ensure they deliver ever more efficient services. It is important that businesses set new standards by adopting dynamic logistics, enabling the effective, timely tracking of goods to ensure minimum waste of resources and equip companies to make real-time decisions in the field.
Companies should be looking at using technology to enhance their traditional logistics approach. The use of mobile technology can help companies provide a range of dynamic activities – from deliveries to collections, through to the entire logistics process, both forward and reverse. With approximately 50 different purchase and delivery options available to customers today, including click-and-collect, next day and standard, retailers need to be commerce ready to ensure they remain competitive.[1] The use of mobile technology will address these issues by tightening supply-chain procedures, and helping businesses streamline their processes during a time of economic slowdown.
Dynamic deliveries- current challenges
Businesses expect deliveries to arrive on time. Failing to make a delivery can cost a business not only time but ultimately money, resulting in a dis-satisfied customer. Within the current delivery environment there are a number of factors that can damage the delivery process and customer experience:
- The lack of information often available to a driver regarding the contents of his delivery can cause problems for all parties.
- If any of the delivery items were unavailable then chances are a new receipt will not have been produced in time. This means the customer receives insufficient information at the point of delivery.
- If a customer wants additional items for their delivery, drivers will not have the ability to amend an order and sell additional stock. If they do, it will be very difficult to have an accurate audit trail for the process.
- Furthermore, when a driver returns to the depot after making the deliveries, they will be faced with passing back a selection of delivery notes to the administration team. Not only are these likely to be prone to human errors, but the drivers may even lose the notes or the handwriting may be illegible.
For customers using Internet shopping services, the delivery driver is often the only interaction the customer has with the brand, so a bad experience can cause some serious damage.
Going mobile
Businesses are now beginning to identify the benefits of mobile technologies, such as mobile handsets and printers that make deliveries dynamic.
Companies should be looking to embrace technology that can print an invoice at the time of delivery. This means that if any goods are unable to be delivered, then this information will be included in the delivery note produced. Automatic updates can reduce the administration workload, invoicing errors and subsequent outstanding payment. Overall, this will lead to a far more efficiently run business, better informed delivery drivers and, most importantly, happier customers.
Failing to adopt a dynamic logistics approach can affect companies delivering products to businesses regularly where a variable delivery amount is expected. This is most prevalent in areas such as re-stocking goods in retail outlets.
To a retail business it’s important that they can meet their customers’ expectations as empty shelves cost money. If goods are available direct from the vehicle the driver can write a new delivery note to take into account the additional products delivered. However, the company may have a system in place that doesn’t permit additional deliveries. Once again this will result in poorly handwritten notes.
Dynamic collections
Businesses often rely upon third party couriers to make collections from either businesses or consumers. Courier services are often viewed as businesses where their approach to customer services could be improved. Technology could play a big part in achieving this. Traditionally, drivers would usually depart with their collection paperwork and route sheet and follow this methodically until all collections are made.
Drivers are unable to divert or alter their route and will have no communication to head office or a server at head office so they can’t update information. With every collection, carbonated paperwork is completed and a copy handed back to the customer and the probability is that the customer receives an unreadable document.
This makes the collection process very restrictive and doesn’t permit ad-hoc or unplanned collections.
Dynamic reverse logistics There are two issues of concern when drivers collect a return. The first problem may arise at the warehouse environment if boxes are not carefully labelled on their return, then there is the possibility that goods will be mislaid and therefore not dealt with. This can be costly, especially if goods are returned but not brought back into the supply chain quickly, as companies miss the opportunity to resell a product before it loses too much value. Secondly, there is the doubt raised in the mind of the customer when passing back expensive items in exchange for a handwritten note. This can fail to instil customer confidence in whether the order is being dealt with accurately and securely.
Taking the right route
The introduction of hand held technology would provide immediate benefits to companies. Once they arrive at a pick-up point details can be confirmed and a delivery receipt can be printed, together with a bar coded label for the package to identify it on return to the depot. Also, businesses could save time if they could alter any of their drivers’ routes to incorporate last minute changes to delivery plans. This can help businesses differentiate from competitors and help build brand loyalty.
This can lead to providing additional competitive services which ultimately would lead to cost savings across the business.
Total dynamic logistics
Some businesses are so focused about delivering orders to their customers that they only think about the process of getting it to the customer in a timely fashion. However, what happens when there’s a problem with a delivery? They need to ensure the return process is as smooth and simple for the customer as possible. Using technology ensures that there is an audit trail from the moment something is immediately returned.
Businesses must also consider the potential business benefits created by being able to collect goods while on a delivery route. These processes are isolated and often customers have to take receipt of a delivery even if the order is wrong and rearrange a collection. Technology that will enable a driver to make a collection at a point when he is making a delivery in the same street, should be utilised. Faster collections will also help get assets which can depreciate in value rapidly, back into the supply chain.
Significant cost savings can be made by providing greater accuracy of data, better information to customers updated in real-time, and an improved customer service experience. In a world where the customer is king, consumers now expect to be able to buy goods when they choose, as do businesses. If they reach a store and find empty shelves then customers will go elsewhere without a moment’s thought, and chances are they may never return. Likewise, if businesses receive a poor delivery experience, they will look to use a new supplier without a moment’s hesitation.
To be a successful business, companies need to embrace a policy of dynamic logistics and use processes and technology that can help them operate in the real-time multi-channel arena. Businesses must be equipped better for a more customer focused 21st century business environment where a dynamic logistics process will help drive their organisation forward.
[1] http://www.powerretail.com.au/news/online-retail-supply-chain-summit-2015-kicks-off/
