Delivery Services Optimization
Delivery services are leveraging Location Insights to optimize their supply chain and reduce delays in deliveries. Location Insights plays a substantial role in planning, managing, and monitoring the first and last-mile deliveries. And there is a lot of money associated with that.
How can Location Insight help to optimize your Delivery Service?
Planning Delivery Zones
Marking out a very large delivery zone might seem like an attractive prospect. A bigger catchment area means you get to even more customers, right? Not necessarily.
Keeping the delays low
Keeping the delays down can be extremely costly if you do not optimize the whole system.
It can lead to high costs and exhaustion of resources.
Matching the supply and demand
CleverMaps will help you undercover the mismatch of capacities and customer demand to maximize order fulfilment and reduce idle resources.
Last Mile Support
When you set your delivery zones, reduce the delays, cover the demand for your services the one thing left is the final step - the Last Mile Delivery.
Plan your delivery zones for maximum profit
The challenge for any delivery businesses is to choose the right delivery zone. Customer experience improves if they get their orders faster and when it comes to food delivery shorter delivery distances are important because the food quality increases.
The foundation of effective delivery zones planning:
- Customers and orders data - spatial distribution of the customers and their orders
- Historical data (e.g. typical Monday pattern)
- Transportation data such as driving routes, driving times, traffic density, etc.
Delivery zones are in fact a multi-criteria optimization function. You should keep all the main performance drivers in your algorithm formula and be able to adjust them on the fly. This allows for great ahead planning as well as for real-time adjustments.
Keep the delays low for higher Customer Retention
Keeping the delays down can be extremely costly if you do not optimize the whole system.
It can lead to high costs and exhaustion of resources.
Delivery delays are the critical element of the whole delivery services concept. It affects customer satisfaction, but it also frequently influences overall profitability. The typical causes of delays:
- Warehouses placements concerning orders placements
- Orders frequency and timing
- Order delivery sequence and patterns
- Available vs idle Capacity
- Traffic changes
Same as the delivery zones planning, this is a complex multi-criteria optimization process. The result is a well-balanced system that works both for customers and the economic efficiency of the delivery.
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Match the supply and demand and grow your business
CleverMaps will help you undercover the mismatch of capacities and customer demand to maximize order fulfilment
and reduce idle resources.
Supply and demand analysis helps you determine where, when and why the gap between supply and demand happens. Each demand that's not met means a lost opportunity. Each car or delivery vehicle which is idle generates a loss for the operator.
Typical metrics for supply-demand analysis:
- Number of Orders Lost to Order Frequency
- Idle Capacity vs Available Capacity
- Distance of potential available Orders to available Capacity
Balancing the inputs and outputs is crucial in the quest for good efficiency and economic stability in delivery services. Whether you transport people, goods, documents or fresh food, you will always rely on this.
Master the Last Mile
Like in the previous areas, the Last mile is another example of a multi-factor based analysis. However, this time, we need to combine the historical trends with real-time analysis of matching the orders with the available means of transport with the correct delivery type and customer preferences.
The last mile concept is something like a holy grail of deliveries. You can have all the supply chain and supply-demand matching done well, but what matters the most is the triumphant, fast and convenient delivery or pickup when it comes to the Last mile. Otherwise, it can destroy all precedent hard work and processes.
What we analyze to master the last mile:
- Orders frequency and delivery times
- Typical areas and times based clusters of delayed orders
- Flexibility for a change (another time slot, another available vehicle, another pickup point, etc.)
- Data about customer preferences
- Near real-time access to the data and on-the-fly performing analytics
