Delivery management can be defined as the sum of all the processes applied to transfer goods from the warehouse to the end destination efficiently. Delivery management gets things moving all along the supply chain and is also alternatively called fleet management.
With so many e-commerce businesses picking up, consumers are empowered to buy from so many choices and options. With the increase in options for consumers comes the pressure on organizations to have the deliveries done more effectively to keep up with the competitors.
Delivery Management: The Process
The function of delivery management is usually taken care of by a designated person called the dispatch or logistics manager. The manager is the person in charge of managing the delivery and the driver operations as a whole.
The delivery manager is also the contact between the warehouses and the delivery personnel in small-scale companies. However, when the organization scales, or in the case of bigger firms, the delivery managers focus more on taking care of the problems associated with orders.
Improving The Delivery Management Process
Regardless of the size of your business, using delivery management software can help you improve your supply chain processes as a whole. This is because delivery management aims to cut down costs around deliveries as much as possible by optimally using the current resources. There are various tools and strategies that the managers apply to constantly improve the metrics and scale operations while also ensuring customer satisfaction.
Here are some ways how delivery management helps optimally run your supply chain –
By incorporating technology and algorithms, organizations can ensure that optimal routes are generated for the drivers to follow. Technology makes this process easier as it nullifies the need to undertake this complex process manually. It also avoids the need for human intervention that can more potentially create errors than algorithms can.
The route optimization software creates a route while, in advance, considering the possible roadblocks like traffic congestions, vehicle load capacity, driver schedules, etc. Besides, it can also give you an ETA that can be shared with the intended receiver to avoid the customer’s unavailability when the driver shows up for delivery.
An automatic dispatching tool helps to automatically assign delivery to a driver that is available and can realistically make the delivery in an ideal time frame. Even before delivery personnel leaves the warehouse, their deliveries of the day are assigned to them. So they have a clearer picture of what is expected of them on the day. Automatic dispatch further avoids mistakenly assigning the same delivery order to multiple drivers and helps delegate tasks equally. By incorporating automatic dispatching, you also save the manager a lot of time on his end, which can be better utilized to ensure customer satisfaction.
The ability to know exactly where your driver is can give the managers a lot of peace of mind as they are constantly logged in to take care of last-minute contingencies and roadblocks. If they are enabled to track a vehicle, a manager can also help ensure that the drivers don’t accidentally take a wrong route that can, in the bigger picture, help save up on a lot of resources.
With real-time visibility, since even the drivers know that they are being monitored, they might even be subconsciously driven to perform their optimal best. On the consumer end, this is further helpful because the support teams can update the customers on possible real-time delays.
- Proof of deliveries
Advanced delivery operations undertaken with technology’s help can bring in options like barcode scanning and app-based delivery acknowledgments to avoid all the paperwork. When personnel has to leave the package at the door or in a directed location, they can also take pictures of the dropped package and share it with the customer as proof. This proofing even helps organizations save themselves from possible customer allegations.
- Reduced operational costs
By enabling the tools of delivery management, you are essentially tracking all the moves of your drivers, which helps you get a holistic view of the efficiency of processes. The power of such data can help organizations reduce their costs by identifying the lags and acting on them before it’s too late.
Efficient intra-team communication channels
While, ideally, with route optimization and other processes mentioned earlier, there should not arise a need for your drivers and dispatchers to be in touch constantly. However, in reality, such situations might occur where intra-team communication is necessary, for example, if the driver cannot locate the drop-off location.
With real-time chat options, the guidance of the dispatchers, a key component of delivery management, can be more readily made available for the drivers.
All said and done, regardless of the size of your organization, your primary goal, in an ideal situation, would be profits with uncompromised customer satisfaction. As a process, delivery management focuses exactly on those two components by ensuring your customers get what they want while optimizing all your incurred costs on the way.
1. What is a delivery management system?
Delivery management is, in one line, the total of all processes that go behind ensuring goods are effectively and efficiently shipped from the warehouse to the end location. A delivery manager is a person that helps ensure that this function is optimally implied and goods are moved from one place to another in the expected timelines.
2. Is it necessary to have delivery management software?
As the customer demands and expectations continue to rise each day, so do the complexities around deliveries. Hence, it is ideal for organizations to consider putting delivery management software in place. By doing so, organizations can not only effectively scale their operations with the help of intelligent tech-driven solutions but also meet customer expectations.
3. Is delivery management the same as route optimization?
No, routing or route optimization is a mere feature of a delivery management software; it is a process or a feature that falls under the umbrella of delivery management software.